New Risk • Jun 05
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% 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 (10% average weekly change). Earnings have declined by 2.3% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.6% net profit margin). Shareholders have been diluted in the past year (20% increase in shares outstanding). Announcement • May 28
Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403) announces an Equity Buyback for CNY 120 million worth of its shares. Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403) announces a share repurchase program. Under the program, the company will repurchase up to CNY 120 million worth of its class A shares. The shares will be repurchased at a price of not more than CNY 27.71 per share. The program will be funded from own Funds and Special Repurchase Loans. The purpose of the program is ESOP or equity incentives. The shares repurchased will be cancelled. The program will be valid for 12 months. Declared Dividend • May 18
Dividend of CN¥0.05 announced Shareholders will receive a dividend of CN¥0.05. Ex-date: 20th May 2026 Payment date: 20th May 2026 Dividend yield will be 0.2%, which is lower than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (46% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has decreased over the past 26 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 49% to shift the payout ratio to a potentially unsustainable range, which is more than the 8.3% EPS decline seen over the last 5 years. New Risk • May 06
New major risk - Revenue and earnings growth Earnings have declined by 2.3% 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 Risk Earnings have declined by 2.3% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.6% net profit margin). Shareholders have been diluted in the past year (20% increase in shares outstanding). New Risk • Apr 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Mar 30
Union Semiconductor (Hefei) Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Union Semiconductor (Hefei) Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Mar 19
Union Semiconductor (Hefei) Co., Ltd., Annual General Meeting, Apr 09, 2026 Union Semiconductor (Hefei) Co., Ltd., Annual General Meeting, Apr 09, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hefei, Anhui China Reported Earnings • Mar 05
Full year 2025 earnings released: EPS: CN¥0.19 (vs CN¥0.19 in FY 2024) Full year 2025 results: EPS: CN¥0.19 (in line with FY 2024). Revenue: CN¥1.78b (up 19% from FY 2024). Net income: CN¥155.3m (down 2.8% from FY 2024). Profit margin: 8.7% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥16.40, the stock trades at a trailing P/E ratio of 77.8x. Average forward P/E is 57x in the Semiconductor industry in China. Total returns to shareholders of 41% over the past three years. Announcement • Dec 26
Union Semiconductor (Hefei) Co., Ltd. to Report Fiscal Year 2025 Results on Mar 20, 2026 Union Semiconductor (Hefei) Co., Ltd. announced that they will report fiscal year 2025 results on Mar 20, 2026 Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥15.17, the stock trades at a trailing P/E ratio of 71.1x. Average forward P/E is 38x in the Semiconductor industry in China. Total returns to shareholders of 41% over the past three years. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.032 (vs CN¥0.05 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.032 (down from CN¥0.05 in 3Q 2024). Revenue: CN¥429.2m (up 8.3% from 3Q 2024). Net income: CN¥28.2m (down 32% from 3Q 2024). Profit margin: 6.6% (down from 10% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • Oct 24
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 9.3% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥15.81, the stock trades at a trailing P/E ratio of 66.8x. Average trailing P/E is 81x in the Semiconductor industry in China. Total returns to shareholders of 48% over the past three years. Announcement • Sep 30
Union Semiconductor (Hefei) Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Union Semiconductor (Hefei) Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 New Risk • Sep 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 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥15.48, the stock trades at a trailing P/E ratio of 65.4x. Average trailing P/E is 75x in the Semiconductor industry in China. Total returns to shareholders of 37% over the past three years. Reported Earnings • Aug 27
Second quarter 2025 earnings released: EPS: CN¥0.07 (vs CN¥0.04 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.07 (up from CN¥0.04 in 2Q 2024). Revenue: CN¥491.6m (up 37% from 2Q 2024). Net income: CN¥55.5m (up 66% from 2Q 2024). Profit margin: 11% (up from 9.3% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥12.67, the stock trades at a trailing P/E ratio of 60.3x. Average trailing P/E is 71x in the Semiconductor industry in China. Total returns to shareholders of 79% over the past year. Announcement • Jul 03
Union Semiconductor (Hefei) Co., Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Union Semiconductor (Hefei) Co., Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥7.66, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 66x in the Semiconductor industry in China. Total loss to shareholders of 2.0% over the past year. New Risk • Mar 03
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: 11% Last year net profit margin: 16% 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: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (11% net profit margin). Announcement • Dec 27
Union Semiconductor (Hefei) Co., Ltd. to Report Fiscal Year 2024 Results on Mar 28, 2025 Union Semiconductor (Hefei) Co., Ltd. announced that they will report fiscal year 2024 results on Mar 28, 2025 Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥10.40, the stock trades at a trailing P/E ratio of 55.5x. Average trailing P/E is 68x in the Semiconductor industry in China. Total loss to shareholders of 4.0% over the past year. Reported Earnings • Oct 24
Third quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.064 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.05 (down from CN¥0.064 in 3Q 2023). Revenue: CN¥396.4m (up 16% from 3Q 2023). Net income: CN¥41.2m (down 28% from 3Q 2023). Profit margin: 10% (down from 17% in 3Q 2023). New Risk • Sep 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.6% 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 (26% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Announcement • Sep 30
Union Semiconductor (Hefei) Co., Ltd. to Report Q3, 2024 Results on Oct 24, 2024 Union Semiconductor (Hefei) Co., Ltd. announced that they will report Q3, 2024 results on Oct 24, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to CN¥8.48, the stock trades at a trailing P/E ratio of 40.2x. Average trailing P/E is 50x in the Semiconductor industry in China. Total loss to shareholders of 13% over the past year. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.073 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.04 (down from CN¥0.073 in 2Q 2023). Revenue: CN¥358.3m (up 14% from 2Q 2023). Net income: CN¥33.3m (down 40% from 2Q 2023). Profit margin: 9.3% (down from 18% in 2Q 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥7.06, the stock trades at a trailing P/E ratio of 29.7x. Average trailing P/E is 50x in the Semiconductor industry in China. Total loss to shareholders of 42% over the past year. Announcement • Jun 28
Union Semiconductor (Hefei) Co., Ltd. to Report First Half, 2024 Results on Aug 31, 2024 Union Semiconductor (Hefei) Co., Ltd. announced that they will report first half, 2024 results on Aug 31, 2024 Announcement • Apr 21
Union Semiconductor (Hefei) Co., Ltd., Annual General Meeting, May 15, 2024 Union Semiconductor (Hefei) Co., Ltd., Annual General Meeting, May 15, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Hefei, Anhui China Reported Earnings • Apr 20
Full year 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.24 in FY 2022) Full year 2023 results: EPS: CN¥0.23. Revenue: CN¥1.24b (up 32% from FY 2022). Net income: CN¥196.0m (up 11% from FY 2022). Profit margin: 16% (down from 19% in FY 2022). The decrease in margin was driven by higher expenses. Announcement • Mar 30
Union Semiconductor (Hefei) Co., Ltd. to Report Q1, 2024 Results on Apr 23, 2024 Union Semiconductor (Hefei) Co., Ltd. announced that they will report Q1, 2024 results on Apr 23, 2024 Reported Earnings • Feb 26
Full year 2023 earnings released: EPS: CN¥0.23 (vs CN¥0.24 in FY 2022) Full year 2023 results: EPS: CN¥0.23. Revenue: CN¥1.24b (up 32% from FY 2022). Net income: CN¥195.8m (up 11% from FY 2022). Profit margin: 16% (down from 19% in FY 2022). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥8.70, the stock trades at a trailing P/E ratio of 41x. Average trailing P/E is 48x in the Semiconductor industry in China. Total loss to shareholders of 29% over the past year. Announcement • Dec 23
Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403) announces an Equity Buyback for CNY 100 million worth of its shares. Union Semiconductor (Hefei) Co., Ltd. (SHSE:688403) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 16.33 per share. The repurchased shares will be used for employee stock ownership plans, equity incentive plans or to convert corporate bonds issued by listed companies that can be converted into stocks. The program will be funded from company's own funds or self-raised funds. The program will be valid for 12 months. Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.069 (vs CN¥0.07 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.069. Revenue: CN¥338.1m (up 43% from 3Q 2022). Net income: CN¥60.0m (up 21% from 3Q 2022). Profit margin: 18% (down from 21% in 3Q 2022). Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.70, the stock trades at a trailing P/E ratio of 53.6x. Average trailing P/E is 69x in the Semiconductor industry in China. Total loss to shareholders of 3.9% over the past year. New Risk • Aug 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.9% average weekly change). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: CN¥0.073 (vs CN¥0.07 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.073 (up from CN¥0.07 in 2Q 2022). Revenue: CN¥315.8m (up 36% from 2Q 2022). Net income: CN¥55.7m (up 27% from 2Q 2022). Profit margin: 18% (down from 19% in 2Q 2022). Announcement • Jun 28
Union Semiconductor (Hefei) Co., Ltd. to Report First Half, 2023 Results on Aug 12, 2023 Union Semiconductor (Hefei) Co., Ltd. announced that they will report first half, 2023 results on Aug 12, 2023 Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥13.61, the stock trades at a trailing P/E ratio of 73.4x. Average trailing P/E is 64x in the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥12.17, the stock trades at a trailing P/E ratio of 57.3x. Average trailing P/E is 62x in the Semiconductor industry in China. Reported Earnings • Apr 22
Full year 2022 earnings released: EPS: CN¥0.24 (vs CN¥0.21 in FY 2021) Full year 2022 results: EPS: CN¥0.24 (up from CN¥0.21 in FY 2021). Revenue: CN¥939.7m (up 18% from FY 2021). Net income: CN¥177.2m (up 26% from FY 2021). Profit margin: 19% (up from 18% in FY 2021). The increase in margin was driven by higher revenue. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: CN¥0.25 (vs CN¥0.21 in FY 2021) Full year 2022 results: EPS: CN¥0.25 (up from CN¥0.21 in FY 2021). Revenue: CN¥939.7m (up 18% from FY 2021). Net income: CN¥177.3m (up 26% from FY 2021). Profit margin: 19% (up from 18% in FY 2021). The increase in margin was driven by higher revenue. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.07 (vs CN¥0.061 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.061 in 3Q 2021). Revenue: CN¥236.1m (up 8.1% from 3Q 2021). Net income: CN¥49.8m (up 22% from 3Q 2021). Profit margin: 21% (up from 19% in 3Q 2021). The increase in margin was driven by higher revenue. 