Buy Or Sell Opportunity • Apr 04
Now 37% overvalued Over the last 90 days, the stock has fallen 53% to HK$0.99. The fair value is estimated to be HK$0.72, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Meanwhile, the company became loss making. Announcement • Apr 03
Leoch International Technology Limited Recommends Not to Pay Final Dividend for the Year of Ended 31 December 2025 Leoch International Technology Limited announced that the Board does not recommend the payment of a final dividend for the year ended 31 December 2025 (2024: HK 7.0 cents per share). Announcement • Apr 01
Leoch International Technology Limited, Annual General Meeting, May 15, 2026 Leoch International Technology Limited, Annual General Meeting, May 15, 2026. New Risk • Mar 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$764.5m (US$97.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Share price has been highly volatile over the past 3 months (21% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (2.4% net profit margin). Market cap is less than US$100m (HK$764.5m market cap, or US$97.5m). Announcement • Mar 17
Leoch International Technology Limited to Report Fiscal Year 2025 Results on Mar 31, 2026 Leoch International Technology Limited announced that they will report fiscal year 2025 results at 4:00 PM, China Standard Time on Mar 31, 2026 New Risk • Jan 09
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 Hong Kong stocks, typically moving 21% 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 Interest payments are not well covered by earnings (2.0x net interest cover). Share price has been highly volatile over the past 3 months (21% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (2.4% net profit margin). Announcement • Jan 09
Leoch International Technology Limited Appoints Wu Kouyue as Executive Director, Effective January 8, 2026 Leoch International Technology Limited announces that Mr. Wu Kouyue has been appointed as an executive director, effective from January 8, 2026. Mr. Wu, aged 56, has been serving as the Group’s chief executive officer since December 13, 2024. Mr. Wu joined the Group in May 2014 and has successively been appointed as the supply chain director, the quality director, the president of sales for China region of the Group and the Group’s chief operating officer. Mr. Wu graduated from Anhui University of Technology with a diploma in Industrial Management Engineering in 1988 and received a diploma in Business Administration from the School of Continuing Education of Sun Yatsen University in 2003. Mr. Wu has around 30 years of experience in production operations and supply chain management. Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$2.10, the stock trades at a trailing P/E ratio of 6.5x. Average trailing P/E is 20x in the Electrical industry in Hong Kong. Total returns to shareholders of 77% over the past three years. Recent Insider Transactions • Dec 31
Executive Director recently bought HK$123k worth of stock On the 23rd of December, Yu Hong bought around 70k shares on-market at roughly HK$1.75 per share. This transaction amounted to 4.6% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth HK$1.4m. Insiders have collectively bought HK$96m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 07
Founder & Chairman recently bought HK$123k worth of stock On the 3rd of November, Li Dong bought around 83k shares on-market at roughly HK$1.49 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Li has been a buyer over the last 12 months, purchasing a net total of HK$95m worth in shares. Reported Earnings • Sep 02
First half 2025 earnings released: EPS: CN¥0.067 (vs CN¥0.18 in 1H 2024) First half 2025 results: EPS: CN¥0.067 (down from CN¥0.18 in 1H 2024). Revenue: CN¥8.44b (up 12% from 1H 2024). Net income: CN¥93.7m (down 62% from 1H 2024). Profit margin: 1.1% (down from 3.2% in 1H 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Aug 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.4% Last year net profit margin: 3.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.4% net profit margin). Announcement • Aug 15
Leoch International Technology Limited to Report First Half, 2025 Results on Aug 29, 2025 Leoch International Technology Limited announced that they will report first half, 2025 results on Aug 29, 2025 Recent Insider Transactions • Jul 23
Founder & Chairman recently bought HK$27m worth of stock On the 18th of July, Li Dong bought around 14m shares on-market at roughly HK$1.89 per share. This transaction amounted to 1.4% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Li has been a buyer over the last 12 months, purchasing a net total of HK$35m worth in shares. Announcement • Jul 18
Leoch International Technology Limited Announces Earnings Guidance for the Six Months Ended 30 June 2025 Leoch International Technology Limited announced earnings guidance for the six months ended 30 June 2025 . For the period, the company is expected to record a year-on-year increase in revenue of approximately 10% to 20%, the profit attributable to the owners of the parent for the Period is expected to decrease by approximately 60% to 80%, as compared to the corresponding period ended 30 June 2024. This is mainly due to in the second quarter of 2025, the additional import tariffs imposed by the US government on goods from around the world led to a significant increase in the costs of some of the products that the Group had already paid taxes on and delivered. However, the selling price of these affected products is not increased until the end of 2025 due to the marketing strategy of the Group; and due to the impact of the supply chain and construction progress, the production commencement time of the factory in Mexico has been postponed from the second quarter of 2025 to the fourth quarter of 2025. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to HK$1.93, the stock trades at a trailing P/E ratio of 4.5x. Average trailing P/E is 14x in the Electrical industry in Hong Kong. Total returns to shareholders of 227% over the past three years. Upcoming Dividend • May 22
Upcoming dividend of HK$0.07 per share Eligible shareholders must have bought the stock before 29 May 2025. Payment date: 11 July 2025. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 4.5%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.7%). Announcement • May 16
Leoch International Technology Limited Approves Final Dividend for Year Ended 31 December 2024 Leoch International Technology Limited announced annual general meeting held on May 16, 2025 approved final dividend of 7 Hong Kong cents per share for the year ended 31 December 2024. Buy Or Sell Opportunity • Apr 29
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 55% to HK$2.36. The fair value is estimated to be HK$1.96, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 33%. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$2.26, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 12x in the Electrical industry in Hong Kong. Total returns to shareholders of 294% over the past three years. Recent Insider Transactions • Apr 07
Independent Non-Executive Director recently sold HK$324k worth of stock On the 31st of March, Chi Kit Lau sold around 125k shares on-market at roughly HK$2.59 per share. This trade did not impact their existing holding. In the last 3 months, there was an even bigger sale from another insider worth HK$557k. Insiders have been net sellers, collectively disposing of HK$270k more than they bought in the last 12 months. New Risk • Apr 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 Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.2% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (11% average weekly change). Significant insider selling over the past 3 months (HK$557k sold). Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: CN¥0.41 (vs CN¥0.39 in FY 2023) Full year 2024 results: EPS: CN¥0.41 (up from CN¥0.39 in FY 2023). Revenue: CN¥16.1b (up 20% from FY 2023). Net income: CN¥566.4m (up 5.8% from FY 2023). Profit margin: 3.5% (down from 4.0% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 28
Leoch International Technology Limited, Annual General Meeting, May 16, 2025 Leoch International Technology Limited, Annual General Meeting, May 16, 2025. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$2.65, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 9x in the Electrical industry in Hong Kong. Total returns to shareholders of 349% over the past three years. Announcement • Mar 17
Leoch International Technology Limited to Report Fiscal Year 2024 Results on Mar 27, 2025 Leoch International Technology Limited announced that they will report fiscal year 2024 results on Mar 27, 2025 Buy Or Sell Opportunity • Mar 14
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 52% to HK$2.32. The fair value is estimated to be HK$1.86, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.0% over the last 3 years. Earnings per share has grown by 49%. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$2.52, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 8x in the Electrical industry in Hong Kong. Total returns to shareholders of 315% over the past three years. Buy Or Sell Opportunity • Feb 25
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 49% to HK$2.31. The fair value is estimated to be HK$1.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.0% over the last 3 years. Earnings per share has grown by 49%. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$1.86, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 9x in the Electrical industry in Hong Kong. Total returns to shareholders of 176% over the past three years. Announcement • Dec 13
Leoch International Technology Limited Announces CEO Changes The board of directors of Leoch International Technology Limited announced that due to internal job re-allocation, with effect from 13 December 2024 Mr. WU Kouyue has been appointed as the chief executive officer of the Company in place of Mr. CHANG Jianwei with effect from 13 December 2024. Mr. WU, aged 54, has been serving as the Group's chief operating officer since 1 January 2023 and responsible for coordinating and managing the daily operations of the Group in the People's Republic of China and overseas. Mr. WU graduated from Anhui University of Technology with a diploma in Industrial Management Engineering in 1988 and received a diploma in Business Administration from the School of Continuing Education of Sun Yat- sen University in 2003. Mr. Wu has nearly 30 years of experience in production operations and supply chain management. Since May 2014, Mr. Wu has joined the Group and has successively been appointed as the supply chain director the quality director and the president of sales for China Region of the Group. Buy Or Sell Opportunity • Oct 14
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at HK$1.70. The fair value is estimated to be HK$2.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.0% over the last 3 years. Earnings per share has grown by 49%. Upcoming Dividend • Oct 07
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 14 October 2024. Payment date: 08 November 2024. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 6.4%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (4.1%). Reported Earnings • Aug 26
First half 2024 earnings released: EPS: CN¥0.18 (vs CN¥0.15 in 1H 2023) First half 2024 results: EPS: CN¥0.18 (up from CN¥0.15 in 1H 2023). Revenue: CN¥7.54b (up 26% from 1H 2023). Net income: CN¥244.8m (up 17% from 1H 2023). Profit margin: 3.2% (down from 3.5% in 1H 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Announcement • Aug 14
Leoch International Technology Limited to Report First Half, 2024 Results on Aug 23, 2024 Leoch International Technology Limited announced that they will report first half, 2024 results on Aug 23, 2024 Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$1.65, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 10x in the Electrical industry in Hong Kong. Total returns to shareholders of 177% over the past three years. Announcement • May 29
Leoch International Technology Limited Announces Change of Company Secretary The board of directors of Leoch International Technology Limited announced that Mr. Chow Kam Keung, Albert has ceased to be the company secretary of the Company with effect from 28 May 2024 due to retirement.The Board further announced that Ms. Lin Jianan has been appointed as the company secretary of the Company in place of Mr. Chow with effect from 28 May 2024. Ms. Lin, aged 37, joined the Company as the head of office of the board of directors of the Company in September 2023. She obtained a bachelor's degree in engineering from Tianjin Polytechnic University in 2010 and a master's degree in business administration with a major in corporate governance and directorship from Hong Kong Baptist University in 2014. She has around 10 years of experience in corporate governance matters and has held various related positions in public companies listed in Hong Kong. Prior to joining the Group, she was the manager of information disclosure in WEILONG Delicious Global Holdings Ltd., a company listed on the Main Board of the Stock Exchange and the secretary of the president's office of Goldpac Group Limited, a company listed also listed on the Main Board of the Stock Exchange. Ms. Lin is a member of The Hong Kong Chartered Governance Institute (formerly known as The Hong Kong Institute of Chartered Secretaries), a chartered secretary, a chartered governance professional and an environmental, social and governance reporting certification holder. Ms. Lin will be assisted by Mr. Ng Kim Leong, the chief financial officer of the Company. Mr. Ng has obtained a bachelor's degree in accounting with a minor in finance from Curtin University of Technology in 1993 and completed an executive mergers & acquisition leadership course from Wharton University in 2012. He has been a certified member of Certified Practising Accountant Australia since 1999. Prior to joining the Group, Mr. Ng was a director of mergers & acquisition integration in Omya China from May 2019 to February 2024, and he had served in roles of general manager, area business analyst and chief financial officer of different regions and product lines of Schlumberger Limited from August 1998 to March 2019. Mr. Ng is an accomplished senior executive with 30 years of experienced in the areas of finance and management for oil & gas, and mining industries. He was also the treasurer of the Shaanxi Chapter of the Singapore Chamber of Commerce from 2014 to 2019. Upcoming Dividend • May 23
Upcoming dividend of HK$0.07 per share Eligible shareholders must have bought the stock before 30 May 2024. Payment date: 12 July 2024. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 9.9%. Within top quartile of Hong Kong dividend payers (7.4%). Higher than average of industry peers (4.2%). Recent Insider Transactions • May 10
Executive Director recently bought HK$118k worth of stock On the 6th of May, Yu Hong bought around 90k shares on-market at roughly HK$1.31 per share. This transaction amounted to 11% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought HK$1.6m more in shares than they have sold in the last 12 months. Declared Dividend • Mar 28
Final dividend of HK$0.07 announced Shareholders will receive a dividend of HK$0.07. Ex-date: 30th May 2024 Payment date: 12th July 2024 Dividend yield will be 8.9%, which is higher than the industry average of 4.6%. Sustainability & Growth Dividend is covered by earnings (25% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 24% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 38% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 27
Leoch International Technology Limited, Annual General Meeting, May 16, 2024 Leoch International Technology Limited, Annual General Meeting, May 16, 2024. Reported Earnings • Mar 27
Full year 2023 earnings released: EPS: CN¥0.39 (vs CN¥0.33 in FY 2022) Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.33 in FY 2022). Revenue: CN¥13.5b (up 4.9% from FY 2022). Net income: CN¥535.4m (up 21% from FY 2022). Profit margin: 4.0% (up from 3.4% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Mar 15
Leoch International Technology Limited to Report Q4, 2023 Final Results on Mar 26, 2024 Leoch International Technology Limited announced that they will report Q4, 2023 final results on Mar 26, 2024 Buy Or Sell Opportunity • Mar 12
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to HK$1.36. The fair value is estimated to be HK$1.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 67%. Recent Insider Transactions • Aug 30
Founder & Chairman recently bought HK$1.5m worth of stock On the 25th of August, Li Dong bought around 1m shares on-market at roughly HK$1.52 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Li has been a buyer over the last 12 months, purchasing a net total of HK$7.1m worth in shares. Upcoming Dividend • Aug 28
Upcoming dividend of HK$0.04 per share at 5.2% yield Eligible shareholders must have bought the stock before 04 September 2023. Payment date: 22 September 2023. Trailing yield: 5.2%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.5%). Announcement • Aug 23
Leoch International Technology Limited Announces Interim (Semi-Annual) Dividend for the Six Months Ended 30 June 2023, Payable on 22 September 2023 Leoch International Technology Limited announced interim (Semi-annual) dividend of HKD 0.04 per share for the six months ended 30 June 2023. Ex-dividend date is 04 September 2023. Record date is 08 September 2023. Payment date is 22 September 2023. Reported Earnings • Aug 23
First half 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.059 in 1H 2022) First half 2023 results: EPS: CN¥0.15 (up from CN¥0.059 in 1H 2022). Revenue: CN¥6.00b (down 2.7% from 1H 2022). Net income: CN¥209.1m (up 161% from 1H 2022). Profit margin: 3.5% (up from 1.3% in 1H 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Electrical industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 52% per year, which means it is significantly lagging earnings growth. Announcement • Aug 11
Leoch International Technology Limited to Report First Half, 2023 Results on Aug 22, 2023 Leoch International Technology Limited announced that they will report first half, 2023 results on Aug 22, 2023 New Risk • Jun 11
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 Hong Kong stocks, typically moving 9.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (50% 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 (9.3% average weekly change). Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$1.37, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 18x in the Electrical industry in Asia. Total returns to shareholders of 220% over the past three years. Upcoming Dividend • May 29
Upcoming dividend of HK$0.10 per share at 8.6% yield Eligible shareholders must have bought the stock before 05 June 2023. Payment date: 10 July 2023. Trailing yield: 8.6%. Within top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.3%). Announcement • May 26
Leoch International Technology Limited Approves Final Dividend for the Year Ended 31 December 2022 Leoch International Technology Limited at its Annual General Meeting held on 25 May 2023 approved final dividend of HKD 0.10 per share for the year ended 31 December 2022. Recent Insider Transactions • Apr 21
Founder & Chairman recently bought HK$1.8m worth of stock On the 18th of April, Li Dong bought around 1m shares on-market at roughly HK$1.76 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth HK$1.8m. Li has been a buyer over the last 12 months, purchasing a net total of HK$5.6m worth in shares. Recent Insider Transactions • Apr 01
Founder & Chairman recently bought HK$1.8m worth of stock On the 30th of March, Li Dong bought around 1m shares on-market at roughly HK$1.79 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Li has been a buyer over the last 12 months, purchasing a net total of HK$3.0m worth in shares. Reported Earnings • Mar 26
Full year 2022 earnings: EPS in line with expectations, revenues disappoint Full year 2022 results: EPS: CN¥0.33 (up from CN¥0.10 in FY 2021). Revenue: CN¥12.8b (up 14% from FY 2021). Net income: CN¥442.8m (up 225% from FY 2021). Profit margin: 3.4% (up from 1.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electrical industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 64% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$2.24, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 18x in the Electrical industry in Asia. Total returns to shareholders of 410% over the past three years. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.99, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 19x in the Electrical industry in Asia. Total returns to shareholders of 253% over the past three years. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 19% share price gain to HK$1.39, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Electrical industry in Asia. Total returns to shareholders of 143% over the past three years. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 21% share price gain to HK$1.05, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 17x in the Electrical industry in Asia. Total returns to shareholders of 93% over the past three years. Recent Insider Transactions • Nov 04
Founder & Chairman recently bought HK$1.2m worth of stock On the 31st of October, Li Dong bought around 2m shares on-market at roughly HK$0.58 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Li has been a buyer over the last 12 months, purchasing a net total of HK$1.2m worth in shares. Reported Earnings • Aug 27
First half 2022 earnings released: EPS: CN¥0.06 (vs CN¥0.021 in 1H 2021) First half 2022 results: EPS: CN¥0.06 (up from CN¥0.021 in 1H 2021). Revenue: CN¥6.17b (up 19% from 1H 2021). Net income: CN¥80.0m (up 174% from 1H 2021). Profit margin: 1.3% (up from 0.6% in 1H 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 8.9%, compared to a 8.8% growth forecast for the Electrical industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥12.8b to CN¥12.4b. EPS estimate also fell from CN¥0.16 per share to CN¥0.12 per share. Net income forecast to grow 24% next year vs 36% growth forecast for Electrical industry in Hong Kong. Consensus price target broadly unchanged at HK$1.50. Share price rose 2.9% to HK$0.71 over the past week. Reported Earnings • Apr 01
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: CN¥0.10 (up from CN¥0.091 in FY 2020). Revenue: CN¥11.3b (up 17% from FY 2020). Net income: CN¥136.1m (up 10.0% from FY 2020). Profit margin: 1.2% (down from 1.3% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) also surpassed analyst estimates by 67%. Over the next year, revenue is forecast to grow 13%, compared to a 10.0% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 3% per year. Board Change • Jan 07
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 2 highly experienced directors. CEO & Executive Director Haiyan Yin was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 30
First half 2021 earnings released: EPS CN¥0.021 (vs CN¥0.019 in 1H 2020) The company reported a solid first half result with improved earnings and revenues, although profit margins were weaker. First half 2021 results: Revenue: CN¥5.18b (up 41% from 1H 2020). Net income: CN¥29.2m (up 16% from 1H 2020). Profit margin: 0.6% (down from 0.7% in 1H 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment improved over the past week After last week's 25% share price gain to CN¥1.05, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Electrical industry in Hong Kong. Total returns to shareholders of 44% over the past three years. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improved over the past week After last week's 40% share price gain to CN¥1.02, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Electrical industry in Hong Kong. Total returns to shareholders of 24% over the past three years. Major Estimate Revision • Apr 02
Consensus revenue estimates increase to CN¥11.3b The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from CN¥9.36b to CN¥11.3b. EPS estimate increased from CN¥0.09 to CN¥0.13 per share. Net income forecast to grow 46% next year vs 46% growth forecast for Electrical industry in Hong Kong. Consensus price target up from HK$1.47 to HK$2.00. Share price fell 6.3% to HK$1.05 over the past week. Reported Earnings • Mar 28
Full year 2020 earnings released: EPS CN¥0.09 (vs CN¥0.098 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: CN¥9.63b (up 15% from FY 2019). Net income: CN¥123.7m (down 6.7% from FY 2019). Profit margin: 1.3% (down from 1.6% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥1.05, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Electrical industry in Hong Kong. Total loss to shareholders of 15% over the past three years. 
