Announcement • Jun 30
SBT Ultrasonic Technology Co., Ltd. to Report First Half, 2026 Results on Aug 29, 2026 SBT Ultrasonic Technology Co., Ltd. announced that they will report first half, 2026 results on Aug 29, 2026 New Risk • Apr 25
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 27% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (27% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.2% average weekly change). Reported Earnings • Apr 25
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: CN¥0.45 (up from CN¥0.21 in 1Q 2025). Revenue: CN¥198.2m (up 34% from 1Q 2025). Net income: CN¥50.3m (up 113% from 1Q 2025). Profit margin: 25% (up from 16% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 27% 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 18% 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 13
SBT Ultrasonic Technology Co., Ltd. announced that it expects to receive CNY 1.3439613 billion in funding SBT Ultrasonic Technology Co., Ltd. announced private placement to issue not more than 34,720,008 A shares for gross proceeds of not more than CNY 1,343,961,300 on April 11, 2026. The transaction includes participation from not more than 35 investors. The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The shares cannot be transferred within 6 months from the issuance closing date. The transaction is approved by board of directors of the company in its 14th Meeting of the Company’s 2nd Directorate, and is subject to the approvals of the Company’s Shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. Announcement • Mar 31
SBT Ultrasonic Technology Co., Ltd., Annual General Meeting, May 12, 2026 SBT Ultrasonic Technology Co., Ltd., Annual General Meeting, May 12, 2026, at 14:30 China Standard Time. Location: No. 1488, Cangyuan Road, Minhang District, Shanghai China Announcement • Mar 30
SBT Ultrasonic Technology Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 SBT Ultrasonic Technology Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 New Risk • Mar 23
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.8% average weekly change). Reported Earnings • Mar 05
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥1.02 (up from CN¥0.76 in FY 2024). Revenue: CN¥774.0m (up 32% from FY 2024). Net income: CN¥114.9m (up 34% from FY 2024). Profit margin: 15% (in line with FY 2024). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Announcement • Dec 26
SBT Ultrasonic Technology Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 SBT Ultrasonic Technology Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.32 (vs CN¥0.12 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.32 (up from CN¥0.12 in 3Q 2024). Revenue: CN¥197.7m (up 20% from 3Q 2024). Net income: CN¥36.0m (up 137% from 3Q 2024). Profit margin: 18% (up from 9.2% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 32% 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 6% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. New Risk • Oct 10
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 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.2% average weekly change). High level of non-cash earnings (32% accrual ratio). Announcement • Sep 30
SBT Ultrasonic Technology Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 SBT Ultrasonic Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Price Target Changed • Aug 23
Price target increased by 19% to CN¥66.82 Up from CN¥56.00, the current price target is an average from 4 analysts. New target price is 20% below last closing price of CN¥83.84. Stock is up 175% over the past year. The company is forecast to post earnings per share of CN¥1.23 for next year compared to CN¥0.76 last year. Reported Earnings • Aug 21
Second quarter 2025 earnings released: EPS: CN¥0.31 (vs CN¥0.04 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.31 (up from CN¥0.04 in 2Q 2024). Revenue: CN¥175.2m (up 43% from 2Q 2024). Net income: CN¥34.4m (up CN¥30.2m from 2Q 2024). Profit margin: 20% (up from 3.4% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in China. New Risk • Jul 23
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 6.7% 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. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Announcement • Jun 30
SBT Ultrasonic Technology Co., Ltd. to Report First Half, 2025 Results on Aug 19, 2025 SBT Ultrasonic Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 19, 2025 Declared Dividend • Jun 23
Dividend increased to CN¥0.35 Dividend of CN¥0.35 is 75% higher than last year. Ex-date: 24th June 2025 Payment date: 24th June 2025 Dividend yield will be 0.6%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (37% 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 26 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 168% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥61.50, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 41% over the past year. 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 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 High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.5% average weekly change). New Risk • Apr 17
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 204% The company is paying a dividend despite having no free cash flows. Dividend yield: 0.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 204% Paying a dividend despite having no free cash flows. High level of non-cash earnings (46% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Announcement • Apr 14
SBT Ultrasonic Technology Co., Ltd., Annual General Meeting, May 06, 2025 SBT Ultrasonic Technology Co., Ltd., Annual General Meeting, May 06, 2025, at 14:00 China Standard Time. Location: No. 1488, Cangyuan Road, Minhang District, Shanghai China Reported Earnings • Apr 12
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: CN¥0.76 (up from CN¥0.58 in FY 2023). Revenue: CN¥584.6m (up 11% from FY 2023). Net income: CN¥85.9m (up 29% from FY 2023). Profit margin: 15% (up from 13% in FY 2023). Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 91%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in China. New Risk • Apr 07
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. This is currently the only risk that has been identified for the company. Announcement • Mar 28
SBT Ultrasonic Technology Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 SBT Ultrasonic Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥50.90, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 1.8% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥32.03 per share. Price Target Changed • Mar 07
Price target increased by 14% to CN¥57.00 Up from CN¥50.00, the current price target is an average from 2 analysts. New target price is 9.4% above last closing price of CN¥52.09. Stock is down 1.3% over the past year. The company is forecast to post earnings per share of CN¥1.18 for next year compared to CN¥0.75 last year. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥47.48, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 20x in the Machinery industry in China. Total loss to shareholders of 9.2% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥32.02 per share. New Risk • Feb 06
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. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Feb 06
Now 36% overvalued after recent price rise Over the last 90 days, the stock has risen 4.6% to CN¥45.88. The fair value is estimated to be CN¥33.67, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.7% over the last 3 years. Earnings per share has declined by 36%. Revenue is forecast to grow by 77% in 2 years. Earnings are forecast to grow by 132% in the next 2 years. Announcement • Dec 27
SBT Ultrasonic Technology Co., Ltd. to Report Fiscal Year 2024 Results on Apr 30, 2025 SBT Ultrasonic Technology Co., Ltd. announced that they will report fiscal year 2024 results on Apr 30, 2025 Price Target Changed • Dec 05
Price target increased by 14% to CN¥57.00 Up from CN¥50.00, the current price target is an average from 2 analysts. New target price is 29% above last closing price of CN¥44.15. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥0.21 for next year compared to CN¥0.58 last year. Reported Earnings • Oct 26
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: CN¥0.12 (up from CN¥0.11 in 3Q 2023). Revenue: CN¥164.6m (up 53% from 3Q 2023). Net income: CN¥15.2m (up 17% from 3Q 2023). Profit margin: 9.2% (down from 12% in 3Q 2023). Revenue exceeded analyst estimates by 7.6%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 36% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Announcement • Sep 30
SBT Ultrasonic Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 26, 2024 SBT Ultrasonic Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 New Risk • Sep 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 6.7% 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. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (2.1% net profit margin). Major Estimate Revision • Aug 30
Consensus revenue estimates fall by 16% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥653.1m to CN¥550.7m. EPS estimate fell from CN¥0.789 to CN¥0.627 per share. Net income forecast to grow 1,130% next year vs 41% growth forecast for Machinery industry in China. Consensus price target down from CN¥64.50 to CN¥56.67. Share price rose 14% to CN¥34.65 over the past week. Reported Earnings • Aug 24
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CN¥0.04 (down from CN¥0.28 in 2Q 2023). Revenue: CN¥123.0m (down 34% from 2Q 2023). Net income: CN¥4.20m (down 87% from 2Q 2023). Profit margin: 3.4% (down from 17% in 2Q 2023). Revenue missed analyst estimates by 26%. Earnings per share (EPS) also missed analyst estimates by 87%. Revenue is forecast to grow 41% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Price Target Changed • Aug 14
Price target decreased by 19% to CN¥64.50 Down from CN¥79.63, the current price target is an average from 3 analysts. New target price is 102% above last closing price of CN¥32.00. Stock is down 65% over the past year. The company is forecast to post earnings per share of CN¥0.79 for next year compared to CN¥0.58 last year. Announcement • Jul 19
SBT Ultrasonic Technology Co.,Ltd. (SHSE:688392) announces an Equity Buyback for CNY 40 million worth of its shares. SBT Ultrasonic Technology Co.,Ltd. (SHSE:688392) announces a share repurchase program. Under the program, the company will repurchase up to CNY 40 million worth of its shares. The shares will be repurchased at no more than CNY 60.89 per share. The purpose of the program is to to maintain the company's value and shareholders' interests. If the company fails to use up the repurchased shares within 3 years after the disclosure of the results of the share repurchase and the announcement of the share change , the unused repurchased shares will be cancelled. The program will be funded from the oversubscribed funds obtained from the company's initial public offering of CNY common shares. The plan will be valid for 3 months. Announcement • Jun 29
SBT Ultrasonic Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 24, 2024 SBT Ultrasonic Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Reported Earnings • May 02
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.58 (down from CN¥1.11 in FY 2022). Revenue: CN¥525.2m (flat on FY 2022). Net income: CN¥66.5m (down 40% from FY 2022). Profit margin: 13% (down from 21% in FY 2022). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 40%. Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in China. Major Estimate Revision • Apr 30
Consensus EPS estimates fall by 42% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥646.9m to CN¥635.2m. EPS estimate also fell from CN¥1.07 per share to CN¥0.627 per share. Net income forecast to shrink 1.6% next year vs 47% growth forecast for Machinery industry in China . Consensus price target broadly unchanged at CN¥86.94. Share price was steady at CN¥48.68 over the past week. Announcement • Apr 29
SBT Ultrasonic Technology Co.,Ltd., Annual General Meeting, May 28, 2024 SBT Ultrasonic Technology Co.,Ltd., Annual General Meeting, May 28, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shanghai China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥42.36, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 17x in the Machinery industry in China. Total loss to shareholders of 48% over the past year. Announcement • Mar 30
SBT Ultrasonic Technology Co.,Ltd. to Report Q1, 2024 Results on Apr 27, 2024 SBT Ultrasonic Technology Co.,Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Price Target Changed • Mar 21
Price target decreased by 12% to CN¥88.56 Down from CN¥101, the current price target is an average from 4 analysts. New target price is 59% above last closing price of CN¥55.83. Stock is down 35% over the past year. The company is forecast to post earnings per share of CN¥1.07 for next year compared to CN¥0.64 last year. Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: CN¥0.64 (vs CN¥1.19 in FY 2022) Full year 2023 results: EPS: CN¥0.64 (down from CN¥1.19 in FY 2022). Revenue: CN¥537.1m (up 2.8% from FY 2022). Net income: CN¥73.2m (down 34% from FY 2022). Profit margin: 14% (down from 21% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 48% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Machinery industry in China. Announcement • Feb 08
SBT Ultrasonic Technology Co.,Ltd. (SHSE:688392) announces an Equity Buyback for CNY 100 million worth of its shares. SBT Ultrasonic Technology Co.,Ltd. (SHSE:688392) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be repurchased at no more than CNY 102.56 per share. The purpose of the program is to to safeguard the company's value and shareholders' rights. The program will be funded from the part of the excess funds obtained from the company’s initial public offering of RMB ordinary shares. The plan will be valid for 3 months. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥48.89, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 14x in the Machinery industry in China. Total loss to shareholders of 53% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.64 per share. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥62.94, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 17x in the Machinery industry in China. Total loss to shareholders of 35% over the past year. Major Estimate Revision • Oct 30
Consensus revenue estimates decrease by 14% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥695.3m to CN¥601.0m. EPS estimate unchanged from CN¥1.25 per share at last update. Machinery industry in China expected to see average net income growth of 54% next year. Consensus price target of CN¥107 unchanged from last update. Share price rose 5.2% to CN¥78.88 over the past week. Major Estimate Revision • Sep 01
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥741.4m to CN¥678.1m. EPS estimate also fell from CN¥1.48 per share to CN¥1.20 per share. Net income forecast to grow 64% next year vs 56% growth forecast for Machinery industry in China. Consensus price target down from CN¥120 to CN¥114. Share price fell 6.8% to CN¥81.09 over the past week. Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.28 (vs CN¥0.94 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.28 (down from CN¥0.94 in 2Q 2022). Revenue: CN¥185.2m (up 21% from 2Q 2022). Net income: CN¥32.0m (down 11% from 2Q 2022). Profit margin: 17% (down from 24% in 2Q 2022). Revenue is forecast to grow 49% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. New Risk • Aug 03
New major 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. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (40% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Major Estimate Revision • Jun 28
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥786.1m to CN¥701.8m. EPS estimate fell from CN¥1.54 to CN¥1.44 per share. Net income forecast to grow 55% next year vs 54% growth forecast for Machinery industry in China. Consensus price target broadly unchanged at CN¥119. Share price rose 3.8% to CN¥101 over the past week. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorates as stock falls 35% After last week's 35% share price decline to CN¥89.84, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 18x in the Machinery industry in China. Simply Wall St's valuation model estimates the intrinsic value at CN¥36.51 per share. Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥1.66 (vs CN¥1.21 in FY 2021) Full year 2022 results: EPS: CN¥1.66 (up from CN¥1.21 in FY 2021). Revenue: CN¥522.5m (up 41% from FY 2021). Net income: CN¥110.8m (up 60% from FY 2021). Profit margin: 21% (up from 19% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Machinery industry in China. Reported Earnings • Mar 02
Full year 2022 earnings released: EPS: CN¥1.65 (vs CN¥1.21 in FY 2021) Full year 2022 results: EPS: CN¥1.65 (up from CN¥1.21 in FY 2021). Revenue: CN¥522.0m (up 41% from FY 2021). Net income: CN¥110.3m (up 59% from FY 2021). Profit margin: 21% (up from 19% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Machinery industry in China.