Buy Or Sell Opportunity • Jul 20
Now 22% undervalued Over the last 90 days, the stock has risen 19% to CN¥32.06. The fair value is estimated to be CN¥41.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 30% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Jul 01
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 9.2% 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: Major Risk Earnings have declined by 50% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (140% payout ratio). Share price has been volatile over the past 3 months (9.2% average weekly change). Buy Or Sell Opportunity • Jul 01
Now 35% overvalued after recent price rise Over the last 90 days, the stock has risen 97% to CN¥49.48. The fair value is estimated to be CN¥36.57, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 30% over the last 3 years. Meanwhile, the company has become profitable. Announcement • Jun 30
Guangdong Topstar Technology Co., Ltd. to Report First Half, 2026 Results on Aug 27, 2026 Guangdong Topstar Technology Co., Ltd. announced that they will report first half, 2026 results on Aug 27, 2026 Announcement • May 29
Guangdong Topstar Technology Co., Ltd. Announces 2025 Final Profit Distribution Plan on A Shares, Payable on 02 June 2026 Guangdong Topstar Technology Co., Ltd. announced 2025 final profit distribution plan to be implemented (A shares) of CNY 0.32000000 per share. Record date: 01 June 2026. Ex-date: 02 June 2026. Payment date: 02 June 2026. Announcement • Dec 31
Guangdong Topstar Technology Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 Guangdong Topstar Technology Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 Announcement • Sep 30
Guangdong Topstar Technology Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Guangdong Topstar Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Announcement • Jul 02
Guangdong Topstar Technology Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Guangdong Topstar Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Announcement • Apr 22
Guangdong Topstar Technology Co., Ltd., Annual General Meeting, May 14, 2025 Guangdong Topstar Technology Co., Ltd., Annual General Meeting, May 14, 2025, at 15:00 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Announcement • Apr 01
Guangdong Topstar Technology Co., Ltd. to Report Q1, 2025 Results on Apr 22, 2025 Guangdong Topstar Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 22, 2025 Announcement • Dec 31
Guangdong Topstar Technology Co., Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Guangdong Topstar Technology Co., Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 New Risk • Nov 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risk Shareholders have been diluted in the past year (5.9% increase in shares outstanding). New Risk • Nov 04
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 10% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Oct 25
Third quarter 2024 earnings released: CN¥0.058 loss per share (vs CN¥0.10 profit in 3Q 2023) Third quarter 2024 results: CN¥0.058 loss per share (down from CN¥0.10 profit in 3Q 2023). Revenue: CN¥511.6m (down 55% from 3Q 2023). Net loss: CN¥26.8m (down 160% from profit in 3Q 2023). Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 6% per year. Announcement • Sep 30
Guangdong Topstar Technology Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Guangdong Topstar Technology Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 New Risk • Aug 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 49% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: CN¥0.012 (vs CN¥0.16 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.012 (down from CN¥0.16 in 2Q 2023). Revenue: CN¥722.7m (down 45% from 2Q 2023). Net income: CN¥5.84m (down 92% from 2Q 2023). Profit margin: 0.8% (down from 5.5% in 2Q 2023). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery 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 fallen by 22% per year, which means it is performing significantly worse than earnings. Announcement • Jun 29
Guangdong Topstar Technology Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Guangdong Topstar Technology Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Announcement • Jun 08
Guangdong Topstar Technology Co., Ltd. Announces Final Dividend on A Shares for the Year 2023, Payable on 14 June 2024 Guangdong Topstar Technology Co., Ltd. announced final cash dividend/10 shares (tax included) of CNY0.43000000 on A shares for the year 2023. Record date is 13 June 2024. Ex-date is 14 June 2024. Payment date is 14 June 2024. Announcement • Apr 23
Guangdong Topstar Technology Co., Ltd., Annual General Meeting, May 13, 2024 Guangdong Topstar Technology Co., Ltd., Annual General Meeting, May 13, 2024, at 15:00 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Reported Earnings • Apr 22
First quarter 2024 earnings released: EPS: CN¥0.07 (vs CN¥0.03 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.07 (up from CN¥0.03 in 1Q 2023). Revenue: CN¥1.00b (up 25% from 1Q 2023). Net income: CN¥30.0m (up 149% from 1Q 2023). Profit margin: 3.0% (up from 1.5% in 1Q 2023). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Guangdong Topstar Technology Co., Ltd. to Report Q1, 2024 Results on Apr 22, 2024 Guangdong Topstar Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 22, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥10.30, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Machinery industry in China. Total loss to shareholders of 57% over the past three years. Announcement • Dec 29
Guangdong Topstar Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 22, 2024 Guangdong Topstar Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 22, 2024 Valuation Update With 7 Day Price Move • Nov 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥17.61, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 18x in the Machinery industry in China. Total loss to shareholders of 21% over the past three years. Announcement • Nov 06
Guangdong Topstar Technology Co., Ltd. (SZSE:300607) announces an Equity Buyback for CNY 50 million worth of its shares. Guangdong Topstar Technology Co., Ltd. (SZSE:300607) announces a share repurchase program. Under the program, the company will repurchase not more than CNY 50 million worth of its shares. The shares will be repurchased at a price of not more than CNY 22.80 per share. The repurchased shares will be used for ESOP or equity incentives. The plan will be valid for 12 months. Reported Earnings • Oct 25
Third quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.09 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.10 (up from CN¥0.09 in 3Q 2022). Revenue: CN¥1.13b (down 8.9% from 3Q 2022). Net income: CN¥44.4m (up 18% from 3Q 2022). Profit margin: 3.9% (up from 3.0% in 3Q 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. New Risk • Aug 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 28% 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 Share price has been volatile over the past 3 months (7.3% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥14.56, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 18x in the Machinery industry in China. Total loss to shareholders of 51% over the past three years. Reported Earnings • Aug 17
Second quarter 2023 earnings released: EPS: CN¥0.16 (vs CN¥0.11 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.16 (up from CN¥0.11 in 2Q 2022). Revenue: CN¥1.30b (up 17% from 2Q 2022). Net income: CN¥72.3m (up 49% from 2Q 2022). Profit margin: 5.5% (up from 4.4% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Announcement • Jul 06
Guangdong Topstar Technology Co., Ltd. Approves Board Elections Guangdong Topstar Technology Co., Ltd. at its EGM held on 04 July 2023 approved appointment of Mao Yongjun as non-independent directors, Wan Jiafu and Zhou Xin as independent directors and Yang Shairu as non-employee supervisors. Announcement • Jul 01
Guangdong Topstar Technology Co., Ltd. to Report First Half, 2023 Results on Aug 17, 2023 Guangdong Topstar Technology Co., Ltd. announced that they will report first half, 2023 results on Aug 17, 2023 Announcement • Jun 27
Guangdong Topstar Technology Co., Ltd. Announces Final Cash Dividend on A Shares for the Year 2022, Payable on 04 July 2023 Guangdong Topstar Technology Co., Ltd. announced final cash dividend of CNY 0.71 per 10 shares on A shares for the year 2022. Record date is 03 July 2023, Ex-Date is 04 July 2023 and Payment Date is 04 July 2023. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥14.55, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 18x in the Machinery industry in China. Total loss to shareholders of 40% over the past three years. Announcement • May 23
Guangdong Topstar Technology Co., Ltd. Approves Cash Dividend for the Year 2022 Guangdong Topstar Technology Co., Ltd. at the AGM, the shareholders approved a cash dividend per ten shares (tax included): CNY 0.71000000 for the year 2022. Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: CN¥0.03 (vs CN¥0.13 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.03 (down from CN¥0.13 in 1Q 2022). Revenue: CN¥799.1m (down 14% from 1Q 2022). Net income: CN¥12.1m (down 78% from 1Q 2022). Profit margin: 1.5% (down from 5.8% in 1Q 2022). Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Machinery industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 55 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Peng Zhang was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.09 (vs CN¥0.01 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.09 (up from CN¥0.01 in 3Q 2021). Revenue: CN¥1.25b (up 70% from 3Q 2021). Net income: CN¥37.7m (up CN¥33.3m from 3Q 2021). Profit margin: 3.0% (up from 0.6% in 3Q 2021). Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 49% 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. Board Change • Oct 13
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent Director Peng Zhang was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 27
Second quarter 2022 earnings released: EPS: CN¥0.11 (vs CN¥0.084 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.11 (up from CN¥0.084 in 2Q 2021). Revenue: CN¥1.11b (up 46% from 2Q 2021). Net income: CN¥48.5m (up 35% from 2Q 2021). Profit margin: 4.4% (down from 4.7% in 2Q 2021). Over the next year, revenue is forecast to grow 11%, compared to a 37% growth forecast for the Machinery industry in China. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Apr 28
First quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.22 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.13 (down from CN¥0.22 in 1Q 2021). Revenue: CN¥928.9m (up 18% from 1Q 2021). Net income: CN¥53.8m (down 42% from 1Q 2021). Profit margin: 5.8% (down from 12% in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 11% per year. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥13.42, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 21x in the Machinery industry in China. Total returns to shareholders of 28% over the past three years. Reported Earnings • Oct 28
Third quarter 2021 earnings released The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥735.0m (up 39% from 3Q 2020). Net income: CN¥4.44m (down 96% from 3Q 2020). Profit margin: 0.6% (down from 22% in 3Q 2020). Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥19.64, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 23x in the Machinery industry in China. Total loss to shareholders of 27% over the past year. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.083 (vs CN¥2.24 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥763.4m (down 20% from 2Q 2020). Net income: CN¥36.0m (down 85% from 2Q 2020). Profit margin: 4.7% (down from 26% in 2Q 2020). The decrease in margin was primarily driven by lower revenue. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improved over the past week After last week's 33% share price gain to CN¥24.48, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 24x in the Machinery industry in China. Total loss to shareholders of 19% over the past year. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥19.74, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Machinery industry in China. Total loss to shareholders of 33% over the past year. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.58 in 1Q 2020) The company reported a mediocre first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: CN¥790.9m (up 44% from 1Q 2020). Net income: CN¥92.1m (down 40% from 1Q 2020). Profit margin: 12% (down from 28% in 1Q 2020). The decrease in margin was driven by higher expenses. Is New 90 Day High Low • Jan 22
New 90-day high: CN¥42.60 The company is up 4.0% from its price of CN¥40.96 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥427 per share. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥33.21 The company is down 22% from its price of CN¥42.39 on 30 September 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥425 per share. Is New 90 Day High Low • Nov 12
New 90-day low: CN¥37.15 The company is down 13% from its price of CN¥42.88 on 14 August 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥361 per share. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥561.2m, up 202% from the prior year. Total revenue was CN¥2.60b over the last 12 months, up 81% from the prior year. Is New 90 Day High Low • Oct 24
New 90-day low: CN¥40.96 The company is down 6.0% from its price of CN¥43.69 on 24 July 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥408 per share.