Buying Opportunity • Dec 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 16%. The fair value is estimated to be US$10.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improved over the past week After last week's 20% share price gain to US$8.99, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 15x in the Chemicals industry in the US. Total returns to shareholders of 206% over the past three years. Reported Earnings • Sep 30
Second quarter 2022 earnings released: EPS: CN¥4.20 (vs CN¥6.07 in 2Q 2021) Second quarter 2022 results: EPS: CN¥4.20 (down from CN¥6.07 in 2Q 2021). Revenue: CN¥88.7m (down 12% from 2Q 2021). Net income: CN¥13.7m (down 31% from 2Q 2021). Profit margin: 15% (down from 20% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 46% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$7.90, the stock trades at a trailing P/E ratio of 2.4x. Average trailing P/E is 14x in the Chemicals industry in the US. Total returns to shareholders of 153% over the past three years. Reported Earnings • May 01
Full year 2021 earnings released: EPS: CN¥27.32 (vs CN¥6.01 in FY 2020) Full year 2021 results: EPS: CN¥27.32 (up from CN¥6.01 in FY 2020). Revenue: CN¥396.8m (up 18% from FY 2020). Net income: CN¥89.2m (up 355% from FY 2020). Profit margin: 23% (up from 5.8% in FY 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 17% share price gain to US$7.33, the stock trades at a trailing P/E ratio of 3.5x. Average trailing P/E is 20x in the Chemicals industry in the US. Total returns to shareholders of 223% over the past three years. Reported Earnings • Sep 04
Second quarter 2021 earnings released: EPS CN¥6.07 (vs CN¥4.30 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥100.6m (up 21% from 2Q 2020). Net income: CN¥19.8m (up 41% from 2Q 2020). Profit margin: 20% (up from 17% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 109% per year but the company’s share price has only increased by 71% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥8.56, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 22x in the Chemicals industry in the US. Total returns to shareholders of 269% over the past three years. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment improved over the past week After last week's 39% share price gain to CN¥12.35, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 26x in the Chemicals industry in the US. Total returns to shareholders of 300% over the past three years. Reported Earnings • Jun 28
First quarter 2021 earnings released: EPS CN¥9.60 (vs CN¥3.97 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥101.6m (up 22% from 1Q 2020). Net income: CN¥31.4m (up 142% from 1Q 2020). Profit margin: 31% (up from 16% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 60% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥9.70, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 29x in the Chemicals industry in the US. Total returns to shareholders of 212% over the past three years. Valuation Update With 7 Day Price Move • May 07
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥9.97, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 28x in the Chemicals industry in the US. Total returns to shareholders of 185% over the past three years. Reported Earnings • Apr 24
Full year 2020 earnings released: EPS CN¥6.01 (vs CN¥3.48 in FY 2019) The company reported a solid full year result with improved earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: CN¥336.8m (flat on FY 2019). Net income: CN¥19.6m (up 73% from FY 2019). Profit margin: 5.8% (up from 3.4% in FY 2019). Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment deteriorated over the past week After last week's 25% share price decline to CN¥8.64, the stock trades at a trailing P/E ratio of 3.6x. Average trailing P/E is 28x in the Chemicals industry in the US. Total returns to shareholders of 197% over the past three years. Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥9.42, the stock is trading at a trailing P/E ratio of 3.9x, down from the previous P/E ratio of 4.8x. This compares to an average P/E of 28x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 182%. Is New 90 Day High Low • Feb 23
New 90-day high: US$14.76 The company is up 138% from its price of US$6.21 on 24 November 2020. The American market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 7.0% over the same period. Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥12.63, the stock is trading at a trailing P/E ratio of 5.2x, up from the previous P/E ratio of 4.3x. This compares to an average P/E of 30x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 271%. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment deteriorated over the past week After last week's 22% share price decline to CN¥8.28, the stock is trading at a trailing P/E ratio of 3.4x, down from the previous P/E ratio of 4.4x. This compares to an average P/E of 33x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 110%. Is New 90 Day High Low • Dec 28
New 90-day high: US$11.61 The company is up 208% from its price of US$3.77 on 29 September 2020. The American market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 15% over the same period. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥11.61, the stock is trading at a trailing P/E ratio of 4.9x, up from the previous P/E ratio of 4x. This compares to an average P/E of 31x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 295%. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥10.63, the stock is trading at a trailing P/E ratio of 4.5x, up from the previous P/E ratio of 3.7x. This compares to an average P/E of 31x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 254%. Is New 90 Day High Low • Dec 12
New 90-day high: US$7.29 The company is up 108% from its price of US$3.51 on 11 September 2020. The American market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 20% share price gain to CN¥6.74, the stock is trading at a trailing P/E ratio of 2.8x, up from the previous P/E ratio of 2.3x. This compares to an average P/E of 31x in the Chemicals industry in the US. Total returns to shareholders over the past three years are 162%. Reported Earnings • Nov 25
Third quarter 2020 earnings released: EPS CN¥4.13 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: CN¥84.3m (up 5.9% from 3Q 2019). Net income: CN¥13.5m (up 292% from 3Q 2019). Profit margin: 16% (up from 4.3% in 3Q 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 114% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Nov 25
New 90-day high: US$6.21 The company is up 11% from its price of US$5.60 on 26 August 2020. The American market is up 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 13% over the same period.