Valuation Update With 7 Day Price Move • 8h
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥78.12, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 41x in the Electronic industry in China. Total returns to shareholders of 363% over the past three years. Announcement • Jun 30
Zhejiang Lante Optics Co., Ltd. to Report First Half, 2026 Results on Aug 21, 2026 Zhejiang Lante Optics Co., Ltd. announced that they will report first half, 2026 results on Aug 21, 2026 Major Estimate Revision • May 30
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¥2.32b to CN¥2.22b. EPS estimate also fell from CN¥1.80 per share to CN¥1.60 per share. Net income forecast to grow 45% next year vs 49% growth forecast for Electronic industry in China. Consensus price target up from CN¥66.79 to CN¥87.33. Share price fell 20% to CN¥83.44 over the past week. Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥83.44, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 40x in the Electronic industry in China. Total returns to shareholders of 381% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.71 per share. Declared Dividend • May 25
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 28th May 2026 Payment date: 28th May 2026 Dividend yield will be 0.3%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (25% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 15% per year over the past 5 years. However, payments have been volatile during that time. EPS is expected to grow by 93% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Apr 16
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 10.0% 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 (10.0% average weekly change). Minor Risk Dividend is not well covered by cash flows (121% cash payout ratio). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥67.35, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 231% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥50.06 per share. Buy Or Sell Opportunity • Apr 03
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 62% to CN¥62.25. The fair value is estimated to be CN¥50.14, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 43% over the last 3 years. Earnings per share has grown by 45%. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Announcement • Mar 30
Zhejiang Lante Optics Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Zhejiang Lante Optics Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Major Estimate Revision • Mar 25
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from CN¥2.00b to CN¥2.13b. EPS estimate increased from CN¥1.28 to CN¥1.47 per share. Net income forecast to grow 54% next year vs 48% growth forecast for Electronic industry in China. Consensus price target of CN¥61.79 unchanged from last update. Share price rose 7.0% to CN¥60.36 over the past week. Major Estimate Revision • Mar 23
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from CN¥1.96b to CN¥2.16b. EPS estimate increased from CN¥1.23 to CN¥1.47 per share. Net income forecast to grow 53% next year vs 48% growth forecast for Electronic industry in China. Consensus price target up from CN¥44.50 to CN¥61.79. Share price was steady at CN¥58.04 over the past week. Announcement • Mar 16
Zhejiang Lante Optics Co., Ltd., Annual General Meeting, Apr 08, 2026 Zhejiang Lante Optics Co., Ltd., Annual General Meeting, Apr 08, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jiaxing, Zhejiang China Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥64.93, the stock trades at a forward P/E ratio of 53x. Average forward P/E is 33x in the Electronic industry in China. Total returns to shareholders of 235% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥31.55 per share. Reported Earnings • Feb 26
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: CN¥0.96 (up from CN¥0.55 in FY 2024). Revenue: CN¥1.54b (up 49% from FY 2024). Net income: CN¥388.3m (up 76% from FY 2024). Profit margin: 25% (up from 21% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) also surpassed analyst estimates by 10%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. New Risk • Feb 03
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 7.8% 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. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥48.27, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 33x in the Electronic industry in China. Total returns to shareholders of 160% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥30.13 per share. Announcement • Jan 16
Zhejiang Lante Optics Co., Ltd. announced that it expects to receive CNY 1.0546023 billion in funding Zhejiang Lante Optics Co., Ltd. announced that it has entered into a share subscription agreement for private placement of not more than 121,769,310 A shares at a price of not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds of not more than CNY 1,054,602,300 on January 14, 2026. The transaction will include participation from not more than 35 investors, including Xu Yunming, who will subscribe with not more than CNY 50,000,000. The shares Xu Yunming subscribes to cannot be transferred within 36 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date. The transaction has been approved at the 25th meeting of the company’s 5th directorate of the company. The transaction is subject to the approval of the company’s shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission. Announcement • Dec 26
Zhejiang Lante Optics Co., Ltd. to Report Fiscal Year 2025 Results on Mar 17, 2026 Zhejiang Lante Optics Co., Ltd. announced that they will report fiscal year 2025 results on Mar 17, 2026 Reported Earnings • Oct 25
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: CN¥0.35 (up from CN¥0.29 in 3Q 2024). Revenue: CN¥474.0m (up 16% from 3Q 2024). Net income: CN¥146.6m (up 30% from 3Q 2024). Profit margin: 31% (up from 28% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Oct 20
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to CN¥29.32. The fair value is estimated to be CN¥23.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 44% over the last 3 years. Earnings per share has grown by 41%. For the next 3 years, revenue is forecast to grow by 23% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Announcement • Sep 30
Zhejiang Lante Optics Co., Ltd. to Report Q3, 2025 Results on Oct 25, 2025 Zhejiang Lante Optics Co., Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Reported Earnings • Aug 22
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: CN¥0.15 (up from CN¥0.05 in 2Q 2024). Revenue: CN¥321.2m (up 52% from 2Q 2024). Net income: CN¥57.8m (up 191% from 2Q 2024). Profit margin: 18% (up from 9.4% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.4%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥32.36, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥28.40 per share. Announcement • Jun 30
Zhejiang Lante Optics Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Zhejiang Lante Optics Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Buy Or Sell Opportunity • May 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to CN¥24.15. The fair value is estimated to be CN¥30.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 43% over the last 3 years. Earnings per share has grown by 36%. Revenue is forecast to grow by 66% in 2 years. Earnings are forecast to grow by 98% in the next 2 years. New Risk • May 12
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Dividend per share is over 9x cash flows per share. Dividend yield: 0.8% 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 Dividend is not well covered by cash flows (dividend per share is over 9x cash flows per share). Share price has been volatile over the past 3 months (9.5% average weekly change). Price Target Changed • Apr 26
Price target increased by 13% to CN¥28.50 Up from CN¥25.30, the current price target is an average from 2 analysts. New target price is 21% above last closing price of CN¥23.64. Stock is up 21% over the past year. The company is forecast to post earnings per share of CN¥0.95 for next year compared to CN¥0.55 last year. Reported Earnings • Apr 25
First quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.07 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.11 (up from CN¥0.07 in 1Q 2024). Revenue: CN¥255.7m (up 53% from 1Q 2024). Net income: CN¥45.6m (up 56% from 1Q 2024). Profit margin: 18% (in line with 1Q 2024). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Apr 25
Zhejiang Lante Optics Co., Ltd., Annual General Meeting, May 15, 2025 Zhejiang Lante Optics Co., Ltd., Annual General Meeting, May 15, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jiaxing, Zhejiang China Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥24.52, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 99% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥34.43 per share. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to CN¥20.83, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 27x in the Electronic industry in China. Total returns to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥34.80 per share. Buy Or Sell Opportunity • Apr 03
Now 23% undervalued The stock has been flat over the last 90 days, currently trading at CN¥25.70. The fair value is estimated to be CN¥33.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 41% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 21% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Announcement • Mar 28
Zhejiang Lante Optics Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Zhejiang Lante Optics Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 New Risk • Mar 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 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Mar 13
Now 21% undervalued Over the last 90 days, the stock has risen 7.3% to CN¥26.30. The fair value is estimated to be CN¥33.49, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 41% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 21% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Reported Earnings • Feb 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.54 (up from CN¥0.45 in FY 2023). Revenue: CN¥1.03b (up 37% from FY 2023). Net income: CN¥218.6m (up 22% from FY 2023). Profit margin: 21% (down from 24% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥31.78, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 83% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥33.08 per share. Buy Or Sell Opportunity • Jan 23
Now 25% undervalued Over the last 90 days, the stock has risen 13% to CN¥26.43. The fair value is estimated to be CN¥35.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 23%. For the next 3 years, revenue is forecast to grow by 20% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. Announcement • Dec 27
Zhejiang Lante Optics Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Zhejiang Lante Optics Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥27.95, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 39% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.86 per share. Buy Or Sell Opportunity • Dec 10
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 59% to CN¥24.50. The fair value is estimated to be CN¥19.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 23%. For the next 3 years, revenue is forecast to grow by 20% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. Buy Or Sell Opportunity • Nov 07
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 41% to CN¥24.19. The fair value is estimated to be CN¥20.12, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has grown by 23%. For the next 3 years, revenue is forecast to grow by 20% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.29 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.29 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥408.1m (up 41% from 3Q 2023). Net income: CN¥112.4m (up 61% from 3Q 2023). Profit margin: 28% (up from 24% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic 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 only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥24.24, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.93 per share. Buy Or Sell Opportunity • Oct 22
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 36% to CN¥24.24. The fair value is estimated to be CN¥19.93, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 6.7%. For the next 3 years, revenue is forecast to grow by 21% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. New Risk • Sep 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.2% average weekly change). High level of non-cash earnings (25% accrual ratio). Announcement • Sep 30
Zhejiang Lante Optics Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Zhejiang Lante Optics Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to CN¥19.69, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 21x in the Electronic industry in China. Total returns to shareholders of 9.1% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.93 per share. Buy Or Sell Opportunity • Sep 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to CN¥16.01. The fair value is estimated to be CN¥20.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 7.4%. For the next 3 years, revenue is forecast to grow by 21% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.036 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.05 (up from CN¥0.036 in 2Q 2023). Revenue: CN¥211.0m (up 83% from 2Q 2023). Net income: CN¥19.9m (up 15% from 2Q 2023). Profit margin: 9.4% (down from 15% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Jul 17
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 7.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (34% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.7% average weekly change). Buy Or Sell Opportunity • Jul 16
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 7.5% to CN¥21.37. The fair value is estimated to be CN¥17.09, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has declined by 7.7%. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥19.65, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 22x in the Electronic industry in China. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.08 per share. Announcement • Jun 28
Zhejiang Lante Optics Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Zhejiang Lante Optics Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Buy Or Sell Opportunity • Jun 17
Now 22% overvalued Over the last 90 days, the stock has fallen 18% to CN¥18.50. The fair value is estimated to be CN¥15.22, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has declined by 7.7%. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Buy Or Sell Opportunity • May 17
Now 24% overvalued Over the last 90 days, the stock has fallen 3.6% to CN¥19.27. The fair value is estimated to be CN¥15.56, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Earnings per share has declined by 7.0%. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.07 (vs CN¥0.012 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.07 (up from CN¥0.012 in 1Q 2023). Revenue: CN¥167.2m (up 96% from 1Q 2023). Net income: CN¥29.3m (up CN¥24.5m from 1Q 2023). Profit margin: 18% (up from 5.6% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. 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 3% per year. Announcement • Apr 26
Zhejiang Lante Optics Co., Ltd., Annual General Meeting, May 16, 2024 Zhejiang Lante Optics Co., Ltd., Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jiaxing, Zhejiang China Announcement • Mar 29
Zhejiang Lante Optics Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Zhejiang Lante Optics Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Reported Earnings • Feb 24
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: CN¥0.45 (up from CN¥0.24 in FY 2022). Revenue: CN¥754.5m (up 98% from FY 2022). Net income: CN¥180.3m (up 88% from FY 2022). Profit margin: 24% (down from 25% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥19.98, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 22% over the past three years. New Risk • Jan 18
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 6.1% 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: Major Risk High level of non-cash earnings (47% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.1% average weekly change). Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥23.29, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 22x in the Electronic industry in China. Total loss to shareholders of 34% over the past three years. Major Estimate Revision • Nov 02
Consensus revenue estimates increase by 13% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from CN¥647.0m to CN¥728.0m. EPS estimate increased from CN¥0.33 to CN¥0.38 per share. Net income forecast to grow 91% next year vs 73% growth forecast for Electronic industry in China. Consensus price target up from CN¥19.70 to CN¥23.75. Share price was steady at CN¥19.84 over the past week. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.041 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.041 in 3Q 2022). Revenue: CN¥289.2m (up 208% from 3Q 2022). Net income: CN¥69.7m (up 290% from 3Q 2022). Profit margin: 24% (up from 19% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.036 (vs CN¥0.067 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.036 (down from CN¥0.067 in 2Q 2022). Revenue: CN¥115.4m (up 3.2% from 2Q 2022). Net income: CN¥17.3m (down 32% from 2Q 2022). Profit margin: 15% (down from 23% in 2Q 2022). The decrease in margin was driven by higher expenses. Announcement • Jun 28
Zhejiang Lante Optics Co., Ltd. to Report First Half, 2023 Results on Aug 30, 2023 Zhejiang Lante Optics Co., Ltd. announced that they will report first half, 2023 results on Aug 30, 2023 New Risk • Jun 09
New major risk - Revenue and earnings growth Earnings have declined by 7.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 7.8% per year over the past 5 years. High level of non-cash earnings (41% accrual ratio). Major Estimate Revision • Apr 30
Consensus revenue estimates fall by 29% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥862.3m to CN¥611.0m. EPS estimate fell from CN¥0.579 to CN¥0.31 per share. Net income forecast to grow 144% next year vs 57% growth forecast for Electronic industry in China. Consensus price target of CN¥18.86 unchanged from last update. Share price fell 2.2% to CN¥16.66 over the past week. Reported Earnings • Apr 19
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: CN¥0.012 (down from CN¥0.054 in 1Q 2022). Revenue: CN¥85.5m (down 4.6% from 1Q 2022). Net income: CN¥4.80m (down 78% from 1Q 2022). Profit margin: 5.6% (down from 24% in 1Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 18%. Earnings per share (EPS) also missed analyst estimates by 76%. Revenue is forecast to grow 64% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in China. Price Target Changed • Mar 31
Price target decreased by 12% to CN¥21.94 Down from CN¥25.01, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥21.27. Stock is up 31% over the past year. The company is forecast to post earnings per share of CN¥0.57 for next year compared to CN¥0.26 last year. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: CN¥0.26 (vs CN¥0.35 in FY 2021) Full year 2022 results: EPS: CN¥0.26 (down from CN¥0.35 in FY 2021). Revenue: CN¥380.8m (down 8.4% from FY 2021). Net income: CN¥103.1m (down 26% from FY 2021). Profit margin: 27% (down from 34% in FY 2021). Revenue is forecast to grow 55% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Electronic industry in China. Board Change • Nov 16
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. 5 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. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.041 (vs CN¥0.08 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.041 (down from CN¥0.08 in 3Q 2021). Revenue: CN¥93.9m (down 13% from 3Q 2021). Net income: CN¥17.9m (down 46% from 3Q 2021). Profit margin: 19% (down from 31% in 3Q 2021). Revenue is forecast to grow 55% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥18.95, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 20x in the Electronic industry in China. Total returns to shareholders of 9.6% over the past year. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.067 (vs CN¥0.095 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.067 (down from CN¥0.095 in 2Q 2021). Revenue: CN¥111.8m (flat on 2Q 2021). Net income: CN¥25.3m (down 33% from 2Q 2021). Profit margin: 23% (down from 34% in 2Q 2021). Over the next year, revenue is forecast to grow 77%, compared to a 27% growth forecast for the Electronic industry in China. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥22.30, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 2.0% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥38.95 per share. Price Target Changed • Jun 20
Price target increased to CN¥25.01 Up from CN¥22.36, the current price target is an average from 5 analysts. New target price is 14% above last closing price of CN¥21.90. Stock is down 26% over the past year. The company is forecast to post earnings per share of CN¥0.36 for next year compared to CN¥0.35 last year. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥22.97, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 21x in the Electronic industry in China. Total loss to shareholders of 12% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥35.21 per share. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥15.52, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 18x in the Electronic industry in China. Total loss to shareholders of 21% over the past year. Price Target Changed • Apr 27
Price target decreased to CN¥22.36 Down from CN¥24.86, the current price target is an average from 3 analysts. New target price is 76% above last closing price of CN¥12.70. Stock is down 39% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.35 last year. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 02
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: CN¥0.88 (up from CN¥0.49 in FY 2020). Revenue: CN¥460.7m (up 5.0% from FY 2020). Net income: CN¥58.8m (down 68% from FY 2020). Profit margin: 13% (down from 42% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 21%, compared to a 26% growth forecast for the industry in China. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥18.86, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 23% over the past year.