Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥28.32, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 27x in the Machinery industry in China. Total loss to shareholders of 20% over the past three years. Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.36 (vs CN¥0.48 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.36 (down from CN¥0.48 in 1Q 2025). Revenue: CN¥886.4m (down 4.3% from 1Q 2025). Net income: CN¥149.6m (down 12% from 1Q 2025). Profit margin: 17% (down from 18% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 18% 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 43% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. New Risk • Apr 02
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: 0.7% 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. Shareholders have been diluted in the past year (15% increase in shares outstanding). Announcement • Mar 31
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Reported Earnings • Mar 27
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥2.13 (up from CN¥0.18 in FY 2024). Revenue: CN¥4.63b (up 57% from FY 2024). Net income: CN¥818.2m (up CN¥752.8m from FY 2024). Profit margin: 18% (up from 2.2% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 4.7%. Revenue is forecast to grow 20% p.a. on average during the next 2 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 33% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Mar 26
Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, Apr 16, 2026 Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, Apr 16, 2026, at 15:00 China Standard Time. Location: 4F, No. 8, Yingyun Road, Luoxin Industrial Park, Economic and Technological Development Zone, Xin'an County, Luoyang, Henan China Announcement • Dec 31
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Announcement • Dec 26
Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that it expects to receive CNY 1.5 billion in funding Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced a private placement of not more than 124,225,750 A shares for gross proceeds of not more than CNY 1,500,000,000 on December 24, 2025. The transaction will include participation from not more than 35 investors. The shares cannot be transferred within 6 months from the issuance closing date. The transaction has been approved at the 20th meeting of the company’s 4th directorate board of the company. The transaction is subject to the approval of the company’s shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. Reported Earnings • Oct 22
Third quarter 2025 earnings released: EPS: CN¥0.69 (vs CN¥0.18 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.69 (up from CN¥0.18 in 3Q 2024). Revenue: CN¥1.41b (up 55% from 3Q 2024). Net income: CN¥264.2m (up 309% from 3Q 2024). Profit margin: 19% (up from 7.1% in 3Q 2024). The increase in margin was driven by higher revenue. 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 increased by 9% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Announcement • Sep 30
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Q3, 2025 Results on Oct 22, 2025 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report Q3, 2025 results on Oct 22, 2025 New Risk • Sep 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.7% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: CN¥0.61 (vs CN¥0.14 loss in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.61 (up from CN¥0.14 loss in 2Q 2024). Revenue: CN¥1.28b (up 110% from 2Q 2024). Net income: CN¥229.1m (up CN¥278.1m from 2Q 2024). Profit margin: 18% (up from net loss in 2Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 15% 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 25% per year whereas the company’s share price has fallen by 24% per year. Announcement • Jul 02
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report First Half, 2025 Results on Aug 09, 2025 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report first half, 2025 results on Aug 09, 2025 New Risk • Jun 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.3% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥35.85, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 21x in the Machinery industry in China. Total loss to shareholders of 64% over the past three years. Board Change • Jun 04
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. 2 highly experienced directors. Chairman of the Board Zhenqiang Xiao is the most experienced director on the board, commencing their role in 2011. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Declared Dividend • May 21
Dividend reduced to CN¥0.092 Dividend of CN¥0.092 is 12% lower than last year. Ex-date: 23rd May 2025 Payment date: 23rd May 2025 Dividend yield will be 0.3%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (12% 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 decreased over the past 46 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 31% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 25
Luoyang Xinqianglian Slewing Bearing Co., Ltd. Proposes Final Cash Dividend for the Year 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced on 24 April 2025 the profit distribution proposal for the year 2024 as final cash dividend/10 shares (tax included) of CNY 0.92000000. Reported Earnings • Apr 24
First quarter 2025 earnings released: EPS: CN¥0.48 (vs CN¥0.14 loss in 1Q 2024) First quarter 2025 results: EPS: CN¥0.48 (up from CN¥0.14 loss in 1Q 2024). Revenue: CN¥926.4m (up 108% from 1Q 2024). Net income: CN¥170.5m (up CN¥222.2m from 1Q 2024). Profit margin: 18% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 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 46% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Apr 24
Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, May 14, 2025 Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, May 14, 2025, at 14:30 China Standard Time. Location: 4F, No. 8, Jingjin Road, Luoxin Park, Xin'an Economic and Technological Development Zone, Xin'an County, Luoyang, Henan China New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Mar 31
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Q1, 2025 Results on Apr 24, 2025 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report Q1, 2025 results on Apr 24, 2025 Announcement • Dec 31
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Fiscal Year 2024 Results on Apr 24, 2025 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report fiscal year 2024 results on Apr 24, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.18 (vs CN¥0.70 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.18 (down from CN¥0.70 in 3Q 2023). Revenue: CN¥907.8m (up 3.5% from 3Q 2023). Net income: CN¥64.7m (down 73% from 3Q 2023). Profit margin: 7.1% (down from 27% in 3Q 2023). Revenue is forecast to grow 34% 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 48% per year whereas the company’s share price has fallen by 45% per year. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥18.71, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 16x in the Machinery industry in China. Total loss to shareholders of 84% over the past three years. Announcement • Sep 30
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥17.04, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Machinery industry in China. Total loss to shareholders of 84% over the past three years. Reported Earnings • Aug 31
Second quarter 2024 earnings released: CN¥0.14 loss per share (vs CN¥0.18 profit in 2Q 2023) Second quarter 2024 results: CN¥0.14 loss per share (down from CN¥0.18 profit in 2Q 2023). Revenue: CN¥610.8m (down 14% from 2Q 2023). Net loss: CN¥49.0m (down 187% from profit in 2Q 2023). Revenue is forecast to grow 32% 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 35% per year but the company’s share price has fallen by 47% per year, which means it is performing significantly worse than earnings. New Risk • Jul 24
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 Risk Debt is not well covered by operating cash flow (7.9% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (8.5% average weekly change). Shareholders have been diluted in the past year (8.8% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥18.06, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Machinery industry in China. Total loss to shareholders of 76% over the past three years. Announcement • Jun 29
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • May 16
Dividend increased to CN¥0.10 Dividend of CN¥0.10 is 8.3% higher than last year. Ex-date: 21st May 2024 Payment date: 21st May 2024 Dividend yield will be 0.5%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (13% 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 decreased over the past 36 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 43% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 11
Luoyang Xinqianglian Slewing Bearing Co., Ltd. Approves 2023 Profit Distribution Plan Luoyang Xinqianglian Slewing Bearing Co., Ltd. held its Annual General Meeting of 2023 on 09 May 2024 approved the 2023 profit distribution plan of Cash dividend/10 shares (tax included): CNY 1.04000000. Reported Earnings • Apr 26
First quarter 2024 earnings released: CN¥0.14 loss per share (vs CN¥0.13 profit in 1Q 2023) First quarter 2024 results: CN¥0.14 loss per share (down from CN¥0.13 profit in 1Q 2023). Revenue: CN¥446.5m (down 12% from 1Q 2023). Net loss: CN¥51.8m (down 217% from profit in 1Q 2023). Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 29% per year whereas the company’s share price has fallen by 26% per year. Reported Earnings • Apr 20
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥1.12 (up from CN¥0.96 in FY 2022). Revenue: CN¥2.82b (up 6.4% from FY 2022). Net income: CN¥374.8m (up 19% from FY 2022). Profit margin: 13% (up from 12% in FY 2022). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 26% per year whereas the company’s share price has fallen by 24% per year. Announcement • Apr 20
Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, May 09, 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd., Annual General Meeting, May 09, 2024, at 14:30 China Standard Time. Location: 4F, No. 8, Jingjin Road, Luoxin Park, Xin'an Economic-Technological Development District, Xin'an County, Luoyang, Henan China Announcement • Mar 30
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥21.91, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Machinery industry in China. Total loss to shareholders of 59% over the past three years. Announcement • Dec 29
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Fiscal Year 2023 Results on Apr 19, 2024 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report fiscal year 2023 results on Apr 19, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.70 (vs CN¥0.27 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.70 (up from CN¥0.27 in 3Q 2022). Revenue: CN¥877.4m (up 27% from 3Q 2022). Net income: CN¥238.9m (up 162% from 3Q 2022). Profit margin: 27% (up from 13% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. New Risk • Sep 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.7% 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: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (53% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (6.7% net profit margin). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Major Estimate Revision • Sep 14
Consensus revenue estimates decrease by 17% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.33b to CN¥3.58b. EPS estimate unchanged from CN¥2.15 per share at last update. Machinery industry in China expected to see average net income growth of 51% next year. Consensus price target down from CN¥61.75 to CN¥44.50. Share price was steady at CN¥30.64 over the past week. Price Target Changed • Sep 13
Price target decreased by 31% to CN¥44.50 Down from CN¥64.67, the current price target is an average from 2 analysts. New target price is 44% above last closing price of CN¥30.94. Stock is down 63% over the past year. The company is forecast to post earnings per share of CN¥2.15 for next year compared to CN¥0.96 last year. Announcement • Sep 06
Luoyang Xinqianglian Slewing Bearing Co., Ltd. (SZSE:300850) completed the acquisition of 51.145% stake in Luoyang Shengjiu Forging Co., Ltd. from Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.), Qingdao Chirui Investment Management Center (Limited Partnership), Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) and Fan Weihong. Luoyang Xinqianglian Slewing Bearing Co., Ltd. (SZSE:300850) agreed to acquire 51.145% stake in Luoyang Shengjiu Forging Co., Ltd. from Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.), Qingdao Chirui Investment Management Center (Limited Partnership), Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) and Fan Weihong for CNY 971.76 million on December 23, 2022. The consideration of CNY 242.94 million will be paid in cash and CNY 728.82 million through issuance of shares. The number of shares to be issued for this asset acquisition is 15.62 million. The company will issue A shares to no more than 35 investors to raise supporting funds of not more than CNY 350 million. The board of directors of Luoyang Xinqianglian Slewing Bearing approved the transaction. On December 23, 2022 Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.)‘s Investment Committee approved this transaction and on December 27, 2022, the Investment Committee of Qingdao Chirui Investment Management Center (Limited Partnership) and Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) approved this transaction. The transaction is subject to approval from acquirer shareholders, Shenzhen Stock Exchange and CSRC. Shengjiu Forging recorded total assets of CNY 1.43 billion and net assets of CNY 1.09 billion as of September 30, 2022. Dongxing Securities Corporation Limited (SHSE:601198) acted as financial advisor, GF Law Firm acted as legal advisor and Moore Stephens Da Hua acted as accountant to Luoyang Xinqianglian Slewing Bearing Co., Ltd. On March 16, 2023, the company’s 1st special shareholders’ meeting for 2023 approved the acquisition of asset through share issuance and cash payment and raising of supporting funds report. As of June 28, 2023, Shenzhen Stock Exchange Merger and Acquisition and Restructuring Review Committee has approved the transaction. The transaction is pending approval from the China Securities Regulatory Commission. As of August 23, 2023, The deal has been approved from China Securities Regulatory Commission. Luoyang Xinqianglian Slewing Bearing Co., Ltd. (SZSE:300850) completed the acquisition of 51.145% stake in Luoyang Shengjiu Forging Co., Ltd. from Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.), Qingdao Chirui Investment Management Center (Limited Partnership), Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) and Fan Weihong on September 4, 2022. New Risk • Aug 29
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (53% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (6.7% net profit margin). Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.18 (vs CN¥0.45 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.18 (down from CN¥0.45 in 2Q 2022). Revenue: CN¥708.5m (up 15% from 2Q 2022). Net income: CN¥56.4m (down 61% from 2Q 2022). Profit margin: 8.0% (down from 23% in 2Q 2022). Revenue is forecast to grow 35% 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 fallen by 11% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Price Target Changed • May 16
Price target decreased by 16% to CN¥64.67 Down from CN¥77.00, the current price target is an average from 3 analysts. New target price is 60% above last closing price of CN¥40.31. Stock is down 48% over the past year. The company is forecast to post earnings per share of CN¥2.15 for next year compared to CN¥0.96 last year. Announcement • May 06
Luoyang Xinqianglian Slewing Bearing Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares, Payable on 11 May 2023 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 0.95999900 for the year 2022, payable on 11 May 2023. Record date is 10 May 2023. Ex-date is 11 May 2023. Reported Earnings • Apr 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.96 (down from CN¥1.64 in FY 2021). Revenue: CN¥2.65b (up 7.1% from FY 2021). Net income: CN¥316.1m (down 39% from FY 2021). Profit margin: 12% (down from 21% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 50%. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Machinery industry in China. Announcement • Jan 11
Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that it expects to receive CNY 350 million in funding Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced a private placement of CNY 350 million on January 9, 2023. The company shall issue shares at a price not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction will include participation from no more than 35 investors. The shares to be issued shall have a hold period of 6 months from closing of the transaction. The transaction has been approved by the 23rd session of the company’s 3rd directorate and the 17th session of the company’s 3rd supervisory board. The transaction is still subject to approval from Shenzhen Stock Exchange and the China Securities Regulatory Commission. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 4 highly experienced directors. No independent directors (3 non-independent directors). Chairman of Supervisory Board Zhanpu Zhang was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorated over the past week After last week's 31% share price decline to CN¥69.82, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 18x in the Machinery industry in China. Total loss to shareholders of 47% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥123 per share. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.27 (vs CN¥0.72 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.27 (down from CN¥0.72 in 3Q 2021). Revenue: CN¥690.5m (up 8.0% from 3Q 2021). Net income: CN¥91.3m (down 59% from 3Q 2021). Profit margin: 13% (down from 35% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 36% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥98.72, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 18x in the Machinery industry in China. Total loss to shareholders of 16% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥130 per share. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.45 (vs CN¥0.33 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.45 (up from CN¥0.33 in 2Q 2021). Revenue: CN¥618.5m (down 12% from 2Q 2021). Net income: CN¥144.8m (up 41% from 2Q 2021). Profit margin: 23% (up from 15% in 2Q 2021). Over the next year, revenue is forecast to grow 53%, compared to a 36% growth forecast for the Machinery industry in China. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥80.00, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 21x in the Machinery industry in China. Total loss to shareholders of 15% over the past year. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥88.41, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 43% over the past year. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥99.98, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 19x in the Machinery industry in China. Total returns to shareholders of 86% over the past year. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥87.23, the stock trades at a trailing P/E ratio of 31.4x. Average forward P/E is 18x in the Machinery industry in China. Total returns to shareholders of 116% over the past year. Announcement • May 17
Luoyang Xinqianglian Slewing Bearing Co., Ltd. Approves Dividend Payable on 23 May 2022 Luoyang Xinqianglian Slewing Bearing Co., Ltd. approved Cash dividend per 10 (A shares) (tax included) CNY 2.66000000 Record date is 20 May 2022 Ex-date is 23 May 2022 Payment date is 23 May 2022. Announcement • May 15
Luoyang Xinqianglian Slewing Bearing Co., Ltd. Approves Cash Dividend for 2021 Luoyang Xinqianglian Slewing Bearing Co., Ltd. at its Annual General Meeting of 2021 on 12 May 2022 approved Cash dividend of CNY 2.66000000 per 10 shares (tax included) for 2021. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥121, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the Machinery industry in China. Total returns to shareholders of 47% over the past year. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥137, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 53% over the past year. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥169, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 72% over the past year. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥1.22 (vs CN¥0.96 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: CN¥639.1m (down 17% from 3Q 2020). Net income: CN¥224.6m (up 42% from 3Q 2020). Profit margin: 35% (up from 21% in 3Q 2020). Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥201, the stock trades at a trailing P/E ratio of 72.5x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 264% over the past year. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥186, the stock trades at a trailing P/E ratio of 67.1x. Average trailing P/E is 35x in the Machinery industry in China. Total returns to shareholders of 448% over the past year. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.56 (vs CN¥0.54 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¥699.1m (up 76% from 2Q 2020). Net income: CN¥102.4m (up 40% from 2Q 2020). Profit margin: 15% (down from 18% in 2Q 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥164, the stock trades at a trailing P/E ratio of 57.3x. Average trailing P/E is 34x in the Machinery industry in China. Total returns to shareholders of 350% over the past year. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥127, the stock trades at a trailing P/E ratio of 44.6x. Average trailing P/E is 33x in the Machinery industry in China. Total returns to shareholders of 327% over the past year. Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥105, the stock trades at a trailing P/E ratio of 36.8x. Average trailing P/E is 32x in the Machinery industry in China. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥82.41, the stock trades at a trailing P/E ratio of 28.9x. Average trailing P/E is 32x in the Machinery industry in China. Valuation Update With 7 Day Price Move • May 06
Investor sentiment deteriorated over the past week After last week's 42% share price decline to CN¥79.04, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 30x in the Machinery industry in China. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.69 (vs CN¥0.34 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥561.5m (up 288% from 1Q 2020). Net income: CN¥72.9m (up 168% from 1Q 2020). Profit margin: 13% (down from 19% in 1Q 2020). The decrease in margin was driven by higher expenses. Reported Earnings • Apr 01
Full year 2020 earnings released: EPS CN¥4.69 (vs CN¥1.26 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.06b (up 221% from FY 2019). Net income: CN¥424.7m (up 325% from FY 2019). Profit margin: 21% (up from 16% in FY 2019). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥155, the stock trades at a trailing P/E ratio of 43x. Average trailing P/E is 34x in the Machinery industry in China. Is New 90 Day High Low • Mar 15
New 90-day low: CN¥117 The company is down 7.0% from a price of CN¥127 on 15 December 2020. Underperformed the Chinese market, which is flat over the last 90 days. Lagged the Machinery industry, which is up 1.0% over the same period. Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥126, the stock is trading at a trailing P/E ratio of 35x, down from the previous P/E ratio of 42.1x. This compares to an average P/E of 33x in the Machinery industry in China. Announcement • Feb 24
Luoyang Xinqianglian Slewing Bearing Co., Ltd. to Report Fiscal Year 2020 Results on Apr 08, 2021 Luoyang Xinqianglian Slewing Bearing Co., Ltd. announced that they will report fiscal year 2020 results on Apr 08, 2021 Is New 90 Day High Low • Jan 15
New 90-day high: CN¥178 The company is up 98% from its price of CN¥89.99 on 16 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 7.0% over the same period. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥178, the stock is trading at a trailing P/E ratio of 49.5x, up from the previous P/E ratio of 40.4x. This compares to an average P/E of 33x in the Machinery industry in China. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment improved over the past week After last week's 55% share price gain to CN¥163, the stock is trading at a trailing P/E ratio of 45.2x, up from the previous P/E ratio of 29.1x. This compares to an average P/E of 38x in the Machinery industry in China. Is New 90 Day High Low • Dec 16
New 90-day high: CN¥140 The company is up 142% from its price of CN¥57.83 on 17 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 4.0% over the same period. Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment deteriorated over the past week After last week's 21% share price decline to CN¥105, the stock is trading at a trailing P/E ratio of 29.1x, down from the previous P/E ratio of 36.8x. This compares to an average P/E of 38x in the Machinery industry in China. 
