New Risk • May 25
New major risk - Revenue and earnings growth Earnings have declined by 5.0% 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. This is currently the only risk that has been identified for the company. Announcement • Mar 30
AVIC Heavy Machinery Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 AVIC Heavy Machinery Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Reported Earnings • Mar 14
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.39 (down from CN¥0.43 in FY 2024). Revenue: CN¥10.1b (down 2.3% from FY 2024). Net income: CN¥608.8m (down 4.8% from FY 2024). Profit margin: 6.0% (down from 6.2% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 51%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Mar 12
AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 02, 2026 AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 02, 2026, at 09:00 China Standard Time. Location: No. 16, Jichang Road, Nanming District, Guiyang, Guizhou China New Risk • Mar 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.7% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.7% average weekly change). Profit margins are more than 30% lower than last year (2.4% net profit margin). Announcement • Dec 26
AVIC Heavy Machinery Co., Ltd. to Report Fiscal Year 2025 Results on Mar 13, 2026 AVIC Heavy Machinery Co., Ltd. announced that they will report fiscal year 2025 results on Mar 13, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.079 (vs CN¥0.19 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.079 (down from CN¥0.19 in 3Q 2024). Revenue: CN¥2.03b (down 1.3% from 3Q 2024). Net income: CN¥123.7m (down 57% from 3Q 2024). Profit margin: 6.1% (down from 14% in 3Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
AVIC Heavy Machinery Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 AVIC Heavy Machinery Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Announcement • Jun 30
AVIC Heavy Machinery Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 AVIC Heavy Machinery Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Declared Dividend • Jun 13
Dividend reduced to CN¥0.12 Dividend of CN¥0.12 is 55% lower than last year. Ex-date: 17th June 2025 Payment date: 17th June 2025 Dividend yield will be 0.7%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (36% 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 16% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 167% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 02
First quarter 2025 earnings released: EPS: CN¥0.13 (vs CN¥0.22 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.13 (down from CN¥0.22 in 1Q 2024). Revenue: CN¥2.31b (down 13% from 1Q 2024). Net income: CN¥197.8m (down 39% from 1Q 2024). Profit margin: 8.6% (down from 12% in 1Q 2024). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 07
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥14.0b to CN¥11.5b. EPS estimate fell from CN¥1.33 to CN¥0.80 per share. Net income forecast to grow 98% next year vs 38% growth forecast for Machinery industry in China. Consensus price target of CN¥26.00 unchanged from last update. Share price was steady at CN¥15.94 over the past week. Reported Earnings • Apr 01
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.43 (down from CN¥0.90 in FY 2023). Revenue: CN¥10.4b (down 2.1% from FY 2023). Net income: CN¥639.7m (down 52% from FY 2023). Profit margin: 6.2% (down from 13% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 61%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Announcement • Mar 31
AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 21, 2025 AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 21, 2025, at 09:00 China Standard Time. Location: No. 16, Jichang Road, Nanming District, Guiyang, Guizhou China Announcement • Mar 28
AVIC Heavy Machinery Co., Ltd. to Report Q1, 2025 Results on Apr 28, 2025 AVIC Heavy Machinery Co., Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Announcement • Dec 27
AVIC Heavy Machinery Co., Ltd. to Report Fiscal Year 2024 Results on Mar 15, 2025 AVIC Heavy Machinery Co., Ltd. announced that they will report fiscal year 2024 results on Mar 15, 2025 Announcement • Nov 29
AVIC Heavy Machinery Co., Ltd. (SHSE:600765) signed a letter of intent to acquire an additional 3.47% stake in Guizhou Anji Aviation Precision Casting Co., Ltd. from Anshun Industrial Investment Co.,Ltd. for CNY 49.8 million AVIC Heavy Machinery Co., Ltd. (SHSE:600765) signed a letter of intent to acquire an additional 3.47% stake in Guizhou Anji Aviation Precision Casting Co., Ltd. from Anshun Industrial Investment Co.,Ltd. for CNY 49.8 million on November 26, 2024. A cash consideration of CNY 49.85 million will be paid by AVIC Heavy Machinery Co., Ltd. As part of consideration, CNY 49.85 million is paid towards common equity of Guizhou Anji Aviation Precision Casting Co., Ltd. Upon completion, AVIC Heavy Machinery Co., Ltd. will own 16.96% stake in Guizhou Anji Aviation Precision Casting Co., Ltd. Announcement • Nov 01
AVIC Heavy Machinery Co., Ltd. (SHSE:600765) agreed to acquire an additional 7.81% stake in Guizhou Anji Aviation Precision Casting Co., Ltd. from AVIC Aviation Industry Investment Co., Ltd. for CNY 1.3 billion AVIC Heavy Machinery Co., Ltd. (SHSE:600765) agreed to acquire an additional 7.81% stake in Guizhou Anji Aviation Precision Casting Co., Ltd. from AVIC Aviation Industry Investment Co., Ltd. for CNY 1.3 billion on October 30, 2024. A cash consideration of CNY 1.3 billion will be paid by AVIC Heavy Machinery Co., Ltd. As part of consideration, CNY 1.3 billion is paid towards common equity of Guizhou Anji Aviation Precision Casting Co., Ltd.
As of September 30, 2024, Guizhou Anji Aviation Precision Casting Co., Ltd. reported total assets of CNY 2.24 billion and total common equity of CNY 1.55 billion.
The transaction is subject to approval of merger agreement by target board. The deal has been approved by the board. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.19 (vs CN¥0.17 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.19 (up from CN¥0.17 in 3Q 2023). Revenue: CN¥2.05b (down 17% from 3Q 2023). Net income: CN¥290.1m (up 16% from 3Q 2023). Profit margin: 14% (up from 10% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Sep 30
AVIC Heavy Machinery Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 AVIC Heavy Machinery Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥18.55, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Machinery industry in China. Total loss to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥30.36 per share. New Risk • Aug 31
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.27 (vs CN¥0.35 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.27 (down from CN¥0.35 in 2Q 2023). Revenue: CN¥2.82b (down 11% from 2Q 2023). Net income: CN¥401.3m (down 21% from 2Q 2023). Profit margin: 14% (down from 16% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jul 08
Now 21% undervalued Over the last 90 days, the stock has risen 11% to CN¥18.00. The fair value is estimated to be CN¥22.71, however this is not to be taken as a buy 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 28%. Revenue is forecast to grow by 32% in 2 years. Earnings are forecast to grow by 51% in the next 2 years. Announcement • Jun 28
AVIC Heavy Machinery Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 AVIC Heavy Machinery Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.22 (vs CN¥0.18 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.22 (up from CN¥0.18 in 1Q 2023). Revenue: CN¥2.65b (up 13% from 1Q 2023). Net income: CN¥321.4m (up 19% from 1Q 2023). Profit margin: 12% (in line with 1Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥17.30, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Machinery industry in China. Total returns to shareholders of 40% over the past three years. Announcement • Mar 29
AVIC Heavy Machinery Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 AVIC Heavy Machinery Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Announcement • Mar 21
AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 10, 2024 AVIC Heavy Machinery Co., Ltd., Annual General Meeting, Apr 10, 2024, at 09:30 China Standard Time. Location: 5F, Building 1, Colorful Aviation Headquarters, Shuanglong Airport Economic Zone, Guiyang, Guizhou China Reported Earnings • Mar 15
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.90 (up from CN¥0.82 in FY 2022). Revenue: CN¥10.6b (flat on FY 2022). Net income: CN¥1.33b (up 11% from FY 2022). Profit margin: 13% (up from 11% in FY 2022). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Dec 30
AVIC Heavy Machinery Co., Ltd. to Report Fiscal Year 2023 Results on Mar 15, 2024 AVIC Heavy Machinery Co., Ltd. announced that they will report fiscal year 2023 results on Mar 15, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.17 (vs CN¥0.24 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.17 (down from CN¥0.24 in 3Q 2022). Revenue: CN¥2.46b (down 6.7% from 3Q 2022). Net income: CN¥250.1m (down 30% from 3Q 2022). Profit margin: 10% (down from 14% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Board Change • Sep 29
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 3 experienced directors. No highly experienced directors. Non-Independent Director Liang Liu is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.35 (vs CN¥0.24 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.35 (up from CN¥0.24 in 2Q 2022). Revenue: CN¥3.16b (up 5.0% from 2Q 2022). Net income: CN¥506.7m (up 44% from 2Q 2022). Profit margin: 16% (up from 12% in 2Q 2022). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Announcement • Jun 28
AVIC Heavy Machinery Co., Ltd. to Report First Half, 2023 Results on Aug 29, 2023 AVIC Heavy Machinery Co., Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Price Target Changed • May 16
Price target decreased by 12% to CN¥36.04 Down from CN¥41.13, the current price target is an average from 3 analysts. New target price is 40% above last closing price of CN¥25.83. Stock is down 11% over the past year. The company is forecast to post earnings per share of CN¥1.08 for next year compared to CN¥0.82 last year. Reported Earnings • Mar 15
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.82 (up from CN¥0.64 in FY 2021). Revenue: CN¥10.6b (up 20% from FY 2021). Net income: CN¥1.20b (up 35% from FY 2021). Profit margin: 11% (up from 10% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.3%. Earnings per share (EPS) also missed analyst estimates by 5.0%. Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Nov 16
Price target increased to CN¥40.13 Up from CN¥35.12, the current price target is provided by 1 analyst. New target price is 23% above last closing price of CN¥32.64. Stock is down 2.7% over the past year. The company is forecast to post earnings per share of CN¥0.86 for next year compared to CN¥0.64 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. Independent Director Bin Cao was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 31
Third quarter 2022 earnings released: EPS: CN¥0.24 (vs CN¥0.22 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.24 (up from CN¥0.22 in 3Q 2021). Revenue: CN¥2.64b (up 26% from 3Q 2021). Net income: CN¥355.3m (up 5.0% from 3Q 2021). Profit margin: 14% (down from 16% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has increased by 79% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥36.00, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 19x in the Machinery industry in China. Total returns to shareholders of 430% over the past three years. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.24 (vs CN¥0.15 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.24 (up from CN¥0.15 in 2Q 2021). Revenue: CN¥3.01b (up 14% from 2Q 2021). Net income: CN¥352.3m (up 81% from 2Q 2021). Profit margin: 12% (up from 7.3% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 41%, compared to a 35% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jun 24
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥30.74, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 372% over the past three years. Board Change • Jun 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. Independent Director Bin Cao was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorated over the past week After last week's 28% share price decline to CN¥28.59, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 17x in the Machinery industry in China. Total returns to shareholders of 212% over the past three years. Board Change • May 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 10 highly experienced directors. Independent Director Bin Cao was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Price Target Changed • Apr 27
Price target increased to CN¥52.73 Up from CN¥49.17, the current price target is an average from 6 analysts. New target price is 62% above last closing price of CN¥32.60. Stock is up 77% over the past year. The company is forecast to post earnings per share of CN¥1.25 for next year compared to CN¥0.89 last year. Major Estimate Revision • Mar 16
Consensus revenue estimates increase by 12% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥11.4b to CN¥12.8b. EPS estimate increased from CN¥1.08 to CN¥1.21 per share. Net income forecast to grow 42% next year vs 41% growth forecast for Machinery industry in China. Consensus price target up from CN¥49.17 to CN¥52.73. Share price rose 15% to CN¥45.99 over the past week. Reported Earnings • Mar 11
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: CN¥0.89 (up from CN¥0.37 in FY 2020). Revenue: CN¥8.79b (up 31% from FY 2020). Net income: CN¥890.6m (up 159% from FY 2020). Profit margin: 10% (up from 5.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 19%. Over the next year, revenue is forecast to grow 29%, compared to a 31% growth forecast for the 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 increased by 64% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥39.83, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 284% over the past three years. Reported Earnings • Oct 25
Third quarter 2021 earnings released: EPS CN¥0.31 (vs CN¥0.16 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥2.09b (up 5.5% from 3Q 2020). Net income: CN¥338.5m (up 128% from 3Q 2020). Profit margin: 16% (up from 7.5% in 3Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 70% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 20
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥36.07, the stock trades at a forward P/E ratio of 55x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 412% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥32.36 per share. Reported Earnings • Aug 31
Second quarter 2021 earnings released: EPS CN¥0.21 (vs CN¥0.095 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥2.65b (up 37% from 2Q 2020). Net income: CN¥194.5m (up 144% from 2Q 2020). Profit margin: 7.3% (up from 4.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 65% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥32.86, the stock trades at a forward P/E ratio of 56x. Average forward P/E is 24x in the Machinery industry in China. Total returns to shareholders of 319% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥13.98 per share. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥26.60, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 226% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥13.28 per share. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥21.56, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 146% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.46 per share. Reported Earnings • May 04
First quarter 2021 earnings released: EPS CN¥0.08 (vs CN¥0.04 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.79b (up 34% from 1Q 2020). Net income: CN¥75.6m (up 89% from 1Q 2020). Profit margin: 4.2% (up from 3.0% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Mar 12
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 8.8%. Over the next year, revenue is forecast to grow 6.6%, compared to a 25% growth forecast for the Machinery industry in China. Reported Earnings • Mar 12
Full year 2020 earnings released: EPS CN¥0.37 (vs CN¥0.35 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥6.70b (up 12% from FY 2019). Net income: CN¥343.8m (up 25% from FY 2019). Profit margin: 5.1% (up from 4.6% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 18% per year whereas the company’s share price has increased by 17% per year. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥15.75, the stock is trading at a trailing P/E ratio of 41.4x, down from the previous P/E ratio of 51.3x. This compares to an average P/E of 35x in the Machinery industry in China. Total returns to shareholders over the past three years are 50%. Is New 90 Day High Low • Mar 08
New 90-day low: CN¥16.23 The company is down 17% from its price of CN¥19.51 on 08 December 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 2.0% over the same period. Announcement • Jan 21
AVIC Heavy Machinery Co., Ltd. to Report Fiscal Year 2020 Results on Mar 12, 2021 AVIC Heavy Machinery Co., Ltd. announced that they will report fiscal year 2020 results on Mar 12, 2021 Announcement • Jan 17
AVIC Heavy Machinery Co., Ltd. announced that it expects to receive CNY 1.91 billion in funding from AviChina Industry & Technology Company Limited, Beijing AVIC Phase I Aviation Industry Industry Investment Fund (Limited Partnership) AVIC Heavy Machinery Co., Ltd. (SHSE:600765) announced that it has entered into subscription agreement for a private placement of not more than 187,936,168 A shares for gross proceeds of not more than CNY 1,910,000,000 on January 15, 2021. The transaction will involve participation from not more than 25 specific investors, including AviChina Industry & Technology Company Limited (SEHK:2357) for CNY 200,000,000 and Beijing AVIC Phase I Aviation Industry Industry Investment Fund (Limited Partnership) for CNY 100,000,000. The transaction will not exceed 20% of the company's total share capital before the non-public issuance. The company will issue shares at a pricing base date is the first day of the issuance period, and the issue price is not less than 80% of the average price of the company’s stock trading on the 20 trading days before the pricing base date. The shares to be issued to AviChina Industry & Technology Company Limited (SEHK:2357), and Beijing AVIC Phase I Aviation Industry Industry Investment Fund (Limited Partnership) will have a hold period of 18 months, and for all other subscribers the hold period will be six months, post the closing. The transaction is still subject to the approval of the industry authorities and the state-owned assets supervision and management agency, by the competent authority of national defense technology and industry, and it can be implemented after the company's shareholders meeting has reviewed and approved it and the China Securities Regulatory Commission. The transaction has been approved by the board of directors of the company in its 16th meeting of the 16th board of directors of the company. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥21.00, the stock is trading at a trailing P/E ratio of 55.2x, down from the previous P/E ratio of 65.2x. This compares to an average P/E of 33x in the Machinery industry in China. Total returns to shareholders over the past three years are 81%. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥23.11, the stock is trading at a trailing P/E ratio of 60.7x, up from the previous P/E ratio of 52.6x. This compares to an average P/E of 37x in the Machinery industry in China. Total returns to shareholders over the past three years are 90%. Is New 90 Day High Low • Dec 29
New 90-day high: CN¥21.01 The company is up 50% from its price of CN¥13.97 on 30 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 7.0% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: CN¥19.46 The company is up 52% from its price of CN¥12.83 on 08 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥6.49 per share. Valuation Update With 7 Day Price Move • Nov 19
Market bids up stock over the past week After last week's 21% share price gain to CN¥17.63, the stock is trading at a trailing P/E ratio of 46.3x, up from the previous P/E ratio of 38.2x. This compares to an average P/E of 40x in the Machinery industry in China. Total returns to shareholders over the past three years are 44%. Is New 90 Day High Low • Nov 14
New 90-day high: CN¥15.98 The company is up 7.0% from its price of CN¥14.87 on 14 August 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥6.51 per share. Announcement • Oct 29
AVIC Heavy Machinery Co., Ltd. announced a financing transaction AVIC Heavy Machinery Co., Ltd. (SHSE:600765) announced a private placement of common shares on October 28, 2020. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥340.2m, up 4.0% from the prior year. Total revenue was CN¥6.79b over the last 12 months, up 12% from the prior year. Announcement • Jul 10
AVIC Heavy Machinery Co., Ltd. to Report First Half, 2020 Results on Aug 28, 2020 AVIC Heavy Machinery Co., Ltd. announced that they will report first half, 2020 results on Aug 28, 2020