Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥14.25, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 26% over the past three years. Reported Earnings • Apr 22
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.40 (up from CN¥0.18 in FY 2024). Revenue: CN¥4.44b (up 11% from FY 2024). Net income: CN¥220.6m (up 117% from FY 2024). Profit margin: 5.0% (up from 2.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 9.9% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Apr 22
Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 13, 2026 Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 13, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Xiangyang, Hubei China Announcement • Mar 31
Hubei Huitian New Materials Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Hubei Huitian New Materials 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¥10.01, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 23x in the Chemicals industry in China. Total loss to shareholders of 7.4% over the past three years. Announcement • Dec 31
Hubei Huitian New Materials Co., Ltd. to Report Fiscal Year 2025 Results on Apr 22, 2026 Hubei Huitian New Materials 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¥0.13 (vs CN¥0.048 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.13 (up from CN¥0.048 in 3Q 2024). Revenue: CN¥1.12b (up 10.0% from 3Q 2024). Net income: CN¥73.4m (up 179% from 3Q 2024). Profit margin: 6.6% (up from 2.6% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Sep 30
Hubei Huitian New Materials Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Hubei Huitian New Materials Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 20
Second quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.10 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.11 (up from CN¥0.10 in 2Q 2024). Revenue: CN¥1.10b (up 5.1% from 2Q 2024). Net income: CN¥61.0m (up 6.2% from 2Q 2024). Profit margin: 5.6% (up from 5.5% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Jul 02
Hubei Huitian New Materials Co., Ltd. to Report First Half, 2025 Results on Aug 20, 2025 Hubei Huitian New Materials Co., Ltd. announced that they will report first half, 2025 results on Aug 20, 2025 Declared Dividend • May 28
Dividend increased to CN¥0.15 Dividend of CN¥0.15 is 50% higher than last year. Ex-date: 30th May 2025 Payment date: 30th May 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (80% earnings payout ratio) but not covered by cash flows (129% cash payout ratio). The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 157% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • May 07
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥4.77b to CN¥4.50b. EPS estimate also fell from CN¥0.555 per share to CN¥0.43 per share. Net income forecast to grow 142% next year vs 42% growth forecast for Chemicals industry in China. Consensus price target of CN¥10.00 unchanged from last update. Share price rose 4.7% to CN¥8.85 over the past week. Reported Earnings • Apr 30
Third quarter 2024 earnings released: EPS: CN¥0.048 (vs CN¥0.13 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.048 (down from CN¥0.13 in 3Q 2023). Revenue: CN¥1.02b (flat on 3Q 2023). Net income: CN¥26.3m (down 64% from 3Q 2023). Profit margin: 2.6% (down from 7.2% in 3Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 1% per year. Announcement • Apr 28
Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 19, 2025 Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 19, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Xiangyang, Hubei China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥7.69, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Chemicals industry in China. Total loss to shareholders of 15% over the past three years. Announcement • Mar 31
Hubei Huitian New Materials Co., Ltd. to Report Q1, 2025 Results on Apr 28, 2025 Hubei Huitian New Materials Co., Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Announcement • Jan 08
Hubei Huitian New Materials Co., Ltd. Announces Election of Non-Employee Supervisors Hubei Huitian New Materials Co., Ltd. announced the Election of non-employee supervisors, cumulative voting system applicable 3.1. Cheng Jianchao, non-employee supervisor; and Li Shenfei, non-employee supervisor, at the EGM held on January 6, 2025. Announcement • Dec 31
Hubei Huitian New Materials Co., Ltd. to Report Fiscal Year 2024 Results on Apr 15, 2025 Hubei Huitian New Materials Co., Ltd. announced that they will report fiscal year 2024 results on Apr 15, 2025 Price Target Changed • Nov 23
Price target decreased by 9.2% to CN¥10.00 Down from CN¥11.01, the current price target is provided by 1 analyst. New target price is 16% above last closing price of CN¥8.61. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥0.51 for next year compared to CN¥0.52 last year. New Risk • Oct 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 61% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.3% net profit margin). Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.048 (vs CN¥0.13 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.048 (down from CN¥0.13 in 3Q 2023). Revenue: CN¥1.02b (flat on 3Q 2023). Net income: CN¥26.3m (down 64% from 3Q 2023). Profit margin: 2.6% (down from 7.2% in 3Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. Announcement • Sep 30
Hubei Huitian New Materials Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Hubei Huitian New Materials Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥9.02, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 21% over the past three years. New Risk • Sep 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 54% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.5% net profit margin). Major Estimate Revision • Aug 23
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥4.36b to CN¥4.21b. EPS estimate also fell from CN¥0.603 per share to CN¥0.528 per share. Net income forecast to grow 53% next year vs 49% growth forecast for Chemicals industry in China. Consensus price target down from CN¥11.01 to CN¥10.51. Share price rose 5.7% to CN¥7.96 over the past week. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: CN¥0.10 (vs CN¥0.20 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.10 (down from CN¥0.20 in 2Q 2023). Revenue: CN¥1.04b (up 4.0% from 2Q 2023). Net income: CN¥57.4m (down 44% from 2Q 2023). Profit margin: 5.5% (down from 10% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Announcement • Jun 29
Hubei Huitian New Materials Co., Ltd. to Report First Half, 2024 Results on Aug 17, 2024 Hubei Huitian New Materials Co., Ltd. announced that they will report first half, 2024 results on Aug 17, 2024 Declared Dividend • May 20
Dividend of CN¥0.10 announced Shareholders will receive a dividend of CN¥0.10. Ex-date: 23rd May 2024 Payment date: 23rd May 2024 Dividend yield will be 1.2%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 5.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 85% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • May 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Price Target Changed • May 06
Price target decreased by 9.5% to CN¥11.01 Down from CN¥12.17, the current price target is an average from 2 analysts. New target price is 30% above last closing price of CN¥8.44. Stock is down 30% over the past year. The company is forecast to post earnings per share of CN¥0.60 for next year compared to CN¥0.52 last year. Reported Earnings • Apr 18
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.52 (up from CN¥0.52 in FY 2022). Revenue: CN¥3.90b (up 5.1% from FY 2022). Net income: CN¥298.7m (up 2.4% from FY 2022). Profit margin: 7.7% (down from 7.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 29%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals 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 fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Apr 16
Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 10, 2024 Hubei Huitian New Materials Co., Ltd., Annual General Meeting, May 10, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Xiangyang, Hubei China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥7.56, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 34% over the past three years. Announcement • Mar 30
Hubei Huitian New Materials Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Hubei Huitian New Materials Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥7.44, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Chemicals industry in China. Total loss to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥3.16 per share. Announcement • Dec 30
Hubei Huitian New Materials Co., Ltd. to Report Fiscal Year 2023 Results on Apr 16, 2024 Hubei Huitian New Materials Co., Ltd. announced that they will report fiscal year 2023 results on Apr 16, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.14 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.13 (down from CN¥0.14 in 3Q 2022). Revenue: CN¥1.01b (up 2.3% from 3Q 2022). Net income: CN¥72.4m (down 7.3% from 3Q 2022). Profit margin: 7.2% (down from 7.9% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Board Change • Sep 29
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Chairman of Supervisory Board Jianchao Cheng was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. New Risk • Aug 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% 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 Risk High level of non-cash earnings (20% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • May 17
Hubei Huitian New Materials Co., Ltd. Announces Cash Dividend on A Shares for the Final Year 2022, Payable on May 22, 2023 Hubei Huitian New Materials Co., Ltd. announced Cash dividend/10 shares (tax included) of CNY 1.50000000 on A shares for the final year 2022, Payable on May 22, 2023. Record date: May 19, 2023 and Ex-date: May 22, 2023. Announcement • May 13
Hubei Huitian New Materials Co., Ltd. Approves Cash Dividend for 2023 Hubei Huitian New Materials Co., Ltd. at its AGM held on May 9, 2023, approved cash dividend of CNY 1.50000000 per 10 shares (tax included) for 2022. Reported Earnings • Apr 18
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.68 (up from CN¥0.55 in FY 2021). Revenue: CN¥3.71b (up 26% from FY 2021). Net income: CN¥291.7m (up 28% from FY 2021). Profit margin: 7.9% (up from 7.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 8.9%. Earnings per share (EPS) also missed analyst estimates by 9.7%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target increased to CN¥24.44 Up from CN¥15.82, the current price target is provided by 1 analyst. New target price is 39% above last closing price of CN¥17.61. Stock is down 4.3% over the past year. The company is forecast to post earnings per share of CN¥0.72 for next year compared to CN¥0.55 last year. Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment deteriorated over the past week After last week's 24% share price decline to CN¥15.17, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 13x in the Chemicals industry in China. Total returns to shareholders of 48% over the past three years. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.18 (vs CN¥0.17 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.18 (up from CN¥0.17 in 3Q 2021). Revenue: CN¥983.8m (up 16% from 3Q 2021). Net income: CN¥78.1m (up 14% from 3Q 2021). Profit margin: 7.9% (down from 8.1% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 13% per year. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥19.87, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 14x in the Chemicals industry in China. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥17.08, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Chemicals industry in China. Total returns to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥25.40, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 168% over the past three years. Price Target Changed • Aug 11
Price target increased to CN¥24.44 Up from CN¥15.82, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of CN¥24.02. Stock is up 23% over the past year. The company is forecast to post earnings per share of CN¥0.61 for next year compared to CN¥0.55 last year. Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: CN¥0.23 (vs CN¥0.18 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.23 (up from CN¥0.18 in 2Q 2021). Revenue: CN¥935.5m (up 37% from 2Q 2021). Net income: CN¥93.6m (up 27% from 2Q 2021). Profit margin: 10.0% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 28%, compared to a 41% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 21% 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 • Jun 27
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥18.49, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 97% over the past three years. Announcement • May 24
Hubei Huitian New Materials Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2021, Payable on 27 May 2022 Hubei Huitian New Materials Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.00000000 for the year 2021, payable on 27 May 2022. Record date: 26 May 2022. Ex-date: 27 May 2022. Announcement • May 17
Hubei Huitian New Materials Co., Ltd. Announces Cash Dividend Hubei Huitian New Materials Co., Ltd. announced that in its AGM held on 13 May 2022, the company has approved Cash dividend/10 shares (tax included): CNY 1.000000000. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥11.20, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Chemicals industry in China. Total returns to shareholders of 46% over the past three years. Price Target Changed • Apr 30
Price target decreased to CN¥15.82 Down from CN¥24.60, the current price target is provided by 1 analyst. New target price is 41% above last closing price of CN¥11.20. Stock is down 30% over the past year. The company is forecast to post earnings per share of CN¥0.61 for next year compared to CN¥0.55 last year. Announcement • Apr 27
Hubei Huitian New Materials Co., Ltd. Announces Profit Distribution Proposal for 2021 Hubei Huitian New Materials Co., Ltd. announced on 25 April 2022 the profit distribution proposal for 2021 as follows: Cash dividend/10 shares (tax included): CNY 1.00000000. Reported Earnings • Apr 27
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: CN¥0.21 (up from CN¥0.18 in 1Q 2021). Revenue: CN¥964.1m (up 33% from 1Q 2021). Net income: CN¥88.6m (up 17% from 1Q 2021). Profit margin: 9.2% (down from 10% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 32%. Earnings per share (EPS) missed analyst estimates by 2.4%. Over the next year, revenue is forecast to grow 8.5%, compared to a 43% growth forecast for the 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 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.17 in 3Q 2020) The company reported a mediocre third quarter result with weaker profit margins, although earnings were flat and revenues improved. Third quarter 2021 results: Revenue: CN¥847.2m (up 44% from 3Q 2020). Net income: CN¥68.8m (flat on 3Q 2020). Profit margin: 8.1% (down from 12% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥15.44, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 72% over the past three years. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.18 (vs CN¥0.18 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¥684.3m (up 35% from 2Q 2020). Net income: CN¥73.4m (up 1.2% from 2Q 2020). Profit margin: 11% (down from 14% in 2Q 2020). The decrease in margin was driven by higher expenses. 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 26% per year. Price Target Changed • Jun 19
Price target decreased to CN¥18.25 Down from CN¥20.00, the current price target is an average from 2 analysts. New target price is 26% above last closing price of CN¥14.47. Stock is down 7.1% over the past year. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥15.37, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 58% over the past three years. Reported Earnings • Apr 09
Full year 2020 earnings released: EPS CN¥0.54 (vs CN¥0.38 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.16b (up 15% from FY 2019). Net income: CN¥218.2m (up 38% from FY 2019). Profit margin: 10% (up from 8.4% in FY 2019). The increase in margin was driven by higher revenue. 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 10% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 10
New 90-day low: CN¥12.72 The company is down 10.0% from its price of CN¥14.18 on 10 December 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.10 per share. Announcement • Feb 24
Hubei Huitian New Materials Co., Ltd. to Report Fiscal Year 2020 Results on Apr 09, 2021 Hubei Huitian New Materials Co., Ltd. announced that they will report fiscal year 2020 results on Apr 09, 2021 Reported Earnings • Feb 10
Full year 2020 earnings released: EPS CN¥0.54 (vs CN¥0.38 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.16b (up 15% from FY 2019). Net income: CN¥219.9m (up 39% from FY 2019). Profit margin: 10% (up from 8.4% in FY 2019). The increase in margin was driven by higher revenue. 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 18% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Feb 10
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.03%. Earnings per share (EPS) also missed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 21%, compared to a 52% growth forecast for the Chemicals industry in China. Is New 90 Day High Low • Feb 05
New 90-day low: CN¥12.86 The company is down 16% from its price of CN¥15.26 on 06 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.12 per share. Price Target Changed • Nov 19
Price target raised to CN¥19.05 Up from CN¥14.28, the current price target is an average from 2 analysts. The new target price is 20% above the current share price of CN¥15.83. As of last close, the stock is up 51% over the past year. Is New 90 Day High Low • Nov 04
New 90-day high: CN¥15.57 The company is up 5.0% from its price of CN¥14.83 on 06 August 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is down 3.0% over the same period. Reported Earnings • Nov 01
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥207.6m, up 33% from the prior year. Total revenue was CN¥2.13b over the last 12 months, up 20% from the prior year. Price Target Changed • Sep 25
Price target raised to CN¥18.00 Up from CN¥14.28, the current price target is provided by 1 analyst. The new target price is 33% above the current share price of CN¥13.55. As of last close, the stock is up 30% over the past year. Announcement • Jul 17
Hubei Huitian New Materials Co., Ltd. to Report First Half, 2020 Results on Jul 24, 2020 Hubei Huitian New Materials Co., Ltd. announced that they will report first half, 2020 results on Jul 24, 2020 Announcement • Jun 19
Hubei Huitian New Materials Co., Ltd. announced that it has received CNY 349.99999 million in funding from Shenzhen Hengxin Huaye Equity Investment Fund Management Co., Ltd., and other investors On June 16, 2020, Hubei Huitian New Materials Co., Ltd. (SZSE:300041) closed the transaction. On the same date, the company amended the terms of the transaction. The company issued not more than 36,231,883 shares at issue price of CNY 9.66 per share for gross proceeds of CNY 349,999,989.78. The transaction included participation from Zhang Feng for 5,175,983 shares for gross proceeds of CNY 50,000,000, returning investor, Shenzhen Hengxin Huaye Equity Investment Fund Management Co., Ltd. for 23,291,925 shares for gross proceeds of CNY 225,000,000, and Yu Yong for 7,763,975 shares for gross proceeds of CNY 75,000,000. 