New Risk • 16h
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 13% Last year net profit margin: 20% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. 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. Profit margins are more than 30% lower than last year (13% net profit margin). New Risk • Apr 27
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: 0.6% 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. Share price has been volatile over the past 3 months (8.1% average weekly change). New Risk • Apr 22
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 • Apr 17
Full year 2025 earnings released: EPS: CN¥0.28 (vs CN¥0.41 in FY 2024) Full year 2025 results: EPS: CN¥0.28 (down from CN¥0.41 in FY 2024). Revenue: CN¥461.9m (down 11% from FY 2024). Net income: CN¥66.1m (down 32% from FY 2024). Profit margin: 14% (down from 19% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Aankondiging • Apr 17
Zhenhai Petrochemical Engineering Co., Ltd., Annual General Meeting, Jun 05, 2026 Zhenhai Petrochemical Engineering Co., Ltd., Annual General Meeting, Jun 05, 2026, at 13:30 China Standard Time. Location: No. 36, Xinghai South Road, High-tech Zone, Ningbo, Zhejiang China Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥14.31, the stock trades at a trailing P/E ratio of 36.8x. Average trailing P/E is 33x in the Construction industry in China. Total returns to shareholders of 70% over the past three years. Aankondiging • Mar 30
Zhenhai Petrochemical Engineering Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Aankondiging • Dec 26
Zhenhai Petrochemical Engineering Co., Ltd. to Report Fiscal Year 2025 Results on Apr 17, 2026 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report fiscal year 2025 results on Apr 17, 2026 Reported Earnings • Oct 24
Third quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.08 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.11 (up from CN¥0.08 in 3Q 2024). Revenue: CN¥124.5m (down 2.4% from 3Q 2024). Net income: CN¥25.7m (up 36% from 3Q 2024). Profit margin: 21% (up from 15% in 3Q 2024). 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 14% per year, which means it is well ahead of earnings. Aankondiging • Sep 30
Zhenhai Petrochemical Engineering Co., Ltd. to Report Q3, 2025 Results on Oct 24, 2025 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report Q3, 2025 results on Oct 24, 2025 Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥13.18, the stock trades at a trailing P/E ratio of 36.6x. Average trailing P/E is 25x in the Construction industry in China. Total returns to shareholders of 64% over the past three years. Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.11. Revenue: CN¥117.0m (up 19% from 2Q 2024). Net income: CN¥20.0m (down 31% from 2Q 2024). Profit margin: 17% (down from 29% in 2Q 2024). The decrease in margin was driven by higher expenses. New Risk • Jul 08
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 7.1% 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 (7.1% average weekly change). Large one-off items impacting financial results. Aankondiging • Jun 30
Zhenhai Petrochemical Engineering Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Reported Earnings • Apr 19
First quarter 2025 earnings released: EPS: CN¥0.02 (vs CN¥0.04 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.02 (down from CN¥0.04 in 1Q 2024). Revenue: CN¥53.6m (down 47% from 1Q 2024). Net income: CN¥5.93m (down 30% from 1Q 2024). Profit margin: 11% (up from 8.3% in 1Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. Aankondiging • Apr 18
Zhenhai Petrochemical Engineering Co., Ltd., Annual General Meeting, May 08, 2025 Zhenhai Petrochemical Engineering Co., Ltd., Annual General Meeting, May 08, 2025, at 13:30 China Standard Time. Location: No. 36, Xinghai South Road, High-tech Zone, Ningbo, Zhejiang China Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥9.70, the stock trades at a trailing P/E ratio of 23.1x. Average trailing P/E is 21x in the Construction industry in China. Total returns to shareholders of 20% over the past three years. Aankondiging • Mar 28
Zhenhai Petrochemical Engineering Co., Ltd. to Report Q1, 2025 Results on Apr 18, 2025 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report Q1, 2025 results on Apr 18, 2025 Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥8.97, the stock trades at a trailing P/E ratio of 21.3x. Average trailing P/E is 21x in the Construction industry in China. Total returns to shareholders of 9.3% over the past three years. Aankondiging • Dec 27
Zhenhai Petrochemical Engineering Co., Ltd. to Report Fiscal Year 2024 Results on Apr 18, 2025 Zhenhai Petrochemical Engineering Co., Ltd. announced that they will report fiscal year 2024 results on Apr 18, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.059 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.08 (up from CN¥0.059 in 3Q 2023). Revenue: CN¥127.5m (up 49% from 3Q 2023). Net income: CN¥18.9m (up 41% from 3Q 2023). Profit margin: 15% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Aankondiging • Sep 30
Zhenhai Petrochemical Engineering CO., LTD to Report Q3, 2024 Results on Oct 25, 2024 Zhenhai Petrochemical Engineering 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 16% After last week's 16% share price gain to CN¥6.89, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 20x in the Construction industry in China. Total loss to shareholders of 2.5% over the past three years. Reported Earnings • Aug 21
Second quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.10 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.11 (up from CN¥0.10 in 2Q 2023). Revenue: CN¥98.5m (down 28% from 2Q 2023). Net income: CN¥28.9m (up 20% from 2Q 2023). Profit margin: 29% (up from 17% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Aankondiging • Jun 28
Zhenhai Petrochemical Engineering CO., LTD to Report First Half, 2024 Results on Aug 21, 2024 Zhenhai Petrochemical Engineering CO., LTD announced that they will report first half, 2024 results on Aug 21, 2024 Declared Dividend • Jun 05
Dividend of CN¥0.13 announced Shareholders will receive a dividend of CN¥0.13. Ex-date: 7th June 2024 Payment date: 7th June 2024 Dividend yield will be 2.0%, which is lower than the industry average of 3.4%. Sustainability & Growth Dividend is covered by earnings (34% 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 6.3% per year over the past 7 years and payments have been stable during that time. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.08 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.04 (down from CN¥0.08 in 1Q 2023). Revenue: CN¥101.7m (down 24% from 1Q 2023). Net income: CN¥8.42m (down 57% from 1Q 2023). Profit margin: 8.3% (down from 15% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥6.24, the stock trades at a trailing P/E ratio of 14.7x. Average trailing P/E is 20x in the Construction industry in China. Total loss to shareholders of 14% over the past three years. Reported Earnings • Mar 30
Full year 2023 earnings released: EPS: CN¥0.42 (vs CN¥0.43 in FY 2022) Full year 2023 results: EPS: CN¥0.42 (down from CN¥0.43 in FY 2022). Revenue: CN¥585.4m (up 1.9% from FY 2022). Net income: CN¥101.3m (down 1.7% from FY 2022). Profit margin: 17% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥7.05, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 20x in the Construction industry in China. Total returns to shareholders of 7.9% over the past three years. Aankondiging • Dec 29
Zhenhai Petrochemical Engineering CO., LTD to Report Fiscal Year 2023 Results on Mar 29, 2024 Zhenhai Petrochemical Engineering CO., LTD announced that they will report fiscal year 2023 results on Mar 29, 2024 Reported Earnings • Oct 20
Third quarter 2023 earnings released: EPS: CN¥0.059 (vs CN¥0.05 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.059 (up from CN¥0.05 in 3Q 2022). Revenue: CN¥85.8m (down 41% from 3Q 2022). Net income: CN¥13.4m (up 14% from 3Q 2022). Profit margin: 16% (up from 8.1% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. New Risk • Aug 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.13 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.13 in 2Q 2022). Revenue: CN¥137.7m (down 19% from 2Q 2022). Net income: CN¥24.0m (down 25% from 2Q 2022). Profit margin: 17% (down from 19% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Aankondiging • Jun 28
Zhenhai Petrochemical Engineering CO., LTD to Report First Half, 2023 Results on Aug 18, 2023 Zhenhai Petrochemical Engineering CO., LTD announced that they will report first half, 2023 results on Aug 18, 2023 Reported Earnings • Apr 22
First quarter 2023 earnings released: EPS: CN¥0.08 (vs CN¥0.06 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.08 (up from CN¥0.06 in 1Q 2022). Revenue: CN¥134.6m (down 13% from 1Q 2022). Net income: CN¥19.7m (up 46% from 1Q 2022). Profit margin: 15% (up from 8.7% in 1Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥7.77, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 23x in the Construction industry in China. Total loss to shareholders of 25% over the past three years. 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 (7 non-independent directors). was the last director to join the board, commencing their role in . 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 28
Third quarter 2022 earnings released: EPS: CN¥0.05 (vs CN¥0.07 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.05 (down from CN¥0.07 in 3Q 2021). Revenue: CN¥146.3m (down 27% from 3Q 2021). Net income: CN¥11.8m (down 25% from 3Q 2021). Profit margin: 8.1% (up from 7.8% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.099 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.13 (up from CN¥0.099 in 2Q 2021). Revenue: CN¥169.6m (down 41% from 2Q 2021). Net income: CN¥31.8m (up 29% from 2Q 2021). Profit margin: 19% (up from 8.6% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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 (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥10.42, the stock trades at a trailing P/E ratio of 32.9x. Average trailing P/E is 23x in the Construction industry in China. Total loss to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥9.69, the stock trades at a trailing P/E ratio of 31.3x. Average trailing P/E is 20x in the Construction industry in China. Total loss to shareholders of 3.8% over the past three years. Reported Earnings • Oct 23
Third quarter 2021 earnings released: EPS CN¥0.07 (vs CN¥0.07 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and revenues, although profit margins were improved. Third quarter 2021 results: Revenue: CN¥201.6m (down 26% from 3Q 2020). Net income: CN¥15.7m (down 11% from 3Q 2020). Profit margin: 7.8% (up from 6.5% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS CN¥0.099 (vs CN¥0.096 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥288.4m (up 15% from 2Q 2020). Net income: CN¥24.7m (up 38% from 2Q 2020). Profit margin: 8.6% (up from 7.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 17
First quarter 2021 earnings released: EPS CN¥0.04 (vs CN¥0.014 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥175.0m (up 90% from 1Q 2020). Net income: CN¥9.65m (up 135% from 1Q 2020). Profit margin: 5.5% (up from 4.5% 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 12% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 25
New 90-day low: CN¥7.28 The company is down 24% from its price of CN¥9.64 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 8.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥7.42 The company is down 29% from its price of CN¥10.45 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 Construction industry, which is down 4.0% over the same period. Is New 90 Day High Low • Dec 09
New 90-day low: CN¥8.50 The company is down 14% from its price of CN¥9.87 on 10 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 3.0% over the same period. Is New 90 Day High Low • Oct 26
New 90-day low: CN¥9.67 The company is down 2.0% from its price of CN¥9.87 on 28 July 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is down 1.0% over the same period. Reported Earnings • Oct 22
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥59.0m, up 13% from the prior year. Total revenue was CN¥1.04b over the last 12 months, up 21% from the prior year. Aankondiging • Oct 19
Zhenhai Petrochemical Engineering CO., LTD to Report Q3, 2020 Results on Oct 22, 2020 Zhenhai Petrochemical Engineering CO., LTD announced that they will report Q3, 2020 results on Oct 22, 2020 Aankondiging • Jul 31
Yuyao Traffic Investment Co., Ltd. completed the acquisition of 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD (SHSE:603637) from 97 shareholders. Yuyao Traffic Investment Co., Ltd. signed a letter of intent to acquire 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD (SHSE:603637) from 97 shareholders for approximately CNY 410 million on January 23, 2020. Yuyao Traffic Investment Co., Ltd. signed a share transfer agreement to acquire 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD from 97 shareholders on February 10, 2020. As part of the acquisition, Yuyao Traffic Investment Co., Ltd. will acquire 19.99 million shares of Zhenhai Petrochemical Engineering at a price of CNY 20.3873 per share. The transaction is subject to the approval of Ningbo State-owned Assets Supervision and Administration Commission or relevant government departments, compliance confirmation by Shanghai Stock Exchange, and transfer formalities with Shanghai Branch of China Securities Depository and Clearing Corporation. The transaction was approved by State-owned Assets Supervision and Administration Commission of Ningbo and Yuyao City on February 17, 2020.
Yuyao Traffic Investment Co., Ltd. completed the acquisition of 11.48% stake in Zhenhai Petrochemical Engineering CO., LTD (SHSE:603637) from 97 shareholders on April 16, 2020. The share transfer registration procedures for the transfer of the agreement had been completed by the relevant shareholders, and the Transfer Registration Confirmation issued by China Securities Depository and Clearing Co., Ltd. Shanghai Branch was obtained. Aankondiging • Jul 06
Zhenhai Petrochemical Engineering CO., LTD to Report First Half, 2020 Results on Aug 14, 2020 Zhenhai Petrochemical Engineering CO., LTD announced that they will report first half, 2020 results on Aug 14, 2020