Board Change • Jul 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Director Zidong Wang 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. Board Change • Jul 20
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Director Zidong Wang was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 30
Ling Yun Industrial Corporation Limited to Report First Half, 2026 Results on Aug 25, 2026 Ling Yun Industrial Corporation Limited announced that they will report first half, 2026 results on Aug 25, 2026 Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥8.12, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 18x in the Auto Components industry in China. Total returns to shareholders of 49% over the past three years. Buy Or Sell Opportunity • Jun 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.2% to CN¥10.12. The fair value is estimated to be CN¥12.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.7% over the last 3 years. Earnings per share has grown by 15%. Revenue is forecast to grow by 5.7% in a year. Earnings are forecast to grow by 12% in the next year. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥11.68, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 21x in the Auto Components industry in China. Total returns to shareholders of 114% over the past three years. Reported Earnings • Apr 28
First quarter 2026 earnings released: EPS: CN¥0.13 (vs CN¥0.18 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.13 (down from CN¥0.18 in 1Q 2025). Revenue: CN¥4.57b (up 5.3% from 1Q 2025). Net income: CN¥153.4m (down 29% from 1Q 2025). Profit margin: 3.4% (down from 5.0% in 1Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 20% per year. Announcement • Apr 28
Ling Yun Industrial Corporation Limited, Annual General Meeting, May 19, 2026 Ling Yun Industrial Corporation Limited, Annual General Meeting, May 19, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Zhuozhou, Hebei China Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥11.47, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Auto Components industry in China. Total returns to shareholders of 117% over the past three years. Announcement • Mar 30
Ling Yun Industrial Corporation Limited to Report Q1, 2026 Results on Apr 28, 2026 Ling Yun Industrial Corporation Limited announced that they will report Q1, 2026 results on Apr 28, 2026 Buy Or Sell Opportunity • Feb 04
Now 20% overvalued Over the last 90 days, the stock has fallen 10% to CN¥11.72. The fair value is estimated to be CN¥9.76, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.7% over the last 3 years. Earnings per share has grown by 23%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 42% in the next 2 years. Announcement • Dec 26
Ling Yun Industrial Corporation Limited to Report Fiscal Year 2025 Results on Apr 28, 2026 Ling Yun Industrial Corporation Limited announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.13 (vs CN¥0.085 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.13 (up from CN¥0.085 in 3Q 2024). Revenue: CN¥4.81b (up 9.0% from 3Q 2024). Net income: CN¥155.3m (up 53% from 3Q 2024). Profit margin: 3.2% (up from 2.3% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.7% 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 whereas the company’s share price has increased by 27% per year. Announcement • Sep 30
Ling Yun Industrial Corporation Limited to Report Q3, 2025 Results on Oct 28, 2025 Ling Yun Industrial Corporation Limited announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: CN¥0.18 (vs CN¥0.15 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.18 (up from CN¥0.15 in 2Q 2024). Revenue: CN¥4.92b (up 6.1% from 2Q 2024). Net income: CN¥217.8m (up 23% from 2Q 2024). Profit margin: 4.4% (up from 3.8% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.8% 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 26% per year whereas the company’s share price has increased by 29% per year. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥15.05, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 23x 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¥6.39 per share. Announcement • Jun 30
Ling Yun Industrial Corporation Limited to Report First Half, 2025 Results on Aug 26, 2025 Ling Yun Industrial Corporation Limited announced that they will report first half, 2025 results on Aug 26, 2025 Reported Earnings • May 02
First quarter 2025 earnings released: EPS: CN¥0.23 (vs CN¥0.24 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.23 (down from CN¥0.24 in 1Q 2024). Revenue: CN¥4.34b (flat on 1Q 2024). Net income: CN¥215.1m (down 2.9% from 1Q 2024). Profit margin: 5.0% (down from 5.2% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 32% per year. Announcement • Apr 29
Ling Yun Industrial Corporation Limited, Annual General Meeting, May 20, 2025 Ling Yun Industrial Corporation Limited, Annual General Meeting, May 20, 2025, at 10:00 China Standard Time. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥12.93, the stock trades at a trailing P/E ratio of 17.6x. Average trailing P/E is 29x in the Auto Components industry in China. Total returns to shareholders of 69% over the past three years. New Risk • Apr 07
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 9.8% 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 (9.8% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buy Or Sell Opportunity • Mar 31
Now 23% undervalued Over the last 90 days, the stock has risen 53% to CN¥16.57. The fair value is estimated to be CN¥21.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 34%. Announcement • Mar 28
Ling Yun Industrial Corporation Limited to Report Q1, 2025 Results on Apr 29, 2025 Ling Yun Industrial Corporation Limited announced that they will report Q1, 2025 results on Apr 29, 2025 Buy Or Sell Opportunity • Mar 13
Now 25% undervalued Over the last 90 days, the stock has risen 33% to CN¥15.90. The fair value is estimated to be CN¥21.15, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 34%. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥17.75, the stock trades at a trailing P/E ratio of 24.2x. Average trailing P/E is 37x in the Auto Components industry in China. Total returns to shareholders of 99% over the past three years. Buy Or Sell Opportunity • Feb 24
Now 21% undervalued Over the last 90 days, the stock has risen 70% to CN¥16.78. The fair value is estimated to be CN¥21.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 34%. New Risk • Feb 19
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 8.5% 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 (8.5% average weekly change). Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥15.50, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Auto Components industry in China. Total returns to shareholders of 81% over the past three years. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥11.76, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Auto Components industry in China. Total returns to shareholders of 24% over the past three years. Announcement • Dec 27
Ling Yun Industrial Corporation Limited to Report Fiscal Year 2024 Results on Apr 29, 2025 Ling Yun Industrial Corporation Limited announced that they will report fiscal year 2024 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥12.04, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 18x in the Auto Components industry in China. Total returns to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.21, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the Auto Components industry in China. Total returns to shareholders of 12% over the past three years. Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.13 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.11 (down from CN¥0.13 in 3Q 2023). Revenue: CN¥4.41b (down 7.2% from 3Q 2023). Net income: CN¥101.6m (down 15% from 3Q 2023). Profit margin: 2.3% (down from 2.5% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% 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 34% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Oct 04
Upcoming dividend of CN¥0.10 per share Eligible shareholders must have bought the stock before 11 October 2024. Payment date: 11 October 2024. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of Chinese dividend payers (2.2%). Higher than average of industry peers (1.5%). Announcement • Sep 30
Ling Yun Industrial Corporation Limited to Report Q3, 2024 Results on Oct 26, 2024 Ling Yun Industrial Corporation Limited announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥9.50, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Auto Components industry in China. Total returns to shareholders of 19% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.26 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.20 (down from CN¥0.26 in 2Q 2023). Revenue: CN¥4.64b (down 1.1% from 2Q 2023). Net income: CN¥177.6m (down 26% from 2Q 2023). Profit margin: 3.8% (down from 5.1% in 2Q 2023). Revenue is forecast to grow 9.5% 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 33% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Declared Dividend • Jul 08
Dividend increased to CN¥0.25 Dividend of CN¥0.25 is 127% higher than last year. Ex-date: 12th July 2024 Payment date: 12th July 2024 Dividend yield will be 2.7%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 2.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 24% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 28
Ling Yun Industrial Corporation Limited to Report First Half, 2024 Results on Aug 27, 2024 Ling Yun Industrial Corporation Limited announced that they will report first half, 2024 results on Aug 27, 2024 Valuation Update With 7 Day Price Move • May 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥11.81, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Auto Components industry in China. Total returns to shareholders of 24% over the past three years. Announcement • May 01
Ling Yun Industrial Corporation Limited, Annual General Meeting, May 24, 2024 Ling Yun Industrial Corporation Limited, Annual General Meeting, May 24, 2024, at 10:00 China Standard Time. Location: The Company's Meeting Room, Zhuozhou, Hebei China Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.24 (vs CN¥0.09 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.24 (up from CN¥0.09 in 1Q 2023). Revenue: CN¥4.30b (up 8.5% from 1Q 2023). Net income: CN¥221.6m (up 163% from 1Q 2023). Profit margin: 5.2% (up from 2.1% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% 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 30% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Mar 29
Ling Yun Industrial Corporation Limited to Report Q1, 2024 Results on Apr 30, 2024 Ling Yun Industrial Corporation Limited announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥7.55, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 26x in the Auto Components industry in China. Total loss to shareholders of 2.1% over the past three years. Announcement • Dec 30
Ling Yun Industrial Corporation Limited to Report Fiscal Year 2023 Results on Apr 30, 2024 Ling Yun Industrial Corporation Limited announced that they will report fiscal year 2023 results on Apr 30, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.08 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.13 (up from CN¥0.08 in 3Q 2022). Revenue: CN¥4.75b (up 14% from 3Q 2022). Net income: CN¥119.5m (up 62% from 3Q 2022). Profit margin: 2.5% (up from 1.8% 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 35% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Oct 14
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. 2 highly experienced directors. Employee Supervisor Yu Feng Sun is the most experienced director on the board, commencing their role in 2013. 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 • Sep 30
Ling Yun Industrial Corporation Limited to Report Q3, 2023 Results on Oct 27, 2023 Ling Yun Industrial Corporation Limited announced that they will report Q3, 2023 results on Oct 27, 2023 Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.26 (vs CN¥0.056 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.26 (up from CN¥0.056 in 2Q 2022). Revenue: CN¥4.69b (up 26% from 2Q 2022). Net income: CN¥238.6m (up 365% from 2Q 2022). Profit margin: 5.1% (up from 1.4% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥9.59, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 24x in the Auto Components industry in China. Total returns to shareholders of 6.0% over the past three years. Announcement • Jun 28
Ling Yun Industrial Corporation Limited to Report First Half, 2023 Results on Aug 29, 2023 Ling Yun Industrial Corporation Limited announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 26
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: CN¥0.39 (up from CN¥0.36 in FY 2021). Revenue: CN¥16.7b (up 6.0% from FY 2021). Net income: CN¥338.8m (up 23% from FY 2021). Profit margin: 2.0% (up from 1.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Auto Components industry in China. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Dec 29
Now 21% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be CN¥10.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 16% in 2 years. Earnings is forecast to grow by 33% in the next 2 years. Board Change • Nov 16
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. Chairman Kai Quan Luo was the last director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.08 (vs CN¥0.081 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.08. Revenue: CN¥4.15b (up 15% from 3Q 2021). Net income: CN¥74.0m (up 12% from 3Q 2021). Profit margin: 1.8% (in line with 3Q 2021). Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.056 (vs CN¥0.07 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.056 (down from CN¥0.07 in 2Q 2021). Revenue: CN¥3.74b (down 5.9% from 2Q 2021). Net income: CN¥51.4m (down 2.1% from 2Q 2021). Profit margin: 1.4% (up from 1.3% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat First quarter 2022 results: EPS: CN¥0.12 (up from CN¥0.11 in 1Q 2021). Revenue: CN¥4.15b (up 6.0% from 1Q 2021). Net income: CN¥91.5m (up 10% from 1Q 2021). Profit margin: 2.2% (in line with 1Q 2021). Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has remained flat, 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. 3 experienced directors. 9 highly experienced directors. 5 independent directors (7 non-independent directors). Independent Director Tao Liu was the last independent director to join the board, commencing their role in 2013. 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 09
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: CN¥0.36 (up from CN¥0.13 in FY 2020). Revenue: CN¥15.7b (up 16% from FY 2020). Net income: CN¥274.1m (up 172% from FY 2020). Profit margin: 1.7% (up from 0.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.081 (vs CN¥0.06 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥3.61b (down 3.9% from 3Q 2020). Net income: CN¥66.1m (up 37% from 3Q 2020). Profit margin: 1.8% (up from 1.3% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Announcement • Sep 15
Ling Yun Industrial Corporation Limited (SHSE:600480) completed the acquisition of remaining 49.9% stake in Changchun Lingyun Jiensi Technology Co., Ltd. from GNS Solitech Co., Ltd. Ling Yun Industrial Corporation Limited (SHSE:600480) signed an equity transfer agreement to acquire remaining 49.9% stake in Changchun Lingyun Jiensi Technology Co., Ltd. from GNS Solitech Co., Ltd. for CNY 260 million on July 15, 2021. As per terms, the consideration shall be paid in cash. The consideration, shall be paid in $ in cash and settled at the base exchange rate on the day of payment, and the transferee shall pay the handling fee. After this agreement comes into effect, the transferee shall pay the equity transfer funds to the bank account designated by the transferor within one and a half months. Post completion, Lingyun Jiensi Technology Co., Ltd. will become a wholly owned subsidiary of Ling Yun Industrial Corporation Limited.
As of May 31, 2021, total asset and net asset of Lingyun Jiensi Technology Co., Ltd. was CNY 1.6 billion and CNY 607 million respectively. The profit or loss incurred during the transition period shall be enjoyed or borne by the transferee. The transferor agrees that the target company will continue to use the existing company name within 4 years. The transaction is approved at 21st meeting of the 7th Board of Directors and the 14th meeting of the 7th Board of Supervisors of Ling Yun Industrial Corporation Limited on July 15, 2021.
Ling Yun Industrial Corporation Limited (SHSE:600480) completed the acquisition of remaining 49.9% stake in Changchun Lingyun Jiensi Technology Co., Ltd. from GNS Solitech Co., Ltd. on September 15, 2021. The transaction has been approved by the shareholders of Ling Yun Industrial Corporation Limited on August 24, 2021. Reported Earnings • Aug 29
Second quarter 2021 earnings released: EPS CN¥0.07 (vs CN¥0.082 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥3.97b (up 20% from 2Q 2020). Net income: CN¥52.5m (down 27% from 2Q 2020). Profit margin: 1.3% (down from 2.2% 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 34% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥10.88, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 20x in the Auto Components industry in China. Total returns to shareholders of 75% over the past three years. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.16 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥3.92b (up 81% from 1Q 2020). Net income: CN¥82.9m (up CN¥187.8m from 1Q 2020). Profit margin: 2.1% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Is New 90 Day High Low • Dec 17
New 90-day low: CN¥8.51 The company is down 16% from its price of CN¥10.18 on 18 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Auto Components industry, which is flat over the same period. Announcement • Jul 17
Ling Yun Industrial Corporation Limited to Report First Half, 2020 Results on Aug 29, 2020 Ling Yun Industrial Corporation Limited announced that they will report first half, 2020 results on Aug 29, 2020 Announcement • Jun 16
Zhongbing Investment Management Co., Ltd. completed the acquisition of additional 5% stake in Ling Yun Industrial Corporation Limited (SHSE:600480) from North Lingyun Industrial Group Co., Ltd. Zhongbing Investment Management Co., Ltd. entered into an equity transfer agreement to acquire additional 5% stake in Ling Yun Industrial Corporation Limited (SHSE:600480) from North Lingyun Industrial Group Co., Ltd. for approximately CNY 260 million on May 9, 2020. Under the terms, Zhongbing Investment will acquire 27.42 million shares at a price of CNY 9.5 per share. Within 5 working days after the signing of this agreement, Zhongbing shall pay the amount of 30% of the target share transfer price as a security deposit, and the remaining price (70% of the transfer price) shall be fully settled before the transfer of shares.
Zhongbing Investment Management Co., Ltd. completed the acquisition of additional 5% stake in Ling Yun Industrial Corporation Limited (SHSE:600480) from North Lingyun Industrial Group Co., Ltd. on June 15, 2020. Zhongbing owns 12.72% stake and North Lingyun Industrial owns 33.36% stake in Ling Yun Industrial post completion. 
