Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥16.41, the stock trades at a trailing P/E ratio of 47.3x. Average trailing P/E is 53x in the Machinery industry in China. Total returns to shareholders of 96% over the past three years. Announcement • Apr 27
Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 19, 2026 Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 19, 2026, at 15:00 China Standard Time. Location: 16F, Building 1, No. 1, Hubin Road, Longwen District, Zhangzhou, Fujian China New Risk • Apr 04
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.2% net profit margin). Announcement • Mar 30
Fujian Longxi Bearing (Group) Co., Ltd to Report Q1, 2026 Results on Apr 27, 2026 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report Q1, 2026 results on Apr 27, 2026 New Risk • Mar 03
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.2% net profit margin). Announcement • Dec 26
Fujian Longxi Bearing (Group) Co., Ltd to Report Fiscal Year 2025 Results on Apr 27, 2026 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report fiscal year 2025 results on Apr 27, 2026 Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.13 (vs CN¥0.25 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.13 (down from CN¥0.25 in 3Q 2024). Revenue: CN¥321.8m (down 39% from 3Q 2024). Net income: CN¥52.2m (down 48% from 3Q 2024). Profit margin: 16% (down from 19% in 3Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 30
Fujian Longxi Bearing (Group) Co., Ltd to Report Q3, 2025 Results on Oct 28, 2025 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report Q3, 2025 results on Oct 28, 2025 Announcement • Jun 30
Fujian Longxi Bearing (Group) Co., Ltd to Report First Half, 2025 Results on Aug 27, 2025 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report first half, 2025 results on Aug 27, 2025 Reported Earnings • May 03
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.31 (down from CN¥0.42 in FY 2023). Revenue: CN¥1.78b (down 6.7% from FY 2023). Net income: CN¥125.3m (down 26% from FY 2023). Profit margin: 7.1% (down from 8.8% in FY 2023). Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 48% per year, which means it is well ahead of earnings. Announcement • Apr 30
Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 22, 2025 Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 22, 2025, at 15:00 China Standard Time. Location: 16F, Building 1, No. 1, Hubin Road, Longwen District, Zhangzhou, Fujian China Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥20.40, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 201% over the past three years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥15.19, the stock trades at a trailing P/E ratio of 36.2x. Average trailing P/E is 35x in the Machinery industry in China. Total returns to shareholders of 76% over the past three years. Announcement • Mar 28
Fujian Longxi Bearing (Group) Co., Ltd to Report Q1, 2025 Results on Apr 30, 2025 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report Q1, 2025 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥20.93, the stock trades at a trailing P/E ratio of 49.8x. Average trailing P/E is 43x in the Machinery industry in China. Total returns to shareholders of 137% over the past three years. New Risk • Mar 04
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 8.6% 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 (8.6% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥14.65, the stock trades at a trailing P/E ratio of 34.9x. Average trailing P/E is 40x in the Machinery industry in China. Total returns to shareholders of 51% over the past three years. Announcement • Dec 27
Fujian Longxi Bearing (Group) Co., Ltd to Report Fiscal Year 2024 Results on Apr 30, 2025 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report fiscal year 2024 results on Apr 30, 2025 New Risk • Nov 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.25 (up from CN¥0.12 in 3Q 2023). Revenue: CN¥524.0m (up 25% from 3Q 2023). Net income: CN¥101.2m (up 104% from 3Q 2023). Profit margin: 19% (up from 12% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Sep 30
Fujian Longxi Bearing (Group) Co., Ltd to Report Q3, 2024 Results on Oct 30, 2024 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥9.85, the stock trades at a trailing P/E ratio of 33.8x. Average trailing P/E is 29x in the Machinery industry in China. Total returns to shareholders of 12% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.073 (vs CN¥0.12 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.073 (down from CN¥0.12 in 2Q 2023). Revenue: CN¥512.2m (up 1.7% from 2Q 2023). Net income: CN¥29.1m (down 39% from 2Q 2023). Profit margin: 5.7% (down from 9.5% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
Fujian Longxi Bearing (Group) Co., Ltd to Report First Half, 2024 Results on Aug 27, 2024 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report first half, 2024 results on Aug 27, 2024 New Risk • May 14
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. This is currently the only risk that has been identified for the company. Announcement • Apr 29
Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 22, 2024 Fujian Longxi Bearing (Group) Co., Ltd, Annual General Meeting, May 22, 2024, at 14:45 China Standard Time. Location: 16F, Building 1, No. 1, Hubin Road, Longwen District, Zhangzhou, Fujian China Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.96, the stock trades at a trailing P/E ratio of 22.6x. Average trailing P/E is 29x in the Machinery industry in China. Total returns to shareholders of 11% over the past three years. Announcement • Mar 29
Fujian Longxi Bearing (Group) Co., Ltd to Report Q1, 2024 Results on Apr 27, 2024 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥8.19, the stock trades at a trailing P/E ratio of 16.9x. Average trailing P/E is 26x in the Machinery industry in China. Total loss to shareholders of 7.8% over the past three years. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥10.20, the stock trades at a trailing P/E ratio of 21x. Average trailing P/E is 31x in the Machinery industry in China. Total returns to shareholders of 1.1% over the past three years. Announcement • Dec 29
Fujian Longxi Bearing (Group) Co., Ltd to Report Fiscal Year 2023 Results on Apr 27, 2024 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report fiscal year 2023 results on Apr 27, 2024 New Risk • Nov 07
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 6.4% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥10.78, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 32x in the Machinery industry in China. Total loss to shareholders of 1.1% over the past three years. Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.062 loss in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.12 (up from CN¥0.062 loss in 3Q 2022). Revenue: CN¥419.9m (up 5.0% from 3Q 2022). Net income: CN¥49.7m (up CN¥74.6m from 3Q 2022). Profit margin: 12% (up from net loss in 3Q 2022). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
Fujian Longxi Bearing (Group) Co., Ltd to Report First Half, 2023 Results on Aug 26, 2023 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report first half, 2023 results on Aug 26, 2023 Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥9.68, the stock trades at a trailing P/E ratio of 48.9x. Average trailing P/E is 37x in the Machinery industry in China. Total loss to shareholders of 14% over the past three years. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.17 (vs CN¥0.041 loss in 1Q 2022) First quarter 2023 results: EPS: CN¥0.17 (up from CN¥0.041 loss in 1Q 2022). Revenue: CN¥487.7m (up 12% from 1Q 2022). Net income: CN¥68.7m (up CN¥85.1m from 1Q 2022). Profit margin: 14% (up from net loss in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Zhou Yu was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2022 earnings released: CN¥0.062 loss per share (vs CN¥0.15 profit in 3Q 2021) Third quarter 2022 results: CN¥0.062 loss per share (down from CN¥0.15 profit in 3Q 2021). Revenue: CN¥399.8m (up 11% from 3Q 2021). Net loss: CN¥24.9m (down 142% from profit in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.019 (vs CN¥0.21 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.019 (down from CN¥0.21 in 2Q 2021). Revenue: CN¥442.1m (up 14% from 2Q 2021). Net income: CN¥7.55m (down 91% from 2Q 2021). Profit margin: 1.7% (down from 22% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥7.03, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 26x in the Machinery industry in China. Total loss to shareholders of 24% over the past three years. Reported Earnings • Apr 27
First quarter 2022 earnings released: CN¥0.041 loss per share (vs CN¥0.06 profit in 1Q 2021) First quarter 2022 results: CN¥0.041 loss per share (down from CN¥0.06 profit in 1Q 2021). Revenue: CN¥434.8m (up 21% from 1Q 2021). Net loss: CN¥16.4m (down 168% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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. 4 experienced directors. 1 highly experienced director. 2 independent directors (3 non-independent directors). Chairman Fanpei Zen was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 08
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: CN¥0.75 (up from CN¥0.38 in FY 2020). Revenue: CN¥1.43b (up 24% from FY 2020). Net income: CN¥299.6m (up 99% from FY 2020). Profit margin: 21% (up from 13% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.21 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥359.3m (up 12% from 3Q 2020). Net income: CN¥60.0m (down 28% from 3Q 2020). Profit margin: 17% (down from 26% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 17% per year. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥9.05, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 55% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.21 (vs CN¥0.14 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥388.6m (up 29% from 2Q 2020). Net income: CN¥84.5m (up 51% from 2Q 2020). Profit margin: 22% (up from 19% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 19% per year and the company’s share price has also increased by 19% per year. Reported Earnings • Apr 10
Full year 2020 earnings released: EPS CN¥0.38 (vs CN¥0.37 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥1.16b (up 23% from FY 2019). Net income: CN¥149.6m (up 2.2% from FY 2019). Profit margin: 13% (down from 16% in FY 2019). Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 9% per year. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥9.41 The company is down 18% from its price of CN¥11.47 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: CN¥9.45 The company is down 17% from its price of CN¥11.32 on 23 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 5.0% over the same period. Is New 90 Day High Low • Dec 02
New 90-day low: CN¥10.80 The company is down 7.0% from its price of CN¥11.58 on 03 September 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 2.0% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥147.3m, up 32% from the prior year. Total revenue was CN¥1.08b over the last 12 months, up 19% from the prior year. Announcement • Jul 08
Fujian Longxi Bearing (Group) Co., Ltd to Report First Half, 2020 Results on Aug 20, 2020 Fujian Longxi Bearing (Group) Co., Ltd announced that they will report first half, 2020 results on Aug 20, 2020