Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 41% After last week's 41% share price gain to CN¥15.99, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 25x in the Machinery industry in China. Total returns to shareholders of 105% over the past three years. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥11.68, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 27x in the Machinery industry in China. Total returns to shareholders of 42% over the past three years. Declared Dividend • May 25
Dividend increased to CN¥0.06 Dividend of CN¥0.06 is 20% higher than last year. Ex-date: 29th May 2026 Payment date: 29th May 2026 Dividend yield will be 0.4%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 75% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • May 15
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 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.9% average weekly change). Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥13.74, the stock trades at a forward P/E ratio of 50x. Average forward P/E is 29x in the Machinery industry in China. Total returns to shareholders of 66% over the past three years. Reported Earnings • Apr 24
First quarter 2026 earnings released: EPS: CN¥0.06 (vs CN¥0.05 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.06 (up from CN¥0.05 in 1Q 2025). Revenue: CN¥828.7m (up 30% from 1Q 2025). Net income: CN¥64.5m (up 43% from 1Q 2025). Profit margin: 7.8% (up from 7.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.7% p.a. on average during the next 3 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 27% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Apr 23
Longhua Technology Group Co.,Ltd., Annual General Meeting, May 14, 2026 Longhua Technology Group Co.,Ltd., Annual General Meeting, May 14, 2026, at 14:00 China Standard Time. Location: Floor 13A, No. 288, Kaiyuan Avenue, Luolong District, Luoyang, Henan China Announcement • Mar 31
Longhua Technology Group Co.,Ltd. to Report Q1, 2026 Results on Apr 23, 2026 Longhua Technology Group Co.,Ltd. announced that they will report Q1, 2026 results on Apr 23, 2026 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 7.5% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.5% average weekly change). Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥11.72, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 27x in the Machinery industry in China. Total returns to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.65 per share. Price Target Changed • Feb 03
Price target increased by 23% to CN¥12.02 Up from CN¥9.80, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of CN¥11.57. Stock is up 69% over the past year. The company is forecast to post earnings per share of CN¥0.23 for next year compared to CN¥0.15 last year. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.38, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 27x in the Machinery industry in China. Total returns to shareholders of 43% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.41 per share. Announcement • Dec 31
Longhua Technology Group Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 Longhua Technology Group Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: CN¥0.07 (up from CN¥0.054 in 3Q 2024). Revenue: CN¥810.7m (up 14% from 3Q 2024). Net income: CN¥68.8m (up 40% from 3Q 2024). Profit margin: 8.5% (up from 7.0% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 5.7%. Revenue is forecast to grow 8.0% 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 5% per year and the company’s share price has also increased by 5% per year. Announcement • Sep 30
Longhua Technology Group Co.,Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Longhua Technology Group Co.,Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Price Target Changed • Sep 03
Price target increased by 9.5% to CN¥9.80 Up from CN¥8.95, the current price target is an average from 2 analysts. New target price is 13% above last closing price of CN¥8.67. Stock is up 55% over the past year. The company is forecast to post earnings per share of CN¥0.26 for next year compared to CN¥0.15 last year. Announcement • Jul 02
Longhua Technology Group Co.,Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Longhua Technology Group Co.,Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Declared Dividend • May 22
Dividend increased to CN¥0.05 Dividend of CN¥0.05 is 67% higher than last year. Ex-date: 27th May 2025 Payment date: 27th May 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 9.6% 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. Board Change • May 15
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Bobo Li was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Apr 29
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥3.41b to CN¥3.09b. EPS estimate also fell from CN¥0.323 per share to CN¥0.252 per share. Net income forecast to grow 113% next year vs 38% growth forecast for Machinery industry in China. Consensus price target broadly unchanged at CN¥9.01. Share price fell 5.2% to CN¥6.74 over the past week. New Risk • Apr 27
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Apr 25
Longhua Technology Group Co.,Ltd. Proposes Final Dividend for the Year 2024 Longhua Technology Group Co.,Ltd. proposed final dividend of CNY 0.50 per 10 shares (tax included) for the year 2024. Reported Earnings • Apr 24
First quarter 2025 earnings released: EPS: CN¥0.05 (vs CN¥0.06 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.05 (down from CN¥0.06 in 1Q 2024). Revenue: CN¥638.8m (flat on 1Q 2024). Net income: CN¥45.0m (down 18% from 1Q 2024). Profit margin: 7.0% (down from 8.6% in 1Q 2024). Revenue is forecast to grow 16% 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 31% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Apr 23
Longhua Technology Group Co.,Ltd., Annual General Meeting, May 14, 2025 Longhua Technology Group Co.,Ltd., Annual General Meeting, May 14, 2025, at 14:00 China Standard Time. Location: 13F, No. 288, Kaiyuan Avenue, Luolong District, Luoyang, Henan China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥6.09, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Machinery industry in China. Total loss to shareholders of 13% over the past three years. Announcement • Mar 31
Longhua Technology Group Co.,Ltd. to Report Q1, 2025 Results on Apr 23, 2025 Longhua Technology Group Co.,Ltd. announced that they will report Q1, 2025 results on Apr 23, 2025 Announcement • Dec 31
Longhua Technology Group Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 23, 2025 Longhua Technology Group Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 23, 2025 Major Estimate Revision • Nov 04
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥2.98b to CN¥2.80b. EPS estimate also fell from CN¥0.284 per share to CN¥0.24 per share. Net income forecast to grow 169% next year vs 46% growth forecast for Machinery industry in China. Consensus price target up from CN¥7.98 to CN¥8.57. Share price fell 8.8% to CN¥6.82 over the past week. Price Target Changed • Oct 31
Price target increased by 7.5% to CN¥8.57 Up from CN¥7.98, the current price target is an average from 2 analysts. New target price is 19% above last closing price of CN¥7.23. Stock is up 1.5% over the past year. The company is forecast to post earnings per share of CN¥0.24 for next year compared to CN¥0.14 last year. Reported Earnings • Oct 29
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CN¥0.054 (down from CN¥0.064 in 3Q 2023). Revenue: CN¥708.1m (flat on 3Q 2023). Net income: CN¥49.3m (down 15% from 3Q 2023). Profit margin: 7.0% (down from 8.2% in 3Q 2023). Revenue missed analyst estimates by 30%. Earnings per share (EPS) also missed analyst estimates by 54%. Revenue is forecast to grow 19% 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 44% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Longhua Technology Group Co.,Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Longhua Technology Group Co.,Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to CN¥6.81, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Machinery industry in China. Total loss to shareholders of 28% over the past three years. Announcement • Sep 14
Longhua Technology Group Co.,Ltd. Approves Directorate Appointments Longhua Technology Group Co.,Ltd. at its 2nd Extraordinary General Meeting of 2024 on 12 September 2024,approved the following appointments: Li Bobo, non-independent director; Sun Zhi, independent director; Dong Zhiguo, independent director; Lan Chunming, shareholder supervisor and Zhao Zijian, shareholder supervisor. Reported Earnings • Aug 30
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CN¥0.057 (up from CN¥0.043 in 2Q 2023). Revenue: CN¥580.4m (down 1.5% from 2Q 2023). Net income: CN¥50.5m (up 27% from 2Q 2023). Profit margin: 8.7% (up from 6.7% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 30%. Earnings per share (EPS) also missed analyst estimates by 24%. 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 fallen by 42% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
Longhua Technology Group Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Longhua Technology Group Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • May 24
Dividend of CN¥0.03 announced Shareholders will receive a dividend of CN¥0.03. Ex-date: 29th May 2024 Payment date: 29th May 2024 Dividend yield will be 0.5%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (27% 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 decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 164% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Apr 30
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥3.32b to CN¥3.05b. EPS estimate also fell from CN¥0.405 per share to CN¥0.293 per share. Net income forecast to grow 196% next year vs 47% growth forecast for Machinery industry in China. Consensus price target down from CN¥9.29 to CN¥8.02. Share price rose 5.4% to CN¥6.20 over the past week. Price Target Changed • Apr 26
Price target decreased by 14% to CN¥8.02 Down from CN¥9.29, the current price target is an average from 2 analysts. New target price is 30% above last closing price of CN¥6.17. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.29 for next year compared to CN¥0.14 last year. Announcement • Apr 24
Longhua Technology Group Co.,Ltd., Annual General Meeting, May 16, 2024 Longhua Technology Group Co.,Ltd., Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: 13F, No. 288, Kaiyuan Avenue, Luolong District, Luoyang, Henan China Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: CN¥0.06 (vs CN¥0.09 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.06 (down from CN¥0.09 in 1Q 2023). Revenue: CN¥641.7m (up 7.5% from 1Q 2023). Net income: CN¥54.9m (down 31% from 1Q 2023). Profit margin: 8.6% (down from 13% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 26% 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 39% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. New Risk • Apr 24
New major risk - Revenue and earnings growth Earnings have declined by 5.7% 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 5.7% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (3.5% net profit margin). Announcement • Mar 30
Longhua Technology Group Co.,Ltd. to Report Q1, 2024 Results on Apr 24, 2024 Longhua Technology Group Co.,Ltd. announced that they will report Q1, 2024 results on Apr 24, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥5.16, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 14x in the Machinery industry in China. Total loss to shareholders of 13% over the past three years. Announcement • Dec 30
Longhua Technology Group Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 24, 2024 Longhua Technology Group Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 24, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: CN¥0.064 (down from CN¥0.067 in 3Q 2022). Revenue: CN¥707.4m (up 33% from 3Q 2022). Net income: CN¥57.9m (down 5.0% from 3Q 2022). Profit margin: 8.2% (down from 11% in 3Q 2022). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 26% 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 fallen by 29% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. New Risk • Oct 27
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Announcement • Sep 30
Longhua Technology Group Co.,Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Longhua Technology Group Co.,Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.043 (vs CN¥0.03 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.043 (up from CN¥0.03 in 2Q 2022). Revenue: CN¥589.2m (flat on 2Q 2022). Net income: CN¥39.7m (up 47% from 2Q 2022). Profit margin: 6.7% (up from 4.6% in 2Q 2022). Revenue is forecast to grow 30% 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 fallen by 20% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • May 13
Longhua Technology Group Co.,Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2022, Payable on 18 May 2023 Longhua Technology Group Co.,Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 0.29999900 for the year 2022, payable on 18 May 2023. Record date is 17 May 2023. Ex-date is 18 May 2023. Price Target Changed • Apr 19
Price target increased by 23% to CN¥10.16 Up from CN¥8.28, the current price target is an average from 2 analysts. New target price is 20% above last closing price of CN¥8.49. Stock is up 21% over the past year. The company is forecast to post earnings per share of CN¥0.32 for next year compared to CN¥0.07 last year. Reported Earnings • Apr 15
First quarter 2023 earnings released: EPS: CN¥0.09 (vs CN¥0.07 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.09 (up from CN¥0.07 in 1Q 2022). Revenue: CN¥597.0m (up 4.5% from 1Q 2022). Net income: CN¥79.5m (up 21% from 1Q 2022). Profit margin: 13% (up from 12% in 1Q 2022). Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non Independent Director Guohua Tian was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.067 (vs CN¥0.091 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.067 (down from CN¥0.091 in 3Q 2021). Revenue: CN¥533.9m (down 7.0% from 3Q 2021). Net income: CN¥61.0m (down 29% from 3Q 2021). Profit margin: 11% (down from 15% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 25% 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 14% per year whereas the company’s share price has increased by 15% per year. Announcement • Sep 22
Longhua Technology Group Co.,Ltd. (SZSE:300263) announces an Equity Buyback for CNY 200 million worth of its shares. Longhua Technology Group Co.,Ltd. (SZSE:300263) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its A shares. The shares will be purchased at a price not exceeding CNY 13 per share. The repurchased shares will be used for the implementation of ESOP or equity incentive plan, otherwise will be cancelled thereby reducing the registered capital. The program will be funded from company's own funds. The program will be valid for 12 months from the date of the Board meeting. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.03 (vs CN¥0.07 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.03 (down from CN¥0.07 in 2Q 2021). Revenue: CN¥584.9m (up 3.1% from 2Q 2021). Net income: CN¥26.9m (down 56% from 2Q 2021). Profit margin: 4.6% (down from 11% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 27%, 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 18% per year and the company’s share price has also increased by 18% per year. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥7.99, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 79% over the past three years. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥10.42, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 133% over the past three years. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥8.91, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 20x in the Machinery industry in China. Total returns to shareholders of 91% over the past three years. Announcement • May 26
Longhua Technology Group Co.,Ltd. Approves Cash Dividend for the Year 2021, Payable on 31 May 2022 Longhua Technology Group Co.,Ltd. approved cash dividend (tax included) of CNY 0.350000 per 10 shares for the year 2021, at the AGM held on May 19, 2022. Record date of 30 May 2022, Ex-date of 31 May 2022, Payment date of 31 May 2022. Announcement • May 21
Longhua Technology Group Co.,Ltd. Approves Cash Dividend for the Year 2021 Longhua Technology Group Co.,Ltd. approved cash dividend (tax included) of CNY 0.350000 per 10 shares for the year 2021, at the AGM held on May 19, 2022. Reported Earnings • Apr 28
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.32 (up from CN¥0.25 in FY 2020). Revenue: CN¥2.21b (up 21% from FY 2020). Net income: CN¥290.9m (up 29% from FY 2020). Profit margin: 13% (in line with FY 2020). Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 6.7%. Over the next year, revenue is forecast to grow 49%, compared to a 31% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to CN¥13.69 Up from CN¥7.73, the current price target is provided by 1 analyst. New target price is 118% above last closing price of CN¥6.29. Stock is up 0.8% over the past year. The company is forecast to post earnings per share of CN¥0.30 for next year compared to CN¥0.25 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 4 experienced directors. No highly experienced directors. Supervisor Yanli Zhang is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥10.87, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 22x in the Machinery industry in China. Total returns to shareholders of 162% over the past three years. Reported Earnings • Oct 16
Third quarter 2021 earnings released: EPS CN¥0.091 (vs CN¥0.07 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥574.2m (up 24% from 3Q 2020). Net income: CN¥85.8m (up 34% from 3Q 2020). Profit margin: 15% (up from 14% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has increased by 34% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥11.50, the stock trades at a trailing P/E ratio of 43.9x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 137% over the past three years. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥12.28, the stock trades at a trailing P/E ratio of 46.9x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 146% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.07 (vs CN¥0.068 in 2Q 2020) The company reported a mediocre second quarter result with weaker profit margins, although earnings were flat and revenues improved. Second quarter 2021 results: Revenue: CN¥567.1m (up 14% from 2Q 2020). Net income: CN¥61.9m (flat on 2Q 2020). Profit margin: 11% (down from 12% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year whereas the company’s share price has increased by 26% per year. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment improved over the past week After last week's 28% share price gain to CN¥9.58, the stock trades at a trailing P/E ratio of 36.5x. Average trailing P/E is 33x in the Machinery industry in China. Total returns to shareholders of 98% over the past three years. Announcement • May 26
Longhua Technology Group Co.,Ltd. Announces Final Distribution for 2020, Payable on 31 May 2021 Longhua Technology Group Co.,Ltd. announced 2020 final distribution plan to be implemented (A shares). The company announced Cash dividend per 10 shares (tax included) is CNY 3.00000000. Record date: 28 May 2021. Ex-date: 31 May 2021. Payment date: 31 May 2021. Announcement • May 22
Longhua Technology Group Co.,Ltd. Approves Cash Dividend for the Year 2020 Longhua Technology Group Co.,Ltd. announced that at its AGM held on May 20, 2021, shareholders approved the cash dividend of CNY 0.30000000 per 10 shares (tax included) for the year 2020. Announcement • Apr 30
Longhua Technology Group Co.,Ltd. Announces Final Profit Distribution Proposal for 2020 Longhua Technology Group Co.,Ltd. announced final profit distribution proposal of CNY 0.30000000 per 10 shares (tax included) for 2020. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.06 (vs CN¥0.051 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¥382.6m (up 34% from 1Q 2020). Net income: CN¥55.1m (up 17% from 1Q 2020). Profit margin: 14% (down from 17% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 25
New 90-day low: CN¥6.19 The company is down 30% from its price of CN¥8.84 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 11% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥6.71 The company is down 25% from its price of CN¥8.89 on 29 September 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥7.32 The company is down 16% from its price of CN¥8.67 on 11 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 6.0% over the same period. Is New 90 Day High Low • Nov 26
New 90-day low: CN¥7.73 The company is down 21% from its price of CN¥9.79 on 28 August 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 3.0% over the same period. Announcement • Nov 11
Longhua Technology Group Co.,Ltd. (SZSE:300263) signed an agreement to acquire remaining 23.19% stake in Luoyang Kebosi New Materials Technology Co., Ltd. from Xiamen Renda Longhua Equity Investment Fund Partnership Enterprise (Limited Partnership) for approximately CNY 140 million. Longhua Technology Group Co.,Ltd. (SZSE:300263) signed an agreement to acquire remaining 23.19% stake in Luoyang Kebosi New Materials Technology Co., Ltd. from Xiamen Renda Longhua Equity Investment Fund Partnership Enterprise (Limited Partnership) for approximately CNY 140 million on November 9, 2020. Longhua Technology must pay the purchase price before January 31, 2021. Post the transaction, Longhua Technology will hold 100% stake in Luoyang Kebosi New Materials Technology. Luoyang Kebosi New Materials Technology has total assets of CNY 310.4 million, net assets of CNY 153.5 million as of June 30, 2020 and generates revenue of CNY 107.2 million and net profit of CNY 19.5 million from January to June 2020. The transaction is subject to shareholders’ approval and is approved by the Board of Directors of Longhua Technology Group. Is New 90 Day High Low • Oct 30
New 90-day low: CN¥7.85 The company is down 4.0% from its price of CN¥8.18 on 31 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 4.0% over the same period. Reported Earnings • Oct 22
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥213.1m, up 19% from the prior year. Total revenue was CN¥1.82b over the last 12 months, largely unchanged from the prior year. Announcement • Oct 16
Longhua Technology Group Co.,Ltd. to Report Q3, 2020 Results on Oct 22, 2020 Longhua Technology Group Co.,Ltd. announced that they will report Q3, 2020 results on Oct 22, 2020 Announcement • Aug 11
Longhua Technology Group Co.,Ltd. to Report First Half, 2020 Results on Aug 27, 2020 Longhua Technology Group Co.,Ltd. announced that they will report first half, 2020 results on Aug 27, 2020 
