Major Estimate Revision • Jun 18
Consensus EPS estimates increase by 21% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from CN¥1.59 to CN¥1.92. Revenue forecast unchanged at CN¥4.34b. Net income forecast to grow 72% next year vs 59% growth forecast for Electrical industry in China. Consensus price target up from CN¥71.30 to CN¥82.77. Share price rose 23% to CN¥97.22 over the past week. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to CN¥88.96, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 23x in the Electrical industry in China. Total returns to shareholders of 107% over the past three years. Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥105, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 26x in the Electrical industry in China. Total returns to shareholders of 181% over the past three years. Announcement • Apr 21
Suzhou Recodeal Interconnect System Co.,Ltd announced that it expects to receive CNY 300 million in funding Suzhou Recodeal Interconnect System Co.,Ltd has announced private placement to issue A shares not more than 30% of total share capital at an issue price of not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds not more then CNY 300,000,000 on April 20, 2026. The transaction will include investor participation not more than 35 investors. The transaction is approved by 4th directorate in 30th meeting of proposal about submitting a proposal to the shareholders meeting to authorize the directorate to Implement a simplified private placement of shares. The transaction is subject to approval of company’s annual shareholders. All the securities issued in the offering is subject to a hold period of 6 months from date of issuance. Reported Earnings • Apr 21
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: CN¥1.46 (up from CN¥0.85 in FY 2024). Revenue: CN¥3.15b (up 31% from FY 2024). Net income: CN¥299.1m (up 71% from FY 2024). Profit margin: 9.5% (up from 7.3% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) exceeded analyst estimates by 2.7%. Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 21
Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 12, 2026 Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 12, 2026, at 14:30 China Standard Time. Location: 2F, No. 88, Wupushang Road, Wuzhong District, Suzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥95.70, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 26x in the Electrical industry in China. Total returns to shareholders of 113% over the past three years. Announcement • Mar 30
Suzhou Recodeal Interconnect System Co.,Ltd to Report Q1, 2026 Results on Apr 29, 2026 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report Q1, 2026 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥94.00, the stock trades at a forward P/E ratio of 54x. Average forward P/E is 27x in the Electrical industry in China. Total returns to shareholders of 75% over the past three years. Announcement • Dec 26
Suzhou Recodeal Interconnect System Co.,Ltd to Report Fiscal Year 2025 Results on Apr 21, 2026 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report fiscal year 2025 results on Apr 21, 2026 Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥86.77, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 24x in the Electrical industry in China. Total returns to shareholders of 43% over the past three years. Major Estimate Revision • Nov 12
Consensus EPS estimates increase by 17% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from CN¥1.35 to CN¥1.57. Revenue forecast steady at CN¥3.20b. Net income forecast to grow 24% next year vs 53% growth forecast for Electrical industry in China. Consensus price target up from CN¥66.48 to CN¥73.73. Share price rose 4.1% to CN¥75.69 over the past week. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.37 (vs CN¥0.20 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.37 (up from CN¥0.20 in 3Q 2024). Revenue: CN¥796.4m (up 26% from 3Q 2024). Net income: CN¥76.0m (up 85% from 3Q 2024). Profit margin: 9.5% (up from 6.5% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 4% per year. Announcement • Sep 30
Suzhou Recodeal Interconnect System Co.,Ltd to Report Q3, 2025 Results on Oct 30, 2025 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report Q3, 2025 results on Oct 30, 2025 Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥82.10, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 23x in the Electrical industry in China. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥77.80, the stock trades at a forward P/E ratio of 56x. Average forward P/E is 21x in the Electrical industry in China. Negligible returns to shareholders over past three years. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to CN¥64.10, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 20x in the Electrical industry in China. Total loss to shareholders of 14% over the past three years. Announcement • Jun 30
Suzhou Recodeal Interconnect System Co.,Ltd to Report First Half, 2025 Results on Aug 29, 2025 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report first half, 2025 results on Aug 29, 2025 Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥47.69, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 18x in the Electrical industry in China. Total loss to shareholders of 21% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥38.19 per share. Declared Dividend • May 28
Dividend increased to CN¥0.35 Dividend of CN¥0.35 is 250% higher than last year. Ex-date: 30th May 2025 Payment date: 30th May 2025 Dividend yield will be 0.7%, which is lower than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (26% 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 15% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 76% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • May 06
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.7% 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: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Buy Or Sell Opportunity • Apr 30
Now 21% overvalued Over the last 90 days, the stock has fallen 27% to CN¥49.41. The fair value is estimated to be CN¥40.81, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has declined by 12%. For the next 3 years, revenue is forecast to grow by 19% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Reported Earnings • Apr 15
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥1.11 (up from CN¥0.86 in FY 2023). Revenue: CN¥2.41b (up 55% from FY 2023). Net income: CN¥175.3m (up 28% from FY 2023). Profit margin: 7.3% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.3%. Earnings per share (EPS) missed analyst estimates by 3.6%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 13% per year. Announcement • Apr 15
Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 12, 2025 Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 12, 2025, at 14:30 China Standard Time. Location: 2F, Building A, No. 998, Songjia Road, Wusongjiang Science and Technology Industrial Park, Wuzhong District, Suzhou, Jiangsu China Buy Or Sell Opportunity • Apr 07
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 43% to CN¥37.16. The fair value is estimated to be CN¥50.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 44% in 2 years. Earnings are forecast to grow by 86% in the next 2 years. Announcement • Mar 28
Suzhou Recodeal Interconnect System Co.,Ltd to Report Q1, 2025 Results on Apr 29, 2025 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Mar 03
Full year 2024 earnings released: EPS: CN¥1.10 (vs CN¥0.86 in FY 2023) Full year 2024 results: EPS: CN¥1.10 (up from CN¥0.86 in FY 2023). Revenue: CN¥2.41b (up 55% from FY 2023). Net income: CN¥172.9m (up 26% from FY 2023). Profit margin: 7.2% (down from 8.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 8% per year. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥51.30, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 21x in the Electrical industry in China. Total loss to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥51.83 per share. 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¥69.70, the stock trades at a forward P/E ratio of 47x. Average forward P/E is 20x in the Electrical industry in China. Total loss to shareholders of 4.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥51.69 per share. Buy Or Sell Opportunity • Feb 11
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 63% to CN¥70.40. The fair value is estimated to be CN¥54.95, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 53% in 2 years. Earnings are forecast to grow by 111% in the next 2 years. Buy Or Sell Opportunity • Jan 08
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 92% to CN¥69.09. The fair value is estimated to be CN¥55.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 51% in 2 years. Earnings are forecast to grow by 94% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to CN¥65.00, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 18x in the Electrical industry in China. Total loss to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥55.46 per share. Announcement • Dec 27
Suzhou Recodeal Interconnect System Co.,Ltd to Report Fiscal Year 2024 Results on Apr 15, 2025 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report fiscal year 2024 results on Apr 15, 2025 Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥48.90, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 19x in the Electrical industry in China. Total loss to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥55.37 per share. Buy Or Sell Opportunity • Dec 04
Now 22% undervalued Over the last 90 days, the stock has risen 99% to CN¥43.00. The fair value is estimated to be CN¥55.03, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 51% in 2 years. Earnings are forecast to grow by 96% in the next 2 years. Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥44.57, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 20x in the Electrical industry in China. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥54.82 per share. Buy Or Sell Opportunity • Nov 12
Now 23% undervalued Over the last 90 days, the stock has risen 86% to CN¥43.30. The fair value is estimated to be CN¥56.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 6.3%. Revenue is forecast to grow by 53% in 2 years. Earnings are forecast to grow by 108% in the next 2 years. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥36.17, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the Electrical industry in China. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥56.20 per share. Price Target Changed • Oct 29
Price target increased by 11% to CN¥36.00 Up from CN¥32.49, the current price target is an average from 5 analysts. New target price is 14% below last closing price of CN¥41.71. Stock is up 5.9% over the past year. The company is forecast to post earnings per share of CN¥1.07 for next year compared to CN¥0.86 last year. Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.26 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.26 (up from CN¥0.12 in 3Q 2023). Revenue: CN¥631.3m (up 61% from 3Q 2023). Net income: CN¥41.0m (up 41% from 3Q 2023). Profit margin: 6.5% (down from 7.4% in 3Q 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 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 11% per year. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥35.75, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Electrical industry in China. Total loss to shareholders of 30% over the past three years. 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 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (44% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Profit margins are more than 30% lower than last year (7.2% net profit margin). Announcement • Sep 30
Suzhou Recodeal Interconnect System Co.,Ltd to Report Q3, 2024 Results on Oct 25, 2024 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report Q3, 2024 results on Oct 25, 2024 Major Estimate Revision • Sep 29
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥2.19b to CN¥2.15b. EPS estimate also fell from CN¥1.30 per share to CN¥1.13 per share. Net income forecast to grow 63% next year vs 42% growth forecast for Electrical industry in China. Consensus price target down from CN¥34.89 to CN¥32.49. Share price rose 21% to CN¥24.00 over the past week. Price Target Changed • Sep 27
Price target decreased by 12% to CN¥32.49 Down from CN¥36.77, the current price target is an average from 5 analysts. New target price is 35% above last closing price of CN¥24.00. Stock is down 39% over the past year. The company is forecast to post earnings per share of CN¥1.13 for next year compared to CN¥0.86 last year. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥24.00, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Electrical industry in China. Total loss to shareholders of 50% over the past three years. Price Target Changed • Aug 22
Price target decreased by 11% to CN¥34.89 Down from CN¥39.21, the current price target is an average from 5 analysts. New target price is 62% above last closing price of CN¥21.50. Stock is down 49% over the past year. The company is forecast to post earnings per share of CN¥1.19 for next year compared to CN¥0.86 last year. Reported Earnings • Aug 22
Second quarter 2024 earnings released: EPS: CN¥0.15 (vs CN¥0.31 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.15 (down from CN¥0.31 in 2Q 2023). Revenue: CN¥495.7m (up 55% from 2Q 2023). Net income: CN¥23.3m (down 8.6% from 2Q 2023). Profit margin: 4.7% (down from 8.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Announcement • Jun 28
Suzhou Recodeal Interconnect System Co.,Ltd to Report First Half, 2024 Results on Aug 22, 2024 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report first half, 2024 results on Aug 22, 2024 Price Target Changed • May 15
Price target decreased by 7.0% to CN¥36.46 Down from CN¥39.21, the current price target is an average from 4 analysts. New target price is 26% above last closing price of CN¥28.93. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥1.37 for next year compared to CN¥0.86 last year. Major Estimate Revision • May 02
Consensus revenue estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥1.90b to CN¥2.11b. EPS estimate unchanged from CN¥1.31 at last update. Electrical industry in China expected to see average net income growth of 45% next year. Consensus price target down from CN¥40.99 to CN¥39.21. Share price rose 7.4% to CN¥31.10 over the past week. Major Estimate Revision • Apr 24
Consensus EPS estimates increase by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥1.80b to CN¥1.90b. EPS estimate increased from CN¥0.98 to CN¥1.12 per share. Net income forecast to grow 29% next year vs 45% growth forecast for Electrical industry in China. Consensus price target down from CN¥45.82 to CN¥40.99. Share price rose 8.5% to CN¥28.00 over the past week. Announcement • Apr 19
Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 09, 2024 Suzhou Recodeal Interconnect System Co.,Ltd, Annual General Meeting, May 09, 2024, at 14:30 China Standard Time. Location: 2F, Building A, No. 998, Songjia Road, Wusongjiang Science and Technology Industrial Park, Wuzhong District, Suzhou, Jiangsu China Reported Earnings • Apr 19
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.86 (down from CN¥1.65 in FY 2022). Revenue: CN¥1.55b (down 4.3% from FY 2022). Net income: CN¥136.8m (down 46% from FY 2022). Profit margin: 8.8% (down from 16% in FY 2022). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in China. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥24.32, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Electrical industry in China. Total loss to shareholders of 59% over the past year. Announcement • Mar 29
Suzhou Recodeal Interconnect System Co.,Ltd to Report Q1, 2024 Results on Apr 25, 2024 Suzhou Recodeal Interconnect System Co.,Ltd announced that they will report Q1, 2024 results on Apr 25, 2024 Major Estimate Revision • Mar 07
Consensus revenue estimates decrease by 22% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from CN¥2.30b to CN¥1.80b. EPS estimate unchanged from CN¥2.06 per share at last update. Electrical industry in China expected to see average net income growth of 48% next year. Consensus price target down from CN¥48.32 to CN¥45.82. Share price fell 3.0% to CN¥27.90 over the past week. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥30.19, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Electrical industry in China. Total loss to shareholders of 57% over the past year. Reported Earnings • Feb 07
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.90 (down from CN¥1.65 in FY 2022). Revenue: CN¥1.56b (down 4.2% from FY 2022). Net income: CN¥142.1m (down 44% from FY 2022). Profit margin: 9.1% (down from 16% in FY 2022). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 7.1%. Revenue is forecast to grow 34% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electrical industry in China. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥25.65, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Electrical industry in China. Total loss to shareholders of 68% over the past year. Valuation Update With 7 Day Price Move • Jan 10
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥33.80, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the Electrical industry in China. Total loss to shareholders of 53% over the past year. Price Target Changed • Dec 21
Price target decreased by 9.6% to CN¥51.82 Down from CN¥57.34, the current price target is an average from 4 analysts. New target price is 34% above last closing price of CN¥38.75. Stock is down 49% over the past year. The company is forecast to post earnings per share of CN¥0.97 for next year compared to CN¥1.65 last year. New Risk • Dec 12
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 8.0% 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 Risks Share price has been highly volatile over the past 3 months (8.0% average weekly change). High level of non-cash earnings (48% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (10% net profit margin). Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥47.83, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the Electrical industry in China. Total loss to shareholders of 38% over the past year. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.46 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.12 (down from CN¥0.46 in 3Q 2022). Revenue: CN¥392.4m (down 8.8% from 3Q 2022). Net income: CN¥29.3m (down 59% from 3Q 2022). Profit margin: 7.5% (down from 17% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 47% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electrical industry in China. Announcement • Oct 11
Suzhou Recodeal Interconnect System Co.,Ltd (SHSE:688800) announces an Equity Buyback for 1,100,000 shares, for CNY 66 million. Suzhou Recodeal Interconnect System Co.,Ltd (SHSE:688800) announces a share repurchase program. Under the program, the company will repurchase up to 1,100,000 shares, for CNY 66 million worth of shares. The shares will be repurchased at a price of not more than CNY 60 per share. The shares purchased will be used for the equity incentives or employee stock ownership plans. The program will be valid till 12 months. Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥46.90, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 17x in the Electrical industry in China. Total loss to shareholders of 47% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥73.06 per share. Major Estimate Revision • Sep 26
Consensus revenue estimates fall by 25% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥2.43b to CN¥1.81b. EPS estimate fell from CN¥1.30 to CN¥1.28 per share. Net income forecast to grow 66% next year vs 55% growth forecast for Electrical industry in China. Consensus price target down from CN¥60.97 to CN¥59.66. Share price was steady at CN¥38.64 over the past week. Major Estimate Revision • Sep 06
Consensus EPS estimates fall by 40% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from CN¥2.20 to CN¥1.32 per share. Revenue forecast steady at CN¥2.53b. Net income forecast to grow 72% next year vs 62% growth forecast for Electrical industry in China. Consensus price target down from CN¥68.53 to CN¥60.97. Share price fell 3.0% to CN¥42.58 over the past week. Price Target Changed • Sep 01
Price target decreased by 11% to CN¥60.97 Down from CN¥68.53, the current price target is an average from 5 analysts. New target price is 47% above last closing price of CN¥41.55. Stock is down 60% over the past year. The company is forecast to post earnings per share of CN¥1.32 for next year compared to CN¥1.65 last year. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.31 (vs CN¥0.46 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.31 (down from CN¥0.46 in 2Q 2022). Revenue: CN¥319.5m (down 14% from 2Q 2022). Net income: CN¥25.7m (down 63% from 2Q 2022). Profit margin: 8.0% (down from 19% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 41% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in China. Buying Opportunity • Aug 14
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be CN¥59.47, 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 42%. Revenue is forecast to grow by 144% in 2 years. Earnings is forecast to grow by 119% in the next 2 years. New Risk • Jun 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (40% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.9% average weekly change). Shareholders have been diluted in the past year (4.8% increase in shares outstanding). Price Target Changed • Jun 01
Price target decreased by 9.1% to CN¥71.55 Down from CN¥78.69, the current price target is an average from 3 analysts. New target price is 36% above last closing price of CN¥52.55. Stock is down 36% over the past year. The company is forecast to post earnings per share of CN¥2.31 for next year compared to CN¥1.65 last year. Buying Opportunity • May 18
Now 35% undervalued after recent price drop Over the last 90 days, the stock is down 53%. The fair value is estimated to be CN¥79.51, 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 45%. Revenue is forecast to grow by 150% in 2 years. Earnings is forecast to grow by 133% in the next 2 years. Price Target Changed • Apr 27
Price target decreased by 16% to CN¥122 Down from CN¥145, the current price target is an average from 3 analysts. New target price is 59% above last closing price of CN¥76.30. Stock is down 6.4% over the past year. The company is forecast to post earnings per share of CN¥3.23 for next year compared to CN¥2.31 last year. Reported Earnings • Apr 12
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥2.31 (up from CN¥1.23 in FY 2021). Revenue: CN¥1.63b (up 80% from FY 2021). Net income: CN¥252.7m (up 122% from FY 2021). Profit margin: 16% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 8.0%. Earnings per share (EPS) also missed analyst estimates by 4.4%. Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Electrical industry in China. Price Target Changed • Mar 08
Price target decreased by 7.8% to CN¥145 Down from CN¥157, the current price target is an average from 3 analysts. New target price is 57% above last closing price of CN¥92.31. Stock is up 2.3% over the past year. The company is forecast to post earnings per share of CN¥3.16 for next year compared to CN¥2.33 last year. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: CN¥2.33 (vs CN¥1.23 in FY 2021) Full year 2022 results: EPS: CN¥2.33 (up from CN¥1.23 in FY 2021). Revenue: CN¥1.63b (up 80% from FY 2021). Net income: CN¥254.8m (up 124% from FY 2021). Profit margin: 16% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 42% p.a. on average during the next 2 years, compared to a 28% growth forecast for the Electrical industry in China. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥114, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 23x in the Electrical industry in China. Total returns to shareholders of 4.2% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥162 per share. Board Change • Nov 16
No independent directors Following the recent departure of a director, there are no independent directors on the board. The company's board is composed of: No independent directors. 6 non-independent directors. Director Yan Wang was the last director to join the board, commencing their role in 2020. The company's lack of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥107, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 20x in the Electrical industry in China. Total returns to shareholders of 25% over the past year. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.65 (vs CN¥0.35 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.65 (up from CN¥0.35 in 3Q 2021). Revenue: CN¥430.0m (up 69% from 3Q 2021). Net income: CN¥71.3m (up 105% from 3Q 2021). Profit margin: 17% (up from 14% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 39% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Electrical industry in China. Reported Earnings • Aug 22
Second quarter 2022 earnings released: EPS: CN¥0.65 (vs CN¥0.25 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.65 (up from CN¥0.25 in 2Q 2021). Revenue: CN¥372.3m (up 89% from 2Q 2021). Net income: CN¥70.1m (up 244% from 2Q 2021). Profit margin: 19% (up from 10% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 63%, compared to a 60% growth forecast for the Electrical industry in China. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.52 (up from CN¥0.20 in 1Q 2021). Revenue: CN¥362.0m (up 144% from 1Q 2021). Net income: CN¥55.8m (up 241% from 1Q 2021). Profit margin: 15% (up from 11% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 59%, compared to a 57% growth forecast for the industry in China.