Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥34.43, the stock trades at a trailing P/E ratio of 37.8x. Average trailing P/E is 37x in the Auto Components industry in China. Total returns to shareholders of 127% over the past three years. Board Change • May 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. 6 experienced directors. 2 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Non-Executive Director Jiaming He was the last independent director to join the board, commencing their role in 2023. 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 • Apr 30
Full year 2025 earnings released: EPS: CN¥0.94 (vs CN¥0.94 in FY 2024) Full year 2025 results: EPS: CN¥0.94 (up from CN¥0.94 in FY 2024). Revenue: CN¥1.52b (up 12% from FY 2024). Net income: CN¥204.0m (flat on FY 2024). Profit margin: 13% (down from 15% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 29
Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 20, 2026 Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 20, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Dazhou, Sichuan China New Risk • Apr 09
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 Dividend is not well covered by cash flows (128% cash payout ratio). Share price has been volatile over the past 3 months (8.6% average weekly change). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥36.87, the stock trades at a trailing P/E ratio of 41.5x. Average trailing P/E is 36x in the Auto Components industry in China. Total returns to shareholders of 149% over the past three years. Announcement • Mar 31
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥28.07, the stock trades at a trailing P/E ratio of 31.6x. Average trailing P/E is 38x in the Auto Components industry in China. Total returns to shareholders of 70% over the past three years. Announcement • Jan 28
Sichuan Chuanhuan Technology Co.,Ltd. announced that it expects to receive CNY 1 billion in funding Sichuan Chuanhuan Technology Co.,Ltd. announced a private placement to issue 54,226,543 A shares for gross proceeds of CNY 1,000,000,000 on January 27, 2026. The issue price will not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction includes participation from 35 investors. The shares cannot be transferred within 6 months from the issuance closing date. The transaction has been approved in the 13th meeting of the company's 7th directorate and is subject to approvals from shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. Announcement • Dec 31
Sichuan Chuanhuan Technology Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥38.39, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 21x in the Auto Components industry in China. Total returns to shareholders of 180% over the past three years. Reported Earnings • Oct 23
Third quarter 2025 earnings released: EPS: CN¥0.18 (vs CN¥0.23 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.18 (down from CN¥0.23 in 3Q 2024). Revenue: CN¥361.4m (up 22% from 3Q 2024). Net income: CN¥38.4m (down 22% from 3Q 2024). Profit margin: 11% (down from 17% in 3Q 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 Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 30
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q3, 2025 Results on Oct 23, 2025 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q3, 2025 results on Oct 23, 2025 Valuation Update With 7 Day Price Move • Sep 04
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥41.86, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 23x in the Auto Components industry in China. Total returns to shareholders of 150% over the past three years. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥48.48, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 22x in the Auto Components industry in China. Total returns to shareholders of 152% over the past three years. New Risk • Aug 15
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 8.2% 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 Dividend is not well covered by cash flows (171% cash payout ratio). Share price has been volatile over the past 3 months (8.2% average weekly change). Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: CN¥0.24 (vs CN¥0.25 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.24 (down from CN¥0.25 in 2Q 2024). Revenue: CN¥372.3m (up 9.4% from 2Q 2024). Net income: CN¥52.2m (down 3.6% from 2Q 2024). Profit margin: 14% (down from 16% 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 Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥37.39, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 19x in the Auto Components industry in China. Total returns to shareholders of 94% over the past three years. Announcement • Jul 02
Sichuan Chuanhuan Technology Co.,Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • May 31
Dividend of CN¥0.28 announced Shareholders will receive a dividend of CN¥0.28. Ex-date: 5th June 2025 Payment date: 5th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not adequately covered by cash flows (91% cash payout ratio). The dividend has decreased over the past 96 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 101% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 22
Sichuan Chuanhuan Technology Co.,Ltd. Approves Final Cash Dividend for the Year 2024 Sichuan Chuanhuan Technology Co.,Ltd. at its AGM held on 16 May 2025, approved Cash dividend/10 shares (tax included): CNY 2.77000000. Announcement • Apr 23
Sichuan Chuanhuan Technology Co.,Ltd. Proposes Final Cash Dividend for the Year 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced on 22 April 2025 the profit distribution proposal for 2024 as follows: Cash dividend/10 shares (tax included): CNY2.77000000. Reported Earnings • Apr 22
First quarter 2025 earnings released: EPS: CN¥0.21 (vs CN¥0.20 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.21 (up from CN¥0.20 in 1Q 2024). Revenue: CN¥315.7m (up 5.6% from 1Q 2024). Net income: CN¥46.4m (up 5.1% from 1Q 2024). Profit margin: 15% (in line with 1Q 2024). Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 22
Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 16, 2025 Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 16, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Dazhou, Sichuan China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to CN¥26.17, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 21x in the Auto Components 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¥15.27 per share. Announcement • Mar 31
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q1, 2025 Results on Apr 22, 2025 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q1, 2025 results on Apr 22, 2025 Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥36.95, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 22x in the Auto Components industry in China. Total returns to shareholders of 222% over the past three years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥35.66, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 21x in the Auto Components industry in China. Total returns to shareholders of 164% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥14.56 per share. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥30.50, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the Auto Components industry in China. Total returns to shareholders of 124% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.17 per share. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥22.27, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 18x in the Auto Components industry in China. Total returns to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.42 per share. New Risk • Jan 03
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 12% 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 (12% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (4.6% increase in shares outstanding). Announcement • Dec 31
Sichuan Chuanhuan Technology Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥24.41, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Auto Components industry in China. Total returns to shareholders of 75% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.32 per share. Buy Or Sell Opportunity • Dec 19
Now 26% overvalued after recent price rise Over the last 90 days, the stock has risen 44% to CN¥19.23. The fair value is estimated to be CN¥15.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 55% in 2 years. Earnings are forecast to grow by 56% in the next 2 years. Announcement • Nov 23
Sichuan Chuanhuan Technology Co.,Ltd. Announces Profit Distribution Plan (A Shares) for Third Quarter 2024, Payable on 28 November 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced 2024 third quarter profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): CNY 1.40000000. Record date: 27 November 2024; Ex-date: 28 November 2024; Payment date: 28 November 2024. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to CN¥22.79, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Auto Components industry in China. Total returns to shareholders of 113% over the past three years. Reported Earnings • Oct 28
Third quarter 2024 earnings released: EPS: CN¥0.23 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.23 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥297.2m (up 3.7% from 3Q 2023). Net income: CN¥49.2m (up 3.8% from 3Q 2023). Profit margin: 17% (in line with 3Q 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥18.90, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Auto Components industry in China. Total returns to shareholders of 73% over the past three years. Announcement • Sep 30
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 28, 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 28, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥15.46, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 14x in the Auto Components industry in China. Total returns to shareholders of 56% over the past three years. Price Target Changed • Sep 04
Price target decreased by 16% to CN¥21.00 Down from CN¥25.00, the current price target is provided by 1 analyst. New target price is 46% above last closing price of CN¥14.35. Stock is down 5.4% over the past year. The company is forecast to post earnings per share of CN¥1.06 for next year compared to CN¥0.75 last year. Major Estimate Revision • Sep 04
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥1.51b to CN¥1.48b. EPS estimate also fell from CN¥1.18 per share to CN¥1.06 per share. Net income forecast to grow 29% next year vs 34% growth forecast for Auto Components industry in China. Consensus price target down from CN¥25.00 to CN¥21.00. Share price was steady at CN¥14.35 over the past week. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.18 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.25 (up from CN¥0.18 in 2Q 2023). Revenue: CN¥340.2m (up 34% from 2Q 2023). Net income: CN¥54.2m (up 39% from 2Q 2023). Profit margin: 16% (in line with 2Q 2023). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. New Risk • Aug 20
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 7.0% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.0% average weekly change). Announcement • Jun 29
Sichuan Chuanhuan Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Declared Dividend • Jun 08
Dividend of CN¥0.28 announced Dividend of CN¥0.28 is the same as last year. Ex-date: 14th June 2024 Payment date: 14th June 2024 Dividend yield will be 1.7%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (33% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 91% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 08
Sichuan Chuanhuan Technology Co.,Ltd. Announces Implementation of Final Profit Distribution Plan (A Shares) for 2023, Payable on 14 June 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced 2023 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 2.77000000. Record date: 13 June 2024, Ex-date: 14 June 2024, Payment date: 14 June 2024. Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥19.87, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Auto Components industry in China. Total returns to shareholders of 89% over the past three years. Announcement • Apr 23
Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 16, 2024 Sichuan Chuanhuan Technology Co.,Ltd., Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Dazhou, Sichuan China Reported Earnings • Apr 22
First quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.10 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.20 (up from CN¥0.10 in 1Q 2023). Revenue: CN¥299.0m (up 46% from 1Q 2023). Net income: CN¥44.2m (up 96% from 1Q 2023). Profit margin: 15% (up from 11% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Auto Components 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 increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 30
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q1, 2024 Results on Apr 22, 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q1, 2024 results on Apr 22, 2024 Reported Earnings • Mar 14
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.76 (up from CN¥0.56 in FY 2022). Revenue: CN¥1.11b (up 22% from FY 2022). Net income: CN¥164.1m (up 34% from FY 2022). Profit margin: 15% (up from 14% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 1.3%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Auto Components 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 28% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥12.36, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Auto Components industry in China. Total returns to shareholders of 63% over the past three years. Announcement • Dec 29
Sichuan Chuanhuan Technology Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 22, 2024 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 22, 2024 New Risk • Dec 05
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 8.0% 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 Risks Share price has been highly volatile over the past 3 months (8.0% average weekly change). Earnings have declined by 0.4% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (dividend per share is over 7x cash flows per share). Reported Earnings • Oct 18
Third quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.15 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.15 in 3Q 2022). Revenue: CN¥286.5m (up 19% from 3Q 2022). Net income: CN¥47.3m (up 43% from 3Q 2022). Profit margin: 17% (up from 14% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 7% per year. New Risk • Oct 12
New major risk - Revenue and earnings growth Earnings have declined by 2.1% 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 2.1% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.5% average weekly change). New Risk • Oct 09
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. 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 (6.4% average weekly change). Announcement • Sep 02
Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) announces an Equity Buyback for CNY 20 million worth of its shares. Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) announces a share repurchase program. Under the program, the company will repurchase up to CNY 20 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 22.86 per share. The repurchased shares will be used for the implementation of ESOP or equity incentive plan. If the company fails to use the shares for the aforementioned purposes within 36 months after the completion of the share repurchase, the unused portion of the repurchased shares shall be cancelled. The program will be funded from company's own funds. The program will be valid for 6 months. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.18 (vs CN¥0.14 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.18 (up from CN¥0.14 in 2Q 2022). Revenue: CN¥254.5m (up 30% from 2Q 2022). Net income: CN¥38.9m (up 27% from 2Q 2022). Profit margin: 15% (in line with 2Q 2022). 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 10% per year. Upcoming Dividend • Jun 19
Upcoming dividend of CN¥0.28 per share at 1.7% yield Eligible shareholders must have bought the stock before 26 June 2023. Payment date: 26 June 2023. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 1.7%. Lower than top quartile of Chinese dividend payers (2.0%). Higher than average of industry peers (1.5%). Announcement • Jun 16
Sichuan Chuanhuan Technology Co.,Ltd. Implements Final Cash Dividend on A Shares for 2022, Payable on 26 June 2023 Sichuan Chuanhuan Technology Co.,Ltd. implemented final cash dividend per 10 shares (tax included) on A Shares of CNY 2.7700000 for 2022. Record date is 21 June 2023. Ex-date is 26 June 2023. Payment date is 26 June 2023. Reported Earnings • Apr 28
Full year 2022 earnings released: EPS: CN¥0.56 (vs CN¥0.48 in FY 2021) Full year 2022 results: EPS: CN¥0.56 (up from CN¥0.48 in FY 2021). Revenue: CN¥907.0m (up 17% from FY 2021). Net income: CN¥122.4m (up 17% from FY 2021). Profit margin: 14% (in line with FY 2021). 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 27% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. 3 highly experienced directors. Director Jisheng Wang is the most experienced director on the board, commencing their role in 2005. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥19.06, the stock trades at a trailing P/E ratio of 38.9x. Average trailing P/E is 43x in the Auto Components industry in China. Total returns to shareholders of 118% over the past three years. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.15 (vs CN¥0.086 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.15 (up from CN¥0.086 in 3Q 2021). Revenue: CN¥241.0m (up 49% from 3Q 2021). Net income: CN¥33.1m (up 78% from 3Q 2021). Profit margin: 14% (up from 12% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.14 (vs CN¥0.14 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.14 (up from CN¥0.14 in 2Q 2021). Revenue: CN¥196.1m (down 1.5% from 2Q 2021). Net income: CN¥30.6m (up 2.8% from 2Q 2021). Profit margin: 16% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Board Change • Aug 25
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 3 highly experienced directors. Director Jisheng Wang is the most experienced director on the board, commencing their role in 2005. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Jun 09
Sichuan Chuanhuan Technology Co.,Ltd. Announces Final Dividend on A Shares for the Year 2021, Payable on June 16, 2022 Sichuan Chuanhuan Technology Co.,Ltd. announced final cash dividend/10 shares (tax included) of CNY 2.77000000 on A shares for the year 2021. Record date is June 15, 2022. Ex-date is June 16, 2022. Payment date is June 16, 2022. Reported Earnings • Apr 28
First quarter 2022 earnings released: EPS: CN¥0.097 (vs CN¥0.094 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.097 (up from CN¥0.094 in 1Q 2021). Revenue: CN¥192.6m (up 11% from 1Q 2021). Net income: CN¥21.1m (up 2.8% from 1Q 2021). Profit margin: 11% (in line with 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 3% per year. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 3 highly experienced directors. Director Jisheng Wang is the most experienced director on the board, commencing their role in 2005. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥11.69, the stock trades at a trailing P/E ratio of 23x. Average trailing P/E is 34x in the Auto Components industry in China. Total loss to shareholders of 10% over the past three years. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥15.64, the stock trades at a trailing P/E ratio of 30.8x. Average trailing P/E is 43x in the Auto Components industry in China. Total returns to shareholders of 85% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.086 (vs CN¥0.14 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥161.8m (down 9.2% from 3Q 2020). Net income: CN¥18.6m (down 40% from 3Q 2020). Profit margin: 12% (down from 17% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥12.48, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 32x in the Auto Components industry in China. Total returns to shareholders of 55% over the past three years. Reported Earnings • Aug 30
Second quarter 2021 earnings released: EPS CN¥0.14 (vs CN¥0.12 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥199.1m (up 28% from 2Q 2020). Net income: CN¥29.8m (up 17% from 2Q 2020). Profit margin: 15% (down from 16% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥8.83, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 31x in the Auto Components industry in China. Total loss to shareholders of 16% over the past three years. Announcement • May 22
Sichuan Chuanhuan Technology Co.,Ltd. Approves Cash Dividend for 2020 Sichuan Chuanhuan Technology Co.,Ltd. approved cash dividend (tax included) of CNY 2.77000000 per 10 shares for 2020 at the AGM held on May 20, 2020. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥10.30, the stock trades at a trailing P/E ratio of 18.9x. Average trailing P/E is 30x in the Auto Components industry in China. Total loss to shareholders of 27% over the past three years. Announcement • Apr 30
Sichuan Chuanhuan Technology Co.,Ltd. Proposes Final Cash Dividend for the Year 2020 Sichuan Chuanhuan Technology Co.,Ltd. proposed final Cash dividend/10 shares (tax included): CNY 2.77000000 for the year 2020. Reported Earnings • Apr 29
Full year 2020 earnings released: EPS CN¥0.52 (vs CN¥0.52 in FY 2019) The company reported a mediocre full year result with weaker profit margins, although earnings were flat and revenues improved. Full year 2020 results: Revenue: CN¥677.5m (up 18% from FY 2019). Net income: CN¥112.8m (flat on FY 2019). Profit margin: 17% (down from 20% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Feb 03
New 90-day low: CN¥8.35 The company is down 36% from its price of CN¥13.00 on 05 November 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 1.0% over the same period. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥9.98, the stock is trading at a trailing P/E ratio of 21x, up from the previous P/E ratio of 17.7x. This compares to an average P/E of 35x in the Auto Components industry in China. Total return to shareholders over the past three years is a loss of 29%. Is New 90 Day High Low • Jan 13
New 90-day low: CN¥8.36 The company is down 49% from its price of CN¥16.51 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥8.67, the stock is trading at a trailing P/E ratio of 18.2x, down from the previous P/E ratio of 22.1x. This compares to an average P/E of 35x in the Auto Components industry in China. Total return to shareholders over the past three years is a loss of 35%. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥9.99 The company is down 5.0% from its price of CN¥10.57 on 29 September 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is up 7.0% over the same period. Valuation Update With 7 Day Price Move • Nov 16
Market pulls back on stock over the past week After last week's 15% share price decline to CN¥12.01, the stock is trading at a trailing P/E ratio of 25.2x, down from the previous P/E ratio of 29.8x. This compares to an average P/E of 39x in the Auto Components industry in China. Total return to shareholders over the past three years is a loss of 20%. Reported Earnings • Oct 21
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥103.0m, down 18% from the prior year. Total revenue was CN¥643.8m over the last 12 months, up 25% from the prior year. Announcement • Oct 16
Sichuan Chuanhuan Technology Co.,Ltd. to Report Q3, 2020 Results on Oct 20, 2020 Sichuan Chuanhuan Technology Co.,Ltd. announced that they will report Q3, 2020 results on Oct 20, 2020 Valuation Update With 7 Day Price Move • Oct 14
Market bids up stock over the past week After last week's 32% share price gain to CN¥14.76, the stock is trading at a trailing P/E ratio of 32.5x, up from the previous P/E ratio of 24.7x. This compares to an average P/E of 43x in the Auto Components industry in China. Total returns to shareholders over the past three years were flat. Is New 90 Day High Low • Oct 13
New 90-day high: CN¥12.30 The company is up 45% from its price of CN¥8.48 on 15 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 9.0% over the same period.