New Risk • May 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% 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 Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 26% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Reported Earnings • Apr 23
Full year 2025 earnings released: EPS: CN¥0.14 (vs CN¥0.23 in FY 2024) Full year 2025 results: EPS: CN¥0.14 (down from CN¥0.23 in FY 2024). Revenue: CN¥943.7m (up 15% from FY 2024). Net income: CN¥52.2m (down 40% from FY 2024). Profit margin: 5.5% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Announcement • Apr 23
TKD Science and Technology Co.,Ltd., Annual General Meeting, May 15, 2026 TKD Science and Technology Co.,Ltd., Annual General Meeting, May 15, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Suizhou, Hubei China Announcement • Mar 30
TKD Science and Technology Co.,Ltd. to Report Q1, 2026 Results on Apr 30, 2026 TKD Science and Technology Co.,Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 New Risk • Mar 27
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 8.6% 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 Earnings have declined by 12% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.1% net profit margin). Announcement • Dec 26
TKD Science and Technology Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 TKD Science and Technology Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 Board Change • Dec 13
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 2 experienced directors. 2 highly experienced directors. Chairman of Board of Directors Xindong Yu is the most experienced director on the board, commencing their role in 2005. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Nov 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 52% 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 Earnings have declined by 12% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.1% net profit margin). Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.03 (vs CN¥0.07 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.03 (down from CN¥0.07 in 3Q 2024). Revenue: CN¥258.8m (up 15% from 3Q 2024). Net income: CN¥13.0m (down 52% from 3Q 2024). Profit margin: 5.0% (down from 12% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
TKD Science and Technology Co.,Ltd. to Report Q3, 2025 Results on Oct 31, 2025 TKD Science and Technology Co.,Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 New Risk • Sep 03
New major risk - Revenue and earnings growth Earnings have declined by 3.1% 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 Risk Earnings have declined by 3.1% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.9% net profit margin). Announcement • Jun 30
TKD Science and Technology Co.,Ltd. to Report First Half, 2025 Results on Aug 27, 2025 TKD Science and Technology Co.,Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • Jun 15
Dividend reduced to CN¥0.08 Dividend of CN¥0.08 is 1.2% lower than last year. Ex-date: 20th June 2025 Payment date: 20th June 2025 Dividend yield will be 0.6%, which is lower than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (48% earnings payout ratio) but not covered by cash flows (dividend approximately 12x free cash flows). The dividend has increased by an average of 1.9% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 77% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • May 20
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: 7.8% Last year net profit margin: 14% 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: Minor Risks Dividend is not well covered by cash flows (dividend per share is over 12x cash flows per share). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.8% net profit margin). Announcement • Apr 29
TKD Science and Technology Co.,Ltd., Annual General Meeting, May 20, 2025 TKD Science and Technology Co.,Ltd., Annual General Meeting, May 20, 2025, at 13:30 China Standard Time. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥13.04, the stock trades at a trailing P/E ratio of 44.8x. Average trailing P/E is 34x in the Electrical industry in China. Total loss to shareholders of 18% over the past three years. New Risk • Apr 07
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: 0.6% 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. Large one-off items impacting financial results. Announcement • Mar 28
TKD Science and Technology Co.,Ltd. to Report Q1, 2025 Results on Apr 29, 2025 TKD Science and Technology Co.,Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Jan 16
TKD Science and Technology Co.,Ltd. (SHSE:603738) acquired the remaining 40% stake in Chongqing Taiqing Electronic Technology Co., Ltd. from Xiao Chenxi for CNY 4.9 million. TKD Science and Technology Co.,Ltd. (SHSE:603738) acquired the remaining 40% stake in Chongqing Taiqing Electronic Technology Co., Ltd. from Xiao Chenxi for CNY 4.9 million on January 14, 2025. The consideration of CNY 4.9 million includes the payment of CNY 0.243 million contingent upon recovery of the receivables by Chongqing Taiqing Electronic Technology Co., Ltd. Upon completion, TKD Science and Technology Co.,Ltd. will own 100% stake in Chongqing Taiqing Electronic Technology Co., Ltd. The transaction will be financed through equity investment of CNY 4.86 million.
As of December 31, 2024, Chongqing Taiqing Electronic Technology Co., Ltd. reported operating income of CNY 14.3 million, net loss of 8.1 million, total assets of CNY 16.24 million and total common equity of CNY 16.22 million.
TKD Science and Technology Co.,Ltd. (SHSE:603738) completed the acquisition of the remaining 40% stake in Chongqing Taiqing Electronic Technology Co., Ltd. from Xiao Chenxi on January 14, 2025. Announcement • Dec 27
TKD Science and Technology Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 TKD Science and Technology Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 New Risk • Nov 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 53% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.07 (vs CN¥0.07 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.07 (in line with 3Q 2023). Revenue: CN¥224.5m (up 6.8% from 3Q 2023). Net income: CN¥27.0m (down 3.9% from 3Q 2023). Profit margin: 12% (down from 13% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
TKD Science and Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 TKD Science and Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥14.39, the stock trades at a trailing P/E ratio of 48.9x. Average trailing P/E is 29x in the Electrical industry in China. Total loss to shareholders of 39% over the past three years. New Risk • Sep 21
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 39% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.07 (vs CN¥0.07 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.07 (in line with 2Q 2023). Revenue: CN¥211.0m (flat on 2Q 2023). Net income: CN¥26.9m (down 3.9% from 2Q 2023). Profit margin: 13% (in line with 2Q 2023). 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 20% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
TKD Science and Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 TKD Science and Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 New Risk • May 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 31% 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. This is currently the only risk that has been identified for the company. Announcement • Apr 29
TKD Science and Technology Co.,Ltd., Annual General Meeting, May 20, 2024 TKD Science and Technology Co.,Ltd., Annual General Meeting, May 20, 2024, at 09:00 China Standard Time. Location: The Company's Meeting Room, Suizhou, Hubei China Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.05 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.08 (up from CN¥0.05 in 1Q 2023). Revenue: CN¥182.1m (up 3.8% from 1Q 2023). Net income: CN¥30.5m (up 60% from 1Q 2023). Profit margin: 17% (up from 11% in 1Q 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 36% 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 21% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Mar 29
TKD Science and Technology Co.,Ltd. to Report Q1, 2024 Results on Apr 27, 2024 TKD Science and Technology Co.,Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥10.86, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 13x in the Electrical industry in China. Total returns to shareholders of 28% over the past three years. Announcement • Dec 29
TKD Science and Technology Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 27, 2024 TKD Science and Technology Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 27, 2024 New Risk • Nov 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 46% 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 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 (7.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (11% net profit margin). Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.07 (vs CN¥0.11 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.07 (down from CN¥0.11 in 3Q 2022). Revenue: CN¥210.1m (up 1.2% from 3Q 2022). Net income: CN¥28.1m (down 35% from 3Q 2022). Profit margin: 13% (down from 21% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 17% per year. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥18.63, the stock trades at a trailing P/E ratio of 72.6x. Average trailing P/E is 35x in the Electrical industry in China. Total returns to shareholders of 92% over the past three years. New Risk • Sep 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% 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 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 (6.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (13% net profit margin). Announcement • Sep 11
TKD Science and Technology Co.,Ltd. (SHSE:603738) announces an Equity Buyback for CNY 100 million worth of its shares. TKD Science and Technology Co.,Ltd. (SHSE:603738) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be repurchased at a price of not more than CNY 22.48 per share. The repurchased share will be used for ESOP or equity incentives. The program is valid for 12 months. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.07 (vs CN¥0.16 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.07 (down from CN¥0.16 in 2Q 2022). Revenue: CN¥210.0m (down 20% from 2Q 2022). Net income: CN¥28.0m (down 55% from 2Q 2022). Profit margin: 13% (down from 24% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. New Risk • Jun 22
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 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 (7.2% average weekly change). Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥17.70, the stock trades at a trailing P/E ratio of 51.4x. Average trailing P/E is 38x in the Electrical industry in China. Total returns to shareholders of 57% over the past three years. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment deteriorates as stock falls 31% After last week's 31% share price decline to CN¥15.63, the stock trades at a trailing P/E ratio of 32.4x. Average trailing P/E is 36x in the Electrical industry in China. Total returns to shareholders of 2.8% over the past three years. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.07 (vs CN¥0.27 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.07 (down from CN¥0.27 in 1Q 2022). Revenue: CN¥175.4m (down 33% from 1Q 2022). Net income: CN¥19.1m (down 74% from 1Q 2022). Profit margin: 11% (down from 28% in 1Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥22.44, the stock trades at a trailing P/E ratio of 24.7x. Average trailing P/E is 35x in the Electrical industry in China. Total returns to shareholders of 42% over the past three years. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥28.12, the stock trades at a trailing P/E ratio of 31x. Average trailing P/E is 38x in the Electrical industry in China. Total returns to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥23.34, the stock trades at a trailing P/E ratio of 25.7x. Average trailing P/E is 35x in the Electrical industry in China. Total returns to shareholders of 29% over the past three years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Ming Yi was the last independent director to join the board, commencing their role in 2018. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 29
Third quarter 2022 earnings released: EPS: CN¥0.56 (vs CN¥0.29 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.56. Revenue: CN¥207.5m (down 38% from 3Q 2021). Net income: CN¥43.1m (down 43% from 3Q 2021). Profit margin: 21% (down from 23% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 38% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Electrical industry in China. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥21.22, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 20x in the Electrical industry in China. Total returns to shareholders of 52% over the past three years. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.42 (vs CN¥0.24 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.42 (up from CN¥0.24 in 2Q 2021). Revenue: CN¥263.3m (down 16% from 2Q 2021). Net income: CN¥62.0m (up 8.2% from 2Q 2021). Profit margin: 24% (up from 18% in 2Q 2021). The increase in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 75%, compared to a 55% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has increased by 104% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥30.00, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 27x in the Electrical industry in China. Total returns to shareholders of 113% over the past three years. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥30.28, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 25x in the Electrical industry in China. Total returns to shareholders of 53% over the past three years. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment deteriorated over the past week After last week's 24% share price decline to CN¥26.00, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 23x in the Electrical industry in China. Total returns to shareholders of 52% over the past three years. Reported Earnings • May 02
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.38 (up from CN¥0.22 in 1Q 2021). Revenue: CN¥261.9m (up 4.3% from 1Q 2021). Net income: CN¥73.6m (up 93% from 1Q 2021). Profit margin: 28% (up from 15% in 1Q 2021). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 16%. Earnings per share (EPS) exceeded analyst estimates by 5.5%. Over the next year, revenue is forecast to grow 110%, compared to a 54% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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. 5 experienced directors. 7 highly experienced directors. Independent Director Wei Liu was the last director to join the board, commencing their role in 2015. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥58.34, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 31x in the Electrical industry in China. Total returns to shareholders of 343% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.40 (vs CN¥0.04 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥334.6m (up 74% from 3Q 2020). Net income: CN¥75.6m (up CN¥69.7m from 3Q 2020). Profit margin: 23% (up from 3.0% in 3Q 2020). The increase in margin was driven by higher revenue. 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 57% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥54.79, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 30x in the Electrical industry in China. Total returns to shareholders of 284% over the past three years. Reported Earnings • Aug 31
Second quarter 2021 earnings released: EPS CN¥0.33 (vs CN¥0.081 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥312.2m (up 83% from 2Q 2020). Net income: CN¥57.3m (up 291% from 2Q 2020). Profit margin: 18% (up from 8.6% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥34.80, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 25x in the Electrical industry in China. Total returns to shareholders of 125% over the past three years. Reported Earnings • Apr 16
First quarter 2021 earnings released: EPS CN¥0.22 (vs CN¥0.056 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥251.2m (up 246% from 1Q 2020). Net income: CN¥38.2m (up CN¥47.6m from 1Q 2020). Profit margin: 15% (up from net loss in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Mar 05
Full year 2020 earnings released: EPS CN¥0.23 (vs CN¥0.07 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥630.9m (up 8.8% from FY 2019). Net income: CN¥38.6m (up 239% from FY 2019). Profit margin: 6.1% (up from 2.0% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 05
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 14%. Earnings per share (EPS) exceeded analyst estimates by 44%. Over the next year, revenue is forecast to grow 103%, compared to a 48% growth forecast for the Electrical industry in China. Announcement • Feb 24
TKD Science and Technology Co.,Ltd. (SHSE:603738) completed the acquisition of remaining 30% stake in Suizhou Taihua Electronic Technology Co., Ltd. from (Taiwan) Xihua Crystal Technology Co., Ltd. TKD Science and Technology Co.,Ltd. (SHSE:603738) intends to acquire the remaining 30% stake in Suizhou Taihua Electronic Technology Co., Ltd. from (Taiwan) Xihua Crystal Technology Co., Ltd. for CNY 77.4 million on January 19, 2021. As per the terms of the agreement, TKD Science and Technology shall pay Xihua Crystal CNY 12 million before the 25th of each month after this agreement becomes effective, and all equity transfer payments shall be paid before July 31, 2021. As a result of the transaction, Suizhou Taihua Electronic Technology will be a wholly-owned subsidiary of TKD Science and Technology Co.,Ltd. In October 31, 2020, Suizhou Taihua Electronic Technology reported a total assets of CNY 268 million, total common equity of CNY 234 million, EBIT of CNY 142 million and net income of CNY 8 million. The transaction was approved by the Board of Directors of TKD Science and Technology Co.,Ltd. As of February 4, 2021, the transaction was approved in the 1st Extraordinary shareholders meeting of 2021 of TKD Science and Technology Co.,Ltd.
TKD Science and Technology Co.,Ltd. (SHSE:603738) completed the acquisition of remaining 30% stake in Suizhou Taihua Electronic Technology Co., Ltd. from (Taiwan) Xihua Crystal Technology Co., Ltd. on February 24, 2021. Is New 90 Day High Low • Jan 25
New 90-day low: CN¥19.09 The company is down 7.0% from its price of CN¥20.43 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 31% over the same period. Announcement • Jan 21
TKD Science and Technology Co.,Ltd. to Report Fiscal Year 2020 Results on Mar 05, 2021 TKD Science and Technology Co.,Ltd. announced that they will report fiscal year 2020 results on Mar 05, 2021 Is New 90 Day High Low • Dec 02
New 90-day high: CN¥23.90 The company is up 6.0% from its price of CN¥22.55 on 03 September 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electrical industry, which is up 7.0% over the same period. Reported Earnings • Nov 02
Third quarter 2020 earnings released: EPS CN¥0.046 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: CN¥192.7m (up 19% from 3Q 2019). Net income: CN¥5.85m (up 237% from 3Q 2019). Profit margin: 3.0% (up from 1.1% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 73% 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 • Oct 30
TKD Science and Technology Co.,Ltd. to Report Q3, 2020 Results on Oct 31, 2020 TKD Science and Technology Co.,Ltd. announced that they will report Q3, 2020 results on Oct 31, 2020 Announcement • Aug 24
TKD Science and Technology Co.,Ltd. Approves the Proposal of Changing Accounting Policy TKD Science and Technology Co.,Ltd. announced at its directorate meeting on August 20, 2020, the Board has approved the proposal of changing Accounting Policy. Announcement • Jul 09
TKD Science and Technology Co.,Ltd. to Report First Half, 2020 Results on Aug 21, 2020 TKD Science and Technology Co.,Ltd. announced that they will report first half, 2020 results on Aug 21, 2020