Declared Dividend • Jun 01
Dividend reduced to CN¥0.16 Dividend of CN¥0.16 is 24% lower than last year. Ex-date: 4th June 2026 Payment date: 4th June 2026 Dividend yield will be 1.1%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (10% cash payout ratio). The dividend has increased by an average of 23% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 53% to shift the payout ratio to a potentially unsustainable range, which is more than the 28% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥15.39, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 50x in the Basic Materials industry in China. Total returns to shareholders of 12% over the past three years. Announcement • Mar 30
Ningxia Building Materials Group Co.,Ltd to Report Q1, 2026 Results on Apr 25, 2026 Ningxia Building Materials Group Co.,Ltd announced that they will report Q1, 2026 results on Apr 25, 2026 New Risk • Mar 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% 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 35% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Mar 28
Full year 2025 earnings released: EPS: CN¥0.38 (vs CN¥0.50 in FY 2024) Full year 2025 results: EPS: CN¥0.38 (down from CN¥0.50 in FY 2024). Revenue: CN¥5.17b (down 40% from FY 2024). Net income: CN¥182.1m (down 25% from FY 2024). Profit margin: 3.5% (up from 2.8% in FY 2024). 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 7% per year, which means it has not declined as severely as earnings. Announcement • Mar 25
Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 24, 2026 Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 24, 2026, at 14:00 China Standard Time. Location: 16F, No. 219, Renmin Square East Street, Jinfeng District, Yinchuan, Ningxia China New Risk • Feb 22
New major risk - Revenue and earnings growth Earnings have declined by 34% 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 34% 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 • Dec 26
Ningxia Building Materials Group Co.,Ltd to Report Fiscal Year 2025 Results on Mar 26, 2026 Ningxia Building Materials Group Co.,Ltd announced that they will report fiscal year 2025 results on Mar 26, 2026 Reported Earnings • Oct 22
Third quarter 2025 earnings released: EPS: CN¥0.24 (vs CN¥0.25 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.24 (down from CN¥0.25 in 3Q 2024). Revenue: CN¥1.49b (down 40% from 3Q 2024). Net income: CN¥115.8m (down 2.2% from 3Q 2024). Profit margin: 7.8% (up from 4.8% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 30
Ningxia Building Materials Group Co.,Ltd to Report Q3, 2025 Results on Oct 24, 2025 Ningxia Building Materials Group Co.,Ltd announced that they will report Q3, 2025 results on Oct 24, 2025 Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: CN¥0.21 (vs CN¥0.15 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.21 (up from CN¥0.15 in 2Q 2024). Revenue: CN¥1.68b (down 39% from 2Q 2024). Net income: CN¥114.1m (up 68% from 2Q 2024). Profit margin: 6.8% (up from 2.5% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Jun 30
Ningxia Building Materials Group Co.,Ltd to Report First Half, 2025 Results on Aug 27, 2025 Ningxia Building Materials Group Co.,Ltd announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • May 31
Dividend reduced to CN¥0.21 Dividend of CN¥0.21 is 16% lower than last year. Ex-date: 4th June 2025 Payment date: 4th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 3.0%. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (20% cash payout ratio). The dividend has increased by an average of 1.6% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 86% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 25
First quarter 2025 earnings released: CN¥0.02 loss per share (vs CN¥0.03 loss in 1Q 2024) First quarter 2025 results: CN¥0.02 loss per share (improved from CN¥0.03 loss in 1Q 2024). Revenue: CN¥877.8m (down 44% from 1Q 2024). Net loss: CN¥8.41m (loss narrowed 46% from 1Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has remained flat, which means it is well ahead of earnings. New Risk • Apr 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Announcement • Mar 28
Ningxia Building Materials Group Co.,Ltd to Report Q1, 2025 Results on Apr 25, 2025 Ningxia Building Materials Group Co.,Ltd announced that they will report Q1, 2025 results on Apr 25, 2025 Reported Earnings • Mar 27
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: CN¥0.50 (down from CN¥0.62 in FY 2023). Revenue: CN¥8.65b (down 17% from FY 2023). Net income: CN¥241.4m (down 19% from FY 2023). Profit margin: 2.8% (down from 2.9% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 29%. Earnings per share (EPS) exceeded analyst estimates by 11%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Mar 27
Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 24, 2025 Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 24, 2025, at 14:00 China Standard Time. Location: 16F, No. 219, Renmin Square East Street, Jinfeng District, Yinchuan, Ningxia China Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥15.93, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the Basic Materials industry in China. Total returns to shareholders of 49% over the past three years. Announcement • Dec 27
Ningxia Building Materials Group Co.,Ltd to Report Fiscal Year 2024 Results on Mar 27, 2025 Ningxia Building Materials Group Co.,Ltd announced that they will report fiscal year 2024 results on Mar 27, 2025 Reported Earnings • Oct 24
Third quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.29 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.25 (down from CN¥0.29 in 3Q 2023). Revenue: CN¥2.47b (down 23% from 3Q 2023). Net income: CN¥118.3m (down 16% from 3Q 2023). Profit margin: 4.8% (up from 4.3% in 3Q 2023). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Sep 30
Ningxia Building Materials Group Co.,Ltd to Report Q3, 2024 Results on Oct 24, 2024 Ningxia Building Materials Group Co.,Ltd announced that they will report Q3, 2024 results on Oct 24, 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¥12.92, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 15x in the Basic Materials industry in China. Total returns to shareholders of 26% over the past three years. Price Target Changed • Aug 29
Price target decreased by 45% to CN¥11.41 Down from CN¥20.57, the current price target is provided by 1 analyst. New target price is 21% above last closing price of CN¥9.46. Stock is down 39% over the past year. The company is forecast to post earnings per share of CN¥0.43 for next year compared to CN¥0.62 last year. Reported Earnings • Aug 24
Second quarter 2024 earnings released: EPS: CN¥0.15 (vs CN¥0.48 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.15 (down from CN¥0.48 in 2Q 2023). Revenue: CN¥2.73b (down 13% from 2Q 2023). Net income: CN¥68.0m (down 53% from 2Q 2023). Profit margin: 2.5% (down from 4.6% in 2Q 2023). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 48% 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. Announcement • Jun 28
Ningxia Building Materials Group Co.,Ltd to Report First Half, 2024 Results on Aug 28, 2024 Ningxia Building Materials Group Co.,Ltd announced that they will report first half, 2024 results on Aug 28, 2024 Announcement • Mar 29
Ningxia Building Materials Group Co.,Ltd to Report Q1, 2024 Results on Apr 24, 2024 Ningxia Building Materials Group Co.,Ltd announced that they will report Q1, 2024 results on Apr 24, 2024 Reported Earnings • Mar 29
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.62 (down from CN¥1.11 in FY 2022). Revenue: CN¥10.4b (up 20% from FY 2022). Net income: CN¥297.4m (down 44% from FY 2022). Profit margin: 2.9% (down from 6.1% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.1%. Earnings per share (EPS) missed analyst estimates by 25%. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Mar 28
Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 23, 2024 Ningxia Building Materials Group Co.,Ltd, Annual General Meeting, Apr 23, 2024, at 14:00 China Standard Time. Location: 16F, No. 219, Renmin Square East Street, Jinfeng District, Yinchuan, Ningxia China Buy Or Sell Opportunity • Mar 12
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.5% to CN¥17.12. The fair value is estimated to be CN¥22.02, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has declined by 35%. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 200% in the next 2 years. New Risk • Jan 25
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 7.9% 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 (7.9% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. 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 (2.3% net profit margin). Profit margins are more than 30% lower than last year (2.3% net profit margin). Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to CN¥14.10, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Basic Materials industry in China. Total returns to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥20.64 per share. Buying Opportunity • Jan 18
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be CN¥20.77, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has declined by 35%. Revenue is forecast to grow by 24% in 2 years. Earnings is forecast to grow by 200% in the next 2 years. Announcement • Dec 29
Ningxia Building Materials Group Co.,Ltd to Report Fiscal Year 2023 Results on Mar 28, 2024 Ningxia Building Materials Group Co.,Ltd announced that they will report fiscal year 2023 results on Mar 28, 2024 Reported Earnings • Oct 30
Third quarter 2023 earnings released: EPS: CN¥0.29 (vs CN¥0.45 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.29 (down from CN¥0.45 in 3Q 2022). Revenue: CN¥3.22b (up 8.1% from 3Q 2022). Net income: CN¥140.1m (down 35% from 3Q 2022). Profit margin: 4.3% (down from 7.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Buying Opportunity • Oct 20
Now 24% undervalued Over the last 90 days, the stock is up 13%. The fair value is estimated to be CN¥25.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 25% in 2 years. Earnings is forecast to grow by 150% in the next 2 years. New Risk • Oct 18
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 6.0% 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 (6.0% average weekly change). Profit margins are more than 30% lower than last year (3.1% net profit margin). Announcement • Sep 30
Ningxia Building Materials Group Co.,Ltd to Report Q3, 2023 Results on Oct 26, 2023 Ningxia Building Materials Group Co.,Ltd announced that they will report Q3, 2023 results on Oct 26, 2023 Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.48 (vs CN¥0.79 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.48 (down from CN¥0.79 in 2Q 2022). Revenue: CN¥3.12b (up 25% from 2Q 2022). Net income: CN¥145.1m (down 61% from 2Q 2022). Profit margin: 4.6% (down from 15% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Basic Materials industry in China. 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 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 22
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: CN¥1.11 (down from CN¥1.68 in FY 2021). Revenue: CN¥8.66b (up 50% from FY 2021). Net income: CN¥529.0m (down 34% from FY 2021). Profit margin: 6.1% (down from 14% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 39%. Earnings per share (EPS) missed analyst estimates by 50%. Revenue is expected to decline by 12% p.a. on average during the next 2 years, while revenues in the Basic Materials industry in China are expected to grow by 14%. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥17.22, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Basic Materials industry in China. Total returns to shareholders of 80% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.41 per share. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥15.16, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Basic Materials industry in China. Total returns to shareholders of 65% over the past three years. 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 (4 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. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.45 (vs CN¥0.64 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.45 (down from CN¥0.64 in 3Q 2021). Revenue: CN¥2.98b (up 60% from 3Q 2021). Net income: CN¥214.5m (down 30% from 3Q 2021). Profit margin: 7.2% (down from 16% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 15% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.79 (vs CN¥0.80 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.79 (down from CN¥0.80 in 2Q 2021). Revenue: CN¥2.51b (up 47% from 2Q 2021). Net income: CN¥368.8m (down 4.1% from 2Q 2021). Profit margin: 15% (down from 23% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 5.6% compared to a 17% growth forecast for the Basic Materials industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 29
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: CN¥0.03 (up from CN¥0.004 in 1Q 2021). Revenue: CN¥981.4m (up 71% from 1Q 2021). Net income: CN¥14.7m (up CN¥13.0m from 1Q 2021). Profit margin: 1.5% (up from 0.3% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 24%. Over the next year, revenue is forecast to grow 4.9%, compared to a 19% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 14% per year. Board Change • Apr 29
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 (4 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. Major Estimate Revision • Mar 22
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥6.11b to CN¥6.24b. EPS estimate fell from CN¥2.53 to CN¥2.27 per share. Net income forecast to grow 11% next year vs 28% growth forecast for Basic Materials industry in China. Consensus price target of CN¥14.80 unchanged from last update. Share price rose 8.8% to CN¥12.52 over the past week. Reported Earnings • Mar 11
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥1.68 (down from CN¥2.02 in FY 2020). Revenue: CN¥5.78b (up 13% from FY 2020). Net income: CN¥801.2m (down 17% from FY 2020). Profit margin: 14% (down from 19% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) missed analyst estimates by 24%. Over the next year, revenue is forecast to grow 5.7%, compared to a 14% growth forecast for the 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 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.64 (vs CN¥0.83 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¥1.86b (up 9.6% from 3Q 2020). Net income: CN¥305.6m (down 23% from 3Q 2020). Profit margin: 16% (down from 23% 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 27% 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 • Sep 13
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥13.35, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 9x in the Basic Materials industry in China. Total returns to shareholders of 89% over the past three years. Reported Earnings • Aug 20
Second quarter 2021 earnings released: EPS CN¥0.80 (vs CN¥0.83 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.71b (down 4.8% from 2Q 2020). Net income: CN¥384.5m (down 13% from 2Q 2020). Profit margin: 23% (down from 25% in 2Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 24
Upcoming dividend of CN¥0.67 per share Eligible shareholders must have bought the stock before 31 May 2021. Payment date: 31 May 2021. Trailing yield: 3.7%. Within top quartile of Chinese dividend payers (1.9%). Higher than average of industry peers (1.6%). Reported Earnings • May 03
First quarter 2021 earnings released: EPS CN¥0.004 (vs CN¥0.04 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥575.3m (up 52% from 1Q 2020). Net income: CN¥1.75m (up CN¥18.7m from 1Q 2020). Profit margin: 0.3% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 22
Full year 2020 earnings released: EPS CN¥2.02 (vs CN¥1.61 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥5.11b (up 6.7% from FY 2019). Net income: CN¥964.9m (up 26% from FY 2019). Profit margin: 19% (up from 16% 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 41% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 07
Full year 2020 earnings released: EPS CN¥2.02 (vs CN¥1.61 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥5.11b (up 6.7% from FY 2019). Net income: CN¥964.9m (up 26% from FY 2019). Profit margin: 19% (up from 16% 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 41% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Mar 07
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 100%. Earnings per share (EPS) exceeded analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 14%, compared to a 22% growth forecast for the Basic Materials industry in China. Is New 90 Day High Low • Mar 03
New 90-day high: CN¥15.12 The company is up 1.0% from its price of CN¥14.92 on 03 December 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 25
New 90-day low: CN¥12.61 The company is down 17% from its price of CN¥15.11 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 16% over the same period. Announcement • Jan 21
Ningxia Building Materials Group Co.,Ltd to Report Fiscal Year 2020 Results on Mar 19, 2021 Ningxia Building Materials Group Co.,Ltd announced that they will report fiscal year 2020 results on Mar 19, 2021 Is New 90 Day High Low • Dec 28
New 90-day low: CN¥12.84 The company is down 12% from its price of CN¥14.54 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 Basic Materials industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥43.76 per share. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥14.07 The company is down 7.0% from its price of CN¥15.18 on 11 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥43.76 per share. Price Target Changed • Nov 12
Price target raised to CN¥23.00 Up from CN¥20.57, the current price target is an average from 4 analysts. The new target price is 43% above the current share price of CN¥16.06. As of last close, the stock is up 60% over the past year. Is New 90 Day High Low • Nov 03
New 90-day low: CN¥14.12 The company is down 25% from its price of CN¥18.84 on 05 August 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials 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¥36.13 per share. Reported Earnings • Oct 21
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥980.9m, up 42% from the prior year. Total revenue was CN¥5.03b over the last 12 months, up 7.2% from the prior year. Announcement • Oct 19
Ningxia Building Materials Group Co., Ltd. to Report Q3, 2020 Results on Oct 21, 2020 Ningxia Building Materials Group Co., Ltd. announced that they will report Q3, 2020 results on Oct 21, 2020 Announcement • Jul 08
Ningxia Building Materials Group Co., Ltd. to Report First Half, 2020 Results on Aug 20, 2020 Ningxia Building Materials Group Co., Ltd. announced that they will report first half, 2020 results on Aug 20, 2020