CF Energy TSXV:CFY Stock Report

CF Energy Corp. Announces Sanya City Implements Temporary City-Wide “Lock-Down” to Control Covid-19 Spread

First quarter 2022 earnings released: EPS: CN¥0.21 (vs CN¥0.047 in 1Q 2021)

First quarter 2022 results: EPS: CN¥0.21 (up from CN¥0.047 in 1Q 2021). Revenue: CN¥95.4m (up 18% from 1Q 2021). Net income: CN¥13.9m (up 348% from 1Q 2021). Profit margin: 15% (up from 3.8% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings.

Full year 2021 earnings released: EPS: CN¥0.35 (vs CN¥0.74 in FY 2020)

Full year 2021 results: EPS: CN¥0.35 (down from CN¥0.74 in FY 2020). Revenue: CN¥355.2m (down 3.5% from FY 2020). Net income: CN¥23.0m (down 53% from FY 2020). Profit margin: 6.5% (down from 13% in FY 2020). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings.

Insufficient new directors

No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. Director Frederick Wong was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model.