Reported Earnings • Apr 21
Full year 2025 earnings released: EPS: CN¥0.25 (vs CN¥0.29 in FY 2024) Full year 2025 results: EPS: CN¥0.25 (down from CN¥0.29 in FY 2024). Revenue: CN¥5.76b (up 17% from FY 2024). Net income: CN¥283.3m (down 16% from FY 2024). Profit margin: 4.9% (down from 6.8% in FY 2024). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Apr 21
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 21, 2026 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 21, 2026, at 15:00 China Standard Time. Location: Building 1, No. 18, Fenghua Road, Zhaoqing, Guangdong China Announcement • Mar 31
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 New Risk • Mar 08
New major risk - Revenue and earnings growth Earnings have declined by 20% 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 20% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. New Risk • Feb 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. 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 (7.8% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥20.19, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 34x in the Electronic industry in China. Total returns to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.51 per share. Buy Or Sell Opportunity • Jan 16
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to CN¥18.84. The fair value is estimated to be CN¥15.47, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 6.5%. Revenue is forecast to grow by 41% in 2 years. Earnings are forecast to grow by 146% in the next 2 years. Announcement • Dec 31
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Fiscal Year 2025 Results on Apr 21, 2026 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report fiscal year 2025 results on Apr 21, 2026 New Risk • Nov 28
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 7.5% 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 (7.5% average weekly change). Large one-off items impacting financial results. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.051 (vs CN¥0.05 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.051 (up from CN¥0.05 in 3Q 2024). Revenue: CN¥1.34b (up 13% from 3Q 2024). Net income: CN¥61.6m (up 5.8% from 3Q 2024). Profit margin: 4.6% (down from 4.9% in 3Q 2024). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥17.41, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 29% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.39 per share. Announcement • Sep 30
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: CN¥0.089 (vs CN¥0.12 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.089 (down from CN¥0.12 in 2Q 2024). Revenue: CN¥1.50b (up 12% from 2Q 2024). Net income: CN¥102.3m (down 24% from 2Q 2024). Profit margin: 6.8% (down from 10% in 2Q 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 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 07
Dividend increased to CN¥0.15 Dividend of CN¥0.15 is 200% higher than last year. Ex-date: 11th July 2025 Payment date: 11th July 2025 Dividend yield will be 1.1%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (51% earnings payout ratio) but not covered by cash flows (402% cash payout ratio). The dividend has increased by an average of 22% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 112% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 02
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Price Target Changed • Jun 13
Price target increased by 16% to CN¥16.00 Up from CN¥13.80, the current price target is provided by 1 analyst. New target price is 21% above last closing price of CN¥13.24. Stock is up 2.0% over the past year. The company is forecast to post earnings per share of CN¥0.42 for next year compared to CN¥0.29 last year. New Risk • Apr 16
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 111% Dividend yield: 1.1% 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. This is currently the only risk that has been identified for the company. Announcement • Apr 16
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Proposes Dividend for 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. proposed Cash dividend/10 shares (tax included): CNY1.50000000 for 2024. Announcement • Apr 15
Guangdong Electronics Information Industrial Group Co.,Ltd. signed a letter of intent to acquire an additional 21.50% stake in Guangdong Fenghua New Energy Co., Ltd. from Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (SZSE:000636) for CNY 84.6 million. Guangdong Electronics Information Industrial Group Co.,Ltd. signed a letter of intent to acquire an additional 21.50% stake in Guangdong Fenghua New Energy Co., Ltd. from Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (SZSE:000636) for CNY 84.6 million on April 2, 2025. Upon completion, Guangdong Electronics Information Industrial Group Co.,Ltd. will own 65.9131% stake in Guangdong Fenghua New Energy Co., Ltd.
As of February 28, 2025, Guangdong Fenghua New Energy Co., Ltd. reported total assets of CNY 1.6 billion and total common equity of CNY 385.88 million.
As of April 2, 2025, potential transferee, Guangdong Electronics Information Industry Group Ltd., submitted an offer and accordingly became the sole qualified transferee of this equity transfer through an open bidding process. On April 11, 2025, Guangdong Electronics Information Industrial Group convened the First Meeting of the Tenth Board of Directors at which the Proposal on the Related-Party Transaction Arising from the Public Listing and Transfer of Equity was reviewed and approved. Reported Earnings • Apr 15
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥0.29 (up from CN¥0.15 in FY 2023). Revenue: CN¥4.94b (up 17% from FY 2023). Net income: CN¥337.4m (up 95% from FY 2023). Profit margin: 6.8% (up from 4.1% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 10%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Announcement • Apr 15
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 21, 2025 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 21, 2025, at 14:30 China Standard Time. Location: Building 1, No. 18, Fenghua Road, Zhaoqing, Guangdong China Announcement • Mar 31
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Q1, 2025 Results on Apr 28, 2025 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Announcement • Dec 31
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Fiscal Year 2024 Results on Apr 15, 2025 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report fiscal year 2024 results on Apr 15, 2025 Announcement • Dec 28
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Approves Management Elections Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. at its Extraordinary General Meeting held on 26 December 2024 approved the election of Yang Xiaoping and Yang Wenyi as non-independent director. The company approved the election of He Weijin as non-employee supervisor. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.022 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.05 (up from CN¥0.022 in 3Q 2023). Revenue: CN¥1.18b (up 1.5% from 3Q 2023). Net income: CN¥58.3m (up 121% from 3Q 2023). Profit margin: 4.9% (up from 2.3% in 3Q 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 55 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥15.80, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 21x in the Electronic industry in China. Total loss to shareholders of 42% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.028 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.12 (up from CN¥0.028 in 2Q 2023). Revenue: CN¥1.33b (up 17% from 2Q 2023). Net income: CN¥134.3m (up 402% from 2Q 2023). Profit margin: 10% (up from 2.3% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 46 percentage points per year, which is a significant difference in performance. Announcement • Jun 29
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report First Half, 2024 Results on Aug 27, 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Major Estimate Revision • Apr 22
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥5.58b to CN¥5.25b. EPS estimate also fell from CN¥0.475 per share to CN¥0.35 per share. Net income forecast to grow 132% next year vs 54% growth forecast for Electronic industry in China. Consensus price target down from CN¥14.95 to CN¥12.43. Share price was steady at CN¥11.48 over the past week. Price Target Changed • Apr 20
Price target decreased by 17% to CN¥12.43 Down from CN¥14.95, the current price target is an average from 2 analysts. New target price is 8.9% above last closing price of CN¥11.41. Stock is down 32% over the past year. The company is forecast to post earnings per share of CN¥0.35 for next year compared to CN¥0.15 last year. Announcement • Apr 16
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 16, 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, May 16, 2024, at 14:30 China Standard Time. Location: Building 1, No. 18, Fenghua Road, Zhaoqing, Guangdong China Reported Earnings • Apr 16
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: CN¥0.15 (down from CN¥0.31 in FY 2022). Revenue: CN¥4.22b (up 9.0% from FY 2022). Net income: CN¥173.5m (down 47% from FY 2022). Profit margin: 4.1% (down from 8.4% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Announcement • Feb 08
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Approves Board Elections Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. at its Extraordinary General Meeting held on 06 February 2024 approved the election of Li Cheng and Wang Haitao as non-independent director. The company approved the election of Huang Nachuan as independent director. Announcement • Dec 30
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report Fiscal Year 2023 Results on Apr 16, 2024 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report fiscal year 2023 results on Apr 16, 2024 Board Change • Dec 12
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Fengcai Hu was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Dec 02
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Announces Board Appointments Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. held its 1st Extraordinary General Meeting of 2023 on 30 November 2023, approved the appointment of Hu Fengcai and Huang Honggang as non-independent directors. Reported Earnings • Oct 21
Third quarter 2023 earnings released: EPS: CN¥0.022 (vs CN¥0.049 loss in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.022 (up from CN¥0.049 loss in 3Q 2022). Revenue: CN¥1.16b (up 45% from 3Q 2022). Net income: CN¥26.4m (up CN¥81.7m from 3Q 2022). Profit margin: 2.3% (up from net loss in 3Q 2022). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Price Target Changed • Sep 06
Price target decreased by 8.7% to CN¥15.73 Down from CN¥17.23, the current price target is an average from 3 analysts. New target price is 5.0% above last closing price of CN¥14.98. Stock is down 8.8% over the past year. The company is forecast to post earnings per share of CN¥0.31 for next year compared to CN¥0.31 last year. Major Estimate Revision • Sep 04
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.91b to CN¥4.62b. EPS estimate rose from CN¥0.52 to CN¥0.576. Net income forecast to grow 1,742% next year vs 62% growth forecast for Electronic industry in China. Consensus price target broadly unchanged at CN¥17.17. Share price rose 5.8% to CN¥14.71 over the past week. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.028 (vs CN¥0.17 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.028 (down from CN¥0.17 in 2Q 2022). Revenue: CN¥1.14b (up 12% from 2Q 2022). Net income: CN¥26.8m (down 86% from 2Q 2022). Profit margin: 2.3% (down from 19% in 2Q 2022). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Jun 15
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Announces Final Dividend on Share A for 2022, Payable on June 21, 2023 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced final Cash dividend/10 shares (tax included): CNY 1.00000000 on share A for 2022. Record date: 20 June 2023, Ex-date: 21 June 2023, Payment date: 21 June 2023. Price Target Changed • Jun 10
Price target increased by 11% to CN¥17.23 Up from CN¥15.55, the current price target is an average from 3 analysts. New target price is 12% above last closing price of CN¥15.33. Stock is down 14% over the past year. The company is forecast to post earnings per share of CN¥0.52 for next year compared to CN¥0.31 last year. Reported Earnings • Mar 29
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.31 (down from CN¥1.05 in FY 2021). Revenue: CN¥3.87b (down 23% from FY 2021). Net income: CN¥327.0m (down 65% from FY 2021). Profit margin: 8.4% (down from 19% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 27% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to CN¥15.55 Down from CN¥17.80, the current price target is an average from 2 analysts. New target price is 6.0% below last closing price of CN¥16.54. Stock is down 46% over the past year. The company is forecast to post earnings per share of CN¥0.33 for next year compared to CN¥1.05 last year. Announcement • Nov 12
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Announces Interim Dividend for the Year 2022, Payment Date of 18 November 2022 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced interim profit dividend cash dividend/10 shares (tax included) of CNY1.14438500. Record date of 17 November 2022. Ex-date of 18 November 2022. Payment date of 18 November 2022. Major Estimate Revision • Nov 04
Consensus revenue estimates fall by 13% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥4.32b to CN¥3.76b. EPS estimate fell from CN¥0.62 to CN¥0.53 per share. Net income forecast to grow 292% next year vs 55% growth forecast for Electronic industry in China. Consensus price target down from CN¥17.80 to CN¥15.55. Share price rose 5.5% to CN¥14.61 over the past week. Price Target Changed • Nov 01
Price target decreased to CN¥15.55 Down from CN¥17.80, the current price target is an average from 2 analysts. New target price is 13% above last closing price of CN¥13.73. Stock is down 51% over the past year. The company is forecast to post earnings per share of CN¥0.53 for next year compared to CN¥1.05 last year. Reported Earnings • Oct 30
Third quarter 2022 earnings released: CN¥0.049 loss per share (vs CN¥0.42 profit in 3Q 2021) Third quarter 2022 results: CN¥0.049 loss per share (down from CN¥0.42 profit in 3Q 2021). Revenue: CN¥800.7m (down 36% from 3Q 2021). Net loss: CN¥55.3m (down 115% from profit in 3Q 2021). Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Sep 29
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Approves Profit Distribution Plan for 2022 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. at its 1st Extraordinary General Meeting of 2022 on 27 September 2022 approved 2022 interim profit distribution plan as Cash dividend/10 shares (tax included): CNY1.13900000. Major Estimate Revision • Aug 25
Consensus revenue estimates fall by 23% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥5.37b to CN¥4.14b. EPS estimate fell from CN¥0.72 to CN¥0.53 per share. Net income forecast to grow 23% next year vs 44% growth forecast for Electronic industry in China. Consensus price target down from CN¥19.05 to CN¥17.80. Share price fell 9.0% to CN¥17.19 over the past week. Announcement • Aug 20
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Proposes Interim Dividend for the First Half of 2022 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. proposed cash dividend of CNY 1.139 per 10 shares (tax included) for the first half of 2022. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.17 (vs CN¥0.35 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.17 (down from CN¥0.35 in 2Q 2021). Revenue: CN¥1.02b (down 33% from 2Q 2021). Net income: CN¥187.8m (down 41% from 2Q 2021). Profit margin: 19% (down from 21% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 51%, compared to a 25% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Jul 15
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for 2021, Payable on 20 July 2022 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced final cash dividend per ten shares (tax included) on A shares of CNY 1.16000000 for the year 2021, payable on 20 July 2022. Record date is 19 July 2022. Ex-date is 20 July 2022. Major Estimate Revision • Jun 24
Consensus revenue estimates fall by 23% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥7.01b to CN¥5.37b. EPS estimate fell from CN¥1.25 to CN¥0.83 per share. Net income forecast to grow 16% next year vs 42% growth forecast for Electronic industry in China. Consensus price target down from CN¥24.05 to CN¥19.05. Share price was steady at CN¥18.39 over the past week. Announcement • Jun 09
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, Jun 28, 2022 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd., Annual General Meeting, Jun 28, 2022, at 14:30 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual report and its summary; to consider 2021 annual accounts; to consider 2021 profit distribution plan; to consider 2022 financial budget report; to consider amendments to the Company's articles of association; to consider election of Li Xiao as a non-independent director; to consider election of Shen Jianfang as a non-independent director; to consider election of Gao Feng as an independent director; to consider election of Zhang Dawei as a non-independent director; to consider amendments to the internal control system; and to transact other matters. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.20 (down from CN¥0.21 in 1Q 2021). Revenue: CN¥1.10b (down 6.1% from 1Q 2021). Net income: CN¥180.3m (down 3.2% from 1Q 2021). Profit margin: 16% (in line with 1Q 2021). Revenue missed analyst estimates by 9.7%. Earnings per share (EPS) also missed analyst estimates by 31%. Over the next year, revenue is forecast to grow 76%, compared to a 24% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 5% per year. Price Target Changed • Apr 27
Price target decreased to CN¥35.90 Down from CN¥44.60, the current price target is an average from 4 analysts. New target price is 120% above last closing price of CN¥16.30. Stock is down 42% over the past year. The company is forecast to post earnings per share of CN¥1.29 for next year compared to CN¥0.40 last year. Board Change • Apr 27
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 9 new directors. 2 experienced directors. 1 highly experienced director. 3 independent directors (6 non-independent directors). Member of Supervisory Board Haiqing Chen is the most experienced director on the board, commencing their role in 2013. Non-Independent Director Chengqiang Cui was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥22.68, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 25x in the Electronic industry in China. Total returns to shareholders of 123% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.42 (vs CN¥0.10 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥1.26b (up 10.0% from 3Q 2020). Net income: CN¥373.7m (up 305% from 3Q 2020). Profit margin: 30% (up from 8.1% in 3Q 2020). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.14 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.52b (up 41% from 2Q 2020). Net income: CN¥319.5m (up 146% from 2Q 2020). Profit margin: 21% (up from 12% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥36.62, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 59% over the past three years. Price Target Changed • May 12
Price target decreased to CN¥40.93 Down from CN¥44.60, the current price target is an average from 5 analysts. New target price is 54% above last closing price of CN¥26.51. Stock is up 13% over the past year. Major Estimate Revision • May 12
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from CN¥1.34 to CN¥1.05 per share. Revenue forecast steady at CN¥6.16b. Net income forecast to grow 173% next year vs 32% growth forecast for Electronic industry in China. Consensus price target down from CN¥44.60 to CN¥40.93. Share price fell 6.2% to CN¥26.51 over the past week. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.21 (vs CN¥0.14 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥1.17b (up 68% from 1Q 2020). Net income: CN¥186.2m (up 49% from 1Q 2020). Profit margin: 16% (down from 18% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥26.33, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 75% over the past three years. Reported Earnings • Mar 24
Full year 2020 earnings released: EPS CN¥0.40 (vs CN¥0.38 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥4.33b (up 32% from FY 2019). Net income: CN¥358.7m (up 5.9% from FY 2019). Profit margin: 8.3% (down from 10% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 16
New 90-day low: CN¥27.98 The company is down 16% from a price of CN¥33.38 on 16 December 2020. Underperformed the Chinese market, which is down 2.0% over the last 90 days. Lagged the Electronic industry, which is down 8.0% over the same period. Is New 90 Day High Low • Feb 05
New 90-day low: CN¥28.86 The company is down 3.0% from its price of CN¥29.68 on 06 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electronic industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥0.38 per share. Announcement • Jan 09
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that it expects to receive CNY 5 billion in funding from Guangdong Rising Assets Management Co., Ltd., and other investors Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (SZSE:000636) announced a private placement of not more than 268,569,933 A shares for gross proceeds of not more than CNY 5,000,000,000 on January 7, 2021. The transaction will include participation from not more than 25 specific investors including Guangdong Rising Assets Management Co., Ltd. which will acquire not less than 20.03% of the total proceeds. The lock up period for Guangdong Rising Assets Management Co., Ltd will be 18 months and will be 6 months since issuance date for other subscribers. The total number of shares will not exceed 30% of the total share capital before issuance. The pricing base date of the transaction is the first day of the issuance period. According to provisions of the "Administrative Measures for the Issuance of Securities by Listed Companies", the issuance price of the non-public issuance of shares shall not be lower than the average price of the company’s stocks on the 20 trading days before the pricing benchmark .The transaction been reviewed and approved at the first meeting of the ninth session of the company’s board of directors in 2021, and have been approved by the entities performing state-owned assets supervision and management duties. The transaction is subject to approval of company’s shareholders and China Securities Regulatory Commission. The validity period of the resolution of this non-public offering is 12 months from the date when the resolution is approved by the general meeting of shareholders. Is New 90 Day High Low • Nov 24
New 90-day high: CN¥34.39 The company is up 10.0% from its price of CN¥31.21 on 26 August 2020. The Chinese market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥0.34 per share. Major Estimate Revision • Nov 13
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from CN¥0.77 to CN¥0.65. Revenue estimate was approximately flat at CN¥4.41b. Net income is expected to grow by 263% next year compared to 46% growth forecast for the Electronic industry in China. The consensus price target increased from CN¥38.48 to CN¥44.58. Share price is up 6.2% to CN¥31.52 over the past week. Price Target Changed • Nov 13
Price target raised to CN¥44.58 Up from CN¥38.48, the current price target is an average from 3 analysts. The new target price is 41% above the current share price of CN¥31.52. As of last close, the stock is up 152% over the past year. Announcement • Nov 11
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Announces Executive Changes Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. in its EGM held on November 09, 2020 approved the appointment of Liu Wei, Xu Jing, Cheng Ke, Li Jinkun and Tang Yi as a director while Cui Chengqiang, Xiao Shengfang and Zhang Rongwu as non-independent director. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥332.0m, down 31% from the prior year. Total revenue was CN¥3.83b over the last 12 months, up 11% from the prior year. Is New 90 Day High Low • Oct 26
New 90-day low: CN¥26.17 The company is down 23% from its price of CN¥33.80 on 28 July 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.32 per share. Is New 90 Day High Low • Sep 24
New 90-day low: CN¥26.89 The company is down 9.0% from its price of CN¥29.40 on 24 June 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.33 per share. Announcement • Aug 12
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. to Report First Half, 2020 Results on Aug 28, 2020 Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. announced that they will report first half, 2020 results on Aug 28, 2020 
