Valuation Update With 7 Day Price Move • 21h
Investor sentiment improves as stock rises 41% After last week's 41% share price gain to CN¥133, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 72x in the Semiconductor industry in China. Total returns to shareholders of 108% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥217 per share. Announcement • 23h
Changzhou Fusion New Material Co., Ltd. to Report First Half, 2026 Results on Aug 28, 2026 Changzhou Fusion New Material Co., Ltd. announced that they will report first half, 2026 results on Aug 28, 2026 Declared Dividend • Jun 15
Dividend reduced to CN¥0.43 Dividend of CN¥0.43 is 0.6% lower than last year. Ex-date: 18th June 2026 Payment date: 18th June 2026 Dividend yield will be 0.5%, which is lower than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (16% 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 21% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 58% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥91.80, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 60x in the Semiconductor industry in China. Total returns to shareholders of 86% over the past three years. Announcement • Mar 31
Changzhou Fusion New Material Co., Ltd., Annual General Meeting, Apr 21, 2026 Changzhou Fusion New Material Co., Ltd., Annual General Meeting, Apr 21, 2026, at 14:30 China Standard Time. Location: No. 66, Liuyanghe Road, Xinbei District, Changzhou, Jiangsu China Announcement • Mar 30
Changzhou Fusion New Material Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Changzhou Fusion New Material Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Reported Earnings • Mar 05
Full year 2025 earnings released: EPS: CN¥1.77 (vs CN¥1.77 in FY 2024) Full year 2025 results: EPS: CN¥1.77 (in line with FY 2024). Revenue: CN¥14.6b (up 17% from FY 2024). Net income: CN¥409.0m (down 2.2% from FY 2024). Profit margin: 2.8% (down from 3.3% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 2 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 15% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. New Risk • Feb 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 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (57% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.8% net profit margin). Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥70.20, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 42x in the Semiconductor industry in China. Total returns to shareholders of 3.7% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥39.74 per share. Announcement • Dec 26
Changzhou Fusion New Material Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Changzhou Fusion New Material Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 New Risk • Oct 28
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (57% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.8% net profit margin). Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.24 (vs CN¥0.52 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.24 (down from CN¥0.52 in 3Q 2024). Revenue: CN¥4.21b (up 37% from 3Q 2024). Net income: CN¥58.3m (down 52% from 3Q 2024). Profit margin: 1.4% (down from 4.0% in 3Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥64.30, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 45x in the Semiconductor industry in China. Total returns to shareholders of 104% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥45.80 per share. New Risk • Oct 08
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 9.0% 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 (9.0% average weekly change). High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.5% net profit margin). Announcement • Sep 30
Changzhou Fusion New Material Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Changzhou Fusion New Material Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥74.85, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 45x in the Semiconductor industry in China. Total returns to shareholders of 160% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.57 per share. Major Estimate Revision • Sep 12
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥14.6b to CN¥13.9b. EPS estimate also fell from CN¥2.23 per share to CN¥2.00 per share. Net income forecast to grow 81% next year vs 69% growth forecast for Semiconductor industry in China. Consensus price target of CN¥59.00 unchanged from last update. Share price rose 10% to CN¥63.95 over the past week. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to CN¥68.50, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 41x in the Semiconductor industry in China. Total returns to shareholders of 154% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥45.85 per share. Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: CN¥0.38 (vs CN¥0.95 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.38 (down from CN¥0.95 in 2Q 2024). Revenue: CN¥3.44b (down 9.7% from 2Q 2024). Net income: CN¥91.0m (down 59% from 2Q 2024). Profit margin: 2.6% (down from 5.9% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Semiconductor industry in China. Announcement • Jun 30
Changzhou Fusion New Material Co., Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Changzhou Fusion New Material Co., Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 New Risk • Jun 12
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 8.2% 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. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.2% average weekly change). Declared Dividend • Jun 11
Dividend of CN¥0.43 announced Shareholders will receive a dividend of CN¥0.43. Ex-date: 12th June 2025 Payment date: 12th June 2025 Dividend yield will be 1.2%, which is lower than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (24% 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 33% per year over the past 2 years. However, payments have been volatile during that time. EPS is expected to grow by 71% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥36.30, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 36x in the Semiconductor industry in China. Total returns to shareholders of 5.7% over the past year. Reported Earnings • Apr 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥1.77 (down from CN¥1.80 in FY 2023). Revenue: CN¥12.5b (up 21% from FY 2023). Net income: CN¥418.0m (down 5.4% from FY 2023). Profit margin: 3.3% (down from 4.3% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Semiconductor industry in China. Announcement • Apr 28
Changzhou Fusion New Material Co., Ltd., Annual General Meeting, May 20, 2025 Changzhou Fusion New Material Co., Ltd., Annual General Meeting, May 20, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Changzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥29.84, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 38x in the Semiconductor industry in China. Total loss to shareholders of 20% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥13.81 per share. Announcement • Mar 28
Changzhou Fusion New Material Co., Ltd. to Report Q1, 2025 Results on Apr 28, 2025 Changzhou Fusion New Material Co., Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Major Estimate Revision • Mar 03
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥16.9b to CN¥14.7b. EPS estimate fell from CN¥3.35 to CN¥2.53 per share. Net income forecast to grow 46% next year vs 56% growth forecast for Semiconductor industry in China. Consensus price target of CN¥57.00 unchanged from last update. Share price fell 4.3% to CN¥45.88 over the past week. Reported Earnings • Feb 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥1.78 (down from CN¥1.80 in FY 2023). Revenue: CN¥12.5b (up 22% from FY 2023). Net income: CN¥418.9m (down 5.2% from FY 2023). Profit margin: 3.3% (down from 4.3% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥56.98, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 35x in the Semiconductor industry in China. Total returns to shareholders of 89% over the past year. Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥50.20, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 32x in the Semiconductor industry in China. Total returns to shareholders of 33% over the past year. Announcement • Dec 27
Changzhou Fusion New Material Co., Ltd. to Report Fiscal Year 2024 Results on Apr 28, 2025 Changzhou Fusion New Material Co., Ltd. announced that they will report fiscal year 2024 results on Apr 28, 2025 Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥60.97, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 35x in the Semiconductor industry in China. Total returns to shareholders of 60% over the past year. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥54.45, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 34x in the Semiconductor industry in China. Total returns to shareholders of 25% over the past year. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.52 (vs CN¥0.69 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.52 (down from CN¥0.69 in 3Q 2023). Revenue: CN¥3.06b (down 4.9% from 3Q 2023). Net income: CN¥122.1m (down 29% from 3Q 2023). Profit margin: 4.0% (down from 5.3% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥31.88, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 32x in the Semiconductor industry in China. Total loss to shareholders of 30% over the past year. Announcement • Sep 30
Changzhou Fusion New Material Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Changzhou Fusion New Material Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 New Risk • Sep 27
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 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (56% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (3.7% net profit margin). Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥31.25, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 27x in the Semiconductor industry in China. Total loss to shareholders of 37% over the past year. Major Estimate Revision • Aug 30
Consensus revenue estimates increase by 10%, EPS downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥13.4b to CN¥14.8b. EPS estimate fell from CN¥2.89 to CN¥2.71. Net income forecast to grow 58% next year vs 55% growth forecast for Semiconductor industry in China. Consensus price target down from CN¥49.32 to CN¥37.00. Share price rose 5.0% to CN¥29.74 over the past week. Announcement • Jun 28
Changzhou Fusion New Material Co., Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Changzhou Fusion New Material Co., Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 New Risk • Jun 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 43% 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: Major Risk High level of non-cash earnings (93% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.4% net profit margin). Shareholders have been diluted in the past year (43% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorates as stock falls 38% After last week's 38% share price decline to CN¥34.68, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 30x in the Semiconductor industry in China. Total loss to shareholders of 53% over the past year. Buy Or Sell Opportunity • Apr 30
Now 21% undervalued Over the last 90 days, the stock has risen 27% to CN¥55.24. The fair value is estimated to be CN¥70.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 58% in 2 years. Earnings are forecast to grow by 145% in the next 2 years. Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.46 (vs CN¥0.75 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.46 (down from CN¥0.75 in 1Q 2023). Revenue: CN¥2.95b (up 66% from 1Q 2023). Net income: CN¥75.8m (down 39% from 1Q 2023). Profit margin: 2.6% (down from 6.9% in 1Q 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 23% growth forecast for the Semiconductor industry in China. Major Estimate Revision • Apr 16
Consensus revenue estimates increase by 16% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥12.5b to CN¥14.5b. EPS estimate increased from CN¥4.26 to CN¥4.44 per share. Net income forecast to grow 66% next year vs 58% growth forecast for Semiconductor industry in China. Consensus price target down from CN¥88.50 to CN¥73.00. Share price fell 7.8% to CN¥54.68 over the past week. New Risk • Apr 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 48% 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: Major Risk High level of non-cash earnings (88% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (10% average weekly change). Shareholders have been diluted in the past year (48% increase in shares outstanding). Announcement • Apr 01
Changzhou Fusion New Material Co., Ltd., Annual General Meeting, Apr 24, 2024 Changzhou Fusion New Material Co., Ltd., Annual General Meeting, Apr 24, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Changzhou, Jiangsu China Reported Earnings • Apr 01
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥2.67. Revenue: CN¥10.3b (up 58% from FY 2022). Net income: CN¥442.1m (up 13% from FY 2022). Profit margin: 4.3% (down from 6.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 33%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Semiconductor industry in China. Announcement • Mar 29
Changzhou Fusion New Material Co., Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Changzhou Fusion New Material Co., Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Price Target Changed • Feb 28
Price target decreased by 11% to CN¥94.36 Down from CN¥106, the current price target is an average from 3 analysts. New target price is 88% above last closing price of CN¥50.08. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥4.26 for next year compared to CN¥2.70 last year. Reported Earnings • Feb 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥2.70. Revenue: CN¥10.3b (up 58% from FY 2022). Net income: CN¥446.4m (up 14% from FY 2022). Profit margin: 4.3% (down from 6.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Semiconductor industry in China. Announcement • Feb 08
Changzhou Fusion New Material Co., Ltd. (SHSE:688503) announces an Equity Buyback for ¥600 million worth of its shares. Changzhou Fusion New Material Co., Ltd. (SHSE:688503) announces a share repurchase program. Under the program, the company will repurchase its shares for a total of CNY 600 million. The program will be valid for 12 months. New Risk • Feb 06
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 8.8% 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 (8.8% average weekly change). High level of non-cash earnings (73% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥46.00, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 29x in the Semiconductor industry in China. Total loss to shareholders of 55% over the past year. Simply Wall St's valuation model estimates the intrinsic value at CN¥21.55 per share. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥59.61, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 30x in the Semiconductor industry in China. Total loss to shareholders of 42% over the past year. New Risk • Nov 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.6% 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 (73% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥71.56, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 35x in the Semiconductor industry in China. Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥1.03 (vs CN¥0.70 in 3Q 2022) Third quarter 2023 results: EPS: CN¥1.03 (up from CN¥0.70 in 3Q 2022). Revenue: CN¥3.22b (up 106% from 3Q 2022). Net income: CN¥171.6m (up 96% from 3Q 2022). Profit margin: 5.3% (down from 5.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Semiconductor industry in China. New Risk • Aug 24
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 61% 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. This is currently the only risk that has been identified for the company. Major Estimate Revision • Aug 23
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from CN¥8.95b to CN¥9.22b. EPS estimate increased from CN¥3.40 to CN¥3.97 per share. Net income forecast to grow 49% next year vs 68% growth forecast for Semiconductor industry in China. Consensus price target down from CN¥106 to CN¥103. Share price fell 2.7% to CN¥71.49 over the past week. Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: CN¥0.88 (vs CN¥0.83 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.88 (up from CN¥0.83 in 2Q 2022). Revenue: CN¥2.40b (up 42% from 2Q 2022). Net income: CN¥145.3m (up 40% from 2Q 2022). Profit margin: 6.1% (in line with 2Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Semiconductor industry in China. Announcement • Jun 28
Changzhou Fusion New Material Co., Ltd. to Report First Half, 2023 Results on Aug 18, 2023 Changzhou Fusion New Material Co., Ltd. announced that they will report first half, 2023 results on Aug 18, 2023 New Risk • Jun 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (53% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.7% average weekly change). Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥85.80, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 40x in the Semiconductor industry in China. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥102, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 36x in the Semiconductor industry in China. Simply Wall St's valuation model estimates the intrinsic value at CN¥66.61 per share. Reported Earnings • Apr 24
First quarter 2023 earnings released: EPS: CN¥1.11 (vs CN¥1.29 in 1Q 2022) First quarter 2023 results: EPS: CN¥1.11. Revenue: CN¥1.78b (up 5.4% from 1Q 2022). Net income: CN¥123.9m (up 15% from 1Q 2022). Profit margin: 6.9% (up from 6.4% in 1Q 2022). 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 25% growth forecast for the Semiconductor industry in China. Reported Earnings • Mar 02
Full year 2022 earnings released: EPS: CN¥4.66 (vs CN¥2.94 in FY 2021) Full year 2022 results: EPS: CN¥4.66 (up from CN¥2.94 in FY 2021). Revenue: CN¥6.51b (up 28% from FY 2021). Net income: CN¥391.3m (up 59% from FY 2021). Profit margin: 6.0% (up from 4.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 25% growth forecast for the Semiconductor industry in China. Announcement • Feb 14
Changzhou Fusion New Material Co., Ltd. acquired a 69.36% stake in Jiangsu Lianyin New Materials Co., Ltd. from Dalian Linton NC Machine Co., Ltd. for CNY 120 million. Changzhou Fusion New Material Co., Ltd. acquired a 69.36% stake in Jiangsu Lianyin New Materials Co., Ltd. from Dalian Linton NC Machine Co., Ltd. for CNY 120 million effective February 13, 2023. For the period ended December 31, 2022, Jiangsu Lianyin had CNY 94.48 million of total assets, CNY 83.75 million of net assets, CNY 34.63 million of revenue and CNY -20.51 mullion of net profit.