Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥57.35, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 152% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥85.75 per share. Announcement • Jun 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report First Half, 2026 Results on Aug 15, 2026 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report first half, 2026 results on Aug 15, 2026 Buy Or Sell Opportunity • Jun 29
Now 23% undervalued Over the last 90 days, the stock has risen 117% to CN¥62.69. The fair value is estimated to be CN¥81.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.5% over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 32% in 2 years. Earnings are forecast to grow by 69% in the next 2 years. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥67.06, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 229% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥80.94 per share. New Risk • Jun 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥54.12, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 184% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥79.79 per share. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥44.08, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 142% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥79.41 per share. New Risk • Apr 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.1% average weekly change). Reported Earnings • Apr 25
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥1.19 (up from CN¥1.05 in FY 2024). Revenue: CN¥10.9b (up 9.1% from FY 2024). Net income: CN¥1.01b (up 16% from FY 2024). Profit margin: 9.2% (up from 8.7% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.9%. Earnings per share (EPS) also missed analyst estimates by 4.8%. Revenue is forecast to grow 14% p.a. on average during the next 2 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 11% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 25
Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, May 15, 2026 Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, May 15, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jinan, Shandong China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥35.67, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Chemicals industry in China. Total returns to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥18.67 per share. Announcement • Mar 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Announcement • Dec 26
Jinan Shengquan Group Share Holding Co., Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Reported Earnings • Nov 01
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: CN¥0.30 (up from CN¥0.30 in 3Q 2024). Revenue: CN¥2.72b (up 7.8% from 3Q 2024). Net income: CN¥258.6m (up 3.7% from 3Q 2024). Profit margin: 9.5% (in line with 3Q 2024). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 14% 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 13% per year whereas the company’s share price has increased by 17% per year. Major Estimate Revision • Oct 31
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥1.49 to CN¥1.23 per share. Revenue forecast steady at CN¥11.7b. Net income forecast to grow 23% next year vs 51% growth forecast for Chemicals industry in China. Consensus price target broadly unchanged at CN¥35.76. Share price fell 2.6% to CN¥28.01 over the past week. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥28.73, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 24x in the Chemicals industry in China. Total returns to shareholders of 81% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥44.25 per share. Announcement • Sep 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 20
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: CN¥0.35 (up from CN¥0.24 in 2Q 2024). Revenue: CN¥2.89b (up 16% from 2Q 2024). Net income: CN¥294.2m (up 52% from 2Q 2024). Profit margin: 10% (up from 7.8% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 20%. 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 increased by 12% per year whereas the company’s share price has increased by 16% per year. Price Target Changed • Jul 09
Price target increased by 7.8% to CN¥33.64 Up from CN¥31.20, the current price target is an average from 4 analysts. New target price is 15% above last closing price of CN¥29.15. Stock is up 50% over the past year. The company is forecast to post earnings per share of CN¥1.48 for next year compared to CN¥1.05 last year. Announcement • Jun 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report First Half, 2025 Results on Aug 19, 2025 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report first half, 2025 results on Aug 19, 2025 Reported Earnings • Apr 19
First quarter 2025 earnings released: EPS: CN¥0.25 (vs CN¥0.17 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.25 (up from CN¥0.17 in 1Q 2024). Revenue: CN¥2.46b (up 15% from 1Q 2024). Net income: CN¥206.7m (up 51% from 1Q 2024). Profit margin: 8.4% (up from 6.4% in 1Q 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 increased by 10% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥23.72, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 5.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.30 per share. Price Target Changed • Apr 01
Price target increased by 14% to CN¥28.62 Up from CN¥25.12, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of CN¥27.93. Stock is up 45% over the past year. The company is forecast to post earnings per share of CN¥1.12 for next year compared to CN¥1.02 last year. Announcement • Apr 01
Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, Apr 21, 2025 Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, Apr 21, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jinan, Shandong China Announcement • Mar 28
Jinan Shengquan Group Share Holding Co., Ltd. to Report Q1, 2025 Results on Apr 18, 2025 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report Q1, 2025 results on Apr 18, 2025 Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥29.76, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 3.6% over the past three years. Announcement • Dec 27
Jinan Shengquan Group Share Holding Co., Ltd. to Report Fiscal Year 2024 Results on Apr 12, 2025 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report fiscal year 2024 results on Apr 12, 2025 Announcement • Dec 02
Jinan Shengquan Group Share Holding Co., Ltd. (SHSE:605589) announces an Equity Buyback for CNY 500 million worth of its shares. Jinan Shengquan Group Share Holding Co., Ltd. (SHSE:605589) announces a share repurchase program. Under the program, the company will repurchase up to CNY 500 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 32 per share. The purpose of the program is to use the repurchased shares for employee stock ownership plans or equity incentive plans. If the company fails to use up the repurchased shares within 36 months after the completion of the share repurchase, the company will cancel the repurchased shares in accordance with the law. The program will be valid for 12 months. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥24.60, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.72 per share. Price Target Changed • Oct 28
Price target increased by 8.5% to CN¥26.62 Up from CN¥24.55, the current price target is an average from 3 analysts. New target price is 20% above last closing price of CN¥22.11. Stock is up 2.4% over the past year. The company is forecast to post earnings per share of CN¥1.13 for next year compared to CN¥1.02 last year. Reported Earnings • Oct 27
Third quarter 2024 earnings released: EPS: CN¥0.30 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.30 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥2.53b (up 8.6% from 3Q 2023). Net income: CN¥249.3m (up 48% from 3Q 2023). Profit margin: 9.9% (up from 7.3% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% 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 4% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥19.53, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.84 per share. Announcement • Sep 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥21.34, 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 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.83 per share. Reported Earnings • Aug 26
Second quarter 2024 earnings released: EPS: CN¥0.24 (vs CN¥0.23 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.24 (up from CN¥0.23 in 2Q 2023). Revenue: CN¥2.49b (up 6.7% from 2Q 2023). Net income: CN¥193.9m (up 4.8% from 2Q 2023). Profit margin: 7.8% (down from 7.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 17% 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 2% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Announcement • Jul 24
Jinan Shengquan Group Share Holding Co., Ltd. (SHSE:605589) announces an Equity Buyback for CNY 250 million worth of its shares. Jinan Shengquan Group Share Holding Co., Ltd. (SHSE:605589) announces a share repurchase program. Under the program, the company will repurchase up to CNY 250 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 24 per share. The purpose of the program is to safeguard the interests of the majority of investors, and promote investors' confidence in the company's future sustainable development and recognition of the company's value, combined with the company's operating conditions, financial status and future development prospects and to reduce registered capital. The repurchased shares will be used for employee stock ownership plans or equity incentive plans or to convert company convertible bonds, otherwise will be cancelled if the company fails to transfer them within the time limit stipulated by relevant laws and regulations. The program will be funded from company's own funds. The program will be valid for 12 months. Announcement • Jun 28
Jinan Shengquan Group Share Holding Co., Ltd. to Report First Half, 2024 Results on Aug 24, 2024 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Valuation Update With 7 Day Price Move • May 31
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥21.37, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Chemicals industry in China. Total returns to shareholders of 3.6% over the past year. Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.17 (vs CN¥0.17 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.17 (in line with 1Q 2023). Revenue: CN¥2.14b (up 5.1% from 1Q 2023). Net income: CN¥137.4m (up 7.3% from 1Q 2023). Profit margin: 6.4% (up from 6.3% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in China. Major Estimate Revision • Apr 25
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥12.8b to CN¥11.5b. EPS estimate fell from CN¥1.27 to CN¥1.20 per share. Net income forecast to grow 26% next year vs 42% growth forecast for Chemicals industry in China. Consensus price target up from CN¥24.55 to CN¥25.36. Share price was steady at CN¥19.25 over the past week. Reported Earnings • Apr 22
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥1.02 (up from CN¥0.91 in FY 2022). Revenue: CN¥9.12b (down 5.0% from FY 2022). Net income: CN¥789.4m (up 12% from FY 2022). Profit margin: 8.7% (up from 7.3% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 9.9%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in China. Major Estimate Revision • Apr 20
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥12.8b to CN¥11.4b. EPS estimate fell from CN¥1.27 to CN¥1.22 per share. Net income forecast to grow 26% next year vs 43% growth forecast for Chemicals industry in China. Consensus price target down from CN¥24.55 to CN¥23.22. Share price rose 2.8% to CN¥19.29 over the past week. Announcement • Apr 20
Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, Jun 20, 2024 Jinan Shengquan Group Share Holding Co., Ltd., Annual General Meeting, Jun 20, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jinan, Shandong China New Risk • Apr 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.1% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (8.1% increase in shares outstanding). Announcement • Mar 30
Jinan Shengquan Group Share Holding Co., Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Reported Earnings • Feb 06
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥1.03 (up from CN¥0.91 in FY 2022). Revenue: CN¥9.08b (down 5.4% from FY 2022). Net income: CN¥796.7m (up 13% from FY 2022). Profit margin: 8.8% (up from 7.3% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Chemicals industry in China. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥16.10, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 12x in the Chemicals industry in China. Total loss to shareholders of 31% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.53 per share. Announcement • Dec 29
Jinan Shengquan Group Share Holding Co., Ltd. to Report Fiscal Year 2023 Results on Mar 29, 2024 Jinan Shengquan Group Share Holding Co., Ltd. announced that they will report fiscal year 2023 results on Mar 29, 2024 Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.27 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.23 (down from CN¥0.27 in 2Q 2022). Revenue: CN¥2.33b (down 8.5% from 2Q 2022). Net income: CN¥185.0m (down 11% from 2Q 2022). Profit margin: 7.9% (down from 8.1% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. New Risk • Jun 16
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 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.0% average weekly change). Buying Opportunity • May 30
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be CN¥25.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 38% in 2 years. Earnings is forecast to grow by 70% in the next 2 years. Buying Opportunity • Apr 29
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.7%. The fair value is estimated to be CN¥25.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 38% in 2 years. Earnings is forecast to grow by 70% in the next 2 years. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥23.10, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 11% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥25.07 per share. Buying Opportunity • Apr 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be CN¥24.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings is also forecast to grow by 20% per annum over the same time period. Reported Earnings • Apr 12
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: CN¥0.91. Revenue: CN¥9.60b (up 8.8% from FY 2021). Net income: CN¥703.4m (up 2.3% from FY 2021). Profit margin: 7.3% (down from 7.8% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.1%. Earnings per share (EPS) also surpassed analyst estimates by 2.2%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Chemicals industry in China. Buying Opportunity • Mar 28
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 8.9%. The fair value is estimated to be CN¥24.66, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 38% in 2 years. Earnings is forecast to grow by 64% in the next 2 years. Reported Earnings • Mar 02
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: CN¥0.90. Revenue: CN¥9.53b (up 8.0% from FY 2021). Net income: CN¥700.1m (up 1.8% from FY 2021). Profit margin: 7.3% (down from 7.8% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 1.1%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Chemicals industry in China. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥23.49, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 39% over the past year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 9 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Junli Meng was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 10
Jinan Shengquan Group Share Holding Co., Ltd. announced that it expects to receive CNY 999.999997 million in funding Jinan Shengquan Group Share Holding Co., Ltd. announced a private placement of not more than 70,126,227 A shares at an issue price of CNY 14.26 per share for gross proceeds of not more than CNY 1,000,000,000 on November 9, 2022. The transaction included participation from individual investor Tang Diyuan. The company has signed conditional subscription agreement with investor. The pricing base date of the shares is the announcement date of the resolutions of the ninth meeting of the ninth board of directors of the company, and the issue price shall not be lower than 80% of the average trading price of the company's shares in the 20 trading days prior to the pricing base date. The number of shares to be issued does not exceed 30% of the company's total share capital before this transaction. The final number of shares to be issued shall be determined by the board of directors authorized by the general meeting of shareholders in consultation with the sponsor. The transaction has been reviewed and approved at the ninth meeting of the ninth board of directors and tenth meeting of the ninth board of supervisors of the company and still needs to be reviewed and approved by the shareholders in third extraordinary general meeting in 2022 and China Securities Regulatory Commission. The shares to be issued in the transaction shall not be transferred within 18 months from the date of the closing of transaction. Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥20.61, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 41% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥16.73 per share. Major Estimate Revision • Oct 31
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥10.7b to CN¥9.83b. EPS estimate also fell from CN¥1.14 per share to CN¥1.02 per share. Net income forecast to grow 54% next year vs 43% growth forecast for Chemicals industry in China. Consensus price target down from CN¥31.98 to CN¥26.79. Share price was steady at CN¥16.65 over the past week. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.19 (vs CN¥0.21 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.19 (down from CN¥0.21 in 3Q 2021). Revenue: CN¥2.30b (flat on 3Q 2021). Net income: CN¥145.3m (down 5.6% from 3Q 2021). Profit margin: 6.3% (down from 6.8% in 3Q 2021). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥21.53, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 39% over the past year. Reported Earnings • Aug 07
Second quarter 2022 earnings released Second quarter 2022 results: EPS: CN¥0.27. Revenue: CN¥2.55b (flat on 2Q 2021). Net income: CN¥206.8m (up CN¥206.8m from 2Q 2021). Profit margin: 8.1% (up from null in 2Q 2021). Over the next year, revenue is forecast to grow 20%, compared to a 42% growth forecast for the industry in China. 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. 4 experienced directors. No highly experienced directors. No independent directors (4 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. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.21 (vs CN¥0.36 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥2.28b (down 6.1% from 3Q 2020). Net income: CN¥153.9m (down 39% from 3Q 2020). Profit margin: 6.8% (down from 10% in 3Q 2020). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥31.18, the stock trades at a trailing P/E ratio of 28.6x. Average trailing P/E is 34x in the Chemicals industry in China. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥37.94, the stock trades at a trailing P/E ratio of 31.3x. Average trailing P/E is 32x in the Chemicals industry in China. Reported Earnings • Aug 10
Second quarter 2021 earnings released: EPS CN¥0.31 The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥2.17b (up 12% from 2Q 2020). Net income: CN¥211.7m (up 4.3% from 2Q 2020). Profit margin: 9.7% (in line with 2Q 2020).