Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to CN¥16.93, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Consumer Services industry in China. Total loss to shareholders of 11% over the past three years. New Risk • Jun 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 8.9% 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 (8.9% average weekly change). Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥13.08, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 23x in the Consumer Services industry in China. Total loss to shareholders of 35% over the past three years. Reported Earnings • Apr 25
First quarter 2026 earnings released: EPS: CN¥0.19 (vs CN¥0.037 loss in 1Q 2025) First quarter 2026 results: EPS: CN¥0.19 (up from CN¥0.037 loss in 1Q 2025). Revenue: CN¥1.92b (down 16% from 1Q 2025). Net income: CN¥71.5m (up CN¥86.6m from 1Q 2025). Profit margin: 3.7% (up from net loss in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Apr 25
Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 15, 2026 Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 15, 2026, at 14:30 China Standard Time. Location: Building 2, No. 3, Yayuan Road, Nankeng Community, Bantian Subdistrict, Longgang District, Shenzhen, Guangdong China Announcement • Mar 31
Huakai Yibai Technology Co.,Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Huakai Yibai Technology Co.,Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 New Risk • Jan 22
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 Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Announcement • Dec 31
Huakai Yibai Technology Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Huakai Yibai Technology Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Board Change • Dec 12
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Lu Liu was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 24
Third quarter 2025 earnings released: EPS: CN¥0.033 (vs CN¥0.14 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.033 (down from CN¥0.14 in 3Q 2024). Revenue: CN¥2.20b (down 15% from 3Q 2024). Net income: CN¥12.7m (down 77% from 3Q 2024). Profit margin: 0.6% (down from 2.1% in 3Q 2024). Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Sep 30
Huakai Yibai Technology Co.,Ltd. to Report Q3, 2025 Results on Oct 24, 2025 Huakai Yibai Technology Co.,Ltd. announced that they will report Q3, 2025 results on Oct 24, 2025 New Risk • Sep 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: 0.4% 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. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Announcement • Jul 02
Huakai Yibai Technology Co.,Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Huakai Yibai Technology Co.,Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Price Target Changed • May 30
Price target decreased by 22% to CN¥13.00 Down from CN¥16.63, the current price target is provided by 1 analyst. New target price is 19% above last closing price of CN¥10.88. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥0.73 for next year compared to CN¥0.43 last year. Announcement • May 22
Huakai Yibai Technology Co.,Ltd. Approves Cash Dividend for 2024 Huakai Yibai Technology Co.,Ltd. at its AGM held on 16 May 2025, approved Cash dividend/10 shares (tax included): CNY 0.50000000. Major Estimate Revision • May 01
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥11.6b to CN¥9.59b. EPS estimate fell from CN¥1.03 to CN¥0.73 per share. Net income forecast to grow 373% next year vs 20% growth forecast for Consumer Services industry in China. Consensus price target down from CN¥16.63 to CN¥15.63. Share price fell 4.6% to CN¥11.09 over the past week. Announcement • Apr 25
Huakai Yibai Technology Co.,Ltd. Proposes Final Cash Dividend for 2024 Huakai Yibai Technology Co.,Ltd. proposed final cash dividend of CNY 0.50000000 per 10 shares (tax included) for 2024. Reported Earnings • Apr 24
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.43 (down from CN¥0.88 in FY 2023). Revenue: CN¥9.02b (up 38% from FY 2023). Net income: CN¥170.2m (down 49% from FY 2023). Profit margin: 1.9% (down from 5.1% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 45%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Apr 23
Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 16, 2025 Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 16, 2025, at 14:30 China Standard Time. Location: No. 7, Lipu Street, Longgang District, Shenzhen, Guangdong China Announcement • Apr 09
Huakai Yibai Technology Co.,Ltd. (SZSE:300592) announces an Equity Buyback for CNY 100 million worth of its shares. Huakai Yibai Technology Co.,Ltd. (SZSE:300592) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its ordinary A shares. The shares will be repurchased at a price not more than CNY 18 per share. The program will be funded via own funds. The repurchased shares will be used for employee stock ownership plans or equity incentives. The authorization will be valid for a period of 12 months. 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 7.9% 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 (37% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.9% average weekly change). Profit margins are more than 30% lower than last year (2.8% net profit margin). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥9.77, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 43x in the Consumer Services industry in China. Total returns to shareholders of 2.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.03 per share. Announcement • Mar 31
Huakai Yibai Technology Co.,Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Huakai Yibai Technology Co.,Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Jan 17
Zhou Zilan completed the acquisition of a 44% stake in Shenzhen Huayi Xinda Investment Co., Ltd. from Huakai Yibai Technology Co.,Ltd. (SZSE:300592) Zhou Zilan agreed to acquire an unknown minority stake in Shenzhen Huayi Xinda Investment Co., Ltd. from Huakai Yibai Technology Co.,Ltd. (SZSE:300592) for CNY 3.5 million on November 20, 2024. A cash consideration of CNY 3.5 million will be paid by the buyer. As part of consideration, CNY 3.5 million is paid towards common equity of Shenzhen Huayi Xinda Investment Co., Ltd. As of September 30, 2024, Shenzhen Huayi Xinda Investment Co., Ltd. reported total assets of CNY 1.51 million and total common equity of CNY 1.47 million. The transaction is subject to approval of merger agreement by target board. The deal has been approved by the board. The transfer funds obtained from the transaction will be used for the development of the main business.
Zhou Zilan completed the acquisition of a 44% stake in Shenzhen Huayi Xinda Investment Co., Ltd. from Huakai Yibai Technology Co.,Ltd. (SZSE:300592) on January 16, 2025. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥12.52, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 27x in the Consumer Services industry in China. Total loss to shareholders of 2.9% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.16 per share. Announcement • Dec 31
Huakai Yibai Technology Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 23, 2025 Huakai Yibai Technology Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 23, 2025 New Risk • Nov 26
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 11% 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 (37% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (2.8% net profit margin). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥16.02, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 27x in the Consumer Services industry in China. Total returns to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥7.39 per share. Major Estimate Revision • Nov 01
Consensus EPS estimates fall by 16%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥8.67b to CN¥8.88b. EPS estimate fell from CN¥1.01 to CN¥0.841 per share. Net income forecast to grow 86% next year vs 16% growth forecast for Consumer Services industry in China. Consensus price target down from CN¥17.04 to CN¥16.63. Share price fell 9.3% to CN¥11.75 over the past week. Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.22 in 3Q 2023). Revenue: CN¥2.60b (up 48% from 3Q 2023). Net income: CN¥54.7m (down 40% from 3Q 2023). Profit margin: 2.1% (down from 5.2% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. 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¥12.94, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 28x in the Consumer Services industry in China. Total returns to shareholders of 1.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.04 per share. New Risk • Sep 30
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 7.3% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (3.7% net profit margin). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Announcement • Sep 30
Huakai Yibai Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Huakai Yibai Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥12.28, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 24x in the Consumer Services industry in China. Total loss to shareholders of 8.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.06 per share. Buy Or Sell Opportunity • Sep 24
Now 26% overvalued Over the last 90 days, the stock has fallen 6.9% to CN¥11.31. The fair value is estimated to be CN¥8.97, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 52% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 64% in 2 years. Earnings are forecast to grow by 110% in the next 2 years. New Risk • Sep 09
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: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.7% net profit margin). Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Reported Earnings • Aug 26
Second quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.36 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.36 in 2Q 2023). Revenue: CN¥1.82b (up 13% from 2Q 2023). Net income: CN¥52.6m (down 60% from 2Q 2023). Profit margin: 2.9% (down from 8.2% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Jul 05
Huakai Yibai Technology Co.,Ltd. (SZSE:300592) completed the acquisition of Shenzhen TOMTOP Technology Co., Ltd. from Yiwu Huading Nylon Co.,Ltd. (SHSE:601113) Huakai Yibai Technology Co.,Ltd. (SZSE:300592) signed a cooperation framework agreement to acquire Shenzhen TOMTOP Technology Co., Ltd. from Yiwu Huading Nylon Co.,Ltd. (SHSE:601113) for CNY 490 million on December 6, 2023. Huakai Yibai Technology Co.,Ltd. (SZSE:300592) signed an agreement to acquire Shenzhen TOMTOP Technology Co., Ltd. from Yiwu Huading Nylon Co.,Ltd. (SHSE:601113) on May 21, 2024. The transaction was approved by the Board of Directors of Yiwu Huading Nylon. As of June 29, 2024, the transaction is approved by shareholders of Yiwu Huading Nylon Co.,Ltd. Wang Xiaohong, Yang Yipn, Zhang Lei, Wu Jiaxu, Huang Jie, You Congjie and Zong Ren of Western Securities Co.,Ltd. acted as financial advisor and Zou Bang and Liang Jiamei of Hunan Qiyuan Law Firm acted as legal advisor to Huakai Yibai Technology Co.,Ltd. (SZSE:300592).
Huakai Yibai Technology Co.,Ltd. (SZSE:300592) completed the acquisition of Shenzhen TOMTOP Technology Co., Ltd. from Yiwu Huading Nylon Co.,Ltd. (SHSE:601113) on July 4, 2024. Transaction has been approved by Huakai Yibai Technology's board of director's. Announcement • Jun 29
Huakai Yibai Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 26, 2024 Huakai Yibai Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 26, 2024 Announcement • May 15
Huakai Yibai Technology Co.,Ltd. Implements Final Cash Dividend for the Year 2023, Payable on 21 May 2024 Huakai Yibai Technology Co.,Ltd. implemented final cash dividend of A shares of CNY 4.00000000 per 10 shares (tax included) for the year 2023. Record date: 20 May 2024. Ex-date: 21 May 2024. Payment date: 21 May 2024. Major Estimate Revision • Apr 25
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥1.83 to CN¥1.58 per share. Revenue forecast steady at CN¥8.21b. Net income forecast to grow 46% next year vs 51% growth forecast for Consumer Services industry in China. Consensus price target down from CN¥36.00 to CN¥26.00. Share price was steady at CN¥17.60 over the past week. Announcement • Apr 20
Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 10, 2024 Huakai Yibai Technology Co.,Ltd., Annual General Meeting, May 10, 2024, at 14:30 China Standard Time. Location: No. 168, Binjiang Landscape Road, Yuelu District, Changsha, Hunan China Reported Earnings • Apr 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥1.23 (up from CN¥0.76 in FY 2022). Revenue: CN¥6.52b (up 48% from FY 2022). Net income: CN¥332.2m (up 54% from FY 2022). Profit margin: 5.1% (up from 4.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.0%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Huakai Yibai Technology Co.,Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Huakai Yibai Technology Co.,Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥19.69, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 30x in the Consumer Services industry in China. Total returns to shareholders of 32% over the past three years. Announcement • Dec 29
Huakai Yibai Technology Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 19, 2024 Huakai Yibai Technology Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 19, 2024 Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥28.00, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 28x in the Consumer Services industry in China. Total returns to shareholders of 37% over the past three years. New Risk • Nov 28
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 6.2% 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 • Oct 24
Third quarter 2023 earnings released: EPS: CN¥0.30 (vs CN¥0.21 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.30 (up from CN¥0.21 in 3Q 2022). Revenue: CN¥1.76b (up 61% from 3Q 2022). Net income: CN¥91.3m (up 52% from 3Q 2022). Profit margin: 5.2% (down from 5.5% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥26.86, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Consumer Services industry in Asia. Total returns to shareholders of 34% over the past three years. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.51 (vs CN¥0.17 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.51 (up from CN¥0.17 in 2Q 2022). Revenue: CN¥1.61b (up 56% from 2Q 2022). Net income: CN¥131.9m (up 169% from 2Q 2022). Profit margin: 8.2% (up from 4.7% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Consumer Services industry in China. Over the last 3 years on average, earnings per share has increased by 104% 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 • May 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥26.69, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Consumer Services industry in Asia. Total returns to shareholders of 163% over the past three years. Announcement • May 19
Huakai Yibai Technology Co.,Ltd. Elects Zhong Shuidong as Independent Director Huakai Yibai Technology Co.,Ltd. held its Annual General Meeting of 2022 on 15 May 2023, during which the following proposal(s) was/were approved: Election of Zhong Shuidong as independent director. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥29.28, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 15x in the Consumer Services industry in Asia. Total returns to shareholders of 182% over the past three years. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥28.42, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 15x in the Consumer Services industry in Asia. Total returns to shareholders of 174% over the past three years. Reported Earnings • Apr 12
Full year 2022 earnings released: EPS: CN¥0.74 (vs CN¥0.43 loss in FY 2021) Full year 2022 results: EPS: CN¥0.74 (up from CN¥0.43 loss in FY 2021). Revenue: CN¥4.42b (up 113% from FY 2021). Net income: CN¥210.5m (up CN¥297.9m from FY 2021). Profit margin: 4.8% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥18.22, the stock trades at a trailing P/E ratio of 71.2x. Average trailing P/E is 63x in the Consumer Services industry in China. Total returns to shareholders of 85% over the past three years. Announcement • Feb 01
Huakai Yibai Technology Co.,Ltd. (SZSE:300592) announces an Equity Buyback for CNY 200 million worth of its shares. Huakai Yibai Technology Co.,Ltd. (SZSE:300592) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its shares. The shares will be repurchased at a price not more than CNY 23.31 per share. The repurchased shares will be used for employee stock ownership plans or equity incentives. The authorization will be valid for a period of 12 months. Buying Opportunity • Nov 22
Now 22% undervalued Over the last 90 days, the stock is up 4.6%. The fair value is estimated to be CN¥19.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 99% over the last 3 years. Meanwhile, the company has become profitable. Board Change • Nov 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. 2 highly experienced directors. Secretary & Director An Qi Wang is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.21 (vs CN¥0.019 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.21 (up from CN¥0.019 in 3Q 2021). Revenue: CN¥1.09b (up 10% from 3Q 2021). Net income: CN¥60.0m (up CN¥54.6m from 3Q 2021). Profit margin: 5.5% (up from 0.5% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Reported Earnings • Aug 24
Second quarter 2022 earnings released: EPS: CN¥0.17 (vs CN¥0.15 loss in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.17 (up from CN¥0.15 loss in 2Q 2021). Revenue: CN¥1.03b (up CN¥989.4m from 2Q 2021). Net income: CN¥49.0m (up CN¥67.5m from 2Q 2021). Profit margin: 4.7% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 3 highly experienced directors. Project Manager and Employee Representative Supervisor Xiao Bo Zhou is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 19
Full year 2021 earnings released: CN¥0.43 loss per share (vs CN¥0.51 loss in FY 2020) Full year 2021 results: CN¥0.43 loss per share. Revenue: CN¥2.07b (up CN¥1.94b from FY 2020). Net loss: CN¥87.4m (loss widened 40% from FY 2020). Buying Opportunity • Apr 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be CN¥16.71, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.7% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jan 30
Hunan Huakai Cultural and Creative Co., Ltd. (SZSE:300592) announces an Equity Buyback for CNY 100 million worth of its shares. Hunan Huakai Cultural and Creative Co., Ltd. (SZSE:300592) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of class A shares. The shares will be repurchased at a maximum CNY 23 per share, calculated based on the upper limit of the repurchase price does not exceed 130% of the average trading price of the company’s stock in the 30 trading days before the resolution of the company’s board of directors to review and approve the share repurchase (CNY 24.24 per share). The funds for the share repurchase will come from the company's own funds. The repurchased shares will be used for equity incentive or employee stock ownership plan. The program is valid for 12 months.
On the same day, the company corrected the basis of calculation of the repurchase price of CNY 23 per share, as the upper limit of the repurchase price does not exceed 130% of the average trading price of the company’s stock in the 30 trading days before the resolution of the company’s board of directors to review and approve the share repurchase (CNY 24.97 per share). Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.019 (vs CN¥0.056 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥991.6m (up CN¥916.1m from 3Q 2020). Net income: CN¥5.43m (up CN¥12.3m from 3Q 2020). Profit margin: 0.5% (up from net loss in 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 138 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 27
Second quarter 2021 earnings released: CN¥0.15 loss per share (vs CN¥0.03 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CN¥42.6m (up 25% from 2Q 2020). Net loss: CN¥18.5m (loss widened 400% from 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 156 percentage points per year, which is a significant difference in performance. Announcement • Jun 11
Hunan Huakai Cultural and Creative Plans to Buy 90% Stake in Network Firm Hunan Huakai Cultural and Creative Co., Ltd. (SZSE:300592) said it plans to buy 90% stake in Network Firm for CNY 1.5 billion ($234.75 million). Reported Earnings • May 01
First quarter 2021 earnings released: CN¥0.029 loss per share (vs CN¥0.074 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: CN¥34.4m (up 92% from 1Q 2020). Net loss: CN¥3.60m (loss narrowed 60% from 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 137 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 01
Full year 2020 earnings released: CN¥0.51 loss per share (vs CN¥0.065 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: CN¥135.2m (down 67% from FY 2019). Net loss: CN¥62.5m (down CN¥70.5m from profit in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 123 percentage points per year, which is a significant difference in performance. Announcement • Mar 08
Hunan Huakai Cultural and Creative Co., Ltd. to Report Fiscal Year 2020 Results on Apr 16, 2021 Hunan Huakai Cultural and Creative Co., Ltd. announced that they will report fiscal year 2020 results on Apr 16, 2021 Is New 90 Day High Low • Mar 08
New 90-day high: CN¥20.61 The company is up 3.0% from its price of CN¥19.96 on 08 December 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Services industry, which is down 13% over the same period. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥14.78 The company is down 17% from its price of CN¥17.88 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 3.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥15.69 The company is down 21% from its price of CN¥19.90 on 09 October 2020. The Chinese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is down 1.0% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: CN¥17.18 The company is down 25% from its price of CN¥22.95 on 23 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 17% over the same period. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥26.1m, with earnings decreasing by CN¥37.2m from the prior year. Total revenue was CN¥264.5m over the last 12 months, down 42% from the prior year. Announcement • Oct 20
Hunan Huakai Cultural and Creative Co., Ltd. to Report Q3, 2020 Results on Oct 27, 2020 Hunan Huakai Cultural and Creative Co., Ltd. announced that they will report Q3, 2020 results on Oct 27, 2020 Is New 90 Day High Low • Oct 15
New 90-day low: CN¥19.23 The company is down 7.0% from its price of CN¥20.60 on 17 July 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 12% over the same period. Announcement • Jul 24
Hunan Huakai Cultural and Creative Co., Ltd. to Report First Half, 2020 Results on Aug 20, 2020 Hunan Huakai Cultural and Creative Co., Ltd. announced that they will report first half, 2020 results on Aug 20, 2020 