New Risk • Jul 13
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% 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. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (5.2% operating cash flow to total debt). Earnings have declined by 10% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Aankondiging • Jun 30
Miracll Chemicals Co.,Ltd to Report First Half, 2026 Results on Aug 26, 2026 Miracll Chemicals Co.,Ltd announced that they will report first half, 2026 results on Aug 26, 2026 Aankondiging • Dec 31
Miracll Chemicals Co.,Ltd to Report Fiscal Year 2025 Results on Mar 31, 2026 Miracll Chemicals Co.,Ltd announced that they will report fiscal year 2025 results on Mar 31, 2026 Aankondiging • Sep 30
Miracll Chemicals Co.,Ltd to Report Q3, 2025 Results on Oct 28, 2025 Miracll Chemicals Co.,Ltd announced that they will report Q3, 2025 results on Oct 28, 2025 Aankondiging • Jul 02
Miracll Chemicals Co.,Ltd to Report First Half, 2025 Results on Aug 26, 2025 Miracll Chemicals Co.,Ltd announced that they will report first half, 2025 results on Aug 26, 2025 Aankondiging • Apr 23
Miracll Chemicals Co.,Ltd Proposes Final Cash Dividend for 2024 Miracll Chemicals Co.,Ltd proposed final cash dividend of CNY 0.70000000 per 10 shares (tax included) for 2024. Aankondiging • Apr 22
Miracll Chemicals Co.,Ltd, Annual General Meeting, May 15, 2025 Miracll Chemicals Co.,Ltd, Annual General Meeting, May 15, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Yantai, Shandong China Aankondiging • Mar 31
Miracll Chemicals Co.,Ltd to Report Q1, 2025 Results on Apr 22, 2025 Miracll Chemicals Co.,Ltd announced that they will report Q1, 2025 results on Apr 22, 2025 Aankondiging • Dec 31
Miracll Chemicals Co.,Ltd to Report Fiscal Year 2024 Results on Apr 22, 2025 Miracll Chemicals Co.,Ltd announced that they will report fiscal year 2024 results on Apr 22, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.046 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.04. Revenue: CN¥432.1m (up 8.6% from 3Q 2023). Net income: CN¥19.4m (up 6.4% from 3Q 2023). Profit margin: 4.5% (down from 4.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 59% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Aankondiging • Sep 30
Miracll Chemicals Co.,Ltd to Report Q3, 2024 Results on Oct 25, 2024 Miracll Chemicals Co.,Ltd announced that they will report Q3, 2024 results on Oct 25, 2024 Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.069 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.05 (down from CN¥0.069 in 2Q 2023). Revenue: CN¥414.7m (up 3.3% from 2Q 2023). Net income: CN¥18.9m (down 31% from 2Q 2023). Profit margin: 4.6% (down from 6.9% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 69% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Chemicals industry in China. Aankondiging • Jun 29
Miracll Chemicals Co.,Ltd to Report First Half, 2024 Results on Aug 27, 2024 Miracll Chemicals Co.,Ltd announced that they will report first half, 2024 results on Aug 27, 2024 Declared Dividend • May 24
Dividend of CN¥0.10 announced Shareholders will receive a dividend of CN¥0.10. Ex-date: 29th May 2024 Payment date: 29th May 2024 Dividend yield will be 0.4%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (39% 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 31% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 89% over the next year, which should provide support to the dividend and adequate earnings cover. New Risk • May 07
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: 5.0% Last year net profit margin: 8.0% 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: Major Risk High level of non-cash earnings (80% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (5.0% net profit margin). Shareholders have been diluted in the past year (6.2% increase in shares outstanding). Reported Earnings • Apr 24
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¥385.9m (up 22% from 1Q 2023). Net income: CN¥12.3m (down 48% from 1Q 2023). Profit margin: 3.2% (down from 7.4% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 63% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Chemicals industry in China. Aankondiging • Apr 23
Miracll Chemicals Co.,Ltd, Annual General Meeting, May 15, 2024 Miracll Chemicals Co.,Ltd, Annual General Meeting, May 15, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Yantai, Shandong China Aankondiging • Mar 30
Miracll Chemicals Co.,Ltd to Report Q1, 2024 Results on Apr 23, 2024 Miracll Chemicals Co.,Ltd announced that they will report Q1, 2024 results on Apr 23, 2024 Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥17.70, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 32% over the past year. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥12.70, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 13x in the Chemicals industry in China. Aankondiging • Dec 30
Miracll Chemicals Co.,Ltd to Report Fiscal Year 2023 Results on Apr 23, 2024 Miracll Chemicals Co.,Ltd announced that they will report fiscal year 2023 results on Apr 23, 2024 New Risk • Oct 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (94% accrual ratio). Minor Risk Shareholders have been diluted in the past year (6.2% increase in shares outstanding). Reported Earnings • Oct 24
Third quarter 2023 earnings released: EPS: CN¥0.06 (vs CN¥0.08 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.06 (down from CN¥0.08 in 3Q 2022). Revenue: CN¥397.8m (up 6.7% from 3Q 2022). Net income: CN¥18.2m (down 28% from 3Q 2022). Profit margin: 4.6% (down from 6.8% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 57% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Chemicals industry in China. Aankondiging • Sep 30
Miracll Chemicals Co.,Ltd to Report Q3, 2023 Results on Oct 24, 2023 Miracll Chemicals Co.,Ltd announced that they will report Q3, 2023 results on Oct 24, 2023 Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.09 (vs CN¥0.11 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.09 (down from CN¥0.11 in 2Q 2022). Revenue: CN¥401.4m (flat on 2Q 2022). Net income: CN¥27.6m (down 16% from 2Q 2022). Profit margin: 6.9% (down from 8.2% in 2Q 2022). Revenue is forecast to grow 54% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Aankondiging • May 20
Miracll Chemicals Co.,Ltd Approves Cash Dividend for the Year 2022 Miracll Chemicals Co.,Ltd at the AGM, the shareholders approved cash dividend per ten shares (tax included): CNY 1.000000 for the year 2022. Reported Earnings • Apr 25
First quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.11 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.12 (up from CN¥0.11 in 1Q 2022). Revenue: CN¥317.7m (down 19% from 1Q 2022). Net income: CN¥23.7m (up 4.7% from 1Q 2022). Profit margin: 7.4% (up from 5.8% in 1Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 71% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Chemicals industry in China. Board Change • Mar 14
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 3 experienced directors. No highly experienced directors. Non-Independent Director Huguang Liu 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. 
