Announcement • Jul 01
Estun Automation Co., Ltd to Report First Half, 2026 Results on Aug 22, 2026 Estun Automation Co., Ltd announced that they will report first half, 2026 results on Aug 22, 2026 New Risk • Jun 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 8.7% 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 Interest payments are not well covered by earnings (1.8x net interest cover). Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Large one-off items impacting financial results. Price Target Changed • Jun 26
Price target increased by 7.1% to CN¥22.00 Up from CN¥20.54, the current price target is an average from 15 analysts. New target price is 37% below last closing price of CN¥34.67. Stock is up 73% over the past year. The company is forecast to post earnings per share of CN¥0.26 for next year compared to CN¥0.05 last year. Announcement • Jun 24
Estun Automation Co., Ltd Announces Retirement of Dr. Tang Wencheng as an Independent Non-Executive Director and Board Committees Estun Automation Co. Ltd. announced that Dr. Tang Wencheng, an independent non-executive Director, will not stand for re-election for the sixth session of the Board due to the expiration of his term of office, and will retire from the positions of an independent non-executive Director, the chairperson of the nomination committee of the Board (the "Nomination Committee"), a member of the audit committee of the Board (the "Audit Committee"), a member of the strategic committee of the Board (the "Strategic Committee") and a member of the ESG committee of the Board (the "ESG Committee"), all effective from the date of the conclusion of the EGM. Upon the retirement taking effect, Dr. Tang will no longer hold any position in the Company. Dr. Tang has confirmed that he has no disagreement with the Board and there is no matter relating to his retirement that needs to be brought to the attention of the Shareholders or The Stock Exchange of Hong Kong Limited. Major Estimate Revision • May 06
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from CN¥0.279 to CN¥0.245 per share. Revenue forecast steady at CN¥5.81b. Net income forecast to grow 98% next year vs 47% growth forecast for Machinery industry in China. Consensus price target broadly unchanged at CN¥19.64. Share price rose 9.8% to CN¥22.83 over the past week. Announcement • Apr 30
Estun Automation Co., Ltd, Annual General Meeting, May 21, 2026 Estun Automation Co., Ltd, Annual General Meeting, May 21, 2026, at 14:00 China Standard Time. Location: no. 1888, jiyin avenue, jiangning, nanjing, jiangsu province, China Reported Earnings • Apr 30
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: CN¥0.11 (up from CN¥0.015 in 1Q 2025). Revenue: CN¥1.22b (down 2.2% from 1Q 2025). Net income: CN¥97.8m (up CN¥85.2m from 1Q 2025). Profit margin: 8.0% (up from 1.0% in 1Q 2025). Revenue missed analyst estimates by 15%. Earnings per share (EPS) exceeded analyst estimates by 82%. Revenue is forecast to grow 13% 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, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥6.04b to CN¥5.91b. EPS estimate also fell from CN¥0.272 per share to CN¥0.243 per share. Net income forecast to grow 404% next year vs 43% growth forecast for Machinery industry in China. Consensus price target down from CN¥19.16 to CN¥18.53. Share price fell 3.1% to CN¥19.41 over the past week. New Risk • Apr 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 70% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.4x net interest cover). Minor Risk Large one-off items impacting financial results. Announcement • Mar 31
Estun Automation Co., Ltd to Report Q1, 2026 Results on Apr 30, 2026 Estun Automation Co., Ltd announced that they will report Q1, 2026 results on Apr 30, 2026 Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.05 (up from CN¥0.93 loss in FY 2024). Revenue: CN¥4.89b (up 22% from FY 2024). Net income: CN¥45.0m (up CN¥855.4m from FY 2024). Profit margin: 0.9% (up from net loss in FY 2024). Revenue missed analyst estimates by 4.4%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Announcement • Mar 05
Estun Automation Co., Ltd has completed a Follow-on Equity Offering in the amount of HKD 1.486541 billion. Estun Automation Co., Ltd has completed a Follow-on Equity Offering in the amount of HKD 1.486541 billion.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 9,678,000
Price\Range: HKD 15.36
Discount Per Security: HKD 0.24576
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 53,053,400
Price\Range: HKD 15.36
Discount Per Security: HKD 0.24576
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 34,048,600
Price\Range: HKD 15.36
Discount Per Security: HKD 0.24576
Transaction Features: New Market Listing; Regulation S Announcement • Feb 27
Estun Automation Co., Ltd has filed a Follow-on Equity Offering in the amount of HKD 1.64526 billion. Estun Automation Co., Ltd has filed a Follow-on Equity Offering in the amount of HKD 1.64526 billion.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 9,678,000
Price\Range: HKD 15.36 to HKD 17
Discount Per Security: HKD 0.272
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 56,337,294
Price\Range: HKD 15.36 to HKD 17
Discount Per Security: HKD 0.272
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 30,764,706
Price\Range: HKD 15.36 to HKD 17
Discount Per Security: HKD 0.272
Transaction Features: New Market Listing; Regulation S Announcement • Dec 31
Estun Automation Co., Ltd to Report Fiscal Year 2025 Results on Mar 31, 2026 Estun Automation Co., Ltd announced that they will report fiscal year 2025 results on Mar 31, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: CN¥0.018 (up from CN¥0.009 in 3Q 2024). Revenue: CN¥1.25b (up 4.8% from 3Q 2024). Net income: CN¥22.3m (up 232% from 3Q 2024). Profit margin: 1.8% (up from 0.6% in 3Q 2024). Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 16% 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, the company's share price growth rate has exceeded its earnings growth rate by 122 percentage points per year, which is a significant difference in performance. Price Target Changed • Sep 08
Price target increased by 8.8% to CN¥17.60 Up from CN¥16.18, the current price target is an average from 17 analysts. New target price is 25% below last closing price of CN¥23.55. Stock is up 98% over the past year. The company is forecast to post earnings per share of CN¥0.079 next year compared to a net loss per share of CN¥0.93 last year. Reported Earnings • Aug 31
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: CN¥0.013 loss per share (improved from CN¥0.083 loss in 2Q 2024). Revenue: CN¥1.30b (up 12% from 2Q 2024). Net loss: CN¥5.95m (loss narrowed 93% from 2Q 2024). Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 97%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 127 percentage points per year, which is a significant difference in performance. Announcement • Jul 02
Estun Automation Co., Ltd to Report First Half, 2025 Results on Aug 29, 2025 Estun Automation Co., Ltd announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • Jun 24
Estun Automation Co., Ltd Elects Han Xiaofang and Lin Jinjun as Independent Directors Estun Automation Co. Ltd. at the EGM held on June 20, 2025 elected Han Xiaofang and Lin Jinjun as independent directors. Reported Earnings • Apr 29
Full year 2024 earnings released: CN¥0.93 loss per share (vs CN¥0.16 profit in FY 2023) Full year 2024 results: CN¥0.93 loss per share (down from CN¥0.16 profit in FY 2023). Revenue: CN¥4.01b (down 14% from FY 2023). Net loss: CN¥810.4m (down CN¥945.5m from profit in FY 2023). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Announcement • Apr 29
Estun Automation Co., Ltd, Annual General Meeting, May 21, 2025 Estun Automation Co., Ltd, Annual General Meeting, May 21, 2025, at 14:00 China Standard Time. Announcement • Mar 31
Estun Automation Co., Ltd to Report Q1, 2025 Results on Apr 29, 2025 Estun Automation Co., Ltd announced that they will report Q1, 2025 results on Apr 29, 2025 New Risk • Feb 02
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 8.7% 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 Interest payments are not well covered by earnings (0.5x net interest cover). Minor Risk Share price has been volatile over the past 3 months (8.7% average weekly change). Announcement • Dec 31
Estun Automation Co., Ltd to Report Fiscal Year 2024 Results on Apr 28, 2025 Estun Automation Co., Ltd announced that they will report fiscal year 2024 results on Apr 28, 2025 Price Target Changed • Nov 07
Price target increased by 7.2% to CN¥13.81 Up from CN¥12.88, the current price target is an average from 19 analysts. New target price is 19% below last closing price of CN¥17.00. Stock is down 15% over the past year. The company is forecast to post a net loss per share of CN¥0.014 compared to earnings per share of CN¥0.16 last year. Announcement • Nov 04
Nanjing Chemical Fiber Co., Ltd. (SHSE:600889) signed a letter of intent to acquire Nanjing Technical Equipment Manufacture Co., Ltd from Nanjing New Industrial Investment Group Co.,Ltd. and other shareholders. Nanjing Chemical Fiber Co., Ltd. (SHSE:600889) signed a letter of intent to acquire Nanjing Technical Equipment Manufacture Co., Ltd from Nanjing New Industrial Investment Group Co.,Ltd. and other shareholders on November 2, 2024. As part of consideration, Nanjing Chemical Fiber Co., Ltd will acquire Nanjing Technology and Equipment Manufacturing Co., Ltd. by exchanging the Company’s assets and liabilities, issuing shares, and paying cash. Reported Earnings • Oct 31
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: CN¥0.009 (down from CN¥0.049 in 3Q 2023). Revenue: CN¥1.20b (up 22% from 3Q 2023). Net income: CN¥6.72m (down 84% from 3Q 2023). Profit margin: 0.6% (down from 4.4% in 3Q 2023). Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 14% 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 35% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Estun Automation Co., Ltd to Report Q3, 2024 Results on Oct 31, 2024 Estun Automation Co., Ltd announced that they will report Q3, 2024 results on Oct 31, 2024 Price Target Changed • Sep 03
Price target decreased by 11% to CN¥13.12 Down from CN¥14.75, the current price target is an average from 19 analysts. New target price is 9.1% above last closing price of CN¥12.03. Stock is down 48% over the past year. The company is forecast to post earnings per share of CN¥0.10 for next year compared to CN¥0.16 last year. Reported Earnings • Aug 31
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: CN¥0.068 loss per share (down from CN¥0.062 profit in 2Q 2023). Revenue: CN¥1.17b (down 7.1% from 2Q 2023). Net loss: CN¥79.9m (down 247% from profit in 2Q 2023). Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) also missed analyst estimates by 184%. Revenue is forecast to grow 17% 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 13% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Aug 22
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥5.68b to CN¥5.62b. EPS estimate also fell from CN¥0.201 per share to CN¥0.176 per share. Net income forecast to grow 104% next year vs 40% growth forecast for Machinery industry in China. Consensus price target down from CN¥15.65 to CN¥14.75. Share price fell 6.6% to CN¥12.08 over the past week. Price Target Changed • Aug 21
Price target decreased by 7.6% to CN¥14.75 Down from CN¥15.96, the current price target is an average from 19 analysts. New target price is 18% above last closing price of CN¥12.50. Stock is down 44% over the past year. The company is forecast to post earnings per share of CN¥0.18 for next year compared to CN¥0.16 last year. Price Target Changed • Jul 19
Price target decreased by 7.9% to CN¥16.13 Down from CN¥17.52, the current price target is an average from 19 analysts. New target price is 29% above last closing price of CN¥12.52. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥0.23 for next year compared to CN¥0.16 last year. Major Estimate Revision • Jul 13
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥5.84b to CN¥5.70b. EPS estimate also fell from CN¥0.281 per share to CN¥0.208 per share. Net income forecast to grow 157% next year vs 37% growth forecast for Machinery industry in China. Consensus price target broadly unchanged at CN¥16.70. Share price fell 6.6% to CN¥12.62 over the past week. Announcement • Jun 29
Estun Automation Co., Ltd to Report First Half, 2024 Results on Aug 30, 2024 Estun Automation Co., Ltd announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • Jun 01
Estun Automation Co., Ltd Announces Cash Dividend for A Shares for the Year 2023, Payable on 07 June 2024 Estun Automation Co. Ltd. announced cash dividend/10 shares (tax included) of CNY 0.60000000 for A shares for the year 2023. Record date is 06 June 2024. Ex-date is 07 June 2024. Payment date is 07 June 2024. Major Estimate Revision • May 12
Consensus EPS estimates fall by 30% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥6.04b to CN¥5.83b. EPS estimate also fell from CN¥0.412 per share to CN¥0.29 per share. Net income forecast to grow 256% next year vs 45% growth forecast for Machinery industry in China. Consensus price target down from CN¥19.54 to CN¥17.64. Share price was steady at CN¥15.98 over the past week. Price Target Changed • May 08
Price target decreased by 7.3% to CN¥18.17 Down from CN¥19.59, the current price target is an average from 18 analysts. New target price is 14% above last closing price of CN¥15.94. Stock is down 33% over the past year. The company is forecast to post earnings per share of CN¥0.39 for next year compared to CN¥0.16 last year. Major Estimate Revision • May 06
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from CN¥6.06b to CN¥5.43b. EPS estimate unchanged at CN¥0.412 per share. Net income forecast to grow 308% next year vs 47% growth forecast for Machinery industry in China. Consensus price target broadly unchanged at CN¥19.54. Share price fell 10.0% to CN¥16.15 over the past week. Announcement • May 02
Estun Automation Co., Ltd Proposes Final Dividend for 2023 Estun Automation Co. Ltd. announced on 30 April 2024 the profit distribution proposal for 2023 as follows: Cash dividend/10 shares (tax included): CNY 0.60000000. Announcement • May 01
Estun Automation Co., Ltd, Annual General Meeting, May 21, 2024 Estun Automation Co., Ltd, Annual General Meeting, May 21, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Nanjing, Jiangsu China Reported Earnings • Apr 30
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: CN¥0.01 (down from CN¥0.05 in 1Q 2023). Revenue: CN¥1.00b (up 1.7% from 1Q 2023). Net income: CN¥6.53m (down 85% from 1Q 2023). Profit margin: 0.7% (down from 4.4% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 83%. Revenue is forecast to grow 18% p.a. on average during the next 3 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 4% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Estun Automation Co., Ltd to Report Q1, 2024 Results on Apr 30, 2024 Estun Automation Co., Ltd announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥11.58, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 14x in the Machinery industry in China. Total loss to shareholders of 69% over the past three years. Announcement • Dec 30
Estun Automation Co., Ltd to Report Fiscal Year 2023 Results on Apr 30, 2024 Estun Automation Co., Ltd announced that they will report fiscal year 2023 results on Apr 30, 2024 Price Target Changed • Nov 03
Price target decreased by 7.8% to CN¥25.07 Down from CN¥27.18, the current price target is an average from 18 analysts. New target price is 29% above last closing price of CN¥19.46. Stock is down 8.7% over the past year. The company is forecast to post earnings per share of CN¥0.28 for next year compared to CN¥0.19 last year. Reported Earnings • Nov 01
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.049. Revenue: CN¥984.5m (up 11% from 3Q 2022). Net income: CN¥42.9m (down 2.5% from 3Q 2022). Profit margin: 4.4% (down from 5.0% in 3Q 2022). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Reported Earnings • Aug 31
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: CN¥0.06 (up from CN¥0.019 in 2Q 2022). Revenue: CN¥1.26b (up 48% from 2Q 2022). Net income: CN¥54.4m (up 235% from 2Q 2022). Profit margin: 4.3% (up from 1.9% in 2Q 2022). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates by 25%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Jul 23
Estun Automation Co., Ltd Announces Board Appointments Estun Automation Co. Ltd. held its 2nd Extraordinary General Meeting of 2023 on 19 July 2023 announced the appointment of Chen Yinlan as non-independent directors. Chen Heng as independent directors. Sang Zhimin as non-employee supervisors. Announcement • Jun 30
Estun Automation Co., Ltd Announces Final Dividend on A Shares for the Year 2022, Payable on July 6, 2023 Estun Automation Co. Ltd. announced final cash dividend/10 shares (tax included) of CNY 0.30000000 on A shares for the year 2022. Record date is July 5, 2023. Ex-date is July 6, 2023. Payment date is July 6, 2023. Buying Opportunity • Jun 26
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 2.1%. The fair value is estimated to be CN¥34.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 20%. For the next 3 years, revenue is forecast to grow by 20% per annum. Earnings is also forecast to grow by 32% per annum over the same time period. Announcement • May 23
Estun Automation Co., Ltd Approves Final Profit Distribution Proposal for 2022 Estun Automation Co. Ltd. at the AGM, the shareholders approved a final profit distribution proposal for 2022 as Cash dividend/10 shares (tax included): CNY 0.30000000. Reported Earnings • Apr 29
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: CN¥0.05 (down from CN¥0.07 in 1Q 2022). Revenue: CN¥986.0m (up 23% from 1Q 2022). Net income: CN¥43.0m (down 28% from 1Q 2022). Profit margin: 4.4% (down from 7.5% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 39%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 30% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
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. 5 experienced directors. No highly experienced directors. Independent Director Li Xiang is the most experienced director on the board, commencing their role in 2017. 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: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: CN¥0.044 (up from CN¥0.033 in 3Q 2021). Revenue: CN¥886.8m (up 20% from 3Q 2021). Net income: CN¥44.0m (up 76% from 3Q 2021). Profit margin: 5.0% (up from 3.4% in 3Q 2021). Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) exceeded analyst estimates by 8.2%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Sep 02
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: CN¥0.019 (down from CN¥0.031 in 2Q 2021). Revenue: CN¥850.6m (down 8.1% from 2Q 2021). Net income: CN¥16.2m (down 46% from 2Q 2021). Profit margin: 1.9% (down from 3.3% in 2Q 2021). Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 31%. Over the next year, revenue is forecast to grow 46%, compared to a 35% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Sep 01
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥4.09b to CN¥3.95b. EPS estimate also fell from CN¥0.25 per share to CN¥0.21 per share. Net income forecast to grow 46% next year vs 52% growth forecast for Machinery industry in China. Consensus price target down from CN¥25.40 to CN¥24.25. Share price fell 10% to CN¥18.49 over the past week. Buying Opportunity • Jul 04
Now 21% undervalued Over the last 90 days, the stock is up 22%. The fair value is estimated to be CN¥31.48, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last 3 years. Earnings per share has grown by 18%. For the next 3 years, revenue is forecast to grow by 20% per annum. Earnings is also forecast to grow by 33% per annum over the same time period. Announcement • Jun 17
Estun Automation Co., Ltd Implements Final Profit Distribution Plan for 2021, Payable on June 23, 2022 Estun Automation Co. Ltd. announced 2021 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included) CNY 0.30000000. Record date is 22 June 2022, Ex-date is 23 June 2022, Payment date is 23 June 2022. Announcement • May 21
Estun Automation Approves Cash Dividend for the Year of 2021 Estun Automation held its Annual General Meeting of 2021 on 19 May 2022, during which it approved cash dividend of CNY 0.30000000 per ten shares (tax included) for the year of 2021. Major Estimate Revision • May 05
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥4.47b to CN¥4.27b. EPS estimate also fell from CN¥0.34 per share to CN¥0.27 per share. Net income forecast to grow 87% next year vs 48% growth forecast for Machinery industry in China. Consensus price target down from CN¥30.86 to CN¥26.44. Share price rose 10% to CN¥14.83 over the past week. Price Target Changed • May 04
Price target decreased to CN¥27.16 Down from CN¥30.86, the current price target is an average from 13 analysts. New target price is 83% above last closing price of CN¥14.83. Stock is down 54% over the past year. The company is forecast to post earnings per share of CN¥0.27 for next year compared to CN¥0.14 last year. Reported Earnings • May 02
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.04 in 1Q 2021). Revenue: CN¥804.7m (up 27% from 1Q 2021). Net income: CN¥60.1m (up 84% from 1Q 2021). Profit margin: 7.5% (up from 5.1% in 1Q 2021). Revenue exceeded analyst estimates by 28%. Earnings per share (EPS) also surpassed analyst estimates by 93%. Over the next year, revenue is forecast to grow 46%, compared to a 31% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 19% per year. Announcement • May 02
Estun Automation Co., Ltd Proposes Final Cash Dividend for the Year 2021 Estun Automation Co. Ltd. proposed final cash dividend of CNY 0.30000000 per ten shares (tax included) for the year 2021. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non Independent Director Kan Wu was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 21
Price target decreased to CN¥30.86 Down from CN¥33.86, the current price target is an average from 13 analysts. New target price is 107% above last closing price of CN¥14.94. Stock is down 53% over the past year. The company is forecast to post earnings per share of CN¥0.18 for next year compared to CN¥0.15 last year. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.033 (vs CN¥0.028 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥740.1m (up 25% from 3Q 2020). Net income: CN¥25.0m (up 4.9% from 3Q 2020). Profit margin: 3.4% (down from 4.0% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 16
Estun Automation Co., Ltd (SZSE:002747) announces an Equity Buyback for CNY 100 million worth of its shares. Estun Automation Co., Ltd (SZSE:002747) 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 a price not more than CNY 30 per share. The shares repurchased will be used for ESOP or equity incentives. The program will be valid for 6 months. Reported Earnings • Sep 03
Second quarter 2021 earnings released: EPS CN¥0.031 (vs CN¥0.046 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥926.0m (up 30% from 2Q 2020). Net income: CN¥30.2m (down 36% from 2Q 2020). Profit margin: 3.3% (down from 6.6% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Sep 02
Price target decreased to CN¥39.56 Down from CN¥43.16, the current price target is an average from 10 analysts. New target price is 54% above last closing price of CN¥25.73. Stock is up 33% over the past year. Price Target Changed • Jul 04
Price target increased to CN¥42.52 Up from CN¥39.69, the current price target is an average from 10 analysts. New target price is 9.1% above last closing price of CN¥38.97. Stock is up 202% over the past year. Major Estimate Revision • May 07
Consensus EPS estimates fall to CN¥0.30 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥3.86b to CN¥3.60b. EPS estimate also fell from CN¥0.34 to CN¥0.30. Net income forecast to grow 98% next year vs 28% growth forecast for Machinery industry in China. Consensus price target up from CN¥36.31 to CN¥38.94. Share price fell 6.1% to CN¥30.26 over the past week. Price Target Changed • May 06
Price target increased to CN¥38.94 Up from CN¥36.31, the current price target is an average from 10 analysts. New target price is 22% above last closing price of CN¥31.81. Stock is up 203% over the past year. Reported Earnings • Apr 19
Full year 2020 earnings released: EPS CN¥0.15 (vs CN¥0.079 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.51b (up 77% from FY 2019). Net income: CN¥127.7m (up 94% from FY 2019). Profit margin: 5.1% (up from 4.6% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 09
New 90-day low: CN¥24.29 The company is down 4.0% from its price of CN¥25.35 on 09 December 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.14 per share. Is New 90 Day High Low • Feb 10
New 90-day high: CN¥38.46 The company is up 65% from its price of CN¥23.38 on 12 November 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.19 per share. Is New 90 Day High Low • Jan 22
New 90-day high: CN¥36.35 The company is up 66% from its price of CN¥21.90 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.21 per share. Price Target Changed • Jan 22
Price target raised to CN¥33.91 Up from CN¥31.06, the current price target is an average from 14 analysts. The new target price is 6.7% below the current share price of CN¥36.35. As of last close, the stock is up 237% over the past year. Price Target Changed • Jan 12
Price target raised to CN¥31.06 Up from CN¥27.95, the current price target is an average from 13 analysts. The new target price is close to the current share price of CN¥31.77. As of last close, the stock is up 166% over the past year. Is New 90 Day High Low • Jan 04
New 90-day high: CN¥31.77 The company is up 62% from its price of CN¥19.60 on 30 September 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.19 per share. Price Target Changed • Dec 17
Price target raised to CN¥27.49 Up from CN¥25.60, the current price target is an average from 13 analysts. The new target price is close to the current share price of CN¥28.11. As of last close, the stock is up 156% over the past year. Is New 90 Day High Low • Dec 14
New 90-day high: CN¥27.00 The company is up 44% from its price of CN¥18.69 on 15 September 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.24 per share. Is New 90 Day High Low • Nov 23
New 90-day high: CN¥26.79 The company is up 61% from its price of CN¥16.63 on 25 August 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.94 per share. Analyst Estimate Surprise Post Earnings • Nov 04
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Over the next year, revenue is forecast to grow 46%, compared to a 47% growth forecast for the Machinery industry in China.