New Risk • Jun 29
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 Hong Kong stocks, typically moving 11% 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 Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$13.50, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 16x in the Tech industry in Asia. Total returns to shareholders of 85% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.62 per share. Annonce • Jun 28
Legend Holdings Corporation Appoints Yu Hao as an Executive Director and Member of the Strategy Committee and the Environmental, Social and Governance Committee Legend Holdings Corporation at its AGM held on June 26, 2026, approved that Mr.YU Hao has been appointed as an Executive Director of the fourth session of the Board. He has also been appointed by the Board as a member of the Strategy Committee and the Environmental, Social and Governance Committee of the Company. Annonce • Jun 27
Legend Holdings Corporation Approves Final Ordinary Cash Dividend for the Year Ended December 31, 2025, Payable on 28 August 2026 Legend Holdings Corporation at its AGM, held on June 26, 2026, approved final ordinary cash dividend of RMB 0.1 per share (2024:Nil) for the year ended December 31, 2025, payable on 28 August 2026. Record date is 08 July 2026. In order to determine the list of the H Shareholders entitled to the 2025 final dividend, the register of members of H Shares will be closed from July 3, 2026 to Wednesday, July 8, 2026 (both days inclusive), during which time no transfer of H Shares will be registered. In order to be entitled to the 2025 final dividend, H Shareholders shall lodge the share certificates accompanied by relevant share transfer documents with the Company's H Share registrar Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong not later than 4:30 p.m. on July 2, 2026. Upcoming Dividend • Jun 23
Upcoming dividend of CN¥0.10 per share Eligible shareholders must have bought the stock before 30 June 2026. Payment date: 28 August 2026. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Hong Kong dividend payers (7.4%). Lower than average of industry peers (1.0%). Buy Or Sell Opportunity • Jun 04
Now 21% undervalued Over the last 90 days, the stock has risen 79% to HK$16.32. The fair value is estimated to be HK$20.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 161% in the next 2 years. Actualités en direct • May 23
Legend Holdings Cautions Against Relying Solely on Lenovo’s Strong Financial Results Legend Holdings reported that key subsidiary Lenovo released audited annual results for the fiscal year ended March 31, 2026.
Lenovo’s results showed strong revenue and profit growth for the period, pointing to solid operational performance.
Legend Holdings highlighted that Lenovo’s results on their own do not fully capture the overall financial position of the wider group.
The key takeaway is that Lenovo appears to be contributing positively at an operating level, but Legend Holdings is signaling that investors should not treat Lenovo’s performance as a direct proxy for the group’s consolidated results.
When you assess Legend Holdings, it is worth considering how much of your view is based on Lenovo alone and remembering that other assets, liabilities and businesses within the group can materially influence overall earnings and balance sheet strength. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$11.68, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Tech industry in Asia. Total returns to shareholders of 54% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.59 per share. Annonce • Apr 09
China Logistics Group Capital Management Co., Ltd. entered into the Share Transfer Agreement to acquire 11.29% stake in Eastern Air Logistics Co., Ltd. (SHSE:601156) from Legend Holdings Corporation (SEHK:3396) for CNY 2.7 billion. China Logistics Group Capital Management Co., Ltd. entered into the Share Transfer Agreement to acquire 11.29% stake in Eastern Air Logistics Co., Ltd. (SHSE:601156) from Legend Holdings Corporation (SEHK:3396) for CNY 2.7 billion on April 8, 2026. A cash consideration valued at CNY 15.156 per share will be paid by China Logistics Group Capital Management Co., Ltd. Upon the completion of the Disposal, Legend Holdings Corporation will cease to hold shares of Eastern Air Logistics Co., Ltd.
The transaction is subject to approval of offer by acquirer shareholders and approval of offer by acquirer board. Major Estimate Revision • Apr 08
Consensus EPS estimates fall by 60%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from CN¥603.0b to CN¥658.2b. EPS estimate fell from CN¥2.07 to CN¥0.82 per share. Net income forecast to grow 82% next year vs 32% growth forecast for Tech industry in Hong Kong. Consensus price target down from HK$12.34 to HK$10.29. Share price was steady at HK$8.45 over the past week. Annonce • Apr 02
Legend Holdings Corporation, Annual General Meeting, Jun 26, 2026 Legend Holdings Corporation, Annual General Meeting, Jun 26, 2026. New Risk • Apr 02
New major risk - Revenue and earnings growth Earnings have declined by 54% 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 Interest payments are not well covered by earnings (2.6x net interest cover). Earnings have declined by 54% per year over the past 5 years. Reported Earnings • Apr 02
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.45 (up from CN¥0.057 in FY 2024). Revenue: CN¥613.2b (up 17% from FY 2024). Net income: CN¥1.06b (up CN¥927.6m from FY 2024). Profit margin: 0.2% (up from 0% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.5%. Earnings per share (EPS) missed analyst estimates by 82%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Tech industry in Asia. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Mar 25
Now 22% overvalued Over the last 90 days, the stock has fallen 6.4% to HK$8.22. The fair value is estimated to be HK$6.76, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 2.4% in a year. Earnings are forecast to grow by 736% in the next year. Annonce • Mar 17
Legend Holdings Corporation to Report Fiscal Year 2025 Results on Mar 31, 2026 Legend Holdings Corporation announced that they will report fiscal year 2025 results on Mar 31, 2026 Reported Earnings • Sep 28
First half 2025 earnings released: EPS: CN¥0.30 (vs CN¥0.12 in 1H 2024) First half 2025 results: EPS: CN¥0.30 (up from CN¥0.12 in 1H 2024). Revenue: CN¥285.2b (up 20% from 1H 2024). Net income: CN¥699.1m (up 145% from 1H 2024). Profit margin: 0.2% (up from 0.1% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Tech industry in Asia. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Annonce • Aug 18
Legend Holdings Corporation to Report First Half, 2025 Results on Aug 29, 2025 Legend Holdings Corporation announced that they will report first half, 2025 results on Aug 29, 2025 Buy Or Sell Opportunity • Jul 30
Now 21% undervalued Over the last 90 days, the stock has risen 31% to HK$10.14. The fair value is estimated to be HK$12.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 3,567% in the next 2 years. Reported Earnings • May 04
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥0.057 (up from CN¥1.65 loss in FY 2023). Revenue: CN¥522.1b (up 18% from FY 2023). Net income: CN¥133.2m (up CN¥4.01b from FY 2023). Profit margin: 0% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 96%. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Tech industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 102 percentage points per year, which is a significant difference in performance. New Risk • Apr 07
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 Hong Kong stocks, typically moving 11% 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 Interest payments are not well covered by earnings (1.9x net interest cover). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). New Risk • Mar 30
New major risk - Revenue and earnings growth Earnings have declined by 51% 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 Interest payments are not well covered by earnings (1.9x net interest cover). Earnings have declined by 51% per year over the past 5 years. Annonce • Mar 28
Legend Holdings Corporation, Annual General Meeting, May 28, 2025 Legend Holdings Corporation, Annual General Meeting, May 28, 2025. Annonce • Mar 15
Legend Holdings Corporation to Report Fiscal Year 2024 Results on Mar 28, 2025 Legend Holdings Corporation announced that they will report fiscal year 2024 results at 4:00 PM, China Standard Time on Mar 28, 2025 Reported Earnings • Sep 02
First half 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.28 in 1H 2023) First half 2024 results: EPS: CN¥0.12 (down from CN¥0.28 in 1H 2023). Revenue: CN¥238.0b (up 18% from 1H 2023). Net income: CN¥285.9m (down 57% from 1H 2023). Profit margin: 0.1% (down from 0.3% in 1H 2023). Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Tech industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Annonce • Aug 20
Legend Holdings Corporation to Report First Half, 2024 Results on Aug 30, 2024 Legend Holdings Corporation announced that they will report first half, 2024 results on Aug 30, 2024 Buy Or Sell Opportunity • Jul 04
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to HK$6.25. The fair value is estimated to be HK$5.11, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Annonce • May 31
Legend Holdings Corporation, Annual General Meeting, Jun 27, 2024 Legend Holdings Corporation, Annual General Meeting, Jun 27, 2024, at 14:00 China Standard Time. Location: b-17, raycom info tech park, no. 2 ke xue yuan south road, haidian district, beijing China Annonce • May 25
Legend Holdings Corporation Announces Board Retirements Legend Holdings Corporation announced that Mr. SUO Jishuan and Mr. YANG Jianhua shall retire as Non-executive Directors, while Mr. MA Weihua shall retire as an Independent Non-executive Director, with effect from the conclusion of the 2023 AGM. Mr. ZHANG Yong shall retire as a Shareholder representative Supervisor, with effect from the conclusion of the 2023 AGM. Reported Earnings • Apr 27
Full year 2023 earnings released: CN¥1.65 loss per share (vs CN¥0.50 profit in FY 2022) Full year 2023 results: CN¥1.65 loss per share (down from CN¥0.50 profit in FY 2022). Revenue: CN¥442.8b (down 8.8% from FY 2022). Net loss: CN¥3.87b (down 432% from profit in FY 2022). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Tech industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 29
Full year 2023 earnings released: CN¥1.65 loss per share (vs CN¥0.50 profit in FY 2022) Full year 2023 results: CN¥1.65 loss per share (down from CN¥0.50 profit in FY 2022). Revenue: CN¥442.8b (down 8.8% from FY 2022). Net loss: CN¥3.87b (down 432% from profit in FY 2022). Revenue is forecast to grow 9.9% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Tech industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. New Risk • Mar 18
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Paying a dividend despite being loss-making. Annonce • Mar 15
Legend Holdings Corporation to Report Fiscal Year 2023 Results on Mar 28, 2024 Legend Holdings Corporation announced that they will report fiscal year 2023 results on Mar 28, 2024 Buy Or Sell Opportunity • Feb 22
Now 22% overvalued Over the last 90 days, the stock has fallen 2.8% to HK$6.70. The fair value is estimated to be HK$5.48, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Feb 06
Now 22% overvalued Over the last 90 days, the stock has fallen 10% to HK$6.28. The fair value is estimated to be HK$5.15, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Meanwhile, the company became loss making. Annonce • Oct 01
Legend Holdings Corporation Announces Executive Changes Legend Holdings Corporation announced that the board of directors appointed Mr. Suo Jishuan, the non-executive director of the Company, as a member of the remuneration committee of the Board while Mr.Ning Min, the chairman and executive director ("Mr. Ning"), will cease to be a member of the Remuneration Committee, with effect from September 29, 2023. The members of the Remuneration Committee after the change include Mr. Yin Jian'an and Ms. Hao Quan, the independent non-executive directors, as well as Mr. Suo Jishuan, the non-executive director. Mr. Yin Jian'an serves as the chairman of the Remuneration Committee. Reported Earnings • Sep 01
First half 2023 earnings released: EPS: CN¥0.28 (vs CN¥0.94 in 1H 2022) First half 2023 results: EPS: CN¥0.28 (down from CN¥0.94 in 1H 2022). Revenue: CN¥204.0b (down 14% from 1H 2022). Net income: CN¥668.0m (down 70% from 1H 2022). Profit margin: 0.3% (down from 0.9% in 1H 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Tech industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Annonce • Aug 18
Legend Holdings Corporation to Report First Half, 2023 Results on Aug 31, 2023 Legend Holdings Corporation announced that they will report first half, 2023 results on Aug 31, 2023 Annonce • Jul 30
Legend Holdings Corporation Provides Group Earnings Guidance for the Six Months Ended June 30, 2023 Legend Holdings Corporation provided group earnings guidance for the six months ended June 30, 2023. The board of directors of the Company informed the shareholders of the company and its potential investors that, based on information currently available to the Board and a preliminary review of the unaudited consolidated management accounts of the Group for the six months ended June 30, 2023, it is expected to record a net profit attributable to equity holders of the Company of not higher than RMB 800 million, representing a decline of not less than approximately 62% as compared with RMB 2,131 million for the same period of 2022. As far as the Directors are aware of, the profit recorded for the Period was lower than the same period of last year which was mainly attributable to the deceleration of global economic growth, and the profit contribution from the Company's industrial operations segment that had been impacted by factors affecting such industries, resulting in a year-on-year decrease. Annonce • Jun 30
Legend Holdings Corporation Approves Final Dividend for the Year Ended December 31, 2022, Payable on August 30, 2023 Legend Holdings Corporation approved at its AGM held on June 29, 2023, a cash dividend of RMB 0.20 (approximately HKD 0.2174) per Share (before tax) for the year ended December 31, 2022 (2021: RMB 0.40) on August 30, 2023 to the Shareholders whose names appear on the register of members of the Company on July 10, 2023. Upcoming Dividend • Jun 26
Upcoming dividend of CN¥0.20 per share at 3.1% yield Eligible shareholders must have bought the stock before 03 July 2023. Payment date: 30 August 2023. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Hong Kong dividend payers (8.0%). Higher than average of industry peers (2.4%). Reported Earnings • May 03
Full year 2022 earnings released: EPS: CN¥0.50 (vs CN¥2.46 in FY 2021) Full year 2022 results: EPS: CN¥0.50 (down from CN¥2.46 in FY 2021). Revenue: CN¥485.8b (down 1.1% from FY 2021). Net income: CN¥1.17b (down 80% from FY 2021). Profit margin: 0.2% (down from 1.2% in FY 2021). Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Tech industry in Asia. Over the last 3 years on average, earnings per share has fallen by 56% 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. Reported Earnings • Apr 01
Full year 2022 earnings released Full year 2022 results: Revenue: CN¥485.8b (down 1.1% from FY 2021). Net income: CN¥1.17b (down 80% from FY 2021). Profit margin: 0.2% (down from 1.2% in FY 2021). Board Change • Nov 16
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, 1 was an independent director. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Non-Executive Director Jian'an Yin was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Major Estimate Revision • Sep 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from CN¥2.91 to CN¥1.73 per share. Revenue forecast steady at CN¥532.6b. Net income forecast to grow 75% next year vs 9.2% growth forecast for Tech industry in Hong Kong. Consensus price target down from HK$14.78 to HK$12.01. Share price fell 6.0% to HK$8.40 over the past week. Reported Earnings • Sep 01
First half 2022 earnings released: EPS: CN¥0 (vs CN¥2.66 in 1H 2021) First half 2022 results: EPS: CN¥0 (down from CN¥2.66 in 1H 2021). Revenue: CN¥238.4b (up 4.3% from 1H 2021). Net income: CN¥2.13b (down 66% from 1H 2021). Profit margin: 0.9% (down from 2.7% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 11%, compared to a 6.7% growth forecast for the Tech industry in Hong Kong. Upcoming Dividend • Jun 27
Upcoming dividend of CN¥0.40 per share Eligible shareholders must have bought the stock before 04 July 2022. Payment date: 30 August 2022. Payout ratio is a comfortable 16% and this is well supported by cash flows. Trailing yield: 4.5%. Lower than top quartile of Hong Kong dividend payers (7.9%). Higher than average of industry peers (3.2%). Reported Earnings • May 02
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥2.46 (up from CN¥1.66 in FY 2020). Revenue: CN¥491.2b (up 17% from FY 2020). Net income: CN¥5.75b (up 49% from FY 2020). Profit margin: 1.2% (up from 0.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 21%. Over the next year, revenue is expected to shrink by 4.2% compared to a 13% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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, 1 was an independent director. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Non-Executive Director Jian'an Yin was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Apr 01
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥2.46 (down from CN¥5.82 in FY 2020). Revenue: CN¥491.2b (up 17% from FY 2020). Net income: CN¥5.75b (down 57% from FY 2020). Profit margin: 1.2% (down from 3.2% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 21%. Over the next year, revenue is expected to shrink by 8.9% compared to a 12% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Reported Earnings • Sep 03
First half 2021 earnings released: EPS CN¥2.01 (vs CN¥0.24 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥229.2b (up 24% from 1H 2020). Net income: CN¥4.69b (up CN¥4.12b from 1H 2020). Profit margin: 2.0% (up from 0.3% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improved over the past week After last week's 22% share price gain to HK$14.40, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Tech industry in Asia. Total loss to shareholders of 37% over the past three years. Executive Departure • Jun 15
Non-Executive Director Yusuo Wang has left the company On the 10th of June, Yusuo Wang's tenure as Non-Executive Director ended after 1.3 years in the role. As of March 2021, Yusuo still personally held 54.09m shares (HK$518m worth at the time). A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 3.83 years. Executive Departure • Jun 15
Non Executive Director Lebin Wu has left the company On the 10th of June, Lebin Wu's tenure as Non Executive Director ended after 6.8 years in the role. We don't have any record of a personal shareholding under Lebin's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 3.83 years. Upcoming Dividend • Jun 08
Upcoming dividend of CN¥0.36 per share Eligible shareholders must have bought the stock before 15 June 2021. Payment date: 15 July 2021. Trailing yield: 3.3%. Lower than top quartile of Hong Kong dividend payers (6.0%). Higher than average of industry peers (2.2%). Reported Earnings • Apr 24
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥419.3b (up 7.0% from FY 2019). Net income: CN¥4.19b (up 16% from FY 2019). Profit margin: 1.0% (up from 0.9% in FY 2019). The increase in margin was driven by higher revenue. Major Estimate Revision • Apr 07
Consensus EPS estimates increase to CN¥2.38 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CN¥402.4b to CN¥426.8b. EPS estimate increased from CN¥1.96 to CN¥2.38 per share. Net income forecast to grow 15% next year vs 18% growth forecast for Tech industry in Hong Kong. Consensus price target broadly unchanged at HK$14.53. Share price rose 8.8% to HK$13.40 over the past week. Reported Earnings • Apr 01
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥419.3b (up 7.0% from FY 2019). Net income: CN¥4.19b (up 16% from FY 2019). Profit margin: 1.0% (up from 0.9% in FY 2019). The increase in margin was driven by higher revenue. Executive Departure • Mar 17
Independent Non Executive Director has left the company On the 11th of March, Xuebing Zhang's tenure as Independent Non Executive Director ended after 5.7 years in the role. We don't have any record of a personal shareholding under Xuebing's name. A total of 2 executives have left over the last 12 months. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 25% share price gain to CN¥14.38, the stock is trading at a trailing P/E ratio of 16.1x, up from the previous P/E ratio of 12.8x. This compares to an average P/E of 12x in the Tech industry in Hong Kong. Total return to shareholders over the past three years is a loss of 45%. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥12.32, the stock is trading at a trailing P/E ratio of 13.7x, up from the previous P/E ratio of 11.7x. This compares to an average P/E of 12x in the Tech industry in Hong Kong. Total return to shareholders over the past three years is a loss of 51%. Is New 90 Day High Low • Jan 11
New 90-day high: HK$11.50 The company is up 7.0% from its price of HK$10.76 on 12 October 2020. The Hong Kong market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 40% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is HK$685 per share.