New Risk • Apr 24
New major risk - Revenue and earnings growth Earnings have declined by 0.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 0.6% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.2% net profit margin). Reported Earnings • Apr 24
First quarter 2026 earnings released: EPS: CN¥0.001 (vs CN¥0.13 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.001 (down from CN¥0.13 in 1Q 2025). Revenue: CN¥250.5m (down 13% from 1Q 2025). Net income: CN¥130.4k (down 99% from 1Q 2025). Profit margin: 0.1% (down from 7.1% in 1Q 2025). Revenue is forecast to grow 40% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electrical 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 14% per year, which means it is well ahead of earnings. Announcement • Apr 24
Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 18, 2026 Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 18, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Xuzhou, Jiangsu China Announcement • Mar 30
Jiangsu Huachen Transformer Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Jiangsu Huachen Transformer Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥41.55, the stock trades at a trailing P/E ratio of 66x. Average forward P/E is 28x in the Electrical industry in China. Total returns to shareholders of 109% over the past three years. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥33.79, the stock trades at a trailing P/E ratio of 53.6x. Average forward P/E is 27x in the Electrical industry in China. Total returns to shareholders of 66% over the past three years. Announcement • Dec 26
Jiangsu Huachen Transformer Co., Ltd. to Report Fiscal Year 2025 Results on Apr 24, 2026 Jiangsu Huachen Transformer Co., Ltd. announced that they will report fiscal year 2025 results on Apr 24, 2026 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥30.42, the stock trades at a trailing P/E ratio of 49.4x. Average forward P/E is 23x in the Electrical industry in China. Total returns to shareholders of 77% over the past three years. New Risk • Dec 17
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 7.2% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (5.1% net profit margin). Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥23.57, the stock trades at a trailing P/E ratio of 38.3x. Average forward P/E is 22x in the Electrical industry in China. Total returns to shareholders of 25% over the past three years. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.16 (vs CN¥0.14 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.16 (up from CN¥0.14 in 3Q 2024). Revenue: CN¥505.0m (up 32% from 3Q 2024). Net income: CN¥24.9m (up 10% from 3Q 2024). Profit margin: 4.9% (down from 5.9% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 37% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 7% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥27.21, the stock trades at a trailing P/E ratio of 44x. Average forward P/E is 24x in the Electrical industry in China. Total returns to shareholders of 34% over the past three years. Announcement • Sep 30
Jiangsu Huachen Transformer Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Jiangsu Huachen Transformer Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.16 (vs CN¥0.10 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.16 (up from CN¥0.10 in 2Q 2024). Revenue: CN¥649.2m (up 56% from 2Q 2024). Net income: CN¥26.6m (up 58% from 2Q 2024). Profit margin: 4.1% (up from 4.0% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 39% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Jun 30
Jiangsu Huachen Transformer Co., Ltd. to Report First Half, 2025 Results on Aug 21, 2025 Jiangsu Huachen Transformer Co., Ltd. announced that they will report first half, 2025 results on Aug 21, 2025 New Risk • May 05
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: 0.9% 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: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (5.5% net profit margin). New Risk • May 02
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: 5.5% Last year net profit margin: 8.5% 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. This is currently the only risk that has been identified for the company. Announcement • Apr 29
Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 21, 2025 Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 21, 2025, at 14:00 China Standard Time. Announcement • Mar 28
Jiangsu Huachen Transformer Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Jiangsu Huachen Transformer Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Jiangsu Huachen Transformer Co., Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Jiangsu Huachen Transformer Co., Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.22 in 3Q 2023). Revenue: CN¥382.0m (down 8.6% from 3Q 2023). Net income: CN¥22.6m (down 36% from 3Q 2023). Profit margin: 5.9% (down from 8.5% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electrical industry in China. Announcement • Sep 30
Jiangsu Huachen Transformer Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Jiangsu Huachen Transformer 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 26% After last week's 26% share price gain to CN¥23.02, the stock trades at a trailing P/E ratio of 27.4x. Average forward P/E is 17x in the Electrical industry in China. Total returns to shareholders of 14% over the past year. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.10 (vs CN¥0.091 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.10 (up from CN¥0.091 in 2Q 2023). Revenue: CN¥417.2m (up 43% from 2Q 2023). Net income: CN¥16.8m (up 16% from 2Q 2023). Profit margin: 4.0% (down from 5.0% in 2Q 2023). The decrease in margin was driven by higher expenses. Announcement • Jun 28
Jiangsu Huachen Transformer Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Jiangsu Huachen Transformer Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥32.84, the stock trades at a trailing P/E ratio of 39.8x. Average forward P/E is 18x in the Electrical industry in China. Total returns to shareholders of 58% over the past year. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥29.80, the stock trades at a trailing P/E ratio of 36.1x. Average forward P/E is 18x in the Electrical industry in China. Total returns to shareholders of 59% over the past year. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.078 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.14 (up from CN¥0.078 in 1Q 2023). Revenue: CN¥250.8m (up 16% from 1Q 2023). Net income: CN¥23.1m (up 84% from 1Q 2023). Profit margin: 9.2% (up from 5.8% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electrical industry in China. Announcement • Apr 26
Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 21, 2024 Jiangsu Huachen Transformer Co., Ltd., Annual General Meeting, May 21, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Xuzhou, Jiangsu China Announcement • Mar 29
Jiangsu Huachen Transformer Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Jiangsu Huachen Transformer Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥22.59, the stock trades at a trailing P/E ratio of 39.7x. Average forward P/E is 15x in the Electrical industry in China. Total returns to shareholders of 2.0% over the past year. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥15.20, the stock trades at a trailing P/E ratio of 26.7x. Average forward P/E is 13x in the Electrical industry in China. Total loss to shareholders of 26% over the past year. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥31.83, the stock trades at a trailing P/E ratio of 56x. Average forward P/E is 16x in the Electrical industry in China. Total returns to shareholders of 63% over the past year. Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥23.80, the stock trades at a trailing P/E ratio of 41.9x. Average forward P/E is 17x in the Electrical industry in China. Total returns to shareholders of 37% over the past year. Announcement • Dec 30
Jiangsu Huachen Transformer Co., Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 Jiangsu Huachen Transformer Co., Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.15 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.15 in 3Q 2022). Revenue: CN¥418.2m (up 45% from 3Q 2022). Net income: CN¥35.4m (up 50% from 3Q 2022). Profit margin: 8.5% (up from 8.2% in 3Q 2022). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in China. Valuation Update With 7 Day Price Move • Oct 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥21.21, the stock trades at a trailing P/E ratio of 42.9x. Average forward P/E is 16x in the Electrical industry in China. Total returns to shareholders of 7.5% over the past year. Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: CN¥0.091 (vs CN¥0.079 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.091 (up from CN¥0.079 in 2Q 2022). Revenue: CN¥291.9m (up 35% from 2Q 2022). Net income: CN¥14.5m (up 38% from 2Q 2022). Profit margin: 5.0% (up from 4.9% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electrical industry in China. Announcement • Jun 28
Jiangsu Huachen Transformer Co., Ltd. to Report First Half, 2023 Results on Aug 18, 2023 Jiangsu Huachen Transformer Co., Ltd. announced that they will report first half, 2023 results on Aug 18, 2023 Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥24.17, the stock trades at a trailing P/E ratio of 51.5x. Average forward P/E is 20x in the Electrical industry in China. Total loss to shareholders of 18% over the past year. Reported Earnings • Apr 14
Full year 2022 earnings released: EPS: CN¥0.64 (vs CN¥0.65 in FY 2021) Full year 2022 results: EPS: CN¥0.64. Revenue: CN¥1.02b (up 18% from FY 2021). Net income: CN¥91.3m (up 16% from FY 2021). Profit margin: 8.9% (down from 9.0% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Electrical industry in China. Reported Earnings • Oct 30
Third quarter 2022 earnings released Third quarter 2022 results: EPS: CN¥0.15. Net income: CN¥23.5m (up CN¥23.5m from 3Q 2021). Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥22.38, the stock trades at a trailing P/E ratio of 45.7x. Average trailing P/E is 38x in the Electrical industry in China. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥26.88, the stock trades at a trailing P/E ratio of 54.8x. Average trailing P/E is 40x in the Electrical industry in China. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorated over the past week After last week's 23% share price decline to CN¥23.05, the stock trades at a trailing P/E ratio of 47x. Average trailing P/E is 35x in the Electrical industry in China.