Announcement • Jun 30
ARTS Group Co., Ltd to Report First Half, 2026 Results on Aug 25, 2026 ARTS Group Co., Ltd announced that they will report first half, 2026 results on Aug 25, 2026 Buy Or Sell Opportunity • May 21
Now 21% undervalued Over the last 90 days, the stock has risen 8.2% to CN¥13.50. The fair value is estimated to be CN¥17.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 19% over the last 3 years. Earnings per share has declined by 33%. Revenue is forecast to grow by 21% in a year. Earnings are forecast to grow by 12% in the next year. Reported Earnings • Apr 23
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.18 (down from CN¥0.19 in FY 2024). Revenue: CN¥1.18b (down 12% from FY 2024). Net income: CN¥49.1m (down 4.4% from FY 2024). Profit margin: 4.2% (up from 3.8% in FY 2024). Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 5.3%. Revenue is forecast to grow 9.7% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Professional Services industry in China. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Apr 23
ARTS Group Co., Ltd, Annual General Meeting, May 15, 2026 ARTS Group Co., Ltd, Annual General Meeting, May 15, 2026, at 14:00 China Standard Time. Location: 4F, No. 111, Bada Street, Suzhou Industrial Park, Suzhou, Jiangsu China Buy Or Sell Opportunity • Apr 21
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to CN¥15.63. The fair value is estimated to be CN¥12.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. New Risk • Apr 03
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risks Dividend is not well covered by earnings (0% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.4% net profit margin). Announcement • Mar 30
ARTS Group Co., Ltd to Report Q1, 2026 Results on Apr 29, 2026 ARTS Group Co., Ltd announced that they will report Q1, 2026 results on Apr 29, 2026 Buy Or Sell Opportunity • Mar 30
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 39% to CN¥15.76. The fair value is estimated to be CN¥12.81, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. New Risk • Dec 29
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 7.4% 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 Dividend is not well covered by earnings (0% payout ratio). Share price has been volatile over the past 3 months (7.4% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.4% net profit margin). Announcement • Dec 26
ARTS Group Co., Ltd to Report Fiscal Year 2025 Results on Apr 21, 2026 ARTS Group Co., Ltd announced that they will report fiscal year 2025 results on Apr 21, 2026 Buy Or Sell Opportunity • Dec 16
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at CN¥10.08. The fair value is estimated to be CN¥12.83, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. Reported Earnings • Nov 02
Third quarter 2025 earnings released: CN¥0.004 loss per share (vs CN¥0.015 loss in 3Q 2024) Third quarter 2025 results: CN¥0.004 loss per share (improved from CN¥0.015 loss in 3Q 2024). Revenue: CN¥257.3m (up 2.0% from 3Q 2024). Net loss: CN¥1.04m (loss narrowed 75% from 3Q 2024). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Professional Services industry in China. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Oct 28
Now 21% undervalued Over the last 90 days, the stock has risen 7.0% to CN¥10.10. The fair value is estimated to be CN¥12.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 75% in 2 years. Earnings are forecast to grow by 94% in the next 2 years. Buy Or Sell Opportunity • Oct 13
Now 20% undervalued Over the last 90 days, the stock has risen 8.7% to CN¥10.17. The fair value is estimated to be CN¥12.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 102% in the next 2 years. Upcoming Dividend • Oct 06
Upcoming dividend of CN¥0.20 per share Eligible shareholders must have bought the stock before 13 October 2025. Payment date: 13 October 2025. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.9%. Within top quartile of Chinese dividend payers (1.9%). Higher than average of industry peers (1.2%). Announcement • Sep 30
ARTS Group Co., Ltd to Report Q3, 2025 Results on Oct 28, 2025 ARTS Group Co., Ltd announced that they will report Q3, 2025 results on Oct 28, 2025 Buy Or Sell Opportunity • Sep 19
Now 21% undervalued Over the last 90 days, the stock has risen 8.3% to CN¥9.96. The fair value is estimated to be CN¥12.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 102% in the next 2 years. Announcement • Jun 30
ARTS Group Co., Ltd to Report First Half, 2025 Results on Aug 26, 2025 ARTS Group Co., Ltd announced that they will report first half, 2025 results on Aug 26, 2025 New Risk • Jun 11
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 8.7% 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 (8.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.4% net profit margin). Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to CN¥11.87, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 20x in the Professional Services industry in China. Total returns to shareholders of 26% over the past three years. Buy Or Sell Opportunity • Jun 03
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 22% to CN¥10.79. The fair value is estimated to be CN¥8.84, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.9% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 54% in 2 years. Earnings are forecast to grow by 71% in the next 2 years. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥9.85, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 21x in the Professional Services industry in China. Total returns to shareholders of 11% over the past three years. Reported Earnings • Apr 23
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.19 (down from CN¥0.39 in FY 2023). Revenue: CN¥1.33b (down 23% from FY 2023). Net income: CN¥51.3m (down 52% from FY 2023). Profit margin: 3.8% (down from 6.2% in FY 2023). Revenue missed analyst estimates by 25%. Earnings per share (EPS) also missed analyst estimates by 53%. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Professional Services industry in China. Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Apr 22
ARTS Group Co., Ltd, Annual General Meeting, May 16, 2025 ARTS Group Co., Ltd, Annual General Meeting, May 16, 2025, at 14:00 China Standard Time. Location: 4F, Podium Building, No. 111, Bada Street, Suzhou Industrial Park, Suzhou, Jiangsu China Buy Or Sell Opportunity • Apr 07
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.5% to CN¥7.69. The fair value is estimated to be CN¥10.05, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.2% over the last 3 years. Earnings per share has grown by 74%. Revenue is forecast to grow by 40% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Announcement • Mar 28
ARTS Group Co., Ltd to Report Q1, 2025 Results on Apr 29, 2025 ARTS Group Co., Ltd announced that they will report Q1, 2025 results on Apr 29, 2025 Buy Or Sell Opportunity • Jan 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.0% to CN¥7.96. The fair value is estimated to be CN¥9.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.2% over the last 3 years. Earnings per share has grown by 74%. Revenue is forecast to grow by 40% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Buy Or Sell Opportunity • Dec 31
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to CN¥8.03. The fair value is estimated to be CN¥10.04, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.2% over the last 3 years. Earnings per share has grown by 74%. Revenue is forecast to grow by 40% in 2 years. Earnings are forecast to grow by 57% in the next 2 years. Announcement • Dec 27
ARTS Group Co., Ltd to Report Fiscal Year 2024 Results on Apr 30, 2025 ARTS Group Co., Ltd announced that they will report fiscal year 2024 results on Apr 30, 2025 Announcement • Sep 30
ARTS Group Co., Ltd to Report Q3, 2024 Results on Oct 30, 2024 ARTS Group 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 21% After last week's 21% share price gain to CN¥9.01, the stock trades at a trailing P/E ratio of 25.6x. Average trailing P/E is 39x in the Professional Services industry in China. Total returns to shareholders of 4.5% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.15 (vs CN¥0.18 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.15 (down from CN¥0.18 in 2Q 2023). Revenue: CN¥337.5m (down 22% from 2Q 2023). Net income: CN¥41.1m (down 21% from 2Q 2023). Profit margin: 12% (in line with 2Q 2023). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Jun 28
ARTS Group Co., Ltd to Report First Half, 2024 Results on Aug 31, 2024 ARTS Group Co., Ltd announced that they will report first half, 2024 results on Aug 31, 2024 New Risk • Jun 05
New major risk - Revenue and earnings growth Earnings have declined by 25% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). Earnings have declined by 25% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (154% payout ratio). Buy Or Sell Opportunity • Jun 03
Now 20% undervalued Over the last 90 days, the stock has risen 28% to CN¥9.76. The fair value is estimated to be CN¥12.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 17%. Revenue is forecast to grow by 30% in a year. Earnings are forecast to grow by 43% in the next year. Valuation Update With 7 Day Price Move • May 24
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥10.28, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 17x in the Professional Services industry in China. Total returns to shareholders of 17% over the past three years. Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.11 (in line with 1Q 2023). Revenue: CN¥329.2m (up 2.6% from 1Q 2023). Net income: CN¥29.9m (up 2.2% from 1Q 2023). Profit margin: 9.1% (in line with 1Q 2023). Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Professional Services industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Apr 23
ARTS Group Co., Ltd, Annual General Meeting, May 16, 2024 ARTS Group Co., Ltd, Annual General Meeting, May 16, 2024, at 14:00 China Standard Time. Location: 4F, Podium Building, No. 111, Bada Street, Suzhou Industrial Park, Suzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥7.01, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Professional Services industry in China. Total loss to shareholders of 22% over the past three years. Announcement • Mar 29
ARTS Group Co., Ltd to Report Q1, 2024 Results on Apr 23, 2024 ARTS Group Co., Ltd announced that they will report Q1, 2024 results on Apr 23, 2024 Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: CN¥0.39 (vs CN¥0.31 in FY 2022) Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.31 in FY 2022). Revenue: CN¥1.73b (down 1.9% from FY 2022). Net income: CN¥106.7m (up 23% from FY 2022). Profit margin: 6.2% (up from 4.9% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Professional Services 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 7% per year. Announcement • Feb 24
ARTS Group Co., Ltd (SHSE:603017) announces an Equity Buyback for CNY 60 million worth of its shares. ARTS Group Co., Ltd (SHSE:603017) announces a share repurchase program. Under the program, the company will repurchase not more than CNY 60 million worth of its shares. The shares will be repurchased at a price not more than CNY 10 per share. The purpose of the program is to safeguard the company's value and shareholders' rights. The shares repurchased by the company will be used for sale in accordance with relevant regulations. The program will be valid for 3 months. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥8.05, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 15x in the Professional Services industry in China. Total loss to shareholders of 7.2% over the past three years. Buy Or Sell Opportunity • Feb 23
Now 28% overvalued Over the last 90 days, the stock has fallen 22% to CN¥8.05. The fair value is estimated to be CN¥6.29, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 68% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥7.62, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Professional Services industry in China. Total loss to shareholders of 6.2% over the past three years. Announcement • Dec 29
ARTS Group Co., Ltd to Report Fiscal Year 2023 Results on Apr 23, 2024 ARTS Group Co., Ltd announced that they will report fiscal year 2023 results on Apr 23, 2024 Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥0.045 (vs CN¥0.026 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.045 (up from CN¥0.026 in 3Q 2022). Revenue: CN¥411.1m (down 25% from 3Q 2022). Net income: CN¥12.3m (up 68% from 3Q 2022). Profit margin: 3.0% (up from 1.3% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
ARTS Group Co., Ltd to Report Q3, 2023 Results on Oct 31, 2023 ARTS Group Co., Ltd announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.18 (vs CN¥0.18 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.18 (in line with 2Q 2022). Revenue: CN¥434.4m (up 13% from 2Q 2022). Net income: CN¥52.3m (up 3.4% from 2Q 2022). Profit margin: 12% (down from 13% in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Jun 28
ARTS Group Co., Ltd to Report First Half, 2023 Results on Aug 29, 2023 ARTS Group Co., Ltd announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥0.31 (vs CN¥1.52 loss in FY 2021) Full year 2022 results: EPS: CN¥0.31 (up from CN¥1.52 loss in FY 2021). Revenue: CN¥1.76b (down 1.9% from FY 2021). Net income: CN¥86.8m (up CN¥505.3m from FY 2021). Profit margin: 4.9% (up from net loss in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.037 (vs CN¥0.063 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.037 (down from CN¥0.063 in 3Q 2021). Revenue: CN¥321.6m (down 10% from 3Q 2021). Net income: CN¥10.2m (down 41% from 3Q 2021). Profit margin: 3.2% (down from 4.9% in 3Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 09
Second quarter 2022 earnings released: EPS: CN¥0.18 (vs CN¥0.21 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.18 (down from CN¥0.21 in 2Q 2021). Revenue: CN¥383.7m (up 5.0% from 2Q 2021). Net income: CN¥50.6m (down 16% from 2Q 2021). Profit margin: 13% (down from 17% in 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Reported Earnings • Apr 28
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: CN¥1.52 loss per share (down from CN¥0.79 profit in FY 2020). Revenue: CN¥1.79b (down 2.3% from FY 2020). Net loss: CN¥418.6m (down 292% from profit in FY 2020). Revenue exceeded analyst estimates by 19%. Earnings per share (EPS) missed analyst estimates. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 5 independent directors (7 non-independent directors). Independent Director Zhengxin Bei was the last independent director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥10.38, the stock trades at a trailing P/E ratio of 17.1x. Average trailing P/E is 38x in the Professional Services industry in China. Total loss to shareholders of 23% over the past three years. Announcement • Jan 25
ARTS Group Co., Ltd (SHSE:603017) announces an Equity Buyback for CNY 40 million worth of its shares. ARTS Group Co., Ltd (SHSE:603017) announces a share repurchase program. Under the program, the company will repurchase not more than CNY 40 million worth of its shares. The shares will be repurchased at a price not more than CNY 12 per share. The repurchases will be funded using the company's own funds. The shares repurchased will be used for equity incentive plans or employee stock ownership plans. The program will be valid for 12 months. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥9.05, the stock trades at a trailing P/E ratio of 14.9x. Average trailing P/E is 39x in the Professional Services industry in China. Total loss to shareholders of 15% over the past three years. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.063 (vs CN¥0.17 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥357.6m (down 14% from 3Q 2020). Net income: CN¥17.4m (down 62% from 3Q 2020). Profit margin: 4.9% (down from 11% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥11.77, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 34x in the Professional Services industry in China. Total returns to shareholders of 33% over the past three years. Reported Earnings • May 02
Full year 2020 earnings released: EPS CN¥0.79 (vs CN¥0.73 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥1.84b (down 5.5% from FY 2019). Net income: CN¥218.2m (up 9.4% from FY 2019). Profit margin: 12% (up from 10% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Jan 20
ARTS Group Co., Ltd to Report Fiscal Year 2020 Results on Apr 20, 2021 ARTS Group Co., Ltd announced that they will report fiscal year 2020 results on Apr 20, 2021 Is New 90 Day High Low • Dec 28
New 90-day low: CN¥9.50 The company is down 21% from its price of CN¥11.99 on 29 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 Professional Services industry, which is down 6.0% over the same period. Is New 90 Day High Low • Dec 09
New 90-day low: CN¥10.62 The company is down 15% from its price of CN¥12.54 on 10 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is down 5.0% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥215.7m, up 16% from the prior year. Total revenue was CN¥1.84b over the last 12 months, down 7.0% from the prior year. Announcement • Jul 30
ARTS Group Co., Ltd (SHSE:603017) cancelled acquisition of additional 22.8% stake in Suzhou Huazao Architectural Design Co., Ltd. from a group of sellers. ARTS Group Co., Ltd (SHSE:603017) signed equity cooperation agreement to acquire additional 22.8% stake in Suzhou Huazao Architectural Design Co., Ltd. from a group of sellers for CNY 19.1 million on June 21, 2019. Under the terms, Geng Guanghua agreed to transfer 6.4% stake, Wang Huanglin agreed to transfer 3.9% stake, Li Qi agreed to transfer 3.9% stake, Zhu Yiqiang agreed to transfer 2.8% stake, Pan Jiayi agreed to transfer 2% stake, Chen Minfeng agreed to transfer 2% stake and Xie Meijun agreed to transfer 1.5% stake in Suzhou Huazao Architectural Design Co., Ltd. Post-acquisition, ARTS Group Co., Ltd will have 91.9% stake in Suzhou Huazao Architectural Design Co., Ltd. The payment for the acquisition will be done in three installments. 1st installment of 10% of the price payable within 20 days since signing of the agreement. 2nd installment of 60% of the price payable within 20 days since completion of change of registry procedures. 3rd installment of 30% of the price payable within 1 months since publication of the audited report of Suzhou Huazao Architectural Design Co., Ltd. ARTS Group Co., Ltd intends to use cash from its own funds to acquire a 22.8% stake in Suzhou Huazao Architectural Design Co., Ltd.
For the year ended December 31, 2018, Suzhou Huazao Architectural Design Co., Ltd. reported total assets of approximately CNY 170 million, net assets of CNY 50.5 million, operating revenue of CNY 125.4 million and net profit of CNY 14.5 million. The transaction was approved by the 17th meeting of the 3rd directorate of ARTS Group Co., Ltd.
ARTS Group Co., Ltd (SHSE:603017) cancelled acquisition of additional 22.8% stake in Suzhou Huazao Architectural Design Co., Ltd. from a group of sellers on June 21, 2020. Announcement • Jul 18
ARTS Group Co., Ltd (SHSE:603017) signed an equity cooperation agreement to acquire additional 25% stake in Zhejiang Engineering Consulting Co., Ltd. from Gao Hongzhou, Qian Xuejun and others for CNY 36 million. ARTS Group Co., Ltd (SHSE:603017) signed an equity cooperation agreement to acquire additional 25% stake in Zhejiang Engineering Consulting Co., Ltd. from Gao Hongzhou, Qian Xuejun and others for CNY 36 million on July 13, 2020. The equity transfer payment shall be paid in five installments: i) The first period: within 20 working days after the signing of this agreement, ARTS Group shall pay 20% of the equity transfer payment; ii) The second period: within 20 working days after the completion of the delivery, ARTS Group pays 31% of the equity transfer payment; iii) Third period: After the second phase equity transfer payment has been paid, and within 20 working days from the date of the 2020 annual audit report and the corresponding profit target is completed in 2020, ARTS Group shall pay 14% of the equity transfer; iv) Fourth period: After the third phase equity transfer payment has been paid, and within 20 working days from the date of issuance of the 2021 audit report and the corresponding profit target is completed in 2021, ARTS Group shall pay 15% of the payment; and v) Fifth period: After the fourth phase equity transfer payment has been paid, and within 20 working days from the date of issuance of the 2022 audit report and the corresponding profit target is completed in 2022, ARTS Group shall pay 20% of the payment. The consideration will be financed from ARTS Group's own funds.
After the completion of the transaction, ARTS Group will hold 90% equity of Zhejiang Consulting. For the year ended December 31, 2020, Zhejiang Engineering Consulting Co., Ltd. had total assets of CNY 134.38 million, owner's equity of CNY 71.3 million, revenue of CNY 159.19 million and net profit of CNY 16.47 million. This transaction has been reviewed and approved by the 26th meeting of the third board of directors of ARTS Group Co., Ltd. Announcement • Jul 09
ARTS Group Co., Ltd to Report First Half, 2020 Results on Aug 25, 2020 ARTS Group Co., Ltd announced that they will report first half, 2020 results on Aug 25, 2020