New Risk • May 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. High level of non-cash earnings (60% accrual ratio). Reported Earnings • Apr 23
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.02. Revenue: CN¥337.1b (down 4.9% from FY 2024). Net income: CN¥509.1m (up CN¥432.1m from FY 2024). Profit margin: 0.2% (up from 0% in FY 2024). Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) missed analyst estimates by 95%. Revenue is forecast to grow 2.2% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Trade Distributors industry in China. Announcement • Apr 23
Xiamen ITG Group Corp.,Ltd, Annual General Meeting, May 13, 2026 Xiamen ITG Group Corp.,Ltd, Annual General Meeting, May 13, 2026, at 14:30 China Standard Time. Location: 5F, No. 4688, Xianyue Road, Huli District, Xiamen, Fujian China Announcement • Mar 30
Xiamen ITG Group Corp.,Ltd to Report Q1, 2026 Results on Apr 30, 2026 Xiamen ITG Group Corp.,Ltd announced that they will report Q1, 2026 results on Apr 30, 2026 Declared Dividend • Feb 02
Dividend of CN¥0.10 announced Shareholders will receive a dividend of CN¥0.10. Ex-date: 4th February 2026 Payment date: 4th February 2026 Dividend yield will be 3.9%, which is lower than the industry average of 5.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having 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 10% per year over the past 10 years. However, payments have been volatile during that time. New Risk • Dec 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 7.4% 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: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (7.4% average weekly change). Announcement • Dec 26
Xiamen ITG Group Corp.,Ltd to Report Fiscal Year 2025 Results on Apr 23, 2026 Xiamen ITG Group Corp.,Ltd announced that they will report fiscal year 2025 results on Apr 23, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.023 (vs CN¥0.25 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.023 (up from CN¥0.25 loss in 3Q 2024). Revenue: CN¥88.7b (down 2.7% from 3Q 2024). Net income: CN¥306.1m (up CN¥850.1m from 3Q 2024). Profit margin: 0.3% (up from net loss in 3Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 2.0% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Xiamen ITG Group Corp.,Ltd to Report Q3, 2025 Results on Oct 31, 2025 Xiamen ITG Group Corp.,Ltd announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Sep 03
Second quarter 2025 earnings released: EPS: CN¥0.047 (vs CN¥0.13 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.047 (down from CN¥0.13 in 2Q 2024). Revenue: CN¥81.1b (down 18% from 2Q 2024). Net income: CN¥101.4m (down 76% from 2Q 2024). Profit margin: 0.1% (down from 0.4% in 2Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Announcement • Jun 30
Xiamen ITG Group Corp.,Ltd to Report First Half, 2025 Results on Aug 29, 2025 Xiamen ITG Group Corp.,Ltd announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • Jun 25
Dividend of CN¥0.17 announced Shareholders will receive a dividend of CN¥0.17. Ex-date: 27th June 2025 Payment date: 27th June 2025 Dividend yield will be 5.3%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (dividend approximately 7x earnings). However, it is well covered by cash flows (4% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 708% to bring the payout ratio under control. EPS is expected to grow by 247% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Announcement • May 15
Xiamen ITG Group Corp.,Ltd, Annual General Meeting, Jun 05, 2025 Xiamen ITG Group Corp.,Ltd, Annual General Meeting, Jun 05, 2025, at 14:30 China Standard Time. Location: 5F, No. 4688, Xianyue Road, Huli District, Xiamen, Fujian China 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: 0.2% Last year net profit margin: 0.3% 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). New Risk • Apr 24
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 5.2% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain 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: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Announcement • Mar 28
Xiamen ITG Group Corp.,Ltd to Report Q1, 2025 Results on Apr 30, 2025 Xiamen ITG Group Corp.,Ltd announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Dec 27
Xiamen ITG Group Corp.,Ltd to Report Fiscal Year 2024 Results on Apr 23, 2025 Xiamen ITG Group Corp.,Ltd announced that they will report fiscal year 2024 results on Apr 23, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: CN¥0.014 loss per share (vs CN¥0.062 profit in 3Q 2023) Third quarter 2024 results: CN¥0.014 loss per share (down from CN¥0.062 profit in 3Q 2023). Revenue: CN¥91.1b (down 29% from 3Q 2023). Net loss: CN¥126.6m (down 192% from profit in 3Q 2023). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Xiamen ITG Group Corp.,Ltd to Report Q3, 2024 Results on Oct 31, 2024 Xiamen ITG Group Corp.,Ltd announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥6.73, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Trade Distributors industry in China. Total returns to shareholders of 6.4% over the past three years. New Risk • Sep 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 2,433% 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: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 169% Cash payout ratio: 93% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.32 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.32 in 2Q 2023). Revenue: CN¥98.3b (down 34% from 2Q 2023). Net income: CN¥428.2m (down 40% from 2Q 2023). Profit margin: 0.4% (down from 0.5% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 12
Now 20% overvalued Over the last 90 days, the stock has fallen 7.2% to CN¥6.85. The fair value is estimated to be CN¥5.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has declined by 20%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 143% in the next 2 years. Announcement • Jun 28
Xiamen ITG Group Corp.,Ltd to Report First Half, 2024 Results on Aug 30, 2024 Xiamen ITG Group Corp.,Ltd announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • Jun 22
Dividend reduced to CN¥0.50 Dividend of CN¥0.50 is 23% lower than last year. Ex-date: 26th June 2024 Payment date: 26th June 2024 Dividend yield will be 6.4%, which is higher than the industry average of 5.4%. Sustainability & Growth Dividend is not covered by earnings (109% earnings payout ratio). However, it is well covered by cash flows (23% cash payout ratio). The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 22% to bring the payout ratio under control. EPS is expected to grow by 108% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Apr 24
Xiamen ITG Group Corp.,Ltd, Annual General Meeting, May 15, 2024 Xiamen ITG Group Corp.,Ltd, Annual General Meeting, May 15, 2024, at 14:30 China Standard Time. Location: 5F, No. 4688, Xianyue Road, Huli District, Xiamen, Fujian China Reported Earnings • Apr 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.64 (down from CN¥1.40 in FY 2022). Revenue: CN¥468.2b (down 10% from FY 2022). Net income: CN¥1.91b (down 38% from FY 2022). Profit margin: 0.4% (down from 0.6% in FY 2022). Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 52%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Trade Distributors industry in China. 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 2% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Apr 22
Now 21% undervalued Over the last 90 days, the stock has risen 14% to CN¥7.59. The fair value is estimated to be CN¥9.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 47% in 2 years. Earnings are forecast to grow by 91% in the next 2 years. Announcement • Mar 29
Xiamen ITG Group Corp.,Ltd to Report Q1, 2024 Results on Apr 30, 2024 Xiamen ITG Group Corp.,Ltd announced that they will report Q1, 2024 results on Apr 30, 2024 Buy Or Sell Opportunity • Jan 29
Now 20% undervalued Over the last 90 days, the stock has risen 2.6% to CN¥7.05. The fair value is estimated to be CN¥8.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 47% in 2 years. Earnings are forecast to grow by 91% in the next 2 years. Buying Opportunity • Jan 09
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.7%. The fair value is estimated to be CN¥8.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 47% in 2 years. Earnings is forecast to grow by 91% in the next 2 years. Announcement • Dec 30
Xiamen ITG Group Corp.,Ltd to Report Fiscal Year 2023 Results on Apr 24, 2024 Xiamen ITG Group Corp.,Ltd announced that they will report fiscal year 2023 results on Apr 24, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.17 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.13. Revenue: CN¥128.8b (down 6.8% from 3Q 2022). Net income: CN¥524.6m (up 43% from 3Q 2022). Profit margin: 0.4% (up from 0.3% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Trade Distributors industry in China. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.32 (vs CN¥0.41 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.32 (down from CN¥0.41 in 2Q 2022). Revenue: CN¥148.3b (down 5.2% from 2Q 2022). Net income: CN¥946.3m (down 1.5% from 2Q 2022). Profit margin: 0.6% (in line with 2Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.29 (vs CN¥0.28 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.29 (up from CN¥0.28 in 1Q 2022). Revenue: CN¥123.6b (up 13% from 1Q 2022). Net income: CN¥739.4m (up 27% from 1Q 2022). Profit margin: 0.6% (up from 0.5% in 1Q 2022). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Trade Distributors industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 13% per year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 3 highly experienced directors. 2 independent directors (6 non-independent directors). Director & VP Zeng Yuan was the last director to join the board, commencing their role in 2022. 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¥0.22 (vs CN¥0.19 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.22 (up from CN¥0.19 in 3Q 2021). Revenue: CN¥138.2b (up 25% from 3Q 2021). Net income: CN¥765.6m (up 108% from 3Q 2021). Profit margin: 0.6% (up from 0.3% in 3Q 2021). 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 4% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.40 (vs CN¥0.83 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.40 (down from CN¥0.83 in 2Q 2021). Revenue: CN¥156.5b (flat on 2Q 2021). Net income: CN¥1.21b (down 25% from 2Q 2021). Profit margin: 0.8% (down from 1.0% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.28 (up from CN¥0.26 in 1Q 2021). Revenue: CN¥109.6b (up 21% from 1Q 2021). Net income: CN¥703.1m (up 39% from 1Q 2021). Profit margin: 0.6% (in line with 1Q 2021). Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 43%. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 6% 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. 9 experienced directors. 3 highly experienced directors. 3 independent directors (6 non-independent directors). Director Jin Ming Chen was the last director to join the board, commencing their role in 2011. 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 • Apr 21
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥1.50 (up from CN¥1.12 in FY 2020). Revenue: CN¥464.8b (up 32% from FY 2020). Net income: CN¥3.41b (up 65% from FY 2020). Profit margin: 0.7% (up from 0.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 43%. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.26 (vs CN¥0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥110.8b (up 16% from 3Q 2020). Net income: CN¥743.1m (up 36% from 3Q 2020). Profit margin: 0.7% (up from 0.6% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥9.27, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 25x in the Trade Distributors industry in China. Total returns to shareholders of 51% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.78 (vs CN¥0.47 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥156.4b (up 95% from 2Q 2020). Net income: CN¥1.85b (up 233% from 2Q 2020). Profit margin: 1.2% (up from 0.7% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 24
Full year 2020 earnings released: EPS CN¥1.12 (vs CN¥0.90 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥351.1b (up 61% from FY 2019). Net income: CN¥2.61b (up 59% from FY 2019). Profit margin: 0.7% (down from 0.8% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 6% per year. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥6.18 The company is down 8.0% from its price of CN¥6.69 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Trade Distributors industry, which is down 4.0% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥6.41 The company is down 8.0% from its price of CN¥6.96 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Trade Distributors industry, which is down 5.0% over the same period. Is New 90 Day High Low • Dec 24
New 90-day low: CN¥6.55 The company is down 3.0% from its price of CN¥6.75 on 25 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 Trade Distributors industry, which is down 1.0% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: CN¥6.69 The company is down 4.0% from its price of CN¥6.97 on 31 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Trade Distributors industry, which is down 8.0% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥1.71b, down 22% from the prior year. Total revenue was CN¥281.3b over the last 12 months, up 26% from the prior year. Announcement • Jul 10
Xiamen ITG Group Corp., Ltd. to Report First Half, 2020 Results on Aug 27, 2020 Xiamen ITG Group Corp., Ltd. announced that they will report first half, 2020 results on Aug 27, 2020