Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥24.15, the stock trades at a trailing P/E ratio of 41.7x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total returns to shareholders of 93% over the past three years. New Risk • Jun 01
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 8.4% 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 High level of debt (42% net debt to equity). 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 (8.4% average weekly change). Declared Dividend • May 27
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 2nd June 2026 Payment date: 2nd June 2026 Dividend yield will be 1.2%, which is lower than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (62% cash payout ratio). The dividend has decreased over the past 46 years, indicating a lack of growth and stability in payments. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥25.90, the stock trades at a trailing P/E ratio of 44.7x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total returns to shareholders of 55% over the past three years. New Risk • Apr 25
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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: Minor Risks High level of debt (45% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Apr 17
Full year 2025 earnings released: EPS: CN¥0.56 (vs CN¥0.49 in FY 2024) Full year 2025 results: EPS: CN¥0.56 (up from CN¥0.49 in FY 2024). Revenue: CN¥1.02b (up 25% from FY 2024). Net income: CN¥156.0m (up 14% from FY 2024). Profit margin: 15% (down from 17% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 16
Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2026 Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2026, at 13:00 China Standard Time. Location: The Company's Meeting Room, Longyou County, Zhejiang China Announcement • Mar 30
Hengsheng Energy Co., Ltd to Report Q1, 2026 Results on Apr 29, 2026 Hengsheng Energy Co., Ltd announced that they will report Q1, 2026 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥27.84, the stock trades at a trailing P/E ratio of 64.1x. Average trailing P/E is 15x in the Integrated Utilities industry in Asia. Total returns to shareholders of 250% over the past three years. Announcement • Dec 26
Hengsheng Energy Co., Ltd to Report Fiscal Year 2025 Results on Apr 16, 2026 Hengsheng Energy Co., Ltd announced that they will report fiscal year 2025 results on Apr 16, 2026 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥28.15, the stock trades at a trailing P/E ratio of 64.8x. Average trailing P/E is 15x in the Integrated Utilities industry in Asia. Total returns to shareholders of 264% over the past three years. New Risk • Dec 04
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 Risk Share price has been highly volatile over the past 3 months (9.2% average weekly change). Minor Risk High level of debt (51% net debt to equity). Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.092 (vs CN¥0.21 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.092 (down from CN¥0.21 in 3Q 2024). Revenue: CN¥224.6m (up 14% from 3Q 2024). Net income: CN¥27.0m (down 54% from 3Q 2024). Profit margin: 12% (down from 30% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥33.03, the stock trades at a trailing P/E ratio of 60.2x. Average trailing P/E is 17x in the Integrated Utilities industry in Asia. Total returns to shareholders of 333% over the past three years. Announcement • Sep 30
Hengsheng Energy Co., Ltd to Report Q3, 2025 Results on Oct 30, 2025 Hengsheng Energy Co., Ltd announced that they will report Q3, 2025 results on Oct 30, 2025 New Risk • Sep 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 6.9% 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 High level of debt (53% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥21.08, the stock trades at a trailing P/E ratio of 37.9x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total returns to shareholders of 158% over the past three years. Announcement • Jun 30
Hengsheng Energy Co., Ltd to Report First Half, 2025 Results on Aug 27, 2025 Hengsheng Energy Co., Ltd announced that they will report first half, 2025 results on Aug 27, 2025 Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥12.84, the stock trades at a trailing P/E ratio of 23.1x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total returns to shareholders of 39% over the past three years. New Risk • Apr 30
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 40% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (40% net debt to equity). Dividend is not well covered by cash flows (114% cash payout ratio). Large one-off items impacting financial results. Reported Earnings • Apr 15
Full year 2024 earnings released: EPS: CN¥0.49 (vs CN¥0.49 in FY 2023) Full year 2024 results: EPS: CN¥0.49 (in line with FY 2023). Revenue: CN¥814.2m (up 3.2% from FY 2023). Net income: CN¥136.6m (flat on FY 2023). Profit margin: 17% (in line with FY 2023). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Apr 15
Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2025 Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2025, at 13:00 China Standard Time. Location: The Company's Meeting Room, Longyou Economic Development Zone, Zhejiang China Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥9.73, the stock trades at a trailing P/E ratio of 18.4x. Average trailing P/E is 14x in the Integrated Utilities industry in Asia. Total returns to shareholders of 21% over the past three years. Announcement • Mar 28
Hengsheng Energy Co., Ltd to Report Q1, 2025 Results on Apr 29, 2025 Hengsheng Energy Co., Ltd announced that they will report Q1, 2025 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥11.83, the stock trades at a trailing P/E ratio of 22.4x. Average trailing P/E is 15x in the Integrated Utilities industry in Asia. Total returns to shareholders of 19% over the past three years. Announcement • Dec 27
Hengsheng Energy Co., Ltd to Report Fiscal Year 2024 Results on Apr 15, 2025 Hengsheng Energy Co., Ltd announced that they will report fiscal year 2024 results on Apr 15, 2025 Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.21 (vs CN¥0.15 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.21 (up from CN¥0.15 in 3Q 2023). Revenue: CN¥196.2m (up 9.6% from 3Q 2023). Net income: CN¥59.0m (up 42% from 3Q 2023). Profit margin: 30% (up from 23% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. Announcement • Sep 30
Hengsheng Energy Co., Ltd to Report Q3, 2024 Results on Oct 29, 2024 Hengsheng Energy Co., Ltd announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥9.11, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 13x in the Integrated Utilities industry in Asia. Total loss to shareholders of 17% over the past three years. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: CN¥0.10 (vs CN¥0.11 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.10 (down from CN¥0.11 in 2Q 2023). Revenue: CN¥211.1m (up 13% from 2Q 2023). Net income: CN¥26.8m (down 12% from 2Q 2023). Profit margin: 13% (down from 16% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 11% per year. Announcement • Jun 29
Hengsheng Energy Co., Ltd to Report First Half, 2024 Results on Aug 20, 2024 Hengsheng Energy Co., Ltd announced that they will report first half, 2024 results on Aug 20, 2024 Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.09 (vs CN¥0.10 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.09 (down from CN¥0.10 in 1Q 2023). Revenue: CN¥184.3m (down 4.4% from 1Q 2023). Net income: CN¥25.0m (down 9.9% from 1Q 2023). Profit margin: 14% (in line with 1Q 2023). Reported Earnings • Apr 19
Full year 2023 earnings released: EPS: CN¥0.49 (vs CN¥0.49 in FY 2022) Full year 2023 results: EPS: CN¥0.49 (down from CN¥0.49 in FY 2022). Revenue: CN¥788.8m (down 11% from FY 2022). Net income: CN¥135.8m (down 1.4% from FY 2022). Profit margin: 17% (up from 16% in FY 2022). The increase in margin was driven by lower expenses. Announcement • Apr 19
Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2024 Hengsheng Energy Co., Ltd, Annual General Meeting, May 08, 2024, at 13:00 China Standard Time. Location: The Company's Meeting Room, Longyou Economic Development Zone, Zhejiang China New Risk • Apr 09
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 10% 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 (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (10% average weekly change). Announcement • Mar 29
Hengsheng Energy Co., Ltd to Report Q1, 2024 Results on Apr 27, 2024 Hengsheng Energy Co., Ltd announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥10.47, the stock trades at a trailing P/E ratio of 20.7x. Average trailing P/E is 14x in the Integrated Utilities industry in Asia. Total returns to shareholders of 8.6% over the past year. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥8.68, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total loss to shareholders of 18% over the past year. 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¥8.99, the stock trades at a trailing P/E ratio of 17.7x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Total returns to shareholders of 2.1% over the past year. Announcement • Dec 30
Hengsheng Energy Co., Ltd to Report Fiscal Year 2023 Results on Apr 18, 2024 Hengsheng Energy Co., Ltd announced that they will report fiscal year 2023 results on Apr 18, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.086 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.15 (up from CN¥0.086 in 3Q 2022). Revenue: CN¥178.9m (down 5.5% from 3Q 2022). Net income: CN¥41.6m (up 74% from 3Q 2022). Profit margin: 23% (up from 13% in 3Q 2022). The increase in margin was driven by lower expenses. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.11 (down from CN¥0.11 in 2Q 2022). Revenue: CN¥186.7m (down 23% from 2Q 2022). Net income: CN¥30.3m (down 2.2% from 2Q 2022). Profit margin: 16% (up from 13% in 2Q 2022). The increase in margin was driven by lower expenses. Announcement • Jun 28
Hengsheng Energy Co., Ltd to Report First Half, 2023 Results on Aug 22, 2023 Hengsheng Energy Co., Ltd announced that they will report first half, 2023 results on Aug 22, 2023 Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥13.32, the stock trades at a trailing P/E ratio of 28.7x. Average trailing P/E is 15x in the Integrated Utilities industry in Asia. Total returns to shareholders of 60% over the past year. Upcoming Dividend • May 02
Upcoming dividend of CN¥0.60 per share at 4.2% yield Eligible shareholders must have bought the stock before 09 May 2023. Payment date: 09 May 2023. Payout ratio is on the higher end at 76%, and the cash payout ratio is above 100%. Trailing yield: 4.2%. Within top quartile of Chinese dividend payers (2.0%). Higher than average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥15.42, the stock trades at a trailing P/E ratio of 23.7x. Average trailing P/E is 13x in the Integrated Utilities industry in Asia. Total returns to shareholders of 14% over the past year. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Xinfa Zhou was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.15 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.15 in 3Q 2021). Revenue: CN¥189.4m (up 14% from 3Q 2021). Net income: CN¥23.9m (down 5.2% from 3Q 2021). Profit margin: 13% (down from 15% in 3Q 2021). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.16 (vs CN¥0.22 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.16 (down from CN¥0.22 in 2Q 2021). Revenue: CN¥242.4m (up 44% from 2Q 2021). Net income: CN¥31.0m (down 5.6% from 2Q 2021). Profit margin: 13% (down from 19% in 2Q 2021). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥14.34, the stock trades at a trailing P/E ratio of 21.5x. Average trailing P/E is 16x in the Integrated Utilities industry in Asia. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (5 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥16.51, the stock trades at a trailing P/E ratio of 27.4x. Average trailing P/E is 21x in the Integrated Utilities industry in Asia. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.21 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥166.0m (up 13% from 3Q 2020). Net income: CN¥25.2m (down 19% from 3Q 2020). Profit margin: 15% (down from 21% in 3Q 2020). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS CN¥0.22 (vs CN¥0.15 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥169.0m (up 45% from 2Q 2020). Net income: CN¥32.8m (up 41% from 2Q 2020). Profit margin: 19% (in line with 2Q 2020). 