New Risk • Apr 27
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 20% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (462% cash payout ratio). Reported Earnings • Apr 20
Full year 2025 earnings released: EPS: CN¥0.49 (vs CN¥0.43 in FY 2024) Full year 2025 results: EPS: CN¥0.49 (up from CN¥0.43 in FY 2024). Revenue: CN¥2.23b (up 21% from FY 2024). Net income: CN¥303.8m (up 13% from FY 2024). Profit margin: 14% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Annonce • Apr 20
Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 11, 2026 Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 11, 2026, at 16:00 China Standard Time. Location: 20F, Building 1, No. 4, Guanlv Road, Xincheng Area, Dehe Community Residents Committee, Daliang Subdistrict Office, Shunde District, Foshan, Guangdong China Annonce • Mar 31
Guangdong Shunkong Development Co.,Ltd. to Report Q1, 2026 Results on Apr 27, 2026 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q1, 2026 results on Apr 27, 2026 Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥17.52, the stock trades at a trailing P/E ratio of 39.7x. Average trailing P/E is 27x in the Water Utilities industry in China. Total returns to shareholders of 4.7% over the past three years. Annonce • Dec 31
Guangdong Shunkong Development Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 20, 2026 Guangdong Shunkong Development Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 20, 2026 Reported Earnings • Oct 26
Third quarter 2025 earnings released: EPS: CN¥0.14 (vs CN¥0.14 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.14 (up from CN¥0.14 in 3Q 2024). Revenue: CN¥589.0m (up 22% from 3Q 2024). Net income: CN¥86.5m (up 3.4% from 3Q 2024). Profit margin: 15% (down from 17% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Annonce • Sep 30
Guangdong Shunkong Development Co.,Ltd. to Report Q3, 2025 Results on Oct 27, 2025 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q3, 2025 results on Oct 27, 2025 Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.11 (down from CN¥0.11 in 2Q 2024). Revenue: CN¥555.5m (up 24% from 2Q 2024). Net income: CN¥69.7m (down 1.0% from 2Q 2024). Profit margin: 13% (down from 16% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Aug 22
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Ping Zhang 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. Annonce • Jul 02
Guangdong Shunkong Development Co.,Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Guangdong Shunkong Development Co.,Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Declared Dividend • Jun 13
Dividend increased to CN¥0.21 Dividend of CN¥0.21 is 21% higher than last year. Ex-date: 18th June 2025 Payment date: 18th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is covered by earnings (48% 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 14% per year over the past 4 years and payments have been stable during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. New Risk • May 05
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 20% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Earnings have declined by 1.3% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. New Risk • Apr 22
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.7% per year over the past 5 years. Minor Risks High level of debt (46% net debt to equity). Paying a dividend despite having no free cash flows. Annonce • Apr 22
Guangdong Shunkong Development Co.,Ltd. Proposes Final Cash Dividend for the Year 2024 Guangdong Shunkong Development Co.,Ltd. announced on 21 April 2025 the profit distribution proposal for the year 2024 as final cash dividend/10 shares (tax included) of CNY 2.10000000. Annonce • Apr 21
Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 12, 2025 Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 12, 2025, at 16:00 China Standard Time. Location: 20F, Building 1, No. 4, Guanlv Road, Xincheng Area, Dehe Community Residents Committee, Daliang Subdistrict Office, Shunde District, Foshan, Guangdong China Annonce • Mar 31
Guangdong Shunkong Development Co.,Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥15.57, the stock trades at a trailing P/E ratio of 36.4x. Average trailing P/E is 27x in the Water Utilities industry in China. Total loss to shareholders of 28% over the past three years. Annonce • Dec 31
Guangdong Shunkong Development Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 21, 2025 Guangdong Shunkong Development Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 21, 2025 Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥14.83, the stock trades at a trailing P/E ratio of 34.7x. Average trailing P/E is 22x in the Water Utilities industry in China. Total loss to shareholders of 52% over the past three years. Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.15 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.15 in 3Q 2023). Revenue: CN¥481.4m (up 16% from 3Q 2023). Net income: CN¥83.6m (down 11% from 3Q 2023). Profit margin: 17% (down from 23% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Annonce • Sep 30
Guangdong Shunkong Development Co.,Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥13.23, the stock trades at a trailing P/E ratio of 29.8x. Average trailing P/E is 22x in the Water Utilities industry in China. Total loss to shareholders of 62% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.098 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.11 (up from CN¥0.098 in 2Q 2023). Revenue: CN¥448.2m (up 25% from 2Q 2023). Net income: CN¥70.4m (up 15% from 2Q 2023). Profit margin: 16% (down from 17% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 32% per year, which means it is performing significantly worse than earnings. Annonce • Jun 29
Guangdong Shunkong Development Co.,Ltd. to Report First Half, 2024 Results on Aug 27, 2024 Guangdong Shunkong Development Co.,Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Declared Dividend • Jun 27
Dividend increased to CN¥0.17 Dividend of CN¥0.17 is 56% higher than last year. Ex-date: 28th June 2024 Payment date: 28th June 2024 Dividend yield will be 1.4%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has increased by an average of 12% per year over the past 3 years and payments have been stable during that time. Earnings per share has grown by 1.5% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annonce • Jun 25
Guangdong Shunkong Development Co.,Ltd. Announces Final Cash Dividend Plan for 2023 on A Shares, Payable on June 28, 2024 Guangdong Shunkong Development Co.,Ltd. announced 2023 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included) of CNY 1.73000000. Record date is June 27, 2024. Ex-date is June 28, 2024. Payment date is June 28, 2024. Annonce • May 11
Guangdong Shunkong Development Co.,Ltd. Approves Cash Dividend for the Year 2023 Guangdong Shunkong Development Co.,Ltd. at its Annual General Meeting held on 09 May 2024, approved cash dividend/10 shares (tax included) of CNY 1.73000000 for the year 2023. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.082 (vs CN¥0.05 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.082 (up from CN¥0.05 in 1Q 2023). Revenue: CN¥404.8m (up 35% from 1Q 2023). Net income: CN¥50.5m (up 73% from 1Q 2023). Profit margin: 13% (up from 9.7% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Reported Earnings • Apr 20
Full year 2023 earnings released: EPS: CN¥0.39 (vs CN¥0.39 in FY 2022) Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.39 in FY 2022). Revenue: CN¥1.46b (up 10% from FY 2022). Net income: CN¥243.6m (up 2.1% from FY 2022). Profit margin: 17% (down from 18% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Annonce • Apr 20
Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 09, 2024 Guangdong Shunkong Development Co.,Ltd., Annual General Meeting, May 09, 2024, at 16:00 China Standard Time. Location: 20F, Building 1, No. 4, Guanlv Road, Xincheng Area, Dehe Community Residents Committee, Daliang Subdistrict Office, Shunde District, Foshan, Guangdong China Annonce • Mar 30
Guangdong Shunkong Development Co.,Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q1, 2024 results on Apr 26, 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¥11.95, the stock trades at a trailing P/E ratio of 30.4x. Average trailing P/E is 17x in the Water Utilities industry in China. Total loss to shareholders of 33% over the past year. Annonce • Dec 29
Guangdong Shunkong Development Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 19, 2024 Guangdong Shunkong Development Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 19, 2024 Board Change • Dec 23
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Fang Xu was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. New Risk • Oct 30
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 6.5% 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 (6.5% average weekly change). Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥17.08, the stock trades at a trailing P/E ratio of 43.5x. Average trailing P/E is 18x in the Water Utilities industry in China. Total returns to shareholders of 3.6% over the past year. Reported Earnings • Oct 24
Third quarter 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.12 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.15 (up from CN¥0.12 in 3Q 2022). Revenue: CN¥414.1m (up 15% from 3Q 2022). Net income: CN¥93.7m (up 29% from 3Q 2022). Profit margin: 23% (up from 20% in 3Q 2022). The increase in margin was driven by higher revenue. Annonce • Sep 30
Guangdong Shunkong Development Co.,Ltd. to Report Q3, 2023 Results on Oct 24, 2023 Guangdong Shunkong Development Co.,Ltd. announced that they will report Q3, 2023 results on Oct 24, 2023 Reported Earnings • Aug 24
Second quarter 2023 earnings released: EPS: CN¥0.098 (vs CN¥0.09 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.098 (up from CN¥0.09 in 2Q 2022). Revenue: CN¥358.6m (up 10% from 2Q 2022). Net income: CN¥61.2m (up 6.3% from 2Q 2022). Profit margin: 17% (in line with 2Q 2022). Upcoming Dividend • Jun 20
Upcoming dividend of CN¥0.11 per share at 0.7% yield Eligible shareholders must have bought the stock before 27 June 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of Chinese dividend payers (2.0%). Lower than average of industry peers (3.0%). Reported Earnings • Apr 20
Full year 2022 earnings released: EPS: CN¥0.39 (vs CN¥0.45 in FY 2021) Full year 2022 results: EPS: CN¥0.39 (down from CN¥0.45 in FY 2021). Revenue: CN¥1.32b (down 1.4% from FY 2021). Net income: CN¥238.3m (down 13% from FY 2021). Profit margin: 18% (down from 20% in FY 2021). The decrease in margin was primarily driven by higher expenses. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥19.68, the stock trades at a trailing P/E ratio of 47.8x. Average trailing P/E is 17x in the Water Utilities industry in China. Total loss to shareholders of 38% over the past year. Board Change • Nov 16
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. 4 experienced directors. No highly experienced directors. GM & Chairman Haiyan Chen is the most experienced director on the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.14 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.14 in 3Q 2021). Revenue: CN¥360.3m (up 1.6% from 3Q 2021). Net income: CN¥72.4m (down 18% from 3Q 2021). Profit margin: 20% (down from 25% in 3Q 2021). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 24
Second quarter 2022 earnings released: EPS: CN¥0.09 (vs CN¥0.089 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.09 (up from CN¥0.089 in 2Q 2021). Revenue: CN¥324.8m (flat on 2Q 2021). Net income: CN¥57.6m (up 7.4% from 2Q 2021). Profit margin: 18% (up from 17% in 2Q 2021). Annonce • Jun 21
Guangdong Shunkong Development Co.,Ltd. Announces Final Dividend on A Shares for the Year 2021, Payable on June 24, 2022 Guangdong Shunkong Development Co.,Ltd. announced final cash dividend/10 shares (tax included) of CNY 1.27000000 on A shares for the year 2021. Record date is June 23, 2022. Ex-date is June 24, 2022. Payment date is June 24, 2022. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥23.23, the stock trades at a trailing P/E ratio of 53.8x. Average trailing P/E is 16x in the Water Utilities industry in China. Total loss to shareholders of 48% over the past year. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improved over the past week After last week's 27% share price gain to CN¥23.00, the stock trades at a trailing P/E ratio of 53.3x. Average trailing P/E is 16x in the Water Utilities industry in China. Total loss to shareholders of 55% over the past year. Annonce • May 12
Guangdong Shunkong Development Co. Ltd. Approves Final Cash Dividend for 2021 Guangdong Shunkong Development Co. Ltd. at its Annual General Meeting of 2021 on 09 May 2022 approved final cash dividend of CNY 1.27000000 per 10 shares (tax included) for 2021. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥19.14, the stock trades at a trailing P/E ratio of 44.4x. Average trailing P/E is 17x in the Water Utilities industry in China. Total loss to shareholders of 58% over the past year. Board Change • Apr 27
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non Independent Director Weifeng Liang 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. Annonce • Apr 20
Guangdong Shunkong Development Co. Ltd. Proposes Final Cash Dividend for 2021 Guangdong Shunkong Development Co. Ltd. proposed final cash dividend of CNY 1.27000000 per 10 shares (tax included) for 2021. Reported Earnings • Apr 19
Full year 2021 earnings released: EPS: CN¥0.45 (vs CN¥0.48 in FY 2020) Full year 2021 results: EPS: CN¥0.45. Revenue: CN¥1.34b (up 8.4% from FY 2020). Net income: CN¥273.4m (up 2.0% from FY 2020). Profit margin: 20% (down from 22% in FY 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥29.90, the stock trades at a trailing P/E ratio of 67.4x. Average trailing P/E is 22x in the Water Utilities industry in China. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥25.30, the stock trades at a trailing P/E ratio of 57.1x. Average trailing P/E is 23x in the Water Utilities industry in China. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥37.59, the stock trades at a trailing P/E ratio of 75.7x. Average trailing P/E is 17x in the Water Utilities industry in China. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥31.21, the stock trades at a trailing P/E ratio of 62.9x. Average trailing P/E is 15x in the Water Utilities industry in China. Annonce • May 20
Guangdong Shunkong Development Co. Ltd. Approves Final Dividend Profit Distribution for 2020 Guangdong Shunkong Development Co. Ltd. at its annual general meeting held on May 17, 2021 approved final dividend profit distribution for 2020 Cash dividend/10 shares (tax included): CNY 1.24000000. Annonce • Apr 27
Guangdong Shunkong Development Co. Ltd. Announces Final Dividend Profit Distribution Proposal for 2020 Guangdong Shunkong Development Co. Ltd. announced Final Dividend profit distribution proposal for 2020 Cash dividend/10 shares (tax included): CNY 1.24000000. Reported Earnings • Apr 26
Full year 2020 earnings released: EPS CN¥0.48 (vs CN¥0.42 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥1.23b (up 4.1% from FY 2019). Net income: CN¥267.9m (up 14% from FY 2019). Profit margin: 22% (up from 20% in FY 2019). The increase in margin was driven by higher revenue.