Valuation Update With 7 Day Price Move • 10h
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥28.07, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 50x in the Chemicals industry in China. Total returns to shareholders of 5.9% over the past three years. Declared Dividend • May 18
Dividend of CN¥1.50 announced Shareholders will receive a dividend of CN¥1.50. Ex-date: 21st May 2026 Payment date: 21st May 2026 Dividend yield will be 3.3%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (69% earnings payout ratio) and cash flows (23% cash payout ratio). The dividend has increased by an average of 50% per year over the past 3 years. However, payments have been volatile during that time. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 17
Full year 2025 earnings released: EPS: CN¥2.41 (vs CN¥0.98 in FY 2024) Full year 2025 results: EPS: CN¥2.41 (up from CN¥0.98 in FY 2024). Revenue: CN¥2.15b (up 7.2% from FY 2024). Net income: CN¥191.2m (up 145% from FY 2024). Profit margin: 8.9% (up from 3.9% in FY 2024). 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 only increased by 4% per year, which means it is significantly lagging earnings growth. Ankündigung • Apr 16
Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2026 Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Ankündigung • Mar 31
Focus Hotmelt Company Ltd. to Report Q1, 2026 Results on Apr 23, 2026 Focus Hotmelt Company Ltd. announced that they will report Q1, 2026 results on Apr 23, 2026 Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to CN¥62.53, the stock trades at a trailing P/E ratio of 32.5x. Average trailing P/E is 48x in the Chemicals industry in China. Total returns to shareholders of 21% over the past three years. Ankündigung • Dec 31
Focus Hotmelt Company Ltd. to Report Fiscal Year 2025 Results on Apr 16, 2026 Focus Hotmelt Company Ltd. announced that they will report fiscal year 2025 results on Apr 16, 2026 Reported Earnings • Oct 27
Third quarter 2025 earnings released: EPS: CN¥0.76 (vs CN¥0.12 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.76 (up from CN¥0.12 in 3Q 2024). Revenue: CN¥545.3m (up 7.8% from 3Q 2024). Net income: CN¥60.7m (up CN¥51.1m from 3Q 2024). Profit margin: 11% (up from 1.9% in 3Q 2024). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Ankündigung • Sep 30
Focus Hotmelt Company Ltd. to Report Q3, 2025 Results on Oct 27, 2025 Focus Hotmelt Company Ltd. announced that they will report Q3, 2025 results on Oct 27, 2025 Buy Or Sell Opportunity • Aug 27
Now 21% undervalued Over the last 90 days, the stock has risen 35% to CN¥43.18. The fair value is estimated to be CN¥54.92, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last year. Earnings per share has declined by 33%. Ankündigung • Jul 02
Focus Hotmelt Company Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Focus Hotmelt Company Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Declared Dividend • May 24
Dividend of CN¥0.50 announced Shareholders will receive a dividend of CN¥0.50. Ex-date: 29th May 2025 Payment date: 29th May 2025 Dividend yield will be 3.2%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is not adequately covered by earnings (96% earnings payout ratio) nor is it covered by cash flows (112% cash payout ratio). The dividend has increased by an average of 41% per year over the past 2 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 6.7% to bring the payout ratio under control, which is more than the 4.3% EPS growth achieved over the last 3 years. New Risk • May 21
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 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 96% Cash payout ratio: 112% Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Profit margins are more than 30% lower than last year (4.1% net profit margin). Valuation Update With 7 Day Price Move • May 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥35.16, the stock trades at a trailing P/E ratio of 33.8x. Average trailing P/E is 38x in the Chemicals industry in China. Total returns to shareholders of 11% over the past year. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥29.80, the stock trades at a trailing P/E ratio of 30.2x. Average trailing P/E is 36x in the Chemicals industry in China. Total loss to shareholders of 1.5% over the past year. Ankündigung • Apr 16
Focus Hotmelt Company Ltd. Proposes Final Cash Dividend for the Year 2024 Focus Hotmelt Company Ltd. proposed final cash dividend/10 shares (tax included) of CNY 5.00000000 for the year 2024. New Risk • Apr 15
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.9% Last year net profit margin: 6.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 96% Paying a dividend despite having no free cash flows. High level of non-cash earnings (30% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (3.9% net profit margin). Reported Earnings • Apr 15
Full year 2024 earnings released: EPS: CN¥0.98 (vs CN¥1.35 in FY 2023) Full year 2024 results: EPS: CN¥0.98 (down from CN¥1.35 in FY 2023). Revenue: CN¥2.01b (up 23% from FY 2023). Net income: CN¥78.2m (down 28% from FY 2023). Profit margin: 3.9% (down from 6.6% in FY 2023). The decrease in margin was driven by higher expenses. Ankündigung • Apr 15
Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2025 Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2025, at 14:30 China Standard Time. Location: No. 97, Chuangqiang Road, Ningxi Street, Zengcheng District, Guangzhou, Guangdong China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥22.01, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 37x in the Chemicals industry in China. Total loss to shareholders of 25% over the past year. Ankündigung • Mar 31
Focus Hotmelt Company Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Focus Hotmelt Company Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Ankündigung • Dec 31
Focus Hotmelt Company Ltd. to Report Fiscal Year 2024 Results on Apr 15, 2025 Focus Hotmelt Company Ltd. announced that they will report fiscal year 2024 results on Apr 15, 2025 Ankündigung • Dec 27
Focus Hotmelt Company Ltd. Approves Cash Dividend for the Third Quarter of 2024 Focus Hotmelt Company Ltd. at its Extraordinary General Meeting held on 23 December 2024 approved the cash dividend of CNY 5.00000000 per 10 shares (tax included) for the third quarter of 2024. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.46 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.12 (down from CN¥0.46 in 3Q 2023). Revenue: CN¥505.9m (up 21% from 3Q 2023). Net income: CN¥9.62m (down 74% from 3Q 2023). Profit margin: 1.9% (down from 8.8% in 3Q 2023). 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 15% growth forecast for the Chemicals industry in China. Ankündigung • Sep 30
Focus Hotmelt Company Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Focus Hotmelt Company 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 31% After last week's 31% share price gain to CN¥28.13, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 14% over the past year. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: CN¥0.33 (vs CN¥0.34 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.33 (down from CN¥0.34 in 2Q 2023). Revenue: CN¥461.7m (up 28% from 2Q 2023). Net income: CN¥26.1m (down 4.2% from 2Q 2023). Profit margin: 5.7% (down from 7.6% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Ankündigung • Jun 29
Focus Hotmelt Company Ltd. to Report First Half, 2024 Results on Aug 20, 2024 Focus Hotmelt Company Ltd. announced that they will report first half, 2024 results on Aug 20, 2024 Declared Dividend • May 13
Dividend increased to CN¥0.65 Dividend of CN¥0.65 is 30% higher than last year. Ex-date: 16th May 2024 Payment date: 16th May 2024 Dividend yield will be 1.9%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (42% 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 company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. Earnings per share has grown by 5.7% over the last 3 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Ankündigung • May 11
Focus Hotmelt Company Ltd. 2023 Announces Final Profit Distribution Plan to Be Implemented A Shares for the Year 2023, Payable on 16 May 2024 Focus Hotmelt Company Ltd. 2023 announced final profit distribution plan to be implemented (A shares) of CNY 6.50000000 per 10 shares (tax included) for the year 2023. Dividend payable on 16 May 2024, record date of 15 May 2024 and ex-date of 16 May 2024. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥31.00, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 28x in the Chemicals industry in China. Total loss to shareholders of 23% over the past year. Ankündigung • Apr 14
Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2024 Focus Hotmelt Company Ltd., Annual General Meeting, May 07, 2024, at 14:30 China Standard Time. Ankündigung • Mar 30
Focus Hotmelt Company Ltd. to Report Q1, 2024 Results on Apr 24, 2024 Focus Hotmelt Company Ltd. announced that they will report Q1, 2024 results on Apr 24, 2024 Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥31.14, the stock trades at a trailing P/E ratio of 26.3x. Average trailing P/E is 30x in the Chemicals industry in China. Total loss to shareholders of 41% over the past year. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥24.53, the stock trades at a trailing P/E ratio of 20.7x. Average trailing P/E is 28x in the Chemicals industry in China. Total loss to shareholders of 58% over the past year. Ankündigung • Dec 30
Focus Hotmelt Company Ltd. to Report Fiscal Year 2023 Results on Apr 13, 2024 Focus Hotmelt Company Ltd. announced that they will report fiscal year 2023 results on Apr 13, 2024 Board Change • Sep 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Independent Director Jinye Wo 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. Reported Earnings • Aug 22
Second quarter 2023 earnings released Second quarter 2023 results: EPS: CN¥0.34. Net income: CN¥27.3m (up CN¥27.3m from 2Q 2022). Ankündigung • Jul 01
Focus Hotmelt Company Ltd. to Report First Half, 2023 Results on Aug 22, 2023 Focus Hotmelt Company Ltd. announced that they will report first half, 2023 results on Aug 22, 2023 Ankündigung • May 24
Focus Hotmelt Company Ltd. Implements Final Cash Dividend of A Shares for the Year 2022, Payable on May 29, 2023 Focus Hotmelt Company Ltd. implemented final cash dividend of CNY 5.00000000 per ten A shares (tax included) for the year 2022. Record date: 26 May 2023; Ex-date: 29 May 2023; Payment date: 29 May 2023. Ankündigung • May 19
Focus Hotmelt Company Ltd. Approves Cash Dividend for the Year 2022 Focus Hotmelt Company Ltd. approved cash dividend of CNY 5.00000000 per ten shares (tax included) for the year 2022, at its AGM held on May 16, 2023. Board Change • Nov 16
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). Chairman of the Board & General Manager Shuguang Chen is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥51.03, the stock trades at a trailing P/E ratio of 74.5x. Average trailing P/E is 27x in the Chemicals industry in China. 
