Buy Or Sell Opportunity • May 15
Now 22% undervalued Over the last 90 days, the stock has risen 17% to CN¥37.48. The fair value is estimated to be CN¥47.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.8% over the last 3 years. Earnings per share has grown by 6.6%. New Risk • May 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 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (114% cash payout ratio). Share price has been volatile over the past 3 months (7.9% average weekly change). New Risk • Apr 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 114% Dividend yield: 1.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 16
Full year 2025 earnings released: EPS: CN¥1.07 (vs CN¥0.99 in FY 2024) Full year 2025 results: EPS: CN¥1.07 (up from CN¥0.99 in FY 2024). Revenue: CN¥1.35b (up 4.3% from FY 2024). Net income: CN¥152.4m (up 7.7% from FY 2024). Profit margin: 11% (in line with FY 2024). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 20% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Apr 16
New major risk - Revenue and earnings growth Earnings have declined by 0.1% 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. Annuncio • Apr 16
Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 11, 2026 Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 11, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Changzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥36.96, the stock trades at a trailing P/E ratio of 35.7x. Average trailing P/E is 62x in the Electronic industry in China. Total returns to shareholders of 88% over the past three years. Annuncio • Mar 30
Changzhou Aohong Electronics Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Changzhou Aohong Electronics Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Annuncio • Dec 26
Changzhou Aohong Electronics Co., Ltd. to Report Fiscal Year 2025 Results on Apr 16, 2026 Changzhou Aohong Electronics Co., Ltd. announced that they will report fiscal year 2025 results on Apr 16, 2026 Valuation Update With 7 Day Price Move • Dec 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥29.29, the stock trades at a trailing P/E ratio of 28.3x. Average trailing P/E is 54x in the Electronic industry in China. Total returns to shareholders of 61% over the past three years. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.19 (vs CN¥0.15 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.19 (up from CN¥0.15 in 3Q 2024). Revenue: CN¥332.0m (up 1.7% from 3Q 2024). Net income: CN¥26.2m (up 18% from 3Q 2024). Profit margin: 7.9% (up from 6.8% in 3Q 2024). 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 14% per year, which means it is tracking significantly ahead of earnings growth. Annuncio • Sep 30
Changzhou Aohong Electronics Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Changzhou Aohong Electronics Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Aug 25
Second quarter 2025 earnings released: EPS: CN¥0.30 (vs CN¥0.33 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.30 (down from CN¥0.33 in 2Q 2024). Revenue: CN¥335.7m (down 1.7% from 2Q 2024). Net income: CN¥44.1m (down 6.2% from 2Q 2024). Profit margin: 13% (in line with 2Q 2024). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Jul 11
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 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Annuncio • Jun 30
Changzhou Aohong Electronics Co., Ltd. to Report First Half, 2025 Results on Aug 09, 2025 Changzhou Aohong Electronics Co., Ltd. announced that they will report first half, 2025 results on Aug 09, 2025 Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥30.56, the stock trades at a trailing P/E ratio of 29.7x. Average trailing P/E is 50x in the Electronic industry in China. Total returns to shareholders of 69% over the past three years. Reported Earnings • May 05
First quarter 2025 earnings released: EPS: CN¥0.26 (vs CN¥0.22 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.26 (up from CN¥0.22 in 1Q 2024). Revenue: CN¥338.0m (up 23% from 1Q 2024). Net income: CN¥36.6m (up 17% from 1Q 2024). Profit margin: 11% (in line with 1Q 2024). 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 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥19.26, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 42x in the Electronic industry in China. Total returns to shareholders of 4.5% over the past three years. Annuncio • Mar 28
Changzhou Aohong Electronics Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Changzhou Aohong Electronics Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Mar 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.2% 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. Reported Earnings • Mar 18
Full year 2024 earnings released: EPS: CN¥0.99 (vs CN¥0.93 in FY 2023) Full year 2024 results: EPS: CN¥0.99 (up from CN¥0.93 in FY 2023). Revenue: CN¥1.29b (up 20% from FY 2023). Net income: CN¥141.5m (up 6.5% from FY 2023). Profit margin: 11% (down from 12% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Annuncio • Mar 18
Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 20, 2025 Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 20, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Changzhou, Jiangsu China Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥23.56, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 46x in the Electronic industry in China. Total returns to shareholders of 1.7% over the past three years. Annuncio • Dec 27
Changzhou Aohong Electronics Co., Ltd. to Report Fiscal Year 2024 Results on Mar 18, 2025 Changzhou Aohong Electronics Co., Ltd. announced that they will report fiscal year 2024 results on Mar 18, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.15 (vs CN¥0.26 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.15 (down from CN¥0.26 in 3Q 2023). Revenue: CN¥326.6m (up 17% from 3Q 2023). Net income: CN¥22.2m (down 40% from 3Q 2023). Profit margin: 6.8% (down from 13% 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 6% per year whereas the company’s share price has fallen by 3% per year. Annuncio • Sep 30
Changzhou Aohong Electronics Co., Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Changzhou Aohong Electronics Co., Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥20.48, the stock trades at a trailing P/E ratio of 21.5x. Average trailing P/E is 38x in the Electronic industry in China. Total loss to shareholders of 3.0% over the past three years. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: CN¥0.33 (vs CN¥0.31 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.33 (up from CN¥0.31 in 2Q 2023). Revenue: CN¥341.7m (up 23% from 2Q 2023). Net income: CN¥47.0m (up 5.8% from 2Q 2023). Profit margin: 14% (down from 16% 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 6% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. Annuncio • Jun 29
Changzhou Aohong Electronics Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Changzhou Aohong Electronics Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥22.40, the stock trades at a trailing P/E ratio of 24x. Average trailing P/E is 39x in the Electronic industry in China. Total loss to shareholders of 1.1% over the past three years. Annuncio • Apr 26
Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 30, 2024 Changzhou Aohong Electronics Co., Ltd., Annual General Meeting, May 30, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Changzhou, Jiangsu China Reported Earnings • Apr 25
First quarter 2024 earnings released: EPS: CN¥0.22 (vs CN¥0.21 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.22 (up from CN¥0.21 in 1Q 2023). Revenue: CN¥274.5m (up 7.7% from 1Q 2023). Net income: CN¥31.2m (up 2.3% from 1Q 2023). Profit margin: 11% (in line with 1Q 2023). 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 • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥14.46, the stock trades at a trailing P/E ratio of 17.5x. Average trailing P/E is 37x in the Electronic industry in China. Total loss to shareholders of 37% over the past three years. Annuncio • Mar 29
Changzhou Aohong Electronics Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Changzhou Aohong Electronics Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥16.09, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 34x in the Electronic industry in China. Total loss to shareholders of 24% over the past three years. Annuncio • Dec 29
Changzhou Aohong Electronics Co., Ltd. to Report Fiscal Year 2023 Results on Mar 26, 2024 Changzhou Aohong Electronics Co., Ltd. announced that they will report fiscal year 2023 results on Mar 26, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.26 (vs CN¥0.35 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.26 (down from CN¥0.35 in 3Q 2022). Revenue: CN¥279.0m (flat on 3Q 2022). Net income: CN¥36.9m (down 25% from 3Q 2022). Profit margin: 13% (down from 18% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 8% per year. Reported Earnings • Mar 23
Full year 2022 earnings released: EPS: CN¥0.93 (vs CN¥1.00 in FY 2021) Full year 2022 results: EPS: CN¥0.93 (down from CN¥1.00 in FY 2021). Revenue: CN¥1.13b (up 5.2% from FY 2021). Net income: CN¥133.1m (down 6.8% from FY 2021). Profit margin: 12% (down from 13% in FY 2021). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥25.55, the stock trades at a trailing P/E ratio of 24.2x. Average trailing P/E is 38x in the Electronic industry in China. Total returns to shareholders of 24% over the past year. 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. 12 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Longji Wang was the last independent director to join the board, commencing their role in 2018. 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 released: EPS: CN¥0.35 (vs CN¥0.29 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.35 (up from CN¥0.29 in 3Q 2021). Revenue: CN¥281.4m (down 5.5% from 3Q 2021). Net income: CN¥49.2m (up 19% from 3Q 2021). Profit margin: 18% (up from 14% in 3Q 2021). The increase in margin was driven by lower expenses. Reported Earnings • Aug 24
Second quarter 2022 earnings released: EPS: CN¥0.31 (vs CN¥0.27 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.31 (up from CN¥0.27 in 2Q 2021). Revenue: CN¥300.4m (up 14% from 2Q 2021). Net income: CN¥44.0m (up 16% from 2Q 2021). Profit margin: 15% (in line with 2Q 2021). Reported Earnings • Apr 27
First quarter 2022 earnings released: EPS: CN¥0.23 (vs CN¥0.27 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.23 (down from CN¥0.27 in 1Q 2021). Revenue: CN¥277.2m (up 8.0% from 1Q 2021). Net income: CN¥33.4m (down 14% from 1Q 2021). Profit margin: 12% (down from 15% in 1Q 2021). The decrease in margin was driven by higher expenses. Buying Opportunity • Mar 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be CN¥24.73, 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% per annum over the last 3 years. Earnings per share has been flat over the last 3 years. Reported Earnings • Mar 09
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: CN¥1.00 (down from CN¥1.10 in FY 2020). Revenue: CN¥1.07b (up 21% from FY 2020). Net income: CN¥142.7m (up 14% from FY 2020). Profit margin: 13% (in line with FY 2020). Revenue was in line with analyst estimates. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.29 (vs CN¥0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥297.9m (up 15% from 3Q 2020). Net income: CN¥41.2m (up 70% from 3Q 2020). Profit margin: 14% (up from 9.4% in 3Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • Aug 11
Second quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.35 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥262.5m (up 15% from 2Q 2020). Net income: CN¥38.1m (up 3.4% from 2Q 2020). Profit margin: 14% (down from 16% in 2Q 2020). Reported Earnings • Mar 30
Full year 2020 earnings released: EPS CN¥1.10 (vs CN¥1.16 in FY 2019) The company reported a solid full year result with improved revenues, although earnings and profit margins were flat. Full year 2020 results: Revenue: CN¥882.2m (up 4.5% from FY 2019). Net income: CN¥124.8m (flat on FY 2019). Profit margin: 14% (in line with FY 2019). Is New 90 Day High Low • Mar 15
New 90-day low: CN¥20.80 The company is down 23% from a price of CN¥27.05 on 15 December 2020. Underperformed the Chinese market, which is flat over the last 90 days. Lagged the Electronic industry, which is down 6.0% over the same period. Annuncio • Mar 05
Changzhou Aohong Electronics Co., Ltd. to Report Fiscal Year 2020 Results on Mar 29, 2021 Changzhou Aohong Electronics Co., Ltd. announced that they will report fiscal year 2020 results on Mar 29, 2021 Valuation Update With 7 Day Price Move • Oct 30
Market pulls back on stock over the past week After last week's 16% share price decline to CN¥26.67, the stock is trading at a trailing P/E ratio of 23.8x, down from the previous P/E ratio of 28.4x. This compares to an average P/E of 46x in the Electronic industry in China. Reported Earnings • Oct 22
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥120.4m, up 1.8% from the prior year. Total revenue was CN¥866.2m over the last 12 months, up 2.8% from the prior year.