New Risk • Jul 15
New major risk - Revenue and earnings growth Earnings have declined by 10% 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 10% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Jun 30
SDIC Capital Co.,Ltd to Report First Half, 2026 Results on Aug 31, 2026 SDIC Capital Co.,Ltd announced that they will report first half, 2026 results on Aug 31, 2026 Announcement • May 12
SDIC Capital Co.,Ltd, Annual General Meeting, Jun 03, 2026 SDIC Capital Co.,Ltd, Annual General Meeting, Jun 03, 2026, at 14:30 China Standard Time. Location: No. 2, Fuchengmen North Avenue, Xicheng District, Beijing China Announcement • Mar 30
SDIC Capital Co.,Ltd to Report Q1, 2026 Results on Apr 30, 2026 SDIC Capital Co.,Ltd announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 26
SDIC Capital Co.,Ltd to Report Fiscal Year 2025 Results on Apr 03, 2026 SDIC Capital Co.,Ltd announced that they will report fiscal year 2025 results on Apr 03, 2026 Announcement • Sep 30
SDIC Capital Co.,Ltd to Report Q3, 2025 Results on Oct 31, 2025 SDIC Capital Co.,Ltd announced that they will report Q3, 2025 results on Oct 31, 2025 Announcement • Jun 30
SDIC Capital Co.,Ltd to Report First Half, 2025 Results on Aug 30, 2025 SDIC Capital Co.,Ltd announced that they will report first half, 2025 results on Aug 30, 2025 Announcement • May 08
SDIC Capital Co.,Ltd, Annual General Meeting, May 29, 2025 SDIC Capital Co.,Ltd, Annual General Meeting, May 29, 2025, at 14:30 China Standard Time. Location: 5F, No. 2, Fuchengmen North Avenue, Xicheng District, Beijing China Announcement • Apr 10
SDIC Capital Co.,Ltd (SHSE:600061) announces an Equity Buyback for CNY 400 million worth of its shares. SDIC Capital Co.,Ltd (SHSE:600061) announces a share repurchase program. Under the program, the company will repurchase up to CNY 400 million. The repurchase price will not be more than CNY 8.90 per share. Shares repurchased will be used for company’s convertible bonds. The program will be valid for 12 months. Announcement • Mar 28
SDIC Capital Co.,Ltd to Report Q1, 2025 Results on Apr 30, 2025 SDIC Capital Co.,Ltd announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Dec 27
SDIC Capital Co.,Ltd to Report Fiscal Year 2024 Results on Mar 29, 2025 SDIC Capital Co.,Ltd announced that they will report fiscal year 2024 results on Mar 29, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.13 (up from CN¥0.12 in 3Q 2023). Revenue: CN¥2.76b (down 15% from 3Q 2023). Net income: CN¥830.2m (up 12% from 3Q 2023). Profit margin: 30% (up from 23% in 3Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Capital Markets 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 only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
SDIC Capital Co.,Ltd to Report Q3, 2024 Results on Oct 31, 2024 SDIC Capital Co.,Ltd announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥6.82, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 22x in the Capital Markets industry in China. Total loss to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥5.34 per share. Buy Or Sell Opportunity • Sep 25
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to CN¥6.82. The fair value is estimated to be CN¥5.34, 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. Earnings per share has declined by 28%. Revenue is forecast to grow by 45% in 2 years. Earnings are forecast to grow by 48% in the next 2 years. New Risk • Aug 31
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.15 (vs CN¥0.13 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.15 (up from CN¥0.13 in 2Q 2023). Revenue: CN¥2.61b (down 28% from 2Q 2023). Net income: CN¥901.2m (up 9.6% from 2Q 2023). Profit margin: 35% (up from 23% in 2Q 2023). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Capital Markets 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 15% per year, which means it has not declined as severely as earnings. Reported Earnings • Jul 23
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: CN¥2.23b (down 39% from 2Q 2023). Net income: CN¥865.0m (up 5.2% from 2Q 2023). Profit margin: 39% (up from 23% in 2Q 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Capital Markets industry in China. Announcement • Jun 28
SDIC Capital Co.,Ltd to Report First Half, 2024 Results on Aug 30, 2024 SDIC Capital Co.,Ltd announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • May 09
SDIC Capital Co.,Ltd, Annual General Meeting, May 28, 2024 SDIC Capital Co.,Ltd, Annual General Meeting, May 28, 2024, at 14:30 China Standard Time. Location: 5F, No. 2, Fuchengmen North Avenue, Xicheng District, Beijing China Reported Earnings • May 01
First quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.13 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.05 (down from CN¥0.13 in 1Q 2023). Revenue: CN¥2.28b (down 17% from 1Q 2023). Net income: CN¥349.5m (down 60% from 1Q 2023). Profit margin: 15% (down from 31% in 1Q 2023). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Capital Markets industry in China. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Mar 29
SDIC Capital Co.,Ltd to Report Q1, 2024 Results on Apr 30, 2024 SDIC Capital Co.,Ltd announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Dec 30
SDIC Capital Co.,Ltd to Report Fiscal Year 2023 Results on Mar 30, 2024 SDIC Capital Co.,Ltd announced that they will report fiscal year 2023 results on Mar 30, 2024 Reported Earnings • Oct 31
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: CN¥3.25b (down 35% from 3Q 2022). Net income: CN¥740.3m (up 50% from 3Q 2022). Profit margin: 23% (up from 9.9% in 3Q 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Capital Markets industry in China. Announcement • Oct 30
SDIC Capital Co.,Ltd (SHSE:600061) announces an Equity Buyback for CNY 400 million worth of its shares. SDIC Capital Co.,Ltd (SHSE:600061) announces a share repurchase program. Under the program, the company will repurchase up to CNY 400 million. The repurchase price will not be more than CNY 8.46 per share. Shares repurchased will be used for company’s convertible bonds. The program will be valid for 12 months. New Risk • Jul 21
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 21% Last year net profit margin: 33% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (21% net profit margin). Reported Earnings • Jul 20
Second quarter 2023 earnings released Second quarter 2023 results: CN¥0.063 loss per share. Net loss: CN¥404.8m (down 125% from profit in 2Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Capital Markets industry in China. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 11% per year. Reported Earnings • May 04
First quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.01 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.13 (up from CN¥0.01 in 1Q 2022). Revenue: CN¥2.87b (down 3.9% from 1Q 2022). Net income: CN¥865.6m (up CN¥802.0m from 1Q 2022). Profit margin: 30% (up from 2.1% in 1Q 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Capital Markets industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. 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. 10 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Zhang Min was the last independent director to join the board, commencing their role in 2019. 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 30
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: CN¥4.97b (up 50% from 3Q 2021). Net income: CN¥493.0m (down 60% from 3Q 2021). Profit margin: 9.9% (down from 38% in 3Q 2021). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Capital Markets industry in China. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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 Zhang Min was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: CN¥0.73 (vs CN¥0.64 in FY 2020) Full year 2021 results: EPS: CN¥0.73 (up from CN¥0.64 in FY 2020). Revenue: CN¥12.9b (up 18% from FY 2020). Net income: CN¥4.79b (up 16% from FY 2020). Profit margin: 37% (in line with FY 2020). Over the next year, revenue is forecast to grow 30%, compared to a 15% growth forecast for the 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 10% per year, which means it is significantly lagging earnings. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.19 (vs CN¥0.19 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¥3.31b (up 17% from 3Q 2020). Net income: CN¥1.24b (down 1.2% from 3Q 2020). Profit margin: 38% (down from 45% 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 31% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 02
First quarter 2021 earnings released: EPS CN¥0.25 (vs CN¥0.15 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥2.64b (up 17% from 1Q 2020). Net income: CN¥1.08b (up 70% from 1Q 2020). Profit margin: 41% (up from 28% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 03
Full year 2020 earnings released: EPS CN¥0.97 (vs CN¥0.70 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥10.9b (up 36% from FY 2019). Net income: CN¥4.15b (up 40% from FY 2019). Profit margin: 38% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 10
New 90-day low: CN¥11.97 The company is down 15% from its price of CN¥14.05 on 10 December 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is down 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.30 per share. Is New 90 Day High Low • Jan 26
New 90-day low: CN¥13.06 The company is down 9.0% from its price of CN¥14.43 on 29 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Capital Markets industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.35 per share. Is New 90 Day High Low • Dec 22
New 90-day low: CN¥13.30 The company is down 12% from its price of CN¥15.19 on 24 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 Capital Markets industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.29 per share. Is New 90 Day High Low • Nov 01
New 90-day low: CN¥13.97 The company is down 8.0% from its price of CN¥15.15 on 03 August 2020. The Chinese market is down 4.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Capital Markets industry, which is down 10.0% over the same period. Reported Earnings • Nov 01
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥4.06b, up 34% from the prior year. Total revenue was CN¥9.62b over the last 12 months, up 29% from the prior year. 
