Buy Or Sell Opportunity • Jun 17
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 72% to CN¥179. The fair value is estimated to be CN¥144, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has declined by 41%. Revenue is forecast to grow by 107% in 2 years. Earnings are forecast to grow by 1,095% in the next 2 years. New Risk • Jun 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Major Estimate Revision • May 09
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥13.4b to CN¥13.1b. EPS estimate also fell from CN¥1.50 per share to CN¥1.31 per share. Net income forecast to grow 494% next year vs 60% growth forecast for Electrical industry in China. Consensus price target up from CN¥117 to CN¥140. Share price rose 2.1% to CN¥123 over the past week. Price Target Changed • May 05
Price target increased by 13% to CN¥132 Up from CN¥117, the current price target is an average from 6 analysts. New target price is 9.7% above last closing price of CN¥120. Stock is up 160% over the past year. The company is forecast to post earnings per share of CN¥1.48 for next year compared to CN¥0.27 last year. Reported Earnings • Apr 30
Full year 2025 earnings released: EPS: CN¥0.27 (vs CN¥0.86 in FY 2024) Full year 2025 results: EPS: CN¥0.27 (down from CN¥0.86 in FY 2024). Revenue: CN¥9.40b (up 15% from FY 2024). Net income: CN¥145.8m (down 67% from FY 2024). Profit margin: 1.6% (down from 5.3% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 56% per year, which means it is well ahead of earnings. Announcement • Apr 29
Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 27, 2026 Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 27, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Announcement • Mar 31
Shenzhen Megmeet Electrical Co., LTD to Report Q1, 2026 Results on Apr 29, 2026 Shenzhen Megmeet Electrical Co., LTD announced that they will report Q1, 2026 results on Apr 29, 2026 Major Estimate Revision • Mar 03
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥0.645 to CN¥0.574 per share. Revenue forecast steady at CN¥9.75b. Net income forecast to grow 193% next year vs 46% growth forecast for Electrical industry in China. Consensus price target up from CN¥101 to CN¥111. Share price rose 6.8% to CN¥127 over the past week. Price Target Changed • Mar 02
Price target increased by 10% to CN¥111 Up from CN¥101, the current price target is an average from 7 analysts. New target price is 16% below last closing price of CN¥132. Stock is up 163% over the past year. The company is forecast to post earnings per share of CN¥0.67 for next year compared to CN¥0.87 last year. Announcement • Dec 31
Shenzhen Megmeet Electrical Co., LTD to Report Fiscal Year 2025 Results on Apr 29, 2026 Shenzhen Megmeet Electrical Co., LTD announced that they will report fiscal year 2025 results on Apr 29, 2026 Price Target Changed • Dec 13
Price target increased by 10% to CN¥85.82 Up from CN¥77.67, the current price target is an average from 5 analysts. New target price is 8.1% above last closing price of CN¥79.37. Stock is up 98% over the past year. The company is forecast to post earnings per share of CN¥0.70 for next year compared to CN¥0.87 last year. Board Change • Dec 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Independent Director Pan Chu was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.072 (vs CN¥0.19 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.072 (down from CN¥0.19 in 3Q 2024). Revenue: CN¥2.12b (up 12% from 3Q 2024). Net income: CN¥39.0m (down 60% from 3Q 2024). Profit margin: 1.8% (down from 5.1% in 3Q 2024). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 38% per year, which means it is well ahead of earnings. Announcement • Sep 30
Shenzhen Megmeet Electrical Co., LTD to Report Q3, 2025 Results on Oct 30, 2025 Shenzhen Megmeet Electrical Co., LTD announced that they will report Q3, 2025 results on Oct 30, 2025 Major Estimate Revision • Sep 05
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥10.6b to CN¥10.4b. EPS estimate also fell from CN¥1.19 per share to CN¥1.01 per share. Net income forecast to grow 149% next year vs 53% growth forecast for Electrical industry in China. Consensus price target up from CN¥55.91 to CN¥75.91. Share price fell 15% to CN¥75.98 over the past week. Price Target Changed • Sep 02
Price target increased by 16% to CN¥64.91 Up from CN¥55.91, the current price target is an average from 5 analysts. New target price is 20% below last closing price of CN¥80.83. Stock is up 236% over the past year. The company is forecast to post earnings per share of CN¥1.14 for next year compared to CN¥0.87 last year. Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: CN¥0.12 (vs CN¥0.35 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.12 (down from CN¥0.35 in 2Q 2024). Revenue: CN¥2.36b (up 8.1% from 2Q 2024). Net income: CN¥66.3m (down 62% from 2Q 2024). Profit margin: 2.8% (down from 8.1% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 41% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Jul 18
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to CN¥58.38. The fair value is estimated to be CN¥48.23, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 5.1%. Revenue is forecast to grow by 65% in 2 years. Earnings are forecast to grow by 141% in the next 2 years. Declared Dividend • Jul 09
Dividend reduced to CN¥0.05 Dividend of CN¥0.05 is 77% lower than last year. Ex-date: 11th July 2025 Payment date: 11th July 2025 Dividend yield will be 0.1%, which is lower than the industry average of 1.6%. Payout Ratios Payout ratio: 6%. Cash payout ratio: 30%. Announcement • Jul 02
Shenzhen Megmeet Electrical Co., LTD to Report First Half, 2025 Results on Aug 30, 2025 Shenzhen Megmeet Electrical Co., LTD announced that they will report first half, 2025 results on Aug 30, 2025 Announcement • May 22
Shenzhen Megmeet Electrical Co., Ltd Approves Cash Dividend for the Year 2024 Shenzhen Megmeet Electrical Co., LTD held its Annual General Meeting of 2025 on 20 May 2025, approved the cash dividend (tax included) of CNY 0.50000000 per 10 shares for the year 2024. Major Estimate Revision • May 19
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥1.35 to CN¥1.19 per share. Revenue forecast steady at CN¥10.6b. Net income forecast to grow 78% next year vs 47% growth forecast for Electrical industry in China. Consensus price target down from CN¥54.92 to CN¥53.59. Share price fell 4.6% to CN¥45.79 over the past week. Major Estimate Revision • May 06
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥1.62 to CN¥1.26 per share. Revenue forecast steady at CN¥10.6b. Net income forecast to grow 92% next year vs 48% growth forecast for Electrical industry in China. Consensus price target down from CN¥58.23 to CN¥54.92. Share price rose 7.4% to CN¥46.20 over the past week. Reported Earnings • May 02
First quarter 2025 earnings released: EPS: CN¥0.20 (vs CN¥0.28 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.20 (down from CN¥0.28 in 1Q 2024). Revenue: CN¥2.32b (up 27% from 1Q 2024). Net income: CN¥107.3m (down 23% from 1Q 2024). Profit margin: 4.6% (down from 7.6% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 29
Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 20, 2025 Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 20, 2025, at 14:00 China Standard Time. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥51.08, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 19x in the Electrical industry in China. Total returns to shareholders of 148% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥70.86 per share. Buy Or Sell Opportunity • Apr 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.2% to CN¥56.75. The fair value is estimated to be CN¥71.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 60% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. Announcement • Mar 31
Shenzhen Megmeet Electrical Co., LTD to Report Q1, 2025 Results on Apr 29, 2025 Shenzhen Megmeet Electrical Co., LTD announced that they will report Q1, 2025 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥69.00, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 21x in the Electrical industry in China. Total returns to shareholders of 191% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥68.88 per share. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥50.81, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 21x in the Electrical industry in China. Total returns to shareholders of 101% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥49.58 per share. Buy Or Sell Opportunity • Feb 17
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 40% to CN¥61.34. The fair value is estimated to be CN¥49.25, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 58% in 2 years. Earnings are forecast to grow by 81% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥70.41, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 19x in the Electrical industry in China. Total returns to shareholders of 131% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥54.79 per share. Buy Or Sell Opportunity • Jan 08
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 150% to CN¥70.06. The fair value is estimated to be CN¥54.50, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 57% in 2 years. Earnings are forecast to grow by 81% in the next 2 years. Announcement • Dec 31
Shenzhen Megmeet Electrical Co., LTD to Report Fiscal Year 2024 Results on Apr 28, 2025 Shenzhen Megmeet Electrical Co., LTD announced that they will report fiscal year 2024 results on Apr 28, 2025 Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥51.06, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 19x in the Electrical industry in China. Total returns to shareholders of 61% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥54.59 per share. Buy Or Sell Opportunity • Dec 10
Now 25% undervalued Over the last 90 days, the stock has risen 70% to CN¥40.04. The fair value is estimated to be CN¥53.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. New Risk • Nov 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (5.3% increase in shares outstanding). New Risk • Nov 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (5.3% increase in shares outstanding). Buy Or Sell Opportunity • Nov 15
Now 22% undervalued Over the last 90 days, the stock has risen 89% to CN¥44.70. The fair value is estimated to be CN¥57.09, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 57% in 2 years. Earnings are forecast to grow by 85% in the next 2 years. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.19 (vs CN¥0.19 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.19 (up from CN¥0.19 in 3Q 2023). Revenue: CN¥1.89b (up 19% from 3Q 2023). Net income: CN¥96.6m (up 3.9% from 3Q 2023). Profit margin: 5.1% (down from 5.8% in 3Q 2023). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Oct 25
Now 21% undervalued Over the last 90 days, the stock has risen 81% to CN¥45.47. The fair value is estimated to be CN¥57.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 17%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 81% in the next 2 years. Price Target Changed • Oct 18
Price target increased by 11% to CN¥32.24 Up from CN¥28.94, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of CN¥33.86. Stock is up 23% over the past year. The company is forecast to post earnings per share of CN¥1.38 for next year compared to CN¥1.27 last year. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥33.86, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 18x in the Electrical industry in China. Total returns to shareholders of 4.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥42.21 per share. Announcement • Sep 30
Shenzhen Megmeet Electrical Co., LTD to Report Q3, 2024 Results on Oct 31, 2024 Shenzhen Megmeet Electrical Co., LTD announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥26.04, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Electrical industry in China. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥41.43 per share. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.35 (vs CN¥0.46 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.35 (down from CN¥0.46 in 2Q 2023). Revenue: CN¥2.18b (up 26% from 2Q 2023). Net income: CN¥176.1m (down 23% from 2Q 2023). Profit margin: 8.1% (down from 13% in 2Q 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jul 11
Shenzhen Megmeet Electrical Co., Ltd Announces Cash Dividend on Share A for the Year 2023, Payable on July 16, 2024 Shenzhen Megmeet Electrical Co., LTD announced Cash dividend/10 shares (tax included): CNY2.18000000 on share A for the year 2023. Record date: 15 July 2024, Ex-date: 16 July 2024 and Payment date: 16 July 2024. Announcement • Jun 29
Shenzhen Megmeet Electrical Co., LTD to Report First Half, 2024 Results on Aug 30, 2024 Shenzhen Megmeet Electrical Co., LTD announced that they will report first half, 2024 results on Aug 30, 2024 Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥30.17, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Electrical industry in China. Total loss to shareholders of 6.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥24.28 per share. Buy Or Sell Opportunity • May 22
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 25% to CN¥29.26. The fair value is estimated to be CN¥24.23, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 17%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 66% in the next 2 years. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥25.52, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 18x in the Electrical industry in China. Total loss to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥24.65 per share. New Risk • May 04
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • May 02
Shenzhen Megmeet Electrical Co., Ltd Proposes the Profit Distribution for 2023 Shenzhen Megmeet Electrical Co., LTD announced on 30 April 2024 the profit distribution proposal for 2023 as Cash dividend/10 shares (tax included): CNY 2.18000000. Announcement • May 01
Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 21, 2024 Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 21, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.28 (vs CN¥0.32 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.28 (down from CN¥0.32 in 1Q 2023). Revenue: CN¥1.83b (up 17% from 1Q 2023). Net income: CN¥138.5m (down 14% from 1Q 2023). Profit margin: 7.6% (down from 10% in 1Q 2023). Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Shenzhen Megmeet Electrical Co., LTD to Report Q1, 2024 Results on Apr 30, 2024 Shenzhen Megmeet Electrical Co., LTD announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥22.45, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Electrical industry in China. Total loss to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥37.15 per share. Announcement • Dec 30
Shenzhen Megmeet Electrical Co., LTD to Report Fiscal Year 2023 Results on Apr 27, 2024 Shenzhen Megmeet Electrical Co., LTD announced that they will report fiscal year 2023 results on Apr 27, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.19 (vs CN¥0.16 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.19 (up from CN¥0.16 in 3Q 2022). Revenue: CN¥1.59b (up 24% from 3Q 2022). Net income: CN¥93.0m (up 16% from 3Q 2022). Profit margin: 5.8% (down from 6.2% in 3Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Price Target Changed • Sep 02
Price target increased by 13% to CN¥44.10 Up from CN¥39.13, the current price target is an average from 5 analysts. New target price is 38% above last closing price of CN¥31.96. Stock is down 1.7% over the past year. The company is forecast to post earnings per share of CN¥1.42 for next year compared to CN¥0.95 last year. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.46 (vs CN¥0.31 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.46 (up from CN¥0.31 in 2Q 2022). Revenue: CN¥1.73b (up 14% from 2Q 2022). Net income: CN¥228.7m (up 52% from 2Q 2022). Profit margin: 13% (up from 10.0% in 2Q 2022). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥36.18, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 20x in the Electrical industry in China. Total returns to shareholders of 45% over the past three years. Announcement • May 31
Shenzhen Megmeet Electrical Co., LTD Announces Final Dividend on A Shares for the Year 2022, Payable on June 6, 2023 Shenzhen Megmeet Electrical Co., LTD announced final cash dividend/10 shares (tax included) of CNY 1.00000000 on A shares for the year 2022. Record date is June 5, 2023. Ex-date is June 6, 2023. Payment date is June 6, 2023. Reported Earnings • Apr 29
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CN¥0.95 (up from CN¥0.78 in FY 2021). Revenue: CN¥5.48b (up 32% from FY 2021). Net income: CN¥472.7m (up 22% from FY 2021). Profit margin: 8.6% (down from 9.4% in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 10%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. 1 independent director (2 non-independent directors). Non Independent Director Xuefen Wang was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 16
Shenzhen Megmeet Electrical Co., Ltd Approves Board Elections Shenzhen Megmeet Electrical Co., LTD in its 3rd Extraordinary General Meeting of 2022 on 14 November 2022 approved the election Tong Yongsheng, Zhang Zhi and Wang Xuefen as non-independent directors, Chu Pan and Liu Jianhua as independent directors, Liang Min and Zhao Wandong as non-employee supervisors. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.16 (vs CN¥0.25 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.16 (down from CN¥0.25 in 3Q 2021). Revenue: CN¥1.28b (up 30% from 3Q 2021). Net income: CN¥80.0m (down 36% from 3Q 2021). Profit margin: 6.2% (down from 13% in 3Q 2021). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.31 (vs CN¥0.23 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.31 (up from CN¥0.23 in 2Q 2021). Revenue: CN¥1.51b (up 44% from 2Q 2021). Net income: CN¥150.9m (up 32% from 2Q 2021). Profit margin: 10.0% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 24%, compared to a 55% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥30.75, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 27x in the Electrical industry in China. Total returns to shareholders of 60% over the past three years. Announcement • Jun 16
Shenzhen Megmeet Electrical Co., LTD Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2021, Payable on 21 June 2022 Shenzhen Megmeet Electrical Co., LTD announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.60000000 for the year 2021, payable on 21 June 2022. Record date: 20 June 2022. Ex-date: 21 June 2022. Net cash dividend per ten shares after tax: CNY 1.44000000 (CNY 1.60000000 – CNY 0.16000000). Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥24.81, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Electrical industry in China. Total returns to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥20.66 per share. Announcement • May 15
Shenzhen Megmeet Electrical Co., Ltd Approves Cash Dividend Shenzhen Megmeet Electrical Co., LTD at the AGM held on 12 May 2022, approved cash dividend of CNY 1.60000000 (tax included) per 10 shares. Major Estimate Revision • Apr 28
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from CN¥1.37 to CN¥0.97. Revenue forecast unchanged from CN¥5.40b at last update. Net income forecast to grow 43% next year vs 52% growth forecast for Electrical industry in China. Consensus price target down from CN¥39.84 to CN¥35.84. Share price fell 8.1% to CN¥18.10 over the past week. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.15 (down from CN¥0.16 in 1Q 2021). Revenue: CN¥1.19b (up 34% from 1Q 2021). Net income: CN¥73.5m (down 9.2% from 1Q 2021). Profit margin: 6.2% (down from 9.1% in 1Q 2021). Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 28%. Over the next year, revenue is forecast to grow 31%, compared to a 51% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Apr 24
Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 12, 2022 Shenzhen Megmeet Electrical Co., LTD, Annual General Meeting, May 12, 2022, at 13:30 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual report and its summary; to consider 2021 annual accounts; to consider 2021 profit distribution plan; to consider 2021 special report on the deposit and use of raised funds; to consider reappointment of audit firm; to consider 2022 remuneration plan for directors and supervisors; to consider 2022 application for comprehensive credit line to banks by the Company and its subsidiaries; to consider 2022 estimated guarantee quota of the Company and subsidiaries; to consider 2022 estimated continuing connected transactions; to consider cash management with temporarily idle raised funds; to consider cash management with temporarily idle proprietary funds; to consider application for issuance of small-ticket banker's acceptance bills by pledging lar-ticket banker's acceptance bills; and to consider other business matters. Announcement • Apr 23
Shenzhen Megmeet Electrical Co., LTD Proposes Cash Dividend for 2021 Shenzhen Megmeet Electrical Co., LTD proposed cash dividend of CNY 1.60000000 (tax included) per 10 shares for 2021. Price Target Changed • Apr 13
Price target decreased to CN¥39.84 Down from CN¥43.47, the current price target is an average from 3 analysts. New target price is 96% above last closing price of CN¥20.28. Stock is down 38% over the past year. The company is forecast to post earnings per share of CN¥1.07 for next year compared to CN¥0.84 last year. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.25 (vs CN¥0.26 in 3Q 2020) The company reported a solid third quarter result with improved revenues, although earnings and profit margins were flat. Third quarter 2021 results: Revenue: CN¥984.0m (up 7.6% from 3Q 2020). Net income: CN¥125.8m (flat on 3Q 2020). Profit margin: 13% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 29
Second quarter 2021 earnings released: EPS CN¥0.23 (vs CN¥0.21 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥1.05b (up 19% from 2Q 2020). Net income: CN¥114.2m (up 17% from 2Q 2020). Profit margin: 11% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 25% per year. Announcement • May 21
Shenzhen Megmeet Electrical Co., LTD Approves Cash Dividend for the Year 2020 Shenzhen Megmeet Electrical Co., LTD at its annual general meeting held on May 19, 2021, approved cash dividend per ten shares (tax included) of CNY 1.70000000 for the year 2020. Announcement • Apr 29
Shenzhen Megmeet Electrical Co., Ltd Announces Cash Dividend for the Year 2020 Shenzhen Megmeet Electrical Co., LTD announced Cash dividend/10 shares CNY 1.70000000 (tax included) for the year 2020. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS CN¥0.16 (vs CN¥0.12 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥889.6m (up 35% from 1Q 2020). Net income: CN¥81.0m (up 43% from 1Q 2020). Profit margin: 9.1% (up from 8.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 26% per year. Reported Earnings • Mar 04
Full year 2020 earnings released: EPS CN¥0.84 (vs CN¥0.78 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥3.40b (down 4.5% from FY 2019). Net income: CN¥403.5m (up 12% from FY 2019). Profit margin: 12% (up from 10% in FY 2019). The increase in margin was driven by lower expenses.