New Risk • Jun 24
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.9% net profit margin). New Risk • May 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 107% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.9% net profit margin). New Risk • May 01
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.9% Last year net profit margin: 5.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. This is currently the only risk that has been identified for the company. Announcement • Apr 22
Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 22, 2026 Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 22, 2026, at 14:40 China Standard Time. Location: 3F, Office Building, Kuangji Industrial Park, North Section of Dayi Road, Economic Development Zone, Changle County, Shandong China Reported Earnings • Apr 22
Full year 2025 earnings released: EPS: CN¥0.07 (vs CN¥0.06 in FY 2024) Full year 2025 results: EPS: CN¥0.07 (up from CN¥0.06 in FY 2024). Revenue: CN¥2.13b (down 11% from FY 2024). Net income: CN¥122.6m (up 8.1% from FY 2024). Profit margin: 5.8% (up from 4.8% in FY 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Mar 31
Shandong Mining Machinery Group Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Shandong Mining Machinery Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Dec 31
Shandong Mining Machinery Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 22, 2026 Shandong Mining Machinery Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 22, 2026 Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.006 (vs CN¥0.011 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.006 (down from CN¥0.011 in 3Q 2024). Revenue: CN¥457.5m (down 16% from 3Q 2024). Net income: CN¥11.2m (down 44% from 3Q 2024). Profit margin: 2.5% (down from 3.7% in 3Q 2024). The decrease in margin was driven by lower revenue. 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 18% per year, which means it is well ahead of earnings. Announcement • Sep 30
Shandong Mining Machinery Group Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Shandong Mining Machinery Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 24
Second quarter 2025 earnings released: EPS: CN¥0.025 (vs CN¥0.034 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.025 (down from CN¥0.034 in 2Q 2024). Revenue: CN¥611.6m (down 19% from 2Q 2024). Net income: CN¥45.4m (down 25% from 2Q 2024). Profit margin: 7.4% (down from 8.0% in 2Q 2024). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 07
Dividend reduced to CN¥0.01 Dividend of CN¥0.01 is 57% lower than last year. Ex-date: 11th July 2025 Payment date: 11th July 2025 Dividend yield will be 0.3%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (14% earnings payout ratio) but not covered by cash flows (192% cash payout ratio). The dividend has remained flat since 5 years ago. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 85% to shift the payout ratio to a potentially unsustainable range, which is more than the 6.5% EPS decline seen over the last 5 years. Announcement • Jul 02
Shandong Mining Machinery Group Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Shandong Mining Machinery Group Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Announcement • May 30
Shandong Mining Machinery Group Co., Ltd. Approves Cash Dividend for 2024 Shandong Mining Machinery Group Co., Ltd. approved a cash dividend of CNY 0.10000000 per 10 shares (tax included) for 2024, at its AGM held on 28 May 2025. Announcement • Apr 25
Shandong Mining Machinery Group Co., Ltd. Proposes Final Cash Dividend for 2024 Shandong Mining Machinery Group Co., Ltd. announced on 23 April 2025 the profit distribution proposal for 2024 as follows: final Cash dividend/10 shares (tax included): CNY 0.10000000. Reported Earnings • Apr 24
Full year 2024 earnings released: EPS: CN¥0.06 (vs CN¥0.10 in FY 2023) Full year 2024 results: EPS: CN¥0.06 (down from CN¥0.10 in FY 2023). Revenue: CN¥2.38b (down 12% from FY 2023). Net income: CN¥113.4m (down 34% from FY 2023). Profit margin: 4.8% (down from 6.4% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 19% per year whereas the company’s share price has increased by 23% per year. Announcement • Apr 23
Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 28, 2025 Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 28, 2025, at 14:30 China Standard Time. Location: 3F, Office Building, Mining Machinery Industrial Park, North Section of Dayi Road, Economic Development Zone, Changle County, Shandong China Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥3.33, the stock trades at a trailing P/E ratio of 79.8x. Average trailing P/E is 35x in the Machinery industry in China. Total returns to shareholders of 49% over the past three years. Announcement • Mar 31
Shandong Mining Machinery Group Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Shandong Mining Machinery Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 New Risk • Jan 09
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 Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 7.9% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.3% net profit margin). Announcement • Dec 31
Shandong Mining Machinery Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 23, 2025 Shandong Mining Machinery Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 23, 2025 New Risk • Dec 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 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.9% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (3.3% net profit margin). Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥3.27, the stock trades at a trailing P/E ratio of 78.4x. Average trailing P/E is 35x in the Machinery industry in China. Total returns to shareholders of 51% over the past three years. Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.011 (vs CN¥0.025 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.011 (down from CN¥0.025 in 3Q 2023). Revenue: CN¥541.9m (down 33% from 3Q 2023). Net income: CN¥20.1m (down 56% from 3Q 2023). Profit margin: 3.7% (down from 5.6% in 3Q 2023). The decrease in margin was driven by lower revenue. 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 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥2.70, the stock trades at a trailing P/E ratio of 48.2x. Average trailing P/E is 32x in the Machinery industry in China. Total returns to shareholders of 36% over the past three years. Announcement • Sep 30
Shandong Mining Machinery Group Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Shandong Mining Machinery Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥2.61, the stock trades at a trailing P/E ratio of 46.6x. Average trailing P/E is 29x in the Machinery industry in China. Total returns to shareholders of 22% over the past three years. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: CN¥0.034 (vs CN¥0.066 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.034 (down from CN¥0.066 in 2Q 2023). Revenue: CN¥750.9m (down 8.9% from 2Q 2023). Net income: CN¥60.2m (down 49% from 2Q 2023). Profit margin: 8.0% (down from 14% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jul 02
Shandong Mining Machinery Group Co., Ltd. Announces Final Cash Dividend on A Shares for the Year 2023, Payable on 8 July 2024 Shandong Mining Machinery Group Co., Ltd. announced final cash dividend of CNY 0.23 per 10 shares on A shares (tax included) for the year 2023. Record date: 5 July 2024, Ex-date: 8 July 2024 and Payment date: 8 July 2024. Announcement • Jun 29
Shandong Mining Machinery Group Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Shandong Mining Machinery Group Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 New Risk • May 29
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: Major Risks Earnings have declined by 7.1% per year over the past 5 years. High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.5% average weekly change). Announcement • Apr 24
Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 21, 2024 Shandong Mining Machinery Group Co., Ltd., Annual General Meeting, May 21, 2024, at 14:30 China Standard Time. Location: 3F, Office Building, Mining Machinery Industrial Park, North Section of Dayi Road, Economic Development Zone, Changle County, Shandong China Reported Earnings • Apr 24
Full year 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.07 in FY 2022) Full year 2023 results: EPS: CN¥0.10 (up from CN¥0.07 in FY 2022). Revenue: CN¥2.70b (up 12% from FY 2022). Net income: CN¥171.8m (up 49% from FY 2022). Profit margin: 6.4% (up from 4.8% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥3.11, the stock trades at a trailing P/E ratio of 30.4x. Average trailing P/E is 29x in the Machinery industry in China. Total returns to shareholders of 48% over the past three years. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥3.13, the stock trades at a trailing P/E ratio of 30.6x. Average trailing P/E is 32x in the Machinery industry in China. Total returns to shareholders of 46% over the past three years. Announcement • Mar 30
Shandong Mining Machinery Group Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Shandong Mining Machinery Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥2.03, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 25x in the Machinery industry in China. Total returns to shareholders of 5.2% over the past three years. Announcement • Dec 30
Shandong Mining Machinery Group Co., Ltd. to Report Fiscal Year 2023 Results on Apr 24, 2024 Shandong Mining Machinery Group Co., Ltd. announced that they will report fiscal year 2023 results on Apr 24, 2024 Announcement • Sep 11
Shandong Mining Machinery Group Co., Ltd. (SZSE:002526) announces an Equity Buyback for CNY 49.5 million worth of its shares. Shandong Mining Machinery Group Co., Ltd. (SZSE:002526) announces a share repurchase program. Under the program, the company will repurchase up to CNY 49.5 million worth of shares. The shares will be repurchased at a price of not more than CNY 3.30 per share. The repurchased shares will be used for implementation of equity incentives or employee stock ownership plans. The program will be valid for a period of 12 months. New Risk • Aug 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 12% per year over the past 5 years. High level of non-cash earnings (23% accrual ratio). Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥2.87, the stock trades at a trailing P/E ratio of 42.2x. Average trailing P/E is 38x in the Machinery industry in China. Total returns to shareholders of 3.6% over the past three years. Announcement • Jul 01
Shandong Mining Machinery Group Co., Ltd. to Report First Half, 2023 Results on Aug 23, 2023 Shandong Mining Machinery Group Co., Ltd. announced that they will report first half, 2023 results on Aug 23, 2023 Reported Earnings • Apr 22
Full year 2022 earnings released: EPS: CN¥0.07 (vs CN¥0.034 in FY 2021) Full year 2022 results: EPS: CN¥0.07 (up from CN¥0.034 in FY 2021). Revenue: CN¥2.40b (up 5.2% from FY 2021). Net income: CN¥115.3m (up 89% from FY 2021). Profit margin: 4.8% (up from 2.7% in FY 2021). Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.034 (vs CN¥0.034 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.034 (in line with 3Q 2021). Revenue: CN¥681.4m (up 11% from 3Q 2021). Net income: CN¥60.8m (flat on 3Q 2021). Profit margin: 8.9% (down from 9.9% in 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.023 (vs CN¥0.02 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.023 (up from CN¥0.02 in 2Q 2021). Revenue: CN¥605.3m (flat on 2Q 2021). Net income: CN¥40.7m (up 11% from 2Q 2021). Profit margin: 6.7% (up from 6.0% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥2.50, the stock trades at a trailing P/E ratio of 64.3x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 23% over the past three years. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥2.98, the stock trades at a trailing P/E ratio of 76.7x. Average trailing P/E is 34x in the Machinery industry in China. Total returns to shareholders of 33% over the past three years. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥2.52, the stock trades at a trailing P/E ratio of 64.8x. Average trailing P/E is 33x in the Machinery industry in China. Total returns to shareholders of 8.6% over the past three years. Reported Earnings • Apr 27
Full year 2021 earnings released: EPS: CN¥0.034 (vs CN¥0.059 in FY 2020) Full year 2021 results: EPS: CN¥0.034 (down from CN¥0.059 in FY 2020). Revenue: CN¥2.29b (up 9.4% from FY 2020). Net income: CN¥61.1m (down 42% from FY 2020). Profit margin: 2.7% (down from 5.0% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Apr 24
Shandong Mining Machinery Group Co., Ltd, Annual General Meeting, May 13, 2022 Shandong Mining Machinery Group Co., Ltd, Annual General Meeting, May 13, 2022, at 14:30 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual accounts; to consider 2021 profit distribution plan; to consider 2021 annual report and its summary; to consider reappointment of 2022 financial audit firm; to consider 2021 remuneration and appraisal report for directors, supervisors and senior management; and to consider other matters. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.034 (vs CN¥0.04 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¥616.5m (up 14% from 3Q 2020). Net income: CN¥61.1m (down 13% from 3Q 2020). Profit margin: 9.9% (down from 13% in 3Q 2020). 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 1% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.02 (vs CN¥0.04 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¥606.0m (up 2.5% from 2Q 2020). Net income: CN¥36.6m (down 48% from 2Q 2020). Profit margin: 6.0% (down from 12% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 25
Full year 2020 earnings released: EPS CN¥0.059 (vs CN¥0.11 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.09b (down 4.0% from FY 2019). Net income: CN¥105.5m (down 44% from FY 2019). Profit margin: 5.0% (down from 8.7% in FY 2019). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Mar 09
Shandong Mining Machinery Group Co., Ltd to Report Fiscal Year 2020 Results on Apr 22, 2021 Shandong Mining Machinery Group Co., Ltd announced that they will report fiscal year 2020 results on Apr 22, 2021 Is New 90 Day High Low • Jan 29
New 90-day low: CN¥2.08 The company is down 14% from its price of CN¥2.43 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 • Jan 11
New 90-day low: CN¥2.19 The company is down 15% from its price of CN¥2.59 on 13 October 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 24
New 90-day low: CN¥2.42 The company is down 2.0% from its price of CN¥2.47 on 25 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 6.0% 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¥212.2m, up 2.3% from the prior year. Total revenue was CN¥2.27b over the last 12 months, up 14% from the prior year. Is New 90 Day High Low • Oct 27
New 90-day low: CN¥2.46 The company is down 11% from its price of CN¥2.77 on 29 July 2020. The Chinese market is flat 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. Announcement • Jul 24
Shandong Mining Machinery Group Co., Ltd to Report First Half, 2020 Results on Aug 20, 2020 Shandong Mining Machinery Group Co., Ltd announced that they will report first half, 2020 results on Aug 20, 2020