New Risk • Apr 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 94% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Reported Earnings • Apr 27
Full year 2025 earnings released: EPS: CN¥0.083 (vs CN¥0.14 in FY 2024) Full year 2025 results: EPS: CN¥0.083 (down from CN¥0.14 in FY 2024). Revenue: CN¥866.5m (down 4.0% from FY 2024). Net income: CN¥58.7m (down 38% from FY 2024). Profit margin: 6.8% (down from 11% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Aankondiging • Apr 27
Hengbao Co.,Ltd., Annual General Meeting, May 25, 2026 Hengbao Co.,Ltd., Annual General Meeting, May 25, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Danyang, Jiangsu China Aankondiging • Mar 31
Hengbao Co.,Ltd. to Report Q1, 2026 Results on Apr 27, 2026 Hengbao Co.,Ltd. announced that they will report Q1, 2026 results on Apr 27, 2026 Aankondiging • Dec 31
Hengbao Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 27, 2026 Hengbao Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 27, 2026 Reported Earnings • Nov 03
Third quarter 2025 earnings released: EPS: CN¥0.003 (vs CN¥0.04 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.003 (down from CN¥0.04 in 3Q 2024). Revenue: CN¥184.0m (down 13% from 3Q 2024). Net income: CN¥1.94m (down 93% from 3Q 2024). Profit margin: 1.1% (down from 13% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Aankondiging • Sep 30
Hengbao Co.,Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Hengbao Co.,Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Aankondiging • Sep 18
Hengbao Co.,Ltd. Announces Board Appointments Hengbao Co.,Ltd. at its 1st Extraordinary General Meeting of 2025 held on 16 September 2025, elected Tan Xia and Mao Weiwei as director and Wang Pei, Huang Wei and Feng Xuhui as independent director. Reported Earnings • Aug 27
Second quarter 2025 earnings released: EPS: CN¥0.016 (vs CN¥0.053 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.016 (down from CN¥0.053 in 2Q 2024). Revenue: CN¥182.5m (down 22% from 2Q 2024). Net income: CN¥11.4m (down 69% from 2Q 2024). Profit margin: 6.3% (down from 16% in 2Q 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 49% per year, which means it is well ahead of earnings. Aankondiging • Jul 02
Hengbao Co.,Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Hengbao Co.,Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Buy Or Sell Opportunity • Jun 27
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 182% to CN¥19.15. The fair value is estimated to be CN¥14.69, 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. Earnings per share has grown by 13%. Buy Or Sell Opportunity • Jun 10
Now 24% undervalued Over the last 90 days, the stock has risen 52% to CN¥11.14. The fair value is estimated to be CN¥14.70, 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. Earnings per share has grown by 13%. Aankondiging • May 30
Hengbao Co.,Ltd. Approves Cash Dividend for 2024 Hengbao Co.,Ltd. at its AGM held on May 28, 2025, approved Cash dividend per 10 shares (tax included) of CNY 0.80500000 for 2024. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥8.91, the stock trades at a trailing P/E ratio of 68x. Average trailing P/E is 64x in the Tech industry in China. Total returns to shareholders of 15% over the past three years. New Risk • May 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 Chinese stocks, typically moving 8.3% 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 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 (8.3% average weekly change). Aankondiging • Apr 28
Hengbao Co.,Ltd., Annual General Meeting, May 28, 2025 Hengbao Co.,Ltd., Annual General Meeting, May 28, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Danyang, Jiangsu China Aankondiging • Mar 31
Hengbao Co.,Ltd. to Report Q1, 2025 Results on Apr 28, 2025 Hengbao Co.,Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Aankondiging • Dec 31
Hengbao Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 28, 2025 Hengbao Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 28, 2025 Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥7.94, the stock trades at a trailing P/E ratio of 50.4x. Average trailing P/E is 60x in the Tech industry in China. Total returns to shareholders of 32% over the past three years. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.057 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.04 (down from CN¥0.057 in 3Q 2023). Revenue: CN¥211.5m (down 32% from 3Q 2023). Net income: CN¥27.8m (down 30% from 3Q 2023). Profit margin: 13% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Aankondiging • Sep 30
Hengbao Co.,Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Hengbao Co.,Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥6.78, the stock trades at a trailing P/E ratio of 38.9x. Average trailing P/E is 35x in the Tech industry in China. Total returns to shareholders of 26% over the past three years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥6.38, the stock trades at a trailing P/E ratio of 36.6x. Average trailing P/E is 33x in the Tech industry in China. Total returns to shareholders of 9.0% over the past three years. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.053 (vs CN¥0.092 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.053 (down from CN¥0.092 in 2Q 2023). Revenue: CN¥233.7m (down 31% from 2Q 2023). Net income: CN¥37.4m (down 42% from 2Q 2023). Profit margin: 16% (down from 19% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Aankondiging • Jul 24
Hengbao Co.,Ltd. Announces Final Dividend on A Shares for the Year 2023, Payable on 29 July 2024 Hengbao Co.,Ltd. announced final cash dividend/10 shares (tax included) of CNY1.30000000 on A shares for the year 2023. Record date is 26 July 2024. Ex-date is 29 July 2024. Payment date is 29 July 2024. Aankondiging • Jun 29
Hengbao Co.,Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Hengbao Co.,Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Aankondiging • May 02
Hengbao Co.,Ltd. Proposes Final Dividend for 2023 Hengbao Co.,Ltd. announced on 30 April 2024 the profit distribution proposal for 2023 as follows: Cash dividend/10 shares (tax included): CNY 1.30000000. Aankondiging • May 01
Hengbao Co.,Ltd., Annual General Meeting, May 30, 2024 Hengbao Co.,Ltd., Annual General Meeting, May 30, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Danyang, Jiangsu China Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.037 (vs CN¥0.049 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.037 (down from CN¥0.049 in 1Q 2023). Revenue: CN¥237.1m (down 22% from 1Q 2023). Net income: CN¥26.2m (down 24% from 1Q 2023). Profit margin: 11% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Aankondiging • Mar 30
Hengbao Co.,Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Hengbao Co.,Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 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¥5.60, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 42x in the Tech industry in China. Total returns to shareholders of 6.4% over the past three years. 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¥5.60, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 42x in the Tech industry in China. Total returns to shareholders of 6.4% over the past three years. Aankondiging • Dec 30
Hengbao Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 30, 2024 Hengbao Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 30, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.057 (vs CN¥0.055 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.057 (up from CN¥0.055 in 3Q 2022). Revenue: CN¥310.0m (up 6.6% from 3Q 2022). Net income: CN¥39.7m (up 3.7% from 3Q 2022). Profit margin: 13% (in line with 3Q 2022). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 28
Second quarter 2023 earnings released: EPS: CN¥0.092 (vs CN¥0.057 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.092 (up from CN¥0.057 in 2Q 2022). Revenue: CN¥339.7m (up 34% from 2Q 2022). Net income: CN¥64.1m (up 62% from 2Q 2022). Profit margin: 19% (up from 16% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Aankondiging • May 06
Hengbao Co.,Ltd., Annual General Meeting, May 25, 2023 Hengbao Co.,Ltd., Annual General Meeting, May 25, 2023, at 14:30 China Standard Time. Agenda: To consider 2022 work report of the board of directors; to consider 2022 work report of the supervisory committee; to consider 2022 annual report and its summary; to consider 2022 annual accounts; to consider 2023 financial budget report; to consider 2022 profit distribution plan; to consider reappointment of 2023 audit firm; to consider application for comprehensive credit line to banks; to consider using proprietary idle funds for cash management; to consider securities investment with idle proprietary funds; and to consider change of the Company's registered capital and amendments to the Company's articles of association. Reported Earnings • Apr 29
Full year 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.076 in FY 2021) Full year 2022 results: EPS: CN¥0.12 (up from CN¥0.076 in FY 2021). Revenue: CN¥1.03b (up 7.7% from FY 2021). Net income: CN¥81.9m (up 54% from FY 2021). Profit margin: 7.9% (up from 5.5% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥10.27, the stock trades at a trailing P/E ratio of 77.6x. Average trailing P/E is 53x in the Tech industry in China. Total returns to shareholders of 31% over the past three years. Board Change • Dec 06
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. 11 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Hong Ding was the last independent director to join the board, commencing their role in 2019. 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¥0.055 (vs CN¥0.027 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.055 (up from CN¥0.027 in 3Q 2021). Revenue: CN¥290.7m (up 22% from 3Q 2021). Net income: CN¥38.3m (up 105% from 3Q 2021). Profit margin: 13% (up from 7.8% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 14% 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. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥7.81, the stock trades at a trailing P/E ratio of 74.7x. Average trailing P/E is 35x in the Tech industry in China. Total returns to shareholders of 1.5% over the past three years. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.057 (vs CN¥0.017 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.057 (up from CN¥0.017 in 2Q 2021). Revenue: CN¥253.4m (up 13% from 2Q 2021). Net income: CN¥39.5m (up 225% from 2Q 2021). Profit margin: 16% (up from 5.4% in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Board Change • Aug 01
High number of new directors Non-Independent Director Xiaoling Xu was the last director to join the board, commencing their role in 2022. Aankondiging • Jul 13
Hengbao Co.,Ltd. Announces Management Appointments Hengbao Co.,Ltd. announced at the EGM held on July 11, 2022 that the company approved election of Xu Xiaoling as non-independent director and Ding Hong as independent director. Reported Earnings • May 02
First quarter 2022 earnings released: CN¥0.007 loss per share (vs CN¥0.003 profit in 1Q 2021) First quarter 2022 results: CN¥0.007 loss per share (down from CN¥0.003 profit in 1Q 2021). Revenue: CN¥171.3m (down 13% from 1Q 2021). Net loss: CN¥5.05m (down 314% from profit in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Zhenghua Cai was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.027 (vs CN¥0.03 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥239.1m (down 9.1% from 3Q 2020). Net income: CN¥18.7m (down 10% from 3Q 2020). Profit margin: 7.8% (down from 7.9% in 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.017 (vs CN¥0.052 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥223.8m (down 58% from 2Q 2020). Net income: CN¥12.1m (down 66% from 2Q 2020). Profit margin: 5.4% (down from 6.7% in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Reported Earnings • May 01
Full year 2020 earnings released: EPS CN¥0.003 (vs CN¥0.12 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥1.05b (down 32% from FY 2019). Net income: CN¥1.72m (down 98% from FY 2019). Profit margin: 0.2% (down from 5.7% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 07
Full year 2020 earnings released: CN¥0.002 loss per share (vs CN¥0.12 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: CN¥1.05b (down 32% from FY 2019). Net loss: CN¥1.09m (down 101% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 03
New 90-day low: CN¥5.65 The company is down 31% from its price of CN¥8.13 on 05 November 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 2.0% over the same period. Is New 90 Day High Low • Jan 13
New 90-day low: CN¥6.47 The company is down 25% from its price of CN¥8.61 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is flat over the same period. Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥7.04, the stock is trading at a trailing P/E ratio of 72x, down from the previous P/E ratio of 85.5x. This compares to an average P/E of 48x in the Tech industry in China. Total return to shareholders over the past three years is a loss of 22%. Is New 90 Day High Low • Dec 10
New 90-day low: CN¥7.36 The company is down 18% from its price of CN¥8.94 on 11 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 Tech industry, which is up 5.0% over the same period. Is New 90 Day High Low • Nov 17
New 90-day low: CN¥7.82 The company is down 25% from its price of CN¥10.40 on 19 August 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is down 7.0% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥67.4m, down 32% from the prior year. Total revenue was CN¥1.69b over the last 12 months, up 15% from the prior year. Is New 90 Day High Low • Oct 27
New 90-day low: CN¥8.17 The company is down 24% from its price of CN¥10.73 on 29 July 2020. The Chinese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is down 8.0% over the same period. Aankondiging • Aug 11
Hengbao Co.,Ltd. to Report First Half, 2020 Results on Aug 27, 2020 Hengbao Co.,Ltd. announced that they will report first half, 2020 results on Aug 27, 2020