Jiangsu Linyang Energy (SHSE:601222) - Share price, News & Analysis

Q: What is the Fair Price of 601222 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

601222 (CN¥8.56) is trading below our estimate of [[fair value]] (CN¥10.74)

601222 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	5/6
Past Performance	3/6
Financial Health	5/6
Dividends	5/6

601222 Stock Overview

Jiangsu Linyang Energy Co., Ltd. manufactures and supplies electronic energy meters and electricity management information systems in China and internationally.

Rewards

Trading at 20.3% below our estimate of its fair value

Earnings are forecast to grow 24.26% per year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Jiangsu Linyang Energy Competitors

Qingdao TGOOD Electric

SZSE:300001

CN¥18.7b

Shenzhen Hopewind Electric

SHSE:603063

CN¥16.4b

Qingdao Hanhe CableLtd

SZSE:002498

CN¥14.2b

Hunan Corun New Energy

SHSE:600478

CN¥14.6b

Price History & Performance

Summary of all time highs, changes and price drops for Jiangsu Linyang Energy
Historical stock prices
Current Share Price	CN¥8.56
52 Week High	CN¥14.15
52 Week Low	CN¥6.14
Beta	0.62
1 Month Change	1.78%
3 Month Change	-0.58%
1 Year Change	8.35%
3 Year Change	84.48%
5 Year Change	13.08%
Change since IPO	63.64%

Shareholder Returns

	601222	CN Electrical	CN Market
7D	-0.6%	-3.0%	1.3%
1Y	8.4%	12.2%	-6.8%

Return vs Industry: 601222 underperformed the CN Electrical industry which returned 12.2% over the past year.

Return vs Market: 601222 exceeded the CN Market which returned -6.8% over the past year.

Price Volatility

Is 601222's price volatile compared to industry and market?
601222 volatility
601222 Average Weekly Movement	6.7%
Electrical Industry Average Movement	7.9%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 601222 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 601222's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	3,379	Yonghua Lu	https://www.linyang.com.cn

Jiangsu Linyang Energy Co., Ltd. manufactures and supplies electronic energy meters and electricity management information systems in China and internationally. The company offers electric energy meters, water meters, metering accessories, intelligent power consumption information management terminals, communication modules, energy storage converters, and integrated master stations. It also provides indoor and outdoor LED lighting products, and intelligent control systems; substation integrated automation systems; photovoltaic power generation and lithium-ion energy storage system solutions; and photovoltaic EPC and operation and maintenance services.

Jiangsu Linyang Energy Fundamentals Summary

How do Jiangsu Linyang Energy's earnings and revenue compare to its market cap?
601222 fundamental statistics
Market Cap	CN¥16.63b
Earnings (TTM)	CN¥936.82m
Revenue (TTM)	CN¥5.32b

18.8x

P/E Ratio

3.3x

P/S Ratio

Is 601222 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
601222 income statement (TTM)
Revenue	CN¥5.32b
Cost of Revenue	CN¥3.51b
Gross Profit	CN¥1.81b
Other Expenses	CN¥877.99m
Earnings	CN¥936.82m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.45
Gross Margin	34.08%
Net Profit Margin	17.59%
Debt/Equity Ratio	24.2%

How did 601222 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

44%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 601222 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601222?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 601222. This is calculated by dividing 601222's market cap by their current preferred multiple.
What is 601222's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥16.63b

601222 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	8.8x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

How does 601222's PE Ratio compare to its peers?

601222 PE Ratio vs Peers

The above table shows the PE ratio for 601222 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	100.7x
300001 Qingdao TGOOD Electric	102.1x	47.7%	CN¥18.7b
603063 Shenzhen Hopewind Electric	58.4x	n/a	CN¥16.4b
002498 Qingdao Hanhe CableLtd	17.8x	n/a	CN¥14.2b
600478 Hunan Corun New Energy	234.6x	n/a	CN¥14.6b
601222 Jiangsu Linyang Energy	18.8x	24.3%	CN¥17.6b

Forward PE

Price-To-Earnings vs Peers: 601222 is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (103.2x).

Price to Earnings Ratio vs Industry

How does 601222's PE Ratio compare vs other companies in the CN Electrical Industry?

Price-To-Earnings vs Industry: 601222 is good value based on its Price-To-Earnings Ratio (18.8x) compared to the CN Electrical industry average (38.2x)

Price to Earnings Ratio vs Fair Ratio

What is 601222's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

601222 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.8x
Fair PE Ratio	27.7x

Price-To-Earnings vs Fair Ratio: 601222 is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (27.9x).

Share Price vs Fair Value

What is the Fair Price of 601222 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601222 (CN¥8.56) is trading below our estimate of fair value (CN¥10.74)

Significantly Below Fair Value: 601222 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 601222 is good value based on its PEG Ratio (0.8x)

Discover undervalued companies

Future Growth

How is Jiangsu Linyang Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601222's forecast earnings growth (24.3% per year) is above the savings rate (3.2%).

Earnings vs Market: 601222's earnings (24.3% per year) are forecast to grow faster than the CN market (23.9% per year).

High Growth Earnings: 601222's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 601222's revenue (25.2% per year) is forecast to grow faster than the CN market (17.5% per year).

High Growth Revenue: 601222's revenue (25.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 601222's Return on Equity is forecast to be low in 3 years time (10.1%).

Discover growth companies

Past Performance

How has Jiangsu Linyang Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601222 has high quality earnings.

Growing Profit Margin: 601222's current net profit margins (17.6%) are higher than last year (17.1%).

Past Earnings Growth Analysis

Earnings Trend: 601222's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: 601222's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 601222 had negative earnings growth (-9.7%) over the past year, making it difficult to compare to the Electrical industry average (0.4%).

Return on Equity

High ROE: 601222's Return on Equity (6.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Jiangsu Linyang Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 601222's short term assets (CN¥10.3B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: 601222's short term assets (CN¥10.3B) exceed its long term liabilities (CN¥2.3B).

Debt to Equity History and Analysis

Debt Level: 601222 has more cash than its total debt.

Reducing Debt: 601222's debt to equity ratio has increased from 17.9% to 24.2% over the past 5 years.

Debt Coverage: 601222's debt is well covered by operating cash flow (34.2%).

Interest Coverage: 601222's interest payments on its debt are well covered by EBIT (6.9x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Jiangsu Linyang Energy current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601222's dividend (2.57%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 601222's dividend (2.57%) is in the top 25% of dividend payers in the CN market (1.92%)

Stability and Growth of Payments

Stable Dividend: 601222's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601222's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (44.4%), 601222's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (52.8%), 601222's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

9.9yrs

Average management tenure

CEO

Yonghua Lu (59 yo)

no data

Tenure

CN¥1,233,000

Compensation

Mr. Yonghua Lu Founded Jiangsu Linyang Energy Co., Ltd. (formerly known as Jiangsu Linyang Electronics Co., Ltd.) and serves as its Chief Executive Officer. Mr. Yonghua founded Solarfun Power Holdings Co....

Leadership Team

Experienced Management: 601222's management team is seasoned and experienced (9.9 years average tenure).

Board Members

Experienced Board: 601222's board of directors are seasoned and experienced ( 12.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.2%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31