Buy Or Sell Opportunity • May 05
Now 23% undervalued Over the last 90 days, the stock has risen 4.9% to CN¥9.14. The fair value is estimated to be CN¥11.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has grown by 14%. Revenue is forecast to grow by 62% in 2 years. Earnings are forecast to grow by 72% in the next 2 years. Major Estimate Revision • Apr 28
Consensus revenue estimates increase by 19%, EPS downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from CN¥46.2b to CN¥55.1b. EPS estimate fell from CN¥0.42 to CN¥0.407. Net income forecast to grow 32% next year vs 59% growth forecast for Electrical industry in China. Consensus price target up from CN¥7.78 to CN¥8.30. Share price rose 5.3% to CN¥8.93 over the past week. Reported Earnings • Apr 22
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: CN¥0.31 (up from CN¥0.20 in FY 2024). Revenue: CN¥37.1b (up 12% from FY 2024). Net income: CN¥1.58b (up 55% from FY 2024). Profit margin: 4.3% (up from 3.1% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% 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 increased by 7% per year and the company’s share price has also increased by 7% per year. Announcement • Apr 22
GEM Co., Ltd., Annual General Meeting, May 20, 2026 GEM Co., Ltd., Annual General Meeting, May 20, 2026, at 10:00 China Standard Time. Location: The Company's Meeting Room, Shanghai China Announcement • Mar 31
GEM Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 GEM Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 31
GEM Co., Ltd. to Report Fiscal Year 2025 Results on Apr 29, 2026 GEM Co., Ltd. announced that they will report fiscal year 2025 results on Apr 29, 2026 Price Target Changed • Dec 12
Price target increased by 8.9% to CN¥8.03 Up from CN¥7.38, the current price target is an average from 8 analysts. New target price is 8.7% above last closing price of CN¥7.39. Stock is up 8.7% over the past year. The company is forecast to post earnings per share of CN¥0.28 for next year compared to CN¥0.20 last year. Reported Earnings • Oct 31
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: CN¥0.06 (up from CN¥0.04 in 3Q 2024). Revenue: CN¥9.94b (up 32% from 3Q 2024). Net income: CN¥309.6m (up 53% from 3Q 2024). Profit margin: 3.1% (up from 2.7% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) exceeded analyst estimates by 20%. Revenue is forecast to grow 15% 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 fallen by 1% per year whereas the company’s share price has increased by 2% per year. Announcement • Sep 30
GEM Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 GEM Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Sep 01
Second quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2025 results: EPS: CN¥0.059 (up from CN¥0.05 in 2Q 2024). Revenue: CN¥8.06b (down 10% from 2Q 2024). Net income: CN¥287.8m (up 17% from 2Q 2024). Profit margin: 3.6% (up from 2.7% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) exceeded analyst estimates by 45%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electrical industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 4% per year. Announcement • Jul 02
GEM Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 GEM Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • Jul 02
Dividend reduced to CN¥0.066 Dividend of CN¥0.066 is 17% lower than last year. Ex-date: 4th July 2025 Payment date: 4th July 2025 Dividend yield will be 1.0%, which is lower than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (31% earnings payout ratio) but the company has 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 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 138% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Jun 07
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥40.8b to CN¥39.9b. EPS estimate also fell from CN¥0.373 per share to CN¥0.31 per share. Net income forecast to grow 64% next year vs 47% growth forecast for Electrical industry in China. Consensus price target broadly unchanged at CN¥7.19. Share price was steady at CN¥6.12 over the past week. Major Estimate Revision • May 10
Consensus EPS estimates increase by 34%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥40.6b to CN¥40.2b. EPS estimate rose from CN¥0.27 to CN¥0.362. Net income forecast to grow 84% next year vs 48% growth forecast for Electrical industry in China. Consensus price target of CN¥7.18 unchanged from last update. Share price was steady at CN¥6.21 over the past week. Reported Earnings • Apr 27
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.20 (up from CN¥0.18 in FY 2023). Revenue: CN¥33.2b (up 8.7% from FY 2023). Net income: CN¥1.02b (up 9.2% from FY 2023). Profit margin: 3.1% (in line with FY 2023). Revenue missed analyst estimates by 6.2%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 18% 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 whereas the company’s share price has fallen by 3% per year. Announcement • Apr 26
GEM Co., Ltd., Annual General Meeting, May 19, 2025 GEM Co., Ltd., Annual General Meeting, May 19, 2025, at 10:00 China Standard Time. Location: The Company's Meeting Room, Wuxi, Jiangsu China Announcement • Mar 31
GEM Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 GEM Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Jan 23
GEM Co., Ltd. (SZSE:002340) announces an Equity Buyback for CNY 200 million worth of its shares. GEM Co., Ltd. (SZSE:002340) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million. The shares will be repurchased at no more than CNY 9.93 per share. The shares repurchased will be canceled to reduce registered capital. The purpose of the program is to implement equity incentives or employee stock ownership plans. The program will be funded using own funds and special loan funds. The program is subject to approval from shareholders. The program will be valid for 12 months from the shareholders' approval. Price Target Changed • Jan 01
Price target increased by 8.0% to CN¥7.40 Up from CN¥6.85, the current price target is an average from 7 analysts. New target price is 13% above last closing price of CN¥6.53. Stock is up 20% over the past year. The company is forecast to post earnings per share of CN¥0.23 for next year compared to CN¥0.18 last year. Announcement • Dec 31
GEM Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 GEM Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Major Estimate Revision • Dec 03
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥33.9b to CN¥34.6b. EPS estimate increased from CN¥0.207 to CN¥0.233 per share. Net income forecast to grow 37% next year vs 41% growth forecast for Electrical industry in China. Consensus price target up from CN¥6.85 to CN¥7.10. Share price was steady at CN¥6.99 over the past week. Price Target Changed • Nov 04
Price target increased by 7.0% to CN¥6.85 Up from CN¥6.40, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of CN¥7.14. Stock is up 19% over the past year. The company is forecast to post earnings per share of CN¥0.22 for next year compared to CN¥0.18 last year. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.029 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.04 (up from CN¥0.029 in 3Q 2023). Revenue: CN¥7.53b (up 3.4% from 3Q 2023). Net income: CN¥202.4m (up 51% from 3Q 2023). Profit margin: 2.7% (up from 1.8% in 3Q 2023). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Metals and Mining industry in China. 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 13% per year, which means it is significantly lagging earnings. Announcement • Sep 30
GEM Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 GEM Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥6.54, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 13x in the Metals and Mining industry in China. Total loss to shareholders of 40% over the past three years. Major Estimate Revision • Sep 05
Consensus EPS estimates increase by 16% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from CN¥0.207 to CN¥0.24. Revenue forecast steady at CN¥34.5b. Net income forecast to grow 33% next year vs 39% growth forecast for Metals and Mining industry in China. Consensus price target down from CN¥6.55 to CN¥6.20. Share price was steady at CN¥5.82 over the past week. Reported Earnings • Aug 30
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: CN¥0.05. Revenue: CN¥8.98b (up 32% from 2Q 2023). Net income: CN¥245.4m (up 1.9% from 2Q 2023). Profit margin: 2.7% (down from 3.5% in 2Q 2023). Revenue exceeded analyst estimates by 17%. Earnings per share (EPS) also surpassed analyst estimates by 40%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Metals and Mining industry in China. Declared Dividend • Jun 29
Dividend increased to CN¥0.08 Dividend of CN¥0.08 is 60% higher than last year. Ex-date: 4th July 2024 Payment date: 4th July 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (33% earnings payout ratio) but the company has 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 17% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 98% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 29
GEM Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 GEM Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • Jun 28
GEM Co., Ltd. Announces Final Cash Dividend (Tax Included) on A Shares for the Year 2023, Payable on July 4, 2024 GEM Co., Ltd. announced final cash dividend (tax included) on A shares of CNY 0.80000000 per 10 shares for the year 2023. Record date: 03 July 2024. Ex-date: 04 July 2024. Payment date: 04 July 2024. Announcement • May 25
Gem Co., Ltd. Approves Cash Dividend for the Year 2023 GEM Co., Ltd. at its AGM held on May 22, 2024, approved cash dividend/10 shares (tax included): CNY0.80000000 for the year 2023. Major Estimate Revision • May 16
Consensus EPS estimates increase by 34% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥32.7b to CN¥34.5b. EPS estimate increased from CN¥0.223 to CN¥0.298 per share. Net income forecast to grow 38% next year vs 36% growth forecast for Metals and Mining industry in China. Consensus price target of CN¥6.25 unchanged from last update. Share price fell 4.4% to CN¥6.71 over the past week. Price Target Changed • May 11
Price target increased by 10% to CN¥6.25 Up from CN¥5.66, the current price target is an average from 7 analysts. New target price is 9.9% below last closing price of CN¥6.94. Stock is up 3.1% over the past year. The company is forecast to post earnings per share of CN¥0.22 for next year compared to CN¥0.18 last year. Major Estimate Revision • May 03
Consensus EPS estimates fall by 35% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥34.8b to CN¥32.7b. EPS estimate also fell from CN¥0.344 per share to CN¥0.223 per share. Net income forecast to grow 9.0% next year vs 40% growth forecast for Metals and Mining industry in China. Consensus price target up from CN¥5.66 to CN¥5.94. Share price rose 12% to CN¥6.96 over the past week. Announcement • Apr 29
GEM Co., Ltd., Annual General Meeting, May 22, 2024 GEM Co., Ltd., Annual General Meeting, May 22, 2024, at 10:00 China Standard Time. Location: The Company's Meeting Room, Jingmen, Hubei China Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.09 (vs CN¥0.03 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.09 (up from CN¥0.03 in 1Q 2023). Revenue: CN¥8.35b (up 36% from 1Q 2023). Net income: CN¥456.1m (up 165% from 1Q 2023). Profit margin: 5.5% (up from 2.8% in 1Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Apr 26
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 26% to CN¥6.23. The fair value is estimated to be CN¥4.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 31% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 36% in 2 years. Earnings are forecast to grow by 115% in the next 2 years. Announcement • Mar 30
GEM Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 GEM Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥6.11, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Metals and Mining industry in China. Total loss to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.15 per share. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥5.15, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 11x in the Metals and Mining industry in China. Total loss to shareholders of 31% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.93 per share. Price Target Changed • Jan 19
Price target decreased by 12% to CN¥5.99 Down from CN¥6.78, the current price target is an average from 7 analysts. New target price is 19% above last closing price of CN¥5.04. Stock is down 36% over the past year. The company is forecast to post earnings per share of CN¥0.18 for next year compared to CN¥0.26 last year. Announcement • Dec 30
GEM Co., Ltd. to Report Fiscal Year 2023 Results on Apr 27, 2024 GEM Co., Ltd. announced that they will report fiscal year 2023 results on Apr 27, 2024 Price Target Changed • Dec 15
Price target decreased by 8.2% to CN¥7.00 Down from CN¥7.63, the current price target is an average from 8 analysts. New target price is 31% above last closing price of CN¥5.36. Stock is down 30% over the past year. The company is forecast to post earnings per share of CN¥0.17 for next year compared to CN¥0.26 last year. New Risk • Nov 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: 3.0% Last year net profit margin: 4.4% 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 Interest payments are not well covered by earnings (2.6x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.0% net profit margin). Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.029 (down from CN¥0.07 in 3Q 2022). Revenue: CN¥7.29b (down 2.2% from 3Q 2022). Net income: CN¥134.3m (down 59% from 3Q 2022). Profit margin: 1.8% (down from 4.4% in 3Q 2022). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Sep 22
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥29.9b to CN¥28.6b. EPS estimate also fell from CN¥0.285 per share to CN¥0.233 per share. Net income forecast to grow 70% next year vs 54% growth forecast for Metals and Mining industry in China. Consensus price target down from CN¥7.99 to CN¥7.67. Share price was steady at CN¥6.18 over the past week. Major Estimate Revision • Sep 06
Consensus revenue estimates decrease by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥35.0b to CN¥29.9b. EPS estimate unchanged from CN¥0.34 per share at last update. Metals and Mining industry in China expected to see average net income growth of 55% next year. Consensus price target down from CN¥8.19 to CN¥7.99. Share price was steady at CN¥6.38 over the past week. Reported Earnings • Aug 30
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.053 (down from CN¥0.07 in 2Q 2022). Revenue: CN¥6.81b (down 2.1% from 2Q 2022). Net income: CN¥240.9m (down 31% from 2Q 2022). Profit margin: 3.5% (down from 5.0% in 2Q 2022). Revenue missed analyst estimates by 5.3%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Jul 08
Gem Co., Ltd. Implements Final Cash Dividend for A Shares for the Year 2022, Payable on July 14, 2023 GEM Co., Ltd. implemented a final cash dividend per ten A shares (tax included) of CNY 0.50000000 for the year 2022. Record date is 13 July 2023; Ex-date is 14 July 2023; Payment date is 14 July 2023. Announcement • Jun 09
GEM Co., Ltd. (SZSE:002340) announces an Equity Buyback for CNY 150 million worth of its shares. GEM Co., Ltd. (SZSE:002340) announces a share repurchase program. Under the program, the company will repurchase up to CNY 150 million worth of its shares for CNY 10.29 per share. The purpose of the program is to give ESOP and equity incentives. The program is valid for 12 months. Announcement • May 28
GEM Co., Ltd. Approves Final Cash Dividend for the Year 2022 GEM Co., Ltd. at the AGM, the shareholders approved a final cash dividend per ten shares (tax included) of CNY 0.50000000 for the year 2022. Reported Earnings • Apr 30
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: CN¥0.03 (down from CN¥0.07 in 1Q 2022). Revenue: CN¥6.13b (down 12% from 1Q 2022). Net income: CN¥172.4m (down 48% from 1Q 2022). Profit margin: 2.8% (down from 4.8% in 1Q 2022). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 75%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 04
Price target decreased by 8.3% to CN¥8.33 Down from CN¥9.09, the current price target is an average from 8 analysts. New target price is 11% above last closing price of CN¥7.50. Stock is down 11% over the past year. The company is forecast to post earnings per share of CN¥0.30 for next year compared to CN¥0.19 last year. Board Change • Nov 16
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. 6 experienced directors. No highly experienced directors. Non-Independent Director Wei Wei is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Nov 07
Consensus revenue estimates fall by 13% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥30.2b to CN¥26.4b. EPS estimate fell from CN¥0.31 to CN¥0.29 per share. Net income forecast to grow 68% next year vs 55% growth forecast for Metals and Mining industry in China. Consensus price target of CN¥9.70 unchanged from last update. Share price rose 8.7% to CN¥8.09 over the past week. Reported Earnings • Oct 31
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.039 in 3Q 2021). Revenue: CN¥7.45b (up 52% from 3Q 2021). Net income: CN¥324.7m (up 81% from 3Q 2021). Profit margin: 4.4% (up from 3.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 8.6%. Earnings per share (EPS) also missed analyst estimates by 40%. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 26
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.051 in 2Q 2021). Revenue: CN¥6.96b (up 63% from 2Q 2021). Net income: CN¥349.5m (up 34% from 2Q 2021). Profit margin: 5.0% (down from 6.1% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 28%. Earnings per share (EPS) also missed analyst estimates by 18%. Over the next year, revenue is forecast to grow 30%, compared to a 31% growth forecast for the Metals and Mining industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Aug 02
Price target decreased to CN¥9.26 Down from CN¥10.14, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of CN¥9.47. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥0.32 for next year compared to CN¥0.19 last year. Announcement • Jun 11
GEM Co., Ltd. Implements Cash Dividend, Payable on 17 June 2022 GEM Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 0.29000000. Record date as 16 June 2022, ex-date as 17 June 2022 and payment date as 17 June 2022. Major Estimate Revision • May 31
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥28.8b to CN¥30.0b. EPS estimate fell from CN¥0.35 to CN¥0.31 per share. Net income forecast to grow 68% next year vs 38% growth forecast for Metals and Mining industry in China. Consensus price target down from CN¥10.61 to CN¥10.36. Share price rose 2.1% to CN¥7.35 over the past week. Announcement • May 24
GEM Co., Ltd. Announces Dividend for 2021 GEM Co., Ltd. announced profit distribution proposal for 2021 as final Cash dividend/10 shares (tax included): CNY 0.29000000. Major Estimate Revision • May 17
Consensus EPS estimates increase by 22% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥28.5b to CN¥28.8b. EPS estimate increased from CN¥0.29 to CN¥0.35 per share. Net income forecast to grow 87% next year vs 40% growth forecast for Metals and Mining industry in China. Consensus price target broadly unchanged at CN¥10.61. Share price rose 6.5% to CN¥7.39 over the past week. Major Estimate Revision • May 04
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥26.6b to CN¥27.8b. EPS estimate fell from CN¥0.37 to CN¥0.29 per share. Net income forecast to grow 64% next year vs 37% growth forecast for Metals and Mining industry in China. Consensus price target down from CN¥12.30 to CN¥10.60. Share price rose 2.7% to CN¥6.75 over the past week. Price Target Changed • Apr 30
Price target decreased to CN¥11.11 Down from CN¥12.30, the current price target is an average from 9 analysts. New target price is 65% above last closing price of CN¥6.75. Stock is down 33% over the past year. The company is forecast to post earnings per share of CN¥0.29 for next year compared to CN¥0.19 last year. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat First quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.06 in 1Q 2021). Revenue: CN¥6.97b (up 87% from 1Q 2021). Net income: CN¥331.7m (up 20% from 1Q 2021). Profit margin: 4.8% (down from 7.4% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 67%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 29%, compared to a 34% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Board Change • Apr 27
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. 6 experienced directors. No highly experienced directors. Non-Independent Director Wei Wei is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥7.83, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 16x in the Metals and Mining industry in China. Total returns to shareholders of 53% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥3.30 per share. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS CN¥0.039 (vs CN¥0.02 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: CN¥4.89b (up 61% from 3Q 2020). Net income: CN¥179.1m (up 61% from 3Q 2020). Profit margin: 3.7% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Price Target Changed • Oct 20
Price target increased to CN¥12.92 Up from CN¥11.96, the current price target is an average from 13 analysts. New target price is 10% above last closing price of CN¥11.74. Stock is up 139% over the past year. The company is forecast to post earnings per share of CN¥0.27 for next year compared to CN¥0.09 last year. Price Target Changed • Aug 27
Price target increased to CN¥11.44 Up from CN¥10.63, the current price target is an average from 14 analysts. New target price is 15% below last closing price of CN¥13.40. Stock is up 144% over the past year. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.051 (vs CN¥0.021 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥4.27b (up 29% from 2Q 2020). Net income: CN¥261.5m (up 152% from 2Q 2020). Profit margin: 6.1% (up from 3.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Price Target Changed • Jul 17
Price target increased to CN¥10.63 Up from CN¥9.84, the current price target is an average from 12 analysts. New target price is 10% below last closing price of CN¥11.83. Stock is up 121% over the past year. Announcement • May 15
GEM Co., Ltd. Approves Dividend for the Year 2020 GEM Co., Ltd. approved cash dividend of CNY 0.15 per 10 shares (tax included) for the year 2020, at the AGM held on May 13, 2021. Reported Earnings • Apr 17
First quarter 2021 earnings released: EPS CN¥0.06 (vs CN¥0.03 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥3.73b (up 63% from 1Q 2020). Net income: CN¥275.9m (up 150% from 1Q 2020). Profit margin: 7.4% (up from 4.8% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Mar 04
Full year 2020 earnings released: EPS CN¥0.09 (vs CN¥0.18 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥12.5b (down 13% from FY 2019). Net income: CN¥402.8m (down 45% from FY 2019). Profit margin: 3.2% (down from 5.1% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Price Target Changed • Jan 13
Price target raised to CN¥7.17 Up from CN¥6.15, the current price target is an average from 6 analysts. The new target price is 15% below the current share price of CN¥8.39. As of last close, the stock is up 48% over the past year. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥7.69, the stock is trading at a trailing P/E ratio of 76.6x, up from the previous P/E ratio of 66.2x. This compares to an average P/E of 31x in the Metals and Mining industry in China. Total returns to shareholders over the past three years are 5.6%. Major Estimate Revision • Dec 31
Analysts lower EPS estimates to CN¥0.11 The 2020 consensus revenue estimate was lowered from CN¥13.9b to CN¥13.4b. Earning per share (EPS) estimate was also lowered from CN¥0.12 to CN¥0.11 for the same period. Net income is expected to grow by 90% next year compared to 30% growth forecast for the Metals and Mining industry in China. The consensus price target increased from CN¥6.03 to CN¥6.15. Share price is up 8.5% to CN¥6.99 over the past week. Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥6.70, the stock is trading at a trailing P/E ratio of 66.7x, up from the previous P/E ratio of 56.1x. This compares to an average P/E of 31x in the Metals and Mining industry in China. Total return to shareholders over the past three years is a loss of 5.2%. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥6.45, the stock is trading at a trailing P/E ratio of 64.3x, up from the previous P/E ratio of 53.8x. This compares to an average P/E of 32x in the Metals and Mining industry in China. Total return to shareholders over the past three years is a loss of 6.7%. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥6.19, the stock is trading at a trailing P/E ratio of 61.7x, up from the previous P/E ratio of 51.1x. This compares to an average P/E of 32x in the Metals and Mining industry in China. Total return to shareholders over the past three years is a loss of 9.8%. 
