Board Change • May 06
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 3 highly experienced directors. Chairman & GM Hao Peng is the most experienced director on the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Price Target Changed • Apr 20
Price target decreased by 16% to CN¥59.00 Down from CN¥70.33, the current price target is an average from 4 analysts. New target price is 24% below last closing price of CN¥77.80. Stock is up 281% over the past year. The company is forecast to post earnings per share of CN¥0.95 for next year compared to CN¥0.74 last year. Ankündigung • Apr 20
Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, May 08, 2026 Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, May 08, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China New Risk • Apr 19
New major risk - Revenue and earnings growth Earnings have declined by 4.6% 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 Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 4.6% per year over the past 5 years. Reported Earnings • Apr 18
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.74 (up from CN¥0.69 in FY 2024). Revenue: CN¥8.91b (up 1.9% from FY 2024). Net income: CN¥708.7m (up 7.1% from FY 2024). Profit margin: 8.0% (up from 7.6% in FY 2024). 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 8.4%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 31% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Ankündigung • Mar 31
Shenzhen Sunway Communication Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Shenzhen Sunway Communication Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Ankündigung • Mar 14
Shenzhen Sunway Communication Co., Ltd. announced that it expects to receive CNY 6 billion in funding Shenzhen Sunway Communication Co., Ltd. announced private placement to issue not more than 290,270,591 shares for gross proceeds of not more than CNY 6,000,000,000 on March 13, 2026. The transaction will include participation from not more than 235 investors, that will include qualified fund management companies, securities companies, trust companies, finance companies, insurance institutional investors, qualified foreign institutional investors (QFIIs), CNY qualified foreign institutional investors (RQFIIs), and other legal persons, natural persons, or other institutional investors that meet the requirements of laws and regulations The company also announced that among these investors if a fund management company, securities company, wealth management company, insurance company, QFII, or RQFII subscribes with two or more products under its management, it will be considered as one subscriber. Trust companies, as subscribers, can only subscribe with their own funds. The number of shares to be issued to specific targets will be determined by dividing the total amount of funds raised by the issue price, and will not exceed 30% of the company's total share capital before this issuance. The pricing benchmark date for this private placement of shares is the first day of the issuance period. The issuance price will not be lower than 80% of the average trading price of the company's shares in the twenty trading days prior to the pricing benchmark date. If the company undergoes any ex-rights or ex-dividend events between the pricing benchmark date and the issuance date, the issuance price will be adjusted accordingly. Following the completion of this issuance, the shares subscribed by the subscribers shall not be transferred within six months from the date of completion of the issuance. The transaction is approved by board of directors of the company in its third meeting of the sixth board of directors of the company. The transaction, issuance plan and the final maximum number of shares to be issued is subject to approval of shareholders in company's shareholders' meeting, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission (CSRC) before it can be implemented. The final issuance plan shall be subject to the plan approved and registered by the CSRC. Ankündigung • Dec 31
Shenzhen Sunway Communication Co., Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Shenzhen Sunway Communication Co., Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥44.73, the stock trades at a forward P/E ratio of 51x. Average forward P/E is 45x in the Communications industry in China. Total returns to shareholders of 176% over the past three years. New Risk • Nov 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.3% average weekly change). Minor Risk Large one-off items impacting financial results. Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: CN¥0.34 (down from CN¥0.34 in 3Q 2024). Revenue: CN¥2.76b (up 4.2% from 3Q 2024). Net income: CN¥324.7m (down 1.8% from 3Q 2024). Profit margin: 12% (in line with 3Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. New Risk • Oct 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 7.6% 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: Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥30.50, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 48x in the Communications industry in China. Total returns to shareholders of 104% over the past three years. Ankündigung • Sep 30
Shenzhen Sunway Communication Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Shenzhen Sunway Communication Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Ankündigung • Sep 08
Shenzhen Sunway Communication Co., Ltd. Approves Board Appointments Shenzhen Sunway Comm Technology Co., Ltd. at its 2nd Extraordinary General Meeting of 2025 on 05 September 2025 approved Peng Yufei, non-independent director; Zhou Jinjun, non-independent director and Li Li, independent director; Li Tianming, independent director and Xia Jun as independent director. Reported Earnings • Aug 15
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: CN¥0.088 (up from CN¥0.053 in 2Q 2024). Revenue: CN¥1.96b (up 3.8% from 2Q 2024). Net income: CN¥84.3m (up 65% from 2Q 2024). Profit margin: 4.3% (up from 2.7% in 2Q 2024). Revenue exceeded analyst estimates by 8.0%. Earnings per share (EPS) missed analyst estimates by 19%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Ankündigung • Jul 02
Shenzhen Sunway Communication Co., Ltd. to Report First Half, 2025 Results on Aug 15, 2025 Shenzhen Sunway Communication Co., Ltd. announced that they will report first half, 2025 results on Aug 15, 2025 Ankündigung • Jun 05
Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, Jun 26, 2025 Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, Jun 26, 2025, at 14:00 China Standard Time. Location: 2F, North Area, Building A, No. 2, Kefeng Road, Science Park, Nanshan District, Shenzhen, Guangdong China Price Target Changed • May 28
Price target increased by 7.5% to CN¥21.33 Up from CN¥19.85, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥21.05. Stock is up 19% over the past year. The company is forecast to post earnings per share of CN¥0.75 for next year compared to CN¥0.69 last year. Major Estimate Revision • May 05
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥9.55b to CN¥8.83b. EPS estimate also fell from CN¥0.887 per share to CN¥0.754 per share. Net income forecast to grow 34% next year vs 38% growth forecast for Communications industry in China. Consensus price target of CN¥20.50 unchanged from last update. Share price was steady at CN¥19.89 over the past week. Reported Earnings • Apr 30
Third quarter 2024 earnings released: EPS: CN¥0.34 (vs CN¥0.34 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.34 (up from CN¥0.34 in 3Q 2023). Revenue: CN¥2.65b (up 18% from 3Q 2023). Net income: CN¥330.5m (up 2.1% from 3Q 2023). Profit margin: 13% (down from 14% in 3Q 2023). Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. New Risk • Apr 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. 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. Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥18.33, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 42x in the Communications industry in China. Total returns to shareholders of 16% over the past three years. Ankündigung • Mar 31
Shenzhen Sunway Communication Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Shenzhen Sunway Communication Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Ankündigung • Dec 31
Shenzhen Sunway Communication Co., Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Shenzhen Sunway Communication Co., Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥29.23, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 32x in the Communications industry in China. Total returns to shareholders of 15% over the past three years. Price Target Changed • Nov 03
Price target increased by 7.5% to CN¥21.33 Up from CN¥19.85, the current price target is an average from 3 analysts. New target price is 6.8% below last closing price of CN¥22.89. Stock is down 8.1% over the past year. The company is forecast to post earnings per share of CN¥0.71 for next year compared to CN¥0.54 last year. New Risk • Oct 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 87% 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 Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Reported Earnings • Oct 30
Third quarter 2024 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2024 results: EPS: CN¥0.34 (up from CN¥0.34 in 3Q 2023). Revenue: CN¥2.65b (up 18% from 3Q 2023). Net income: CN¥330.5m (up 2.1% from 3Q 2023). Profit margin: 13% (down from 14% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has remained flat. Ankündigung • Sep 30
Shenzhen Sunway Communication Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Shenzhen Sunway Communication 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 30% After last week's 30% share price gain to CN¥23.20, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 24x in the Communications industry in China. Total returns to shareholders of 4.1% over the past three years. Major Estimate Revision • Aug 30
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥8.80b to CN¥8.42b. EPS estimate also fell from CN¥0.815 per share to CN¥0.702 per share. Net income forecast to grow 48% next year vs 62% growth forecast for Communications industry in China. Consensus price target broadly unchanged at CN¥19.53. Share price rose 4.2% to CN¥18.54 over the past week. Ankündigung • Aug 23
Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) announces an Equity Buyback for CNY 400 million worth of its shares. Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) announces a share repurchase program. Under the program, the company will repurchase up to CNY 400 million worth of its shares. The shares will be repurchased at a price no more than CNY 25 per share. Repurchased will be funded using company's own funds. Repurchased shares will be used for employee stock ownership plans and/or equity incentive plans. The program is valid for 12 months. Reported Earnings • Aug 22
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: CN¥0.053 (up from CN¥0.05 in 2Q 2023). Revenue: CN¥1.89b (up 17% from 2Q 2023). Net income: CN¥51.1m (up 5.6% from 2Q 2023). Profit margin: 2.7% (down from 3.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.9%. Earnings per share (EPS) missed analyst estimates by 58%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 9% per year. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥21.28, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 25x in the Communications industry in China. Total loss to shareholders of 32% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.84 per share. Ankündigung • Jun 29
Shenzhen Sunway Communication Co., Ltd. to Report First Half, 2024 Results on Aug 22, 2024 Shenzhen Sunway Communication Co., Ltd. announced that they will report first half, 2024 results on Aug 22, 2024 Declared Dividend • Jun 11
Dividend increased to CN¥0.10 Dividend of CN¥0.10 is 100% higher than last year. Ex-date: 14th June 2024 Payment date: 14th June 2024 Dividend yield will be 0.6%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is well covered by both earnings (18% earnings payout ratio) and cash flows (10% cash payout ratio). The dividend has increased by an average of 23% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 106% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Ankündigung • Jun 08
Shenzhen Sunway Communication Co., Ltd. Announces Dividend of A Shares for the Year 2023, Payable on 14 June 2024 Shenzhen Sunway Communication Co., Ltd. announced cash dividend/10 shares (tax included) of CNY 1.00000000 of A shares for the year 2023. Record date is 13 June 2024. Ex-date is 14 June 2024. Payment date is 14 June 2024. Price Target Changed • Apr 30
Price target decreased by 13% to CN¥19.43 Down from CN¥22.43, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥18.67. Stock is down 2.7% over the past year. The company is forecast to post earnings per share of CN¥0.71 for next year compared to CN¥0.54 last year. Ankündigung • Apr 24
Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, May 16, 2024 Shenzhen Sunway Communication Co., Ltd., Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: 2F, North Area, Building A, No. 2, Kefeng Road, Science Park, Nanshan District, Shenzhen, Guangdong China Reported Earnings • Apr 24
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: CN¥0.16 (up from CN¥0.15 in 1Q 2023). Revenue: CN¥1.86b (up 7.0% from 1Q 2023). Net income: CN¥151.7m (up 4.5% from 1Q 2023). Profit margin: 8.2% (down from 8.4% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.3%. Earnings per share (EPS) missed analyst estimates by 7.1%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 14% per year and the company’s share price has also fallen by 14% per year. New Risk • Apr 24
New major risk - Revenue and earnings growth Earnings have declined by 14% 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. Ankündigung • Mar 30
Shenzhen Sunway Communication Co., Ltd. to Report Q1, 2024 Results on Apr 24, 2024 Shenzhen Sunway Communication 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 15% After last week's 15% share price decline to CN¥15.72, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 21x in the Communications industry in China. Total loss to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.90 per share. Ankündigung • Dec 30
Shenzhen Sunway Communication Co., Ltd. to Report Fiscal Year 2023 Results on Apr 24, 2024 Shenzhen Sunway Communication Co., Ltd. announced that they will report fiscal year 2023 results on Apr 24, 2024 Price Target Changed • Oct 31
Price target increased by 14% to CN¥20.90 Up from CN¥18.33, the current price target is an average from 4 analysts. New target price is 20% below last closing price of CN¥26.20. Stock is up 53% over the past year. The company is forecast to post earnings per share of CN¥0.82 for next year compared to CN¥0.67 last year. Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: CN¥0.34 (down from CN¥0.43 in 3Q 2022). Revenue: CN¥2.25b (down 9.5% from 3Q 2022). Net income: CN¥323.8m (down 22% from 3Q 2022). Profit margin: 14% (down from 17% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) exceeded analyst estimates by 9.1%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 18% per year whereas the company’s share price has fallen by 20% per year. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥25.02, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 27x in the Communications industry in China. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥23.94 per share. New Risk • Oct 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.0% 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. This is currently the only risk that has been identified for the company. Ankündigung • Sep 30
Shenzhen Sunway Communication Co., Ltd. to Report Q3, 2023 Results on Oct 26, 2023 Shenzhen Sunway Communication Co., Ltd. announced that they will report Q3, 2023 results on Oct 26, 2023 Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥19.76, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 29x in the Communications industry in China. Total loss to shareholders of 63% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥23.58 per share. Major Estimate Revision • Sep 02
Consensus EPS estimates increase by 12%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥9.44b to CN¥8.88b. EPS estimate rose from CN¥0.742 to CN¥0.829. Net income forecast to grow 43% next year vs 57% growth forecast for Communications industry in China. Consensus price target up from CN¥17.98 to CN¥18.88. Share price rose 5.3% to CN¥17.17 over the past week. Major Estimate Revision • Aug 24
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from CN¥0.917 to CN¥0.742 per share. Revenue forecast steady at CN¥9.44b. Net income forecast to grow 46% next year vs 53% growth forecast for Communications industry in China. Consensus price target broadly unchanged at CN¥17.98. Share price fell 5.6% to CN¥16.70 over the past week. Reported Earnings • Aug 18
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.05 (down from CN¥0.065 in 2Q 2022). Revenue: CN¥1.61b (down 9.6% from 2Q 2022). Net income: CN¥48.4m (down 23% from 2Q 2022). Profit margin: 3.0% (down from 3.5% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 7.7%. Earnings per share (EPS) also missed analyst estimates by 59%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications 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 fallen by 34% per year, which means it is performing significantly worse than earnings. Buying Opportunity • Aug 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.7%. The fair value is estimated to be CN¥21.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has declined by 19%. Revenue is forecast to grow by 30% in 2 years. Earnings is forecast to grow by 61% in the next 2 years. Ankündigung • May 26
Shenzhen Sunway Communication Co., Ltd Approves Final Cash Dividend for 2022 Shenzhen Sunway Communication Co., Ltd. Annual General Meeting of 2022 on 22 May 2023, approved Cash dividend/10 shares (tax included) of CNY 0.50000000 for the year 2022. Major Estimate Revision • May 04
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥9.82b to CN¥8.76b. EPS estimate fell from CN¥1.03 to CN¥0.845 per share. Net income forecast to grow 29% next year vs 51% growth forecast for Communications industry in China. Consensus price target of CN¥17.58 unchanged from last update. Share price rose 4.2% to CN¥19.18 over the past week. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 1 highly experienced director. 3 independent directors (6 non-independent directors). Executive Deputy GM & Director Huilin Wu was the last director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 27
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: CN¥0.43 (up from CN¥0.32 in 3Q 2021). Revenue: CN¥2.48b (up 7.3% from 3Q 2021). Net income: CN¥417.4m (up 37% from 3Q 2021). Profit margin: 17% (up from 13% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 56%. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 26% per year. Reported Earnings • Jul 31
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: CN¥0.065 (up from CN¥0.059 in 2Q 2021). Revenue: CN¥1.78b (up 23% from 2Q 2021). Net income: CN¥62.9m (up 10.0% from 2Q 2021). Profit margin: 3.5% (down from 4.0% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 23%. Over the next year, revenue is forecast to grow 18%, compared to a 28% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 19% per year whereas the company’s share price has fallen by 15% per year. Ankündigung • Jun 23
Shenzhen Sunway Communication Co., Ltd. Announces Final Cash Dividend on A Shares for 2021, Payable on 28 June 2022 Shenzhen Sunway Communication Co., Ltd. announced final cash dividend of CNY 0.50000000 per 10 shares on A shares for 2021. Record date is 27 June 2022, Ex-date is 28 June 2022 and Payment date is 28 June 2022. Ankündigung • May 26
Shenzhen Sunway Communication Co., Ltd. Approves Final Cash Dividend for the Year 2021 Shenzhen Sunway Communication Co., Ltd. approved final cash dividend (tax included) of CNY 0.50000000 per ten share for the year 2021, at its Annual General Meeting of 2021 held on 23 May 2022. Major Estimate Revision • May 04
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥9.97b to CN¥9.28b. EPS estimate also fell from CN¥1.12 per share to CN¥0.88 per share. Net income forecast to grow 74% next year vs 55% growth forecast for Communications industry in China. Consensus price target down from CN¥22.30 to CN¥16.73. Share price rose 3.1% to CN¥14.67 over the past week. Price Target Changed • Apr 29
Price target decreased to CN¥20.28 Down from CN¥22.30, the current price target is an average from 3 analysts. New target price is 38% above last closing price of CN¥14.67. Stock is down 48% over the past year. The company is forecast to post earnings per share of CN¥0.79 for next year compared to CN¥0.52 last year. Reported Earnings • Apr 28
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: CN¥0.13 (up from CN¥0.12 in 1Q 2021). Revenue: CN¥1.91b (up 19% from 1Q 2021). Net income: CN¥121.0m (up 5.0% from 1Q 2021). Profit margin: 6.3% (down from 7.1% in 1Q 2021). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 36%. Over the next year, revenue is forecast to grow 29%, compared to a 29% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 20% per year. Board Change • Apr 27
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. 11 experienced directors. 1 highly experienced director. Employee Representative to the Supervisory Board Li Na Guan was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Price Target Changed • Mar 22
Price target decreased to CN¥24.35 Down from CN¥26.80, the current price target is an average from 4 analysts. New target price is 31% above last closing price of CN¥18.57. Stock is down 33% over the past year. The company is forecast to post earnings per share of CN¥0.91 for next year compared to CN¥1.01 last year. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.32 (vs CN¥0.43 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥2.31b (up 30% from 3Q 2020). Net income: CN¥305.5m (down 27% from 3Q 2020). Profit margin: 13% (down from 23% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 2% per year. Price Target Changed • Jul 29
Price target decreased to CN¥30.47 Down from CN¥33.27, the current price target is an average from 8 analysts. New target price is 16% above last closing price of CN¥26.31. Stock is down 48% over the past year. Major Estimate Revision • Jul 27
Consensus EPS estimates fall to CN¥1.00 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥8.88b to CN¥8.49b. EPS estimate also fell from CN¥1.29 to CN¥1.00. Net income forecast to grow 38% next year vs 41% growth forecast for Communications industry in China. Consensus price target broadly unchanged at CN¥32.80. Share price fell 18% to CN¥25.70 over the past week. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥25.70, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 29x in the Communications industry in China. Total loss to shareholders of 24% over the past three years. Reported Earnings • Jul 21
Second quarter 2021 earnings released: EPS CN¥0.059 (vs CN¥0.28 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.44b (down 4.6% from 2Q 2020). Net income: CN¥57.2m (down 79% from 2Q 2020). Profit margin: 4.0% (down from 18% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 5% per year. Price Target Changed • Jun 19
Price target decreased to CN¥33.28 Down from CN¥40.75, the current price target is an average from 8 analysts. New target price is 14% above last closing price of CN¥29.20. Stock is down 40% over the past year. Ankündigung • Jun 03
Shenzhen Sunway Communication Co., Ltd. Announces Final Cash Dividend for 2020, Payable on 09 June 2021 Shenzhen Sunway Communication Co., Ltd. announced final tax included cash dividend of CNY 1 per 10 A shares for 2020. Record date is 08 June 2021, ex-date is 09 June 2021, and the payment date is 09 June 2021. Ankündigung • May 21
Shenzhen Sunway Communication Co., Ltd. Approves Cash Dividend for the Year 2020 Shenzhen Sunway Communication Co., Ltd. approved cash dividend (tax included) of CNY 1.00 per 10 shares for the year 2020 at its AGM held on May 19, 2021. Major Estimate Revision • May 02
Consensus EPS estimates fall to CN¥1.33 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥9.49b to CN¥9.11b. EPS estimate also fell from CN¥1.77 to CN¥1.33. Net income forecast to grow 44% next year vs 44% growth forecast for Communications industry in China. Consensus price target down from CN¥51.01 to CN¥43.74. Share price fell 3.6% to CN¥28.11 over the past week. Ankündigung • Apr 28
Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) agreed to acquire the remaining 30% stake in Shenzhen Ailimen Technology Co., Ltd. from Changzhou Ailimen Management Consulting Partnership (Limited Partnership) for approximately CNY 110 million. Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) agreed to acquire the remaining 30% stake in Shenzhen Ailimen Technology Co., Ltd. from Changzhou Ailimen Management Consulting Partnership (Limited Partnership) for approximately CNY 110 million on April 23, 2021. After completion, Shenzhen Sunway Communication Co., Ltd. will own a 100% stake in Shenzhen Ailimen Technology Co., Ltd. For the year ended December 2020, Shenzhen Ailimen Technology Co., Ltd. reported total assets of CNY 465.9 million, total common equity of CNY 248.1 million, operating revenue of CNY 491.2 million and net income of CNY 111.7 million. The 15th meeting of the fourth Board of Directors and the 15th meeting of the 4th reunion of supervisors carefully considered and unanimously approved the transaction. Ankündigung • Apr 27
Shenzhen Sunway Communication Co., Ltd. Announces Final Dividend for the Year 2020 Shenzhen Sunway Communication Co., Ltd. announced final cash dividend CNY 1.00 per 10 shares (tax included) for the year 2020. Price Target Changed • Apr 27
Price target decreased to CN¥45.90 Down from CN¥51.01, the current price target is an average from 12 analysts. New target price is 63% above last closing price of CN¥28.13. Stock is down 27% over the past year. Reported Earnings • Apr 26
First quarter 2021 earnings released: EPS CN¥0.12 (vs CN¥0.065 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.61b (up 54% from 1Q 2020). Net income: CN¥115.2m (up 84% from 1Q 2020). Profit margin: 7.1% (up from 6.0% 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 2% per year whereas the company’s share price has fallen by 3% per year. Ankündigung • Mar 19
Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) acquired Suzhou Juyongchang Electronic Technology Co., Ltd from Li Gangqiang ,Li Ying, Yin Honghui, Li Xiang and Li Jun for CNY 50 million. Shenzhen Sunway Communication Co., Ltd. (SZSE:300136) signed Cooperation Framework Agreement to acquire Suzhou Juyongchang Electronic Technology Co., Ltd from Li Gangqiang,Li Ying,Yin Honghui, Li Xiang and Li Jun for CNY 50 million on March 17, 2021. All the seller promises that the Suzhou Juyongchang Electronic audited net profit after deducting non-recurring gains and losses in 2021, 2022, and 2023 shall be no less than CNY 12 million, CNY 15 million and CNY 18 million respectively, and the three-year cumulative committed net profit shall not be less than CNY 45 million. The registration and filing of related industrial and commercial changes has been completed, and Suzhou Juyongchang Electronic Technology Co., Ltd. is a wholly-owned subsidiary of the Shenzhen Sunway Communication.. Is New 90 Day High Low • Mar 15
New 90-day low: CN¥27.56 The company is down 33% from a price of CN¥41.29 on 15 December 2020. Underperformed the Chinese market, which is flat over the last 90 days. Lagged the Communications industry, which is down 15% over the same period. Simply Wall St's valuation model estimates the intrinsic value at CN¥27.83 per share. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥28.86, the stock is trading at a trailing P/E ratio of 29.7x, down from the previous P/E ratio of 35.2x. This compares to an average P/E of 49x in the Communications industry in China. Total return to shareholders over the past three years is a loss of 28%. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥31.79 The company is down 33% from its price of CN¥47.50 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥27.75 per share. Price Target Changed • Jan 28
Price target lowered to CN¥57.16 Down from CN¥61.53, the current price target is an average from 12 analysts. The new target price is 80% above the current share price of CN¥31.79. As of last close, the stock is down 28% over the past year. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥31.79, the stock is trading at a trailing P/E ratio of 32.8x, down from the previous P/E ratio of 39.7x. This compares to an average P/E of 53x in the Communications industry in China. Total return to shareholders over the past three years is a loss of 7.3%. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥36.17 The company is down 35% from its price of CN¥55.58 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 Communications industry, which is down 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥33.05 per share. 
