New Risk • Apr 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 238% Cash payout ratio: 193% Dividend yield: 14% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 238% Cash payout ratio: 193% Earnings have declined by 29% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). New Risk • Apr 01
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 48% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 29% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (238% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.8% net profit margin). Announcement • Dec 31
Shenzhen Huijie Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 01, 2026 Shenzhen Huijie Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 01, 2026 Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥8.68, the stock trades at a trailing P/E ratio of 45.5x. Average trailing P/E is 34x in the Luxury industry in China. Total returns to shareholders of 36% over the past three years. Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.006 (vs CN¥0.027 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.006 (up from CN¥0.027 loss in 3Q 2024). Revenue: CN¥656.8m (up 4.9% from 3Q 2024). Net income: CN¥2.40m (up CN¥13.7m from 3Q 2024). Profit margin: 0.4% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. 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 1% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shenzhen Huijie Group Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Shenzhen Huijie Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Announcement • Sep 02
Shenzhen Huijie Group Co., Ltd. Approves Interim Dividend for the 2025 Shenzhen Huijie Group Co., Ltd. approved interim Cash dividend/10 shares (tax included): CNY3.00000000 for 2025. Announcement • Jul 02
Shenzhen Huijie Group Co., Ltd. to Report First Half, 2025 Results on Aug 30, 2025 Shenzhen Huijie Group Co., Ltd. announced that they will report first half, 2025 results on Aug 30, 2025 Announcement • Apr 02
Shenzhen Huijie Group Co., Ltd. Proposes Final Cash Dividend for 2024 Shenzhen Huijie Group Co., Ltd. proposed final cash dividend of CNY 1.50000000 per 10 shares (tax included) for 2024. Reported Earnings • Apr 01
Full year 2024 earnings released: EPS: CN¥0.19 (vs CN¥0.44 in FY 2023) Full year 2024 results: EPS: CN¥0.19 (down from CN¥0.44 in FY 2023). Revenue: CN¥2.95b (flat on FY 2023). Net income: CN¥79.0m (down 56% from FY 2023). Profit margin: 2.7% (down from 6.2% in FY 2023). 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 8% per year, which means it has not declined as severely as earnings. Announcement • Apr 01
Shenzhen Huijie Group Co., Ltd., Annual General Meeting, Apr 29, 2025 Shenzhen Huijie Group Co., Ltd., Annual General Meeting, Apr 29, 2025, at 14:30 China Standard Time. Location: 4F, Building B, No. 85, Tairan 4th Road, Tian'an Community, Shatou Subdistrict, Futian District, Shenzhen, Guangdong China Announcement • Mar 31
Shenzhen Huijie Group Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Shenzhen Huijie Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥7.36, the stock trades at a trailing P/E ratio of 32.2x. Average trailing P/E is 23x in the Luxury industry in China. Total loss to shareholders of 11% over the past three years. Announcement • Dec 31
Shenzhen Huijie Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 01, 2025 Shenzhen Huijie Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 01, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: CN¥0.027 loss per share (vs CN¥0.087 profit in 3Q 2023) Third quarter 2024 results: CN¥0.027 loss per share (down from CN¥0.087 profit in 3Q 2023). Revenue: CN¥625.9m (down 4.0% from 3Q 2023). Net loss: CN¥11.3m (down 133% from profit in 3Q 2023). 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 8% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Oct 17
Now 20% undervalued Over the last 90 days, the stock has risen 1.1% to CN¥6.50. The fair value is estimated to be CN¥8.16, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has declined by 28%. Announcement • Sep 30
Shenzhen Huijie Group Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Shenzhen Huijie Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥6.96, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 21x in the Luxury industry in China. Total loss to shareholders of 20% over the past three years. New Risk • Aug 31
New major risk - Revenue and earnings growth Earnings have declined by 1.1% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.1% per year over the past 5 years. Minor Risk Dividend is not well covered by earnings (118% payout ratio). Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.097 (vs CN¥0.18 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.097 (down from CN¥0.18 in 2Q 2023). Revenue: CN¥780.9m (up 1.5% from 2Q 2023). Net income: CN¥38.4m (down 47% from 2Q 2023). Profit margin: 4.9% (down from 9.5% in 2Q 2023). The decrease in margin was driven by higher expenses. 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 13% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
Shenzhen Huijie Group Co., Ltd. to Report First Half, 2024 Results on Aug 31, 2024 Shenzhen Huijie Group Co., Ltd. announced that they will report first half, 2024 results on Aug 31, 2024 Announcement • May 02
Shenzhen Huijie Group Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2023, Payable on 10 May 2024 Shenzhen Huijie Group Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 4.00000000 for the year 2023, payable on 10 May 2024. Record date is 09 May 2024. Ex-date is 10 May 2024. Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.23 (vs CN¥0.25 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.23 (down from CN¥0.25 in 1Q 2023). Revenue: CN¥765.8m (up 4.1% from 1Q 2023). Net income: CN¥95.8m (down 8.1% from 1Q 2023). Profit margin: 13% (down from 14% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 01
Full year 2023 earnings released: EPS: CN¥0.44 (vs CN¥0.33 in FY 2022) Full year 2023 results: EPS: CN¥0.44 (up from CN¥0.33 in FY 2022). Revenue: CN¥2.93b (up 19% from FY 2022). Net income: CN¥181.9m (up 35% from FY 2022). Profit margin: 6.2% (up from 5.5% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥7.18, the stock trades at a trailing P/E ratio of 16.1x. Average trailing P/E is 26x in the Luxury industry in China. Total returns to shareholders of 25% over the past three years. Announcement • Dec 29
Shenzhen Huijie Group Co., Ltd. to Report Fiscal Year 2023 Results on Mar 30, 2024 Shenzhen Huijie Group Co., Ltd. announced that they will report fiscal year 2023 results on Mar 30, 2024 Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.087 (vs CN¥0.042 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.087 (up from CN¥0.042 in 3Q 2022). Revenue: CN¥652.1m (up 14% from 3Q 2022). Net income: CN¥34.2m (up 99% from 3Q 2022). Profit margin: 5.2% (up from 3.0% in 3Q 2022). The increase in margin was driven by higher 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 2% per year, which means it is well ahead of earnings. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.18 (vs CN¥0.15 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.18 (up from CN¥0.15 in 2Q 2022). Revenue: CN¥769.2m (up 24% from 2Q 2022). Net income: CN¥72.7m (up 23% from 2Q 2022). Profit margin: 9.5% (in line with 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Board Change • Jun 01
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 2 experienced directors. 1 highly experienced director. Chairman of the Board of Directors & GM Xingping Lv is the most experienced director on the board, commencing their role in 2011. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.25 (vs CN¥0.21 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.25 (up from CN¥0.21 in 1Q 2022). Revenue: CN¥735.4m (up 13% from 1Q 2022). Net income: CN¥104.2m (up 21% from 1Q 2022). Profit margin: 14% (in line with 1Q 2022). Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 4% per year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Aizhen Chen was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.042 (vs CN¥0.097 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.042 (down from CN¥0.097 in 3Q 2021). Revenue: CN¥572.5m (down 2.4% from 3Q 2021). Net income: CN¥17.1m (down 55% from 3Q 2021). Profit margin: 3.0% (down from 6.5% in 3Q 2021). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 16
Now 22% undervalued Over the last 90 days, the stock is up 4.2%. The fair value is estimated to be CN¥9.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.6% over the last 3 years. Earnings per share has grown by 20%. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.15 (vs CN¥0.27 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.15 (down from CN¥0.27 in 2Q 2021). Revenue: CN¥622.5m (down 15% from 2Q 2021). Net income: CN¥59.2m (down 47% from 2Q 2021). Profit margin: 9.5% (down from 15% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 20% 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 • Aug 09
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥9.26, the stock trades at a trailing P/E ratio of 14.2x. Average trailing P/E is 22x in the Luxury industry in China. Total returns to shareholders of 38% over the past three years. Reported Earnings • Apr 28
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.69 (up from CN¥0.53 in FY 2020). Revenue: CN¥2.73b (up 15% from FY 2020). Net income: CN¥276.1m (up 31% from FY 2020). Profit margin: 10% (up from 8.9% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 7.5%. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging 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. 9 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Director Aizhen Chen was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.097 (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¥586.6m (down 1.0% from 3Q 2020). Net income: CN¥38.2m (down 43% from 3Q 2020). Profit margin: 6.5% (down from 11% in 3Q 2020). 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 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥11.58, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 26x in the Luxury industry in China. Total returns to shareholders of 87% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.21 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥731.3m (up 15% from 2Q 2020). Net income: CN¥111.6m (up 30% from 2Q 2020). Profit margin: 15% (up from 14% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥9.20, the stock trades at a trailing P/E ratio of 12.4x. Average trailing P/E is 24x in the Luxury industry in China. Total loss to shareholders of 5.2% over the past three years. Announcement • Jun 02
Shenzhen Huijie Group Co., Ltd. Announces 2020 Final Distribution Plan to Be Implemented (A Shares), Payment Date Is 09 June 2021 Shenzhen Huijie Group Co., Ltd. announced 2020 final distribution plan to be implemented (A shares). The company announced Cash dividend per 10 shares (tax included) is CNY 10.00000000. Record date: 08 June 2021; Ex-date: 09 June 2021; Payment date: 09 June 2021. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥11.12, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 24x in the Luxury industry in China. Total loss to shareholders of 4.9% over the past three years. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥9.36, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 25x in the Luxury industry in China. Total loss to shareholders of 15% over the past three years. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.28 (vs CN¥0.05 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥670.9m (up 60% from 1Q 2020). Net income: CN¥110.4m (up CN¥92.9m from 1Q 2020). Profit margin: 17% (up from 4.2% 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 3% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Mar 09
Shenzhen Huijie Group Co., Ltd. to Report Fiscal Year 2020 Results on Apr 23, 2021 Shenzhen Huijie Group Co., Ltd. announced that they will report fiscal year 2020 results on Apr 23, 2021 Is New 90 Day High Low • Jan 28
New 90-day low: CN¥6.69 The company is down 15% from its price of CN¥7.88 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is down 12% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥7.00 The company is down 8.0% from its price of CN¥7.64 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Luxury industry, which is down 11% over the same period. Is New 90 Day High Low • Dec 24
New 90-day low: CN¥7.31 The company is down 2.0% from its price of CN¥7.46 on 25 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Luxury industry, which is down 4.0% over the same period. Is New 90 Day High Low • Nov 23
New 90-day high: CN¥8.52 The company is up 9.0% from its price of CN¥7.79 on 25 August 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 1.0% over the same period. Is New 90 Day High Low • Oct 29
New 90-day high: CN¥8.17 The company is up 6.0% from its price of CN¥7.70 on 31 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 1.0% over the same period. Reported Earnings • Oct 23
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥136.0m, down 33% from the prior year. Total revenue was CN¥2.36b over the last 12 months, down 7.4% from the prior year. Announcement • Oct 17
Shenzhen Huijie Group Co., Ltd. to Report Q3, 2020 Results on Oct 23, 2020 Shenzhen Huijie Group Co., Ltd. announced that they will report Q3, 2020 results on Oct 23, 2020 Announcement • Jul 24
Shenzhen Huijie Group Co., Ltd. to Report First Half, 2020 Results on Aug 20, 2020 Shenzhen Huijie Group Co., Ltd. announced that they will report first half, 2020 results on Aug 20, 2020