Reported Earnings • Apr 27
First quarter 2026 earnings released: EPS: CN¥0.002 (vs CN¥0.15 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.002 (down from CN¥0.15 in 1Q 2025). Revenue: CN¥1.50b (down 3.1% from 1Q 2025). Net income: CN¥806.5k (down 98% from 1Q 2025). Profit margin: 0.1% (down from 3.4% in 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Apr 27
Loctek Ergonomic Technology Corp., Annual General Meeting, May 18, 2026 Loctek Ergonomic Technology Corp., Annual General Meeting, May 18, 2026, at 10:00 China Standard Time. Location: 4F, No. 436, Xueshi Road, Shounan Subdistrict, Yinzhou District, Ningbo, Zhejiang China Announcement • Mar 31
Loctek Ergonomic Technology Corp. to Report Q1, 2026 Results on Apr 27, 2026 Loctek Ergonomic Technology Corp. announced that they will report Q1, 2026 results on Apr 27, 2026 Announcement • Dec 31
Loctek Ergonomic Technology Corp. to Report Fiscal Year 2025 Results on Apr 27, 2026 Loctek Ergonomic Technology Corp. announced that they will report fiscal year 2025 results on Apr 27, 2026 Reported Earnings • Oct 24
Third quarter 2025 earnings released: EPS: CN¥0.12 (vs CN¥0.34 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.12 (down from CN¥0.34 in 3Q 2024). Revenue: CN¥1.70b (up 9.9% from 3Q 2024). Net income: CN¥40.0m (down 62% from 3Q 2024). Profit margin: 2.3% (down from 6.8% in 3Q 2024). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Sep 30
Loctek Ergonomic Technology Corp. to Report Q3, 2025 Results on Oct 24, 2025 Loctek Ergonomic Technology Corp. announced that they will report Q3, 2025 results on Oct 24, 2025 Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: CN¥0.23 (vs CN¥0.25 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.23 (down from CN¥0.25 in 2Q 2024). Revenue: CN¥1.60b (up 23% from 2Q 2024). Net income: CN¥77.2m (down 3.9% from 2Q 2024). Profit margin: 4.8% (down from 6.2% in 2Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 2% per year. Announcement • Jul 02
Loctek Ergonomic Technology Corp. to Report First Half, 2025 Results on Aug 27, 2025 Loctek Ergonomic Technology Corp. announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • May 19
Dividend reduced to CN¥0.30 Dividend of CN¥0.30 is 25% lower than last year. Ex-date: 22nd May 2025 Payment date: 22nd May 2025 Dividend yield will be 1.8%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (32% 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 22% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 79% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥16.34, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 17x in the Commercial Services industry in China. Total returns to shareholders of 43% over the past three years. Major Estimate Revision • Apr 27
Consensus EPS estimates fall by 19%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from CN¥6.61b to CN¥6.68b. EPS estimate fell from CN¥1.45 to CN¥1.17 per share. Net income forecast to grow 19% next year vs 31% growth forecast for Commercial Services industry in China. Consensus price target of CN¥18.00 unchanged from last update. Share price was steady at CN¥13.89 over the past week. Reported Earnings • Apr 22
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥1.05 (down from CN¥2.03 in FY 2023). Revenue: CN¥5.67b (up 45% from FY 2023). Net income: CN¥335.9m (down 47% from FY 2023). Profit margin: 5.9% (down from 16% in FY 2023). Revenue exceeded analyst estimates by 5.7%. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 22
Loctek Ergonomic Technology Corp. Proposes Final Cash Dividend for the Year 2024 Loctek Ergonomic Technology Corp. proposed final cash dividend of CNY 3.0000000 per 10 shares (tax included) for the year 2024. Announcement • Apr 21
Loctek Ergonomic Technology Corp., Annual General Meeting, May 12, 2025 Loctek Ergonomic Technology Corp., Annual General Meeting, May 12, 2025, at 14:00 China Standard Time. Location: 4F, No. 436, Xueshi Road, Shounan Subdistrict, Yinzhou District, Ningbo, Zhejiang China New Risk • Apr 07
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 7.9% 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 High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.9% average weekly change). Profit margins are more than 30% lower than last year (7.4% net profit margin). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥11.74, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 18x in the Commercial Services industry in China. Total loss to shareholders of 3.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥22.56 per share. Announcement • Mar 31
Loctek Ergonomic Technology Corp. to Report Q1, 2025 Results on Apr 28, 2025 Loctek Ergonomic Technology Corp. announced that they will report Q1, 2025 results on Apr 28, 2025 Buy Or Sell Opportunity • Feb 28
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.2% to CN¥16.26. The fair value is estimated to be CN¥21.17, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 27%. Revenue is forecast to grow by 45% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Buy Or Sell Opportunity • Feb 13
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.3% to CN¥16.41. The fair value is estimated to be CN¥20.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 27%. Revenue is forecast to grow by 45% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Announcement • Dec 31
Loctek Ergonomic Technology Corp. to Report Fiscal Year 2024 Results on Apr 28, 2025 Loctek Ergonomic Technology Corp. announced that they will report fiscal year 2024 results on Apr 28, 2025 New Risk • Nov 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 9.3% 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 High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.4% net profit margin). Shareholders have been diluted in the past year (9.3% increase in shares outstanding). Reported Earnings • Oct 28
Third quarter 2024 earnings released: EPS: CN¥0.34 (vs CN¥0.24 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.34 (up from CN¥0.24 in 3Q 2023). Revenue: CN¥1.55b (up 54% from 3Q 2023). Net income: CN¥105.2m (up 43% from 3Q 2023). Profit margin: 6.8% (down from 7.3% in 3Q 2023). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services 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 fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥15.35, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Commercial Services industry in China. Total loss to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥25.70 per share. Announcement • Sep 30
Loctek Ergonomic Technology Corp. to Report Q3, 2024 Results on Oct 28, 2024 Loctek Ergonomic Technology Corp. announced that they will report Q3, 2024 results on Oct 28, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥17.22, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Commercial Services industry in China. Total returns to shareholders of 2.1% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥25.60 per share. Reported Earnings • Aug 01
Second quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.15 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.25 (up from CN¥0.15 in 2Q 2023). Revenue: CN¥1.31b (up 48% from 2Q 2023). Net income: CN¥80.3m (up 74% from 2Q 2023). Profit margin: 6.2% (up from 5.2% in 2Q 2023). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services 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 fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jun 29
Loctek Ergonomic Technology Corp. to Report First Half, 2024 Results on Aug 29, 2024 Loctek Ergonomic Technology Corp. announced that they will report first half, 2024 results on Aug 29, 2024 Declared Dividend • May 16
Dividend of CN¥0.40 announced Shareholders will receive a dividend of CN¥0.40. Ex-date: 20th May 2024 Payment date: 20th May 2024 Dividend yield will be 2.3%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by earnings (39% 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 32% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 73% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 11
Loctek Ergonomic Technology Corp. Announces Cash Dividend for the Year 2023 Loctek Ergonomic Technology Corp. at its AGM held on 9 May 2024 announced cash dividend/10 shares (tax included) is CNY 4.00000000 for the year 2023. Buy Or Sell Opportunity • Apr 29
Now 24% undervalued Over the last 90 days, the stock has risen 4.5% to CN¥18.00. The fair value is estimated to be CN¥23.77, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 29%. Revenue is forecast to grow by 49% in 2 years. Earnings are forecast to grow by 67% in the next 2 years. Reported Earnings • Apr 29
First quarter 2024 earnings released: EPS: CN¥0.26 (vs CN¥1.28 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.26 (down from CN¥1.28 in 1Q 2023). Revenue: CN¥1.12b (up 41% from 1Q 2023). Net income: CN¥79.9m (down 80% from 1Q 2023). Profit margin: 7.1% (down from 50% in 1Q 2023). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Apr 19
Loctek Ergonomic Technology Corp., Annual General Meeting, May 09, 2024 Loctek Ergonomic Technology Corp., Annual General Meeting, May 09, 2024, at 14:00 China Standard Time. Location: 19F, No. 536, Xueshi Road, Shounan Subdistrict, Yinzhou District, Ningbo, Zhejiang China Reported Earnings • Apr 18
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: CN¥2.03 (up from CN¥0.71 in FY 2022). Revenue: CN¥3.90b (up 22% from FY 2022). Net income: CN¥633.7m (up 190% from FY 2022). Profit margin: 16% (up from 6.8% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.3%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Mar 30
Loctek Ergonomic Technology Corp. to Report Q1, 2024 Results on Apr 29, 2024 Loctek Ergonomic Technology Corp. announced that they will report Q1, 2024 results on Apr 29, 2024 Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥16.24, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Commercial Services industry in China. Total loss to shareholders of 22% over the past three years. Announcement • Dec 29
Loctek Ergonomic Technology Corp. to Report Fiscal Year 2023 Results on Apr 18, 2024 Loctek Ergonomic Technology Corp. announced that they will report fiscal year 2023 results on Apr 18, 2024 Reported Earnings • Oct 25
Third quarter 2023 earnings released: EPS: CN¥0.24 (vs CN¥0.098 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.24 (up from CN¥0.098 in 3Q 2022). Revenue: CN¥1.01b (up 32% from 3Q 2022). Net income: CN¥73.6m (up 164% from 3Q 2022). Profit margin: 7.3% (up from 3.7% in 3Q 2022). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Announcement • Sep 30
Loctek Ergonomic Technology Corp. to Report Q3, 2023 Results on Oct 25, 2023 Loctek Ergonomic Technology Corp. announced that they will report Q3, 2023 results on Oct 25, 2023 Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.40 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.15 (down from CN¥0.40 in 2Q 2022). Revenue: CN¥881.6m (up 12% from 2Q 2022). Net income: CN¥46.2m (down 59% from 2Q 2022). Profit margin: 5.2% (down from 14% in 2Q 2022). Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. New Risk • Aug 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 16% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 16% per year for the foreseeable future. High level of non-cash earnings (23% accrual ratio). Minor Risks Dividend is not well covered by cash flows (106% cash payout ratio). Share price has been volatile over the past 3 months (7.3% average weekly change). Shareholders have been diluted in the past year (8.5% increase in shares outstanding). Announcement • Jul 01
Loctek Ergonomic Technology Corp. to Report First Half, 2023 Results on Aug 22, 2023 Loctek Ergonomic Technology Corp. announced that they will report first half, 2023 results on Aug 22, 2023 Announcement • May 20
Loctek Ergonomic Technology Corp. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2022, Payable on 25 May 2023 Loctek Ergonomic Technology Corp. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 3.50000000 for the year 2022, payable on 25 May 2023. Record date is 24 May 2023. Ex-date is 25 May 2023. Announcement • May 18
Loctek Ergonomic Technology Corp. Approves the Cash Dividend for the Year 2022 Loctek Ergonomic Technology Corp. approved the cash dividend of CNY 3.50 (tax included) per 10 shares for the year 2022, at the AGM held on May 16, 2023. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥21.26, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Commercial Services industry in China. Total returns to shareholders of 114% over the past three years. Reported Earnings • Apr 22
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.92 (up from CN¥0.85 in FY 2021). Revenue: CN¥3.21b (up 12% from FY 2021). Net income: CN¥218.7m (up 18% from FY 2021). Profit margin: 6.8% (up from 6.4% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
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. 7 experienced directors. 4 highly experienced directors. 2 independent directors (6 non-independent directors). Deputy GM, CFO, Secretary of the Board of Directors & Director Wei Zhu was the last director to join the board, commencing their role in 2010. 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 • Nov 07
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥18.34, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Commercial Services industry in China. Total returns to shareholders of 80% over the past three years. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.22 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.13 (down from CN¥0.22 in 3Q 2021). Revenue: CN¥763.7m (up 8.6% from 3Q 2021). Net income: CN¥27.9m (down 30% from 3Q 2021). Profit margin: 3.7% (down from 5.6% in 3Q 2021). Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.52 (vs CN¥0.29 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.52 (up from CN¥0.29 in 2Q 2021). Revenue: CN¥784.8m (up 6.4% from 2Q 2021). Net income: CN¥112.4m (up 116% from 2Q 2021). Profit margin: 14% (up from 7.1% in 2Q 2021). Over the next year, revenue is forecast to grow 48%, compared to a 22% growth forecast for the Commercial Services industry in China. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Aug 30
Loctek Ergonomic Technology Corp. announced that it expects to receive CNY 300 million in funding Loctek Ergonomic Technology Corp. announced a private placement of common shares for gross proceeds of CNY 300,000,000 on August 29, 2022. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 26% share price gain to CN¥19.64, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Commercial Services industry in China. Total returns to shareholders of 96% over the past three years. 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. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 16
Loctek Ergonomic Technology Corp., Annual General Meeting, May 06, 2022 Loctek Ergonomic Technology Corp., Annual General Meeting, May 06, 2022, at 14:00 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual report and its summary; to consider 2021 annual accounts; to consider 2021 profit distribution plan; to consider Reappointment of audit firm; and to consider any other matter thereof. Announcement • Apr 14
Loctek Ergonomic Technology Corp. Proposes Final Cash Dividend for 2021 Loctek Ergonomic Technology Corp. proposed final cash dividend per 10 shares (tax included) of CNY2.00000000 for 2021. Reported Earnings • Apr 13
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.85 (down from CN¥1.21 in FY 2020). Revenue: CN¥2.87b (up 48% from FY 2020). Net income: CN¥184.7m (down 15% from FY 2020). Profit margin: 6.4% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) also missed analyst estimates by 8.6%. Over the next year, revenue is forecast to grow 42%, compared to a 17% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥17.55, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Commercial Services industry in China. Total returns to shareholders of 42% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.22 (vs CN¥0.52 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥703.0m (up 20% from 3Q 2020). Net income: CN¥39.6m (down 58% from 3Q 2020). Profit margin: 5.6% (down from 16% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 56% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 10
Second quarter 2021 earnings released: EPS CN¥0.29 (vs CN¥0.31 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥737.8m (up 85% from 2Q 2020). Net income: CN¥52.0m (down 3.9% from 2Q 2020). Profit margin: 7.1% (down from 14% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥23.12, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Commercial Services industry in China. Total returns to shareholders of 90% over the past three years. Announcement • May 28
Ningbo Zhedong Construction Materials Group Co., Ltd. agreed to acquire an additional 30% stake in Ningbo Zhedong Property Co., Ltd. from Loctek Ergonomic Technology Corp. (SZSE:300729) for CNY 18 million. Ningbo Zhedong Construction Materials Group Co., Ltd. agreed to acquire an additional 30% stake in Ningbo Zhedong Property Co., Ltd. from Loctek Ergonomic Technology Corp. (SZSE:300729) for CNY 18 million on May 26, 2021. The consideration will be paid before June 25, 2021. Ningbo Zhedong Property Co., Ltd. reported total assets of CNY 57.9 million and Total owner’s equity of CNY 50.8 million for March 31, 2021. As a result of the transaction, Ningbo Zhedong Construction Materials Group Co., Ltd. stake in Ningbo Zhedong Property Co., Ltd. will be increased from 40% to 70% stake. The Board of Directors of Loctek Ergonomic Technology Corp. approved the transaction in 28th meeting of the 4th Board of Directors held on May 26, 2021. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥36.60, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Commercial Services industry in China. Total returns to shareholders of 84% over the past three years. Reported Earnings • Apr 20
Full year 2020 earnings released: EPS CN¥1.57 (vs CN¥0.46 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥1.94b (up 98% from FY 2019). Net income: CN¥217.1m (up 245% from FY 2019). Profit margin: 11% (up from 6.4% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • Mar 09
Loctek Ergonomic Technology Corp. to Report Fiscal Year 2020 Results on Apr 20, 2021 Loctek Ergonomic Technology Corp. announced that they will report fiscal year 2020 results on Apr 20, 2021 Is New 90 Day High Low • Feb 05
New 90-day low: CN¥34.26 The company is down 46% from its price of CN¥62.96 on 06 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is down 16% over the same period. Is New 90 Day High Low • Jan 14
New 90-day low: CN¥39.20 The company is down 47% from its price of CN¥73.33 on 16 October 2020. The Chinese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is down 13% over the same period. Is New 90 Day High Low • Dec 23
New 90-day low: CN¥44.55 The company is down 25% from its price of CN¥59.06 on 24 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is down 9.0% over the same period. Is New 90 Day High Low • Nov 27
New 90-day low: CN¥46.66 The company is down 18% from its price of CN¥56.59 on 28 August 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Commercial Services industry, which is down 10.0% over the same period. Valuation Update With 7 Day Price Move • Nov 13
Market pulls back on stock over the past week After last week's 16% share price decline to CN¥52.83, the stock is trading at a trailing P/E ratio of 39.1x, down from the previous P/E ratio of 46.6x. This compares to an average P/E of 30x in the Commercial Services industry in China. Total returns to shareholders over the past year are 260%. Reported Earnings • Oct 31
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥186.0m, up 251% from the prior year. Total revenue was CN¥1.49b over the last 12 months, up 54% from the prior year. Valuation Update With 7 Day Price Move • Oct 30
Market pulls back on stock over the past week After last week's 16% share price decline to CN¥59.89, the stock is trading at a trailing P/E ratio of 76.5x, down from the previous P/E ratio of 90.7x. This compares to an average P/E of 29x in the Commercial Services industry in China. Total returns to shareholders over the past year are 326%. Is New 90 Day High Low • Oct 12
New 90-day high: CN¥64.98 The company is up 98% from its price of CN¥32.89 on 14 July 2020. The Chinese market is down 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is down 4.0% over the same period. Announcement • Aug 11
Loctek Ergonomic Technology Corp. to Report First Half, 2020 Results on Aug 27, 2020 Loctek Ergonomic Technology Corp. announced that they will report first half, 2020 results on Aug 27, 2020