Announcement • Jun 09
Fujian Longking Co., Ltd. (SHSE:600388) announces an Equity Buyback for CNY 100 million worth of its shares. Fujian Longking Co., Ltd. (SHSE:600388) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 20 per share. Repurchased shares will be used for ESOP and shares not used within 3 years after the completion of the repurchase will be cancelled. The repurchases will be funded using own funds. The program is valid for 6 months from Board Approval Date. Declared Dividend • May 18
Dividend increased to CN¥0.38 Dividend of CN¥0.38 is 36% higher than last year. Ex-date: 19th May 2026 Payment date: 19th May 2026 Dividend yield will be 2.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (41% earnings payout ratio) but not covered by cash flows (dividend approximately 70x free cash flows). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 84% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 22
First quarter 2026 earnings released: EPS: CN¥0.19 (vs CN¥0.15 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.19 (up from CN¥0.15 in 1Q 2025). Revenue: CN¥2.37b (up 21% from 1Q 2025). Net income: CN¥244.2m (up 32% from 1Q 2025). Profit margin: 10% (in line with 1Q 2025). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Announcement • Mar 31
Fujian Longking Co., Ltd. (SHSE:600388) announces an Equity Buyback for CNY 110 million worth of its shares. Fujian Longking Co., Ltd. (SHSE:600388) announces a share repurchase program. Under the program, the company will repurchase up to CNY 110 million worth of its Class A shares. The shares will be repurchased at a price of CNY 20 per share. The shares repurchased will be used to implement the company’s employee stock ownership plans or equity incentives. The company plans to use its own funds for the program. The shares repurchased will be cancelled. The program will be valid for 12 months. Announcement • Mar 30
Fujian Longking Co., Ltd. to Report Q1, 2026 Results on Apr 22, 2026 Fujian Longking Co., Ltd. announced that they will report Q1, 2026 results on Apr 22, 2026 New Risk • Mar 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (101% cash payout ratio). Reported Earnings • Mar 21
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: CN¥0.88 (up from CN¥0.77 in FY 2024). Revenue: CN¥11.9b (up 19% from FY 2024). Net income: CN¥1.11b (up 34% from FY 2024). Profit margin: 9.4% (up from 8.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.7%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 3% per year. Announcement • Mar 20
Fujian Longking Co., Ltd., Annual General Meeting, Apr 10, 2026 Fujian Longking Co., Ltd., Annual General Meeting, Apr 10, 2026, at 09:00 China Standard Time. Location: Building 1, No. 19, Gongye Middle Road, Xinluo District, Longyan, Fujian China Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥18.53, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 29x in the Machinery industry in China. Total returns to shareholders of 7.3% over the past three years. Price Target Changed • Jan 21
Price target increased by 24% to CN¥23.06 Up from CN¥18.56, the current price target is an average from 2 analysts. New target price is 46% above last closing price of CN¥15.79. Stock is up 29% over the past year. The company is forecast to post earnings per share of CN¥0.92 for next year compared to CN¥0.77 last year. Announcement • Dec 26
Fujian Longking Co., Ltd. to Report Fiscal Year 2025 Results on Mar 21, 2026 Fujian Longking Co., Ltd. announced that they will report fiscal year 2025 results on Mar 21, 2026 Reported Earnings • Oct 19
Third quarter 2025 earnings released: EPS: CN¥0.26 (vs CN¥0.20 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.26 (up from CN¥0.20 in 3Q 2024). Revenue: CN¥3.17b (up 60% from 3Q 2024). Net income: CN¥334.9m (up 55% from 3Q 2024). Profit margin: 11% (in line with 3Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Sep 30
Fujian Longking Co., Ltd. to Report Q3, 2025 Results on Oct 18, 2025 Fujian Longking Co., Ltd. announced that they will report Q3, 2025 results on Oct 18, 2025 Price Target Changed • Sep 10
Price target increased by 8.8% to CN¥18.56 Up from CN¥17.06, the current price target is an average from 2 analysts. New target price is 44% above last closing price of CN¥12.85. Stock is up 27% over the past year. The company is forecast to post earnings per share of CN¥0.93 for next year compared to CN¥0.77 last year. New Risk • Sep 04
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (392% cash payout ratio). Shareholders have been diluted in the past year (18% increase in shares outstanding). Announcement • Jun 30
Fujian Longking Co., Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Fujian Longking Co., Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Announcement • May 30
Fujian Longking Co., Ltd. (SHSE:600388) agreed to acquire 7.50% stake in Zhejiang Jitai Intelligent Technology Co., Ltd. from Beijing Zhongjitai Investment Management Co., Ltd. for CNY 18 million. Fujian Longking Co., Ltd. (SHSE:600388) agreed to acquire 7.50% stake in Zhejiang Jitai Intelligent Technology Co., Ltd. from Beijing Zhongjitai Investment Management Co., Ltd. for CNY 18 million on May 29, 2025. A cash consideration of CNY 18 million will be paid by Fujian Longking Co., Ltd. As part of consideration, CNY 18 million is paid towards common equity of Zhejiang Jitai Intelligent Technology Co., Ltd. In a separate transaction Fujian Longking Co., Ltd. agreed to acquire 3% stake in Zhejiang Jitai Intelligent Technology Co., Ltd. from Feng Bing for CNY 7.2 million. All parties unanimously agreed that the investor will subscribe to the Zhejiang Jitai's newly increased registered capital of CNY 2,508,966 with cash of CNY 49.875 million, corresponding to 10.6145% equity after this capital increase, and the premium of CNY 47.366034 million will be included in the capital reserve of the Zhejiang Jitai. After the completion of this transaction, the registered capital of the Zhejiang Jitai will be changed to CNY 23.637162 million, and Fujian Longking will directly hold 20% of the equity of the Zhejiang Jitai and become the second largest shareholder of the Zhejiang Jitai.
For the period ending March 31, 2025, Zhejiang Jitai Intelligent Technology Co., Ltd. reported total revenue of CNY 1.15 billion and net income of CNY 39.31 million. As of March 31, 2025, Zhejiang Jitai Intelligent Technology Co., Ltd. reported total assets of CNY 15.89 billion and total common equity of CNY 10.37 billion. Announcement • Mar 28
Fujian Longking Co., Ltd. to Report Q1, 2025 Results on Apr 12, 2025 Fujian Longking Co., Ltd. announced that they will report Q1, 2025 results on Apr 12, 2025 Major Estimate Revision • Mar 28
Consensus revenue estimates fall by 21% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥14.6b to CN¥11.6b. EPS estimate fell from CN¥1.17 to CN¥0.90 per share. Net income forecast to grow 38% next year vs 42% growth forecast for Machinery industry in China. Consensus price target down from CN¥17.68 to CN¥16.97. Share price fell 3.1% to CN¥12.69 over the past week. New Risk • Mar 27
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 48% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (48% net debt to equity). Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Mar 24
Fujian Longking Co., Ltd., Annual General Meeting, Apr 11, 2025 Fujian Longking Co., Ltd., Annual General Meeting, Apr 11, 2025, at 14:30 China Standard Time. Location: 2F, Building 1, No. 19, Gongye Middle Road, Xinluo District, Longyan, Fujian China Reported Earnings • Mar 23
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.77 (up from CN¥0.47 in FY 2023). Revenue: CN¥10.0b (down 8.7% from FY 2023). Net income: CN¥830.4m (up 63% from FY 2023). Profit margin: 8.3% (up from 4.6% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 20%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Machinery industry in China. 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 11% per year, which means it is well ahead of earnings. Announcement • Dec 27
Fujian Longking Co., Ltd. to Report Fiscal Year 2024 Results on Mar 22, 2025 Fujian Longking Co., Ltd. announced that they will report fiscal year 2024 results on Mar 22, 2025 New Risk • Nov 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (42% net debt to equity). Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Shareholders have been diluted in the past year (6.1% increase in shares outstanding). Reported Earnings • Oct 19
Third quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.20 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.20 (in line with 3Q 2023). Revenue: CN¥1.98b (down 24% from 3Q 2023). Net income: CN¥216.1m (up 1.1% from 3Q 2023). Profit margin: 11% (up from 8.3% in 3Q 2023). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Sep 30
Fujian Longking Co., Ltd. to Report Q3, 2024 Results on Oct 19, 2024 Fujian Longking Co., Ltd. announced that they will report Q3, 2024 results on Oct 19, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥12.71, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Machinery industry in China. Total returns to shareholders of 55% over the past three years. Price Target Changed • Sep 04
Price target decreased by 13% to CN¥15.22 Down from CN¥17.43, the current price target is an average from 2 analysts. New target price is 36% above last closing price of CN¥11.16. Stock is down 31% over the past year. The company is forecast to post earnings per share of CN¥0.94 for next year compared to CN¥0.47 last year. New Risk • Aug 24
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (46% net debt to equity). 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 (4.8% net profit margin). Announcement • Jun 28
Fujian Longking Co., Ltd. to Report First Half, 2024 Results on Aug 24, 2024 Fujian Longking Co., Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Declared Dividend • May 27
Dividend of CN¥0.20 announced Shareholders will receive a dividend of CN¥0.20. Ex-date: 30th May 2024 Payment date: 30th May 2024 Dividend yield will be 1.6%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (42% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 4.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 143% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 29
Fujian Longking Co., Ltd. to Report Q1, 2024 Results on Apr 20, 2024 Fujian Longking Co., Ltd. announced that they will report Q1, 2024 results on Apr 20, 2024 New Risk • Mar 28
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 17% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (17% operating cash flow to total debt). 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 (4.6% net profit margin). Announcement • Mar 23
Fujian Longking Co., Ltd., Annual General Meeting, Apr 12, 2024 Fujian Longking Co., Ltd., Annual General Meeting, Apr 12, 2024, at 14:30 China Standard Time. Reported Earnings • Mar 23
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.47 (down from CN¥0.75 in FY 2022). Revenue: CN¥11.0b (down 7.6% from FY 2022). Net income: CN¥509.0m (down 37% from FY 2022). Profit margin: 4.6% (down from 6.8% in FY 2022). Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 50%. Revenue is forecast to grow 34% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥11.85, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Machinery industry in China. Total returns to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥5.27 per share. Announcement • Dec 29
Fujian Longking Co., Ltd. to Report Fiscal Year 2023 Results on Mar 23, 2024 Fujian Longking Co., Ltd. announced that they will report fiscal year 2023 results on Mar 23, 2024 Price Target Changed • Nov 10
Price target decreased by 14% to CN¥20.84 Down from CN¥24.33, the current price target is an average from 2 analysts. New target price is 44% above last closing price of CN¥14.46. Stock is down 5.9% over the past year. The company is forecast to post earnings per share of CN¥0.90 for next year compared to CN¥0.75 last year. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.20 (vs CN¥0.23 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.20 (down from CN¥0.23 in 3Q 2022). Revenue: CN¥2.59b (flat on 3Q 2022). Net income: CN¥213.7m (down 16% from 3Q 2022). Profit margin: 8.3% (down from 9.8% in 3Q 2022). Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Aug 23
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 9.3% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (9.3% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (dividend per share is over 5x cash flows per share). Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.19 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.23 (up from CN¥0.19 in 2Q 2022). Revenue: CN¥2.52b (down 14% from 2Q 2022). Net income: CN¥243.0m (up 19% from 2Q 2022). Profit margin: 9.6% (up from 6.9% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 12
Fujian Longking Co., Ltd. announced that it expects to receive CNY 1.541604537 billion in funding from Zijin Mining Group Company Limited Fujian Longking Co., Ltd. announced a private placement of not more than 107,729,178 A shares at an issue price of CNY 14.31 for the gross proceeds note more than CNY 1,541,604,537.18 on July 10, 2023. The transaction will include participation from existing investor Zijin Mining Group Company Limited. The securities issued in transaction cannot be transferred within 36 month from closing date. The transaction has been approved in the 30th Meeting of the Company’s 9th Directorate, and is subject to the approvals of the Company’s Shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission.
On the same date, the company announced that the transaction has been approved by 17th Meeting of the 9th Supervisory Board, and in the extraordinary meeting of the 8th directorate. Announcement • Jun 28
Fujian Longking Co., Ltd. to Report First Half, 2023 Results on Aug 18, 2023 Fujian Longking Co., Ltd. announced that they will report first half, 2023 results on Aug 18, 2023 Reported Earnings • Mar 19
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CN¥0.75 (down from CN¥0.80 in FY 2021). Revenue: CN¥11.9b (up 5.2% from FY 2021). Net income: CN¥804.3m (down 6.5% from FY 2021). Profit margin: 6.8% (down from 7.6% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥17.87, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 19x in the Machinery industry in China. Total returns to shareholders of 97% over the past three years. Reported Earnings • Oct 18
Third quarter 2022 earnings released: EPS: CN¥0.23 (vs CN¥0.27 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.23 (down from CN¥0.27 in 3Q 2021). Revenue: CN¥2.59b (down 23% from 3Q 2021). Net income: CN¥254.3m (down 12% from 3Q 2021). Profit margin: 9.8% (up from 8.6% in 3Q 2021). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 7% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: CN¥0.19 (vs CN¥0.25 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.19 (down from CN¥0.25 in 2Q 2021). Revenue: CN¥2.94b (flat on 2Q 2021). Net income: CN¥204.0m (down 22% from 2Q 2021). Profit margin: 6.9% (down from 8.8% in 2Q 2021). Over the next year, revenue is forecast to grow 12%, compared to a 34% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 7% per year. Announcement • Jun 01
Zijin Mining Group Company Limited (SEHK:2899) completed the acquisition of a 15.02% stake in Fujian Longking Co., Ltd. (SHSE : 600388) from Longjing Industrial Investment Group Co., Ltd., Tibet Yango Hongrui Industrial & Trade Co., Ltd. and Tibet Yango Ruize Industrial Co., Ltd. Zijin Mining Group Company Limited (SEHK:2899) signed an agreement to acquire 15.02% stake in Fujian Longking Co., Ltd. (SHSE:600388) from Longjing Industrial Investment Group Co., Ltd., Tibet Yango Hongrui Industry and Trade Co., Ltd. and Tibet Yango Ruize Industrial Co., Ltd. for CNY 1.7 billion on May 8, 2022. As per the transaction, Zijin Mining Group Company Limited will acquire 160.58 million shares at CNY 10.8 per share. Zijin Mining Group Company Limited will acquire 109.06 million shares (10.2%), 30.019 million shares (2.81%) and 21.50 million shares (2.01%) from Longjing Industrial Investment Group Co., Ltd., Tibet Yango Hongrui Industry and Trade Co., Ltd. and Tibet Yango Ruize Industrial Co., Ltd. respectively. Post completion, Longjing Industrial Investment Group Co., Ltd., Tibet Yango Hongrui Industry and Trade Co., Ltd. and Tibet Yango Ruize Industrial Co., Ltd. will hold 84.31 million shares (7.89%), 22.807 million shares (2.13%) and 0% stake respectively. The board of directors of Fujian Longking Co., Ltd. will be restructured. It is proposed that its board of directors shall consist of 11 persons, including 7 non-independent directors and 4 independent directors. Zijin Mining Group Company Limited can recommend 5 non-independent director candidates. The Board of Directors of Zijin Mining Group Company Limited has unanimously approved the transaction.
Zijin Mining Group Company Limited (SEHK:2899) completed the acquisition of a 15.02% stake in Fujian Longking Co., Ltd. (SHSE : 600388) from Longjing Industrial Investment Group Co., Ltd., Tibet Yango Hongrui Industrial & Trade Co., Ltd. and Tibet Yango Ruize Industrial Co., Ltd. on May 30, 2022. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥10.53, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Machinery industry in China. Total loss to shareholders of 5.3% over the past three years. Announcement • May 13
Fujian Longking Co., Ltd.(XSSC:600388) dropped from FTSE All-World Index (USD) Fujian Longking Co., Ltd.(XSSC:600388) dropped from FTSE All-World Index (USD) Price Target Changed • May 06
Price target decreased to CN¥9.35 Down from CN¥11.98, the current price target is provided by 1 analyst. New target price is 15% above last closing price of CN¥8.14. Stock is down 4.7% over the past year. The company is forecast to post earnings per share of CN¥0.83 for next year compared to CN¥0.80 last year. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥10.22, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 22x in the Machinery industry in China. Total loss to shareholders of 18% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.35 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and profit margins, although revenues were flat. Third quarter 2021 results: Revenue: CN¥3.36b (flat on 3Q 2020). Net income: CN¥289.1m (down 22% from 3Q 2020). Profit margin: 8.6% (down from 11% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.25 (vs CN¥0.13 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥2.97b (up 42% from 2Q 2020). Net income: CN¥262.9m (up 95% from 2Q 2020). Profit margin: 8.8% (up from 6.4% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 29
First quarter 2021 earnings released: EPS CN¥0.13 (vs CN¥0.06 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.90b (up 26% from 1Q 2020). Net income: CN¥141.1m (up 108% from 1Q 2020). Profit margin: 7.4% (up from 4.5% in 1Q 2020). 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 fallen by 17% per year, which means it is significantly lagging earnings. Price Target Changed • Mar 23
Price target increased to CN¥13.81 Up from CN¥11.98, the current price target is an average from 6 analysts. New target price is 41% above last closing price of CN¥9.82. Stock is up 5.8% over the past year. Is New 90 Day High Low • Mar 15
New 90-day high: CN¥9.59 The company is up 3.0% from a price of CN¥9.28 on 15 December 2020. Outperformed the Chinese market which is flat over the last 90 days. Exceeded the Machinery industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 26
New 90-day low: CN¥8.50 The company is down 14% from its price of CN¥9.90 on 28 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥36.58 per share. Announcement • Jan 20
Fujian Longking Co., Ltd. announced that it expects to receive CNY 2.8 billion in funding from Longking Industrial Group Co., Ltd. and other investors Fujian Longking Co., Ltd. (SHSE:600388) announced a private placement of up to 320,718,042 shares for gross proceed of up to CNY 2,800,000,000 on January 18, 2021. The company entered into a subscription agreement with returning investor Longking Industrial Group Co., Ltd. for gross proceeds of up to CNY 500 million. In total, the transaction will include participation from not more than 35 specific investors. The transaction has been reviewed and approved at the second meeting of the company's ninth board of directors, and still needs to be approved by the shareholders' meeting and the China Securities Regulatory Commission. The shares subscribed by Longking Industrial Group Co., Ltd shall not be transferred within 18 months from the end of the issuance, and the shares subscribed by other investors shall not be transferred within 6 months from the end of the issuance. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥8.77 The company is down 10.0% from its price of CN¥9.72 on 09 October 2020. The Chinese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥36.66 per share. Is New 90 Day High Low • Dec 08
New 90-day high: CN¥10.75 The company is up 4.0% from its price of CN¥10.33 on 09 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Machinery industry, which is also up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥32.05 per share. Reported Earnings • Nov 01
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥860.1m, up 3.5% from the prior year. Total revenue was CN¥10.0b over the last 12 months, down 13% from the prior year. Announcement • Oct 29
Fujian Longking Co., Ltd. to Report Q3, 2020 Results on Oct 31, 2020 Fujian Longking Co., Ltd. announced that they will report Q3, 2020 results on Oct 31, 2020 Announcement • Aug 29
Environmental Protection Co., Ltd. from Tianjin Muzhao Enterprise Management Consulting Partnership, Shanghai Delixi Group Co., Ltd., Chen Zhenyang and Hangzhou Xizi Technology Industrial Co., Ltd. for approximately CNY 560 million. Fujian Longking Co., Ltd. (SHSE:600388) signed an equity transfer agreement to acquire Taizhou Dechang Environmental Protection Co., Ltd. from Tianjin Muzhao Enterprise Management Consulting Partnership, Shanghai Delixi Group Co., Ltd., Chen Zhenyang and Hangzhou Xizi Technology Industrial Co., Ltd. for approximately CNY 560 million on August 26, 2020. Fujian Longking Co., Ltd. will acquire the stake in cash and the consideration will be payable in installments. The acquisition will be divided in two phases. In the first phase, Fujian Longking Co., Ltd. will acquire 95% stake for CNY 536 million. The first phase of the acquisition will be implemented after the agreement is signed and in the second phase, Fujian Longking Co., Ltd. will acquire 5% stake for CNY 25 million and will be implemented one year after completion of the first phase of acquisition. The first payment amounting to CNY 267.98 million will be made within 5 working days after the signing of the agreement. On the day when first payment is received, the transfer and delivery of Taizhou Dechang Environmental Protection Co., Ltd ‘s partial equity subject to industrial and commercial acceptance will be completed. The second payment amounting to CNY 247.98 million shall be made within 5 working days after the equity transfer is completed and the third payment amounting to CNY 20 million will be paid within 5 days from the date when Taizhou Dechang Environmental Protection Co., Ltd. obtains government approval of the rigid landfill. Tianjin Muzhao Enterprise Management Consulting Partnership will sell 38.46% stake, Shanghai Delixi Group Co., Ltd. will sell 46.77% stake, Chen Zhenyang will sell 1.27% stake and Hangzhou Xizi Technology Industrial Co., Ltd. will sell 13.5% stake. Taizhou Dechang Environmental Protection Co., Ltd. reported net assets of CNY 150.2 million as at December 31, 2019. Taizhou Dechang Environmental Protection Co., Ltd. reported operating revenues of CNY 115.1 million and net profit of CNY 13.1 million in 2019. The transaction does not require the approval of the shareholders meeting. Announcement • Jul 31
Fujian Longking Co., Ltd. (SHSE:600388) cancelled the acquisition of 3.9% stake in Huatai Insurance Group Co., Ltd. BEIJING LANGEND ENVIRONMENTAL ENGINEERING SERVICE CO., LTD. agreed to acquire 4.9% stake in Huatai Insurance Group Co., Ltd. for CNY 1.8 billion on March 30, 2018. As of August 5, 2019, Fujian Longking Co., Ltd. agreed to acquire 3.9% stake in Huatai Insurance Group Co., Ltd. for CNY 1.4 billion under which Fujian Longking Co., Ltd. will acquire approximately CNY 160 million shares. Out of total consideration, CNY 200 million will be paid within 2 days of signing of the agreement, CNY 1.4 million within 10 days since approval from the shareholders’ meeting of Fujian Longking Co., Ltd., parent of BEIJING LANGEND ENVIRONMENTAL ENGINEERING SERVICE CO., LTD., and CNY 352.94 million to be paid within 5 days since completion of the agreements’ requirement. The transaction will be financed through a capital increase of CNY 1.77 billion by Fujian Longking Co., Ltd. in BEIJING LANGEND ENVIRONMENTAL ENGINEERING SERVICE CO., LTD. The transaction is subject to shareholders’ approval of Fujian Longking Co., Ltd., parent of BEIJING LANGEND ENVIRONMENTAL ENGINEERING SERVICE CO., LTD. The transaction has been approved by the Board of Fujian Longking Co., Ltd. On April 16, 2018, the transaction was approved by the shareholders of Fujian Longking Co., Ltd. As of August 5, 2019, the amendment is subject to shareholders’ approval of Fujian Longking Co., Ltd., and needs to be reviewed by China Banking and Insurance Regulatory Commission. The 21st session of the Fujian Longking Co., Ltd.’s 8th directorate approved the adjustments in the transaction.
Fujian Longking Co., Ltd. (SHSE:600388) cancelled the acquisition of 3.9% stake in Huatai Insurance Group Co., Ltd. on February 5, 2020. Announcement • Jul 08
Fujian Longking Co., Ltd. to Report First Half, 2020 Results on Aug 20, 2020 Fujian Longking Co., Ltd. announced that they will report first half, 2020 results on Aug 20, 2020 
