Announcement • Jun 30
Epoxy Base Electronic Material Corporation Limited to Report First Half, 2026 Results on Aug 22, 2026 Epoxy Base Electronic Material Corporation Limited announced that they will report first half, 2026 results on Aug 22, 2026 Declared Dividend • Jun 08
Dividend reduced to CN¥0.015 Dividend of CN¥0.015 is 25% lower than last year. Ex-date: 12th June 2026 Payment date: 12th June 2026 Dividend yield will be 0.09%, which is lower than the industry average of 2.6%. New Risk • May 07
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 9.8% 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 Risks Share price has been highly volatile over the past 3 months (9.8% average weekly change). Earnings have declined by 45% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (0.8% net profit margin). Reported Earnings • Apr 24
Full year 2025 earnings released: EPS: CN¥0.03 (vs CN¥0.04 in FY 2024) Full year 2025 results: EPS: CN¥0.03 (down from CN¥0.04 in FY 2024). Revenue: CN¥3.08b (up 44% from FY 2024). Net income: CN¥35.4m (down 30% from FY 2024). Profit margin: 1.1% (down from 2.4% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 142 percentage points per year, which is a significant difference in performance. Announcement • Apr 23
Epoxy Base Electronic Material Corporation Limited, Annual General Meeting, May 13, 2026 Epoxy Base Electronic Material Corporation Limited, Annual General Meeting, May 13, 2026, at 09:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Announcement • Mar 30
Epoxy Base Electronic Material Corporation Limited to Report Q1, 2026 Results on Apr 29, 2026 Epoxy Base Electronic Material Corporation Limited announced that they will report Q1, 2026 results on Apr 29, 2026 New Risk • Mar 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.2% 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 Risks Earnings have declined by 32% per year over the past 5 years. High level of non-cash earnings (27% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Profit margins are more than 30% lower than last year (1.4% net profit margin). Announcement • Dec 26
Epoxy Base Electronic Material Corporation Limited to Report Fiscal Year 2025 Results on Apr 24, 2026 Epoxy Base Electronic Material Corporation Limited announced that they will report fiscal year 2025 results on Apr 24, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: CN¥817.7m (up 49% from 3Q 2024). Net income: CN¥8.18m (down 29% from 3Q 2024). Profit margin: 1.0% (down from 2.1% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 116 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Epoxy Base Electronic Material Corporation Limited to Report Q3, 2025 Results on Oct 30, 2025 Epoxy Base Electronic Material Corporation Limited announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Sep 01
Second quarter 2025 earnings released: EPS: CN¥0.004 (vs CN¥0.01 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.004 (down from CN¥0.01 in 2Q 2024). Revenue: CN¥766.7m (up 32% from 2Q 2024). Net income: CN¥9.88m (down 26% from 2Q 2024). Profit margin: 1.3% (down from 2.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 112 percentage points per year, which is a significant difference in performance. New Risk • Jul 09
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 7.0% 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: Major Risks Earnings have declined by 19% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Profit margins are more than 30% lower than last year (2.0% net profit margin). Announcement • Jun 30
Epoxy Base Electronic Material Corporation Limited to Report First Half, 2025 Results on Aug 27, 2025 Epoxy Base Electronic Material Corporation Limited announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • Jun 09
Dividend of CN¥0.02 announced Shareholders will receive a dividend of CN¥0.02. Ex-date: 13th June 2025 Payment date: 13th June 2025 Dividend yield will be 0.3%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (50% 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 decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 44% to shift the payout ratio to a potentially unsustainable range, which is more than the 27% EPS decline seen over the last 5 years. Reported Earnings • Apr 24
Full year 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.09 in FY 2023) Full year 2024 results: EPS: CN¥0.04 (down from CN¥0.09 in FY 2023). Revenue: CN¥2.14b (down 4.3% from FY 2023). Net income: CN¥50.6m (down 42% from FY 2023). Profit margin: 2.4% (down from 3.9% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 43% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 76 percentage points per year, which is a significant difference in performance. Announcement • Mar 28
Epoxy Base Electronic Material Corporation Limited to Report Q1, 2025 Results on Apr 29, 2025 Epoxy Base Electronic Material Corporation Limited announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Epoxy Base Electronic Material Corporation Limited to Report Fiscal Year 2024 Results on Apr 24, 2025 Epoxy Base Electronic Material Corporation Limited announced that they will report fiscal year 2024 results on Apr 24, 2025 New Risk • Oct 30
New major risk - Revenue and earnings growth Earnings have declined by 3.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 3.3% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (2.9% net profit margin). Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.01 (vs CN¥0.013 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.01 (down from CN¥0.013 in 3Q 2023). Revenue: CN¥550.8m (down 9.3% from 3Q 2023). Net income: CN¥11.6m (down 50% from 3Q 2023). Profit margin: 2.1% (down from 3.8% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 41% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 58% 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 • Sep 30
Epoxy Base Electronic Material Corporation Limited to Report Q3, 2024 Results on Oct 30, 2024 Epoxy Base Electronic Material Corporation Limited announced that they will report Q3, 2024 results on Oct 30, 2024 Reported Earnings • Aug 24
Second quarter 2024 earnings released: EPS: CN¥0.01 (vs CN¥0.02 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.01 (down from CN¥0.02 in 2Q 2023). Revenue: CN¥582.5m (up 4.6% from 2Q 2023). Net income: CN¥13.3m (down 35% from 2Q 2023). Profit margin: 2.3% (down from 3.6% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 38% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥5.40, the stock trades at a trailing P/E ratio of 76.5x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 15% over the past three years. Announcement • Jun 28
Epoxy Base Electronic Material Corporation Limited to Report First Half, 2024 Results on Aug 24, 2024 Epoxy Base Electronic Material Corporation Limited announced that they will report first half, 2024 results on Aug 24, 2024 Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥5.00, the stock trades at a trailing P/E ratio of 70.8x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 11% over the past three years. Declared Dividend • Jun 07
Dividend of CN¥0.05 announced Shareholders will receive a dividend of CN¥0.05. Ex-date: 14th June 2024 Payment date: 14th June 2024 Dividend yield will be 1.1%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (64% 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 3.7% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 2.9% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Apr 26
Now 22% overvalued Over the last 90 days, the stock has fallen 15% to CN¥4.74. The fair value is estimated to be CN¥3.90, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 11%. Announcement • Apr 26
Epoxy Base Electronic Material Corporation Limited, Annual General Meeting, May 15, 2024 Epoxy Base Electronic Material Corporation Limited, Annual General Meeting, May 15, 2024, at 09:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: CN¥0.09 (vs CN¥0.62 in FY 2022) Full year 2023 results: EPS: CN¥0.09 (down from CN¥0.62 in FY 2022). Revenue: CN¥2.24b (down 26% from FY 2022). Net income: CN¥86.6m (down 84% from FY 2022). Profit margin: 3.9% (down from 18% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 35% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 10% per year. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥4.55, the stock trades at a trailing P/E ratio of 52.3x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 31% over the past three years. Announcement • Mar 29
Epoxy Base Electronic Material Corporation Limited to Report Q1, 2024 Results on Apr 29, 2024 Epoxy Base Electronic Material Corporation Limited announced that they will report Q1, 2024 results on Apr 29, 2024 New Risk • Mar 22
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 9.9% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 234% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Profit margins are more than 30% lower than last year (4.2% net profit margin). Shareholders have been diluted in the past year (25% increase in shares outstanding). Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥6.36, the stock trades at a trailing P/E ratio of 73.1x. Average forward P/E is 16x in the Chemicals industry in China. Total returns to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥4.80, the stock trades at a trailing P/E ratio of 55.1x. Average forward P/E is 14x in the Chemicals industry in China. Total loss to shareholders of 3.4% over the past three years. Buy Or Sell Opportunity • Feb 08
Now 28% overvalued Over the last 90 days, the stock has fallen 28% to CN¥4.11. The fair value is estimated to be CN¥3.21, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.1% over the last 3 years. Earnings per share has grown by 5.7%. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥4.49, the stock trades at a trailing P/E ratio of 51.6x. Average trailing P/E is 28x in the Chemicals industry in China. Total returns to shareholders of 10.0% over the past three years. Announcement • Dec 30
Epoxy Base Electronic Material Corporation Limited to Report Fiscal Year 2023 Results on Apr 25, 2024 Epoxy Base Electronic Material Corporation Limited announced that they will report fiscal year 2023 results on Apr 25, 2024 New Risk • Nov 17
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 6.6% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 234% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Profit margins are more than 30% lower than last year (4.2% net profit margin). Shareholders have been diluted in the past year (25% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 16
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥6.79, the stock trades at a trailing P/E ratio of 78x. Average trailing P/E is 37x in the Chemicals industry in China. Total returns to shareholders of 22% over the past three years. New Risk • Oct 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 234% Paying a dividend despite having no free cash flows. Minor Risks Profit margins are more than 30% lower than last year (4.2% net profit margin). Shareholders have been diluted in the past year (25% increase in shares outstanding). Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.013 (vs CN¥0.025 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.013. Revenue: CN¥607.5m (down 5.8% from 3Q 2022). Net income: CN¥23.2m (up 5.9% from 3Q 2022). Profit margin: 3.8% (up from 3.4% in 3Q 2022). The increase in margin was driven by lower expenses. Announcement • Sep 30
Epoxy Base Electronic Material Corporation Limited to Report Q3, 2023 Results on Oct 26, 2023 Epoxy Base Electronic Material Corporation Limited announced that they will report Q3, 2023 results on Oct 26, 2023 Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.02 (vs CN¥0.50 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.02 (down from CN¥0.50 in 2Q 2022). Revenue: CN¥557.0m (down 35% from 2Q 2022). Net income: CN¥20.3m (down 95% from 2Q 2022). Profit margin: 3.6% (down from 52% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. 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 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥5.89, the stock trades at a trailing P/E ratio of 10.2x. Average trailing P/E is 30x in the Chemicals industry in China. Total returns to shareholders of 30% over the past three years. Announcement • Jun 28
Epoxy Base Electronic Material Corporation Limited to Report First Half, 2023 Results on Aug 22, 2023 Epoxy Base Electronic Material Corporation Limited announced that they will report first half, 2023 results on Aug 22, 2023 Reported Earnings • Apr 24
Full year 2022 earnings released: EPS: CN¥0.62 (vs CN¥0.41 in FY 2021) Full year 2022 results: EPS: CN¥0.62 (up from CN¥0.41 in FY 2021). Revenue: CN¥3.02b (down 32% from FY 2021). Net income: CN¥556.8m (up 49% from FY 2021). Profit margin: 18% (up from 8.4% in FY 2021). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging 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. 10 experienced directors. No highly experienced directors. 3 independent directors (6 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 31
Third quarter 2022 earnings released: EPS: CN¥0.025 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.025 (down from CN¥0.11 in 3Q 2021). Revenue: CN¥645.1m (down 48% from 3Q 2021). Net income: CN¥21.9m (down 79% from 3Q 2021). Profit margin: 3.4% (down from 8.4% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 18
Second quarter 2022 earnings released: EPS: CN¥0.50 (vs CN¥0.13 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.50 (up from CN¥0.13 in 2Q 2021). Revenue: CN¥854.2m (down 28% from 2Q 2021). Net income: CN¥442.3m (up 286% from 2Q 2021). Profit margin: 52% (up from 9.7% in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. 4 independent directors (7 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 • Apr 21
Full year 2021 earnings released: EPS: CN¥0.41 (vs CN¥0.25 in FY 2020) Full year 2021 results: EPS: CN¥0.41 (up from CN¥0.25 in FY 2020). Net income: CN¥374.6m (up CN¥374.6m from FY 2020). Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥8.37, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 34x in the Chemicals industry in China. Total returns to shareholders of 134% over the past three years. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.05 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥1.23b (up 178% from 3Q 2020). Net income: CN¥103.7m (up 225% from 3Q 2020). Profit margin: 8.4% (up from 7.2% in 3Q 2020). The increase in margin was driven by higher revenue. 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 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥7.54, the stock trades at a trailing P/E ratio of 20.1x. Average trailing P/E is 31x in the Chemicals industry in China. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • Sep 17
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥9.26, the stock trades at a trailing P/E ratio of 24.7x. Average trailing P/E is 35x in the Chemicals industry in China. Total returns to shareholders of 124% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.13 (vs CN¥0.049 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.19b (up 197% from 2Q 2020). Net income: CN¥114.7m (up 277% from 2Q 2020). Profit margin: 9.7% (up from 7.6% 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 44% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 02
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥6.23, the stock trades at a trailing P/E ratio of 21x. Average trailing P/E is 28x in the Chemicals industry in China. Total returns to shareholders of 28% over the past three years. Reported Earnings • Apr 24
Full year 2020 earnings released: EPS CN¥0.25 (vs CN¥0.18 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥2.50b (up 6.5% from FY 2019). Net income: CN¥224.1m (up 39% from FY 2019). Profit margin: 8.9% (up from 6.9% 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 18% per year whereas the company’s share price has increased by 14% per year. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥8.07, the stock trades at a trailing P/E ratio of 44.6x. Average trailing P/E is 34x in the Chemicals industry in China. Total returns to shareholders of 63% over the past three years. Is New 90 Day High Low • Mar 03
New 90-day high: CN¥6.43 The company is up 9.0% from its price of CN¥5.88 on 03 December 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 13% over the same period. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥5.24, the stock is trading at a trailing P/E ratio of 28.9x, up from the previous P/E ratio of 25x. This compares to an average P/E of 37x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 14%. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥4.62 The company is down 11% from its price of CN¥5.20 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 12% over the same period. Announcement • Nov 26
Epoxy Base Electronic Material Corporation Limited (SHSE:603002) completed the acquisition of Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED. Epoxy Base Electronic Material Corporation Limited (SHSE:603002) agreed to acquire Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED for CNY 1.3 billion on March 17, 2020. Under the terms, Epoxy will issue a total of 263.2 million of its own shares to acquire 398 million shares in the target. As on September 17, 2020, as per equity distribution plan, the issue price of this transaction was adjusted to CNY 3.85 per share and the number of shares to be issues as consideration will be approximately 267.3 million. Grace Electron will sell 75% stake equivalent to approximately 200 million shares of approximately CNY 770 million value and NEWFAME INVESTMENT will sell 25% stake equivalent to 66.8 million shares of approximately CNY 260 million value. In a related transaction, Epoxy will raise funds through a private placement of its shares and are intended to be used to supplement the liquidity of the target company and to pay the related expenses of the transaction. The raised funds will not exceed CNY 120 million. Wuxi Grace Electron Technology Co., Ltd has total assets of CNY 752.8 million, revenue of CNY 740.6 million, operating profit of CNY 98 million, net profit of CNY 85.5 million and net assets of CNY 476.3 million. The transaction needs to be approved by shareholders of Epoxy, the CSRC and the internal decision-making body of the sellers. The transaction has been approved by the board of Wuxi Grace and Epoxy. After the subject assets of this transaction have been audited and evaluated, Epoxy will convene a board meeting again to review the formal plan for this reorganization. On June 17, 2020, the transaction was approved in the Extraordinary Shareholders General Meeting of Epoxy. On November 7, 2020, Epoxy Base received approval of the China Securities Regulatory Commission for issuing shares to purchase assets and raising supporting funds.
Soochow Securities Co., Ltd. acted as financial advisor for Epoxy. Cheng Yiqun and Gao Maoying of Commerce & Finance Law Offices acted as legal advisor and Han Yanguang and Mai Jianqing of Baker Tilly China Certified Public Accountants as accountant to Epoxy Base Electronic Material Corporation Limited.
Epoxy Base Electronic Material Corporation Limited (SHSE:603002) completed the acquisition of Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED on November 25, 2020. Wuxi Grace Electron Technology Co., Ltd. became the Epoxy Base Electronic's wholly-owned subsidiary. Wuxi Grace Electron Technology Co., Ltd. has completed the industrial and commercial change registration procedures for the transfer of assets of this transaction, and obtained the Wuxi National High-tech Industrial Development Zone (Xinwu District, Wuxi City) "Business License" issued by the Market Supervision Administration (Unified Social Credit Code: 913202147382875036). Is New 90 Day High Low • Nov 09
New 90-day high: CN¥6.14 The company is up 13% from its price of CN¥5.44 on 11 August 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is flat over the same period. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 16% share price gain to CN¥5.66, the stock is trading at a trailing P/E ratio of 31.2x, up from the previous P/E ratio of 27.1x. This compares to an average P/E of 40x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 1.5%. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥109.8m, up 133% from the prior year. Total revenue was CN¥1.59b over the last 12 months, down 5.2% from the prior year. Is New 90 Day High Low • Sep 26
New 90-day low: CN¥4.90 The company is down 3.0% from its price of CN¥5.07 on 24 June 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 17% over the same period. Announcement • Sep 26
Epoxy Base Electronic Material Corporation Limited (SHSE:603002) agreed to acquire Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED for CNY 1.3 billion. Epoxy Base Electronic Material Corporation Limited (SHSE:603002) agreed to acquire Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED for CNY 1.3 billion on March 17, 2020. Under the terms, Epoxy will issue a total of 263.2 million of its own shares to acquire 398 million shares in the target. As on September 17, 2020, as per equity distribution plan, the issue price of this transaction was adjusted to CNY 3.85 per share and the number of shares to be issues as consideration will be approximately 267.3 million. Grace Electron will sell 75% stake equivalent to approximately 200 million shares of approximately CNY 770 million value and NEWFAME INVESTMENT will sell 25% stake equivalent to 66.8 million shares of approximately CNY 260 million value. In a related transaction, Epoxy will raise funds through a private placement of its shares and are intended to be used to supplement the liquidity of the target company and to pay the related expenses of the transaction. The raised funds will not exceed CNY 120 million. Wuxi Grace Electron Technology Co., Ltd has total assets of CNY 752.8 million, revenue of CNY 740.6 million, operating profit of CNY 98 million, net profit of CNY 85.5 million and net assets of CNY 476.3 million. The transaction needs to be approved by shareholders of Epoxy, the CSRC and the internal decision-making body of the sellers. The transaction has been approved by the board of Wuxi Grace and Epoxy. After the subject assets of this transaction have been audited and evaluated, Epoxy will convene a board meeting again to review the formal plan for this reorganization. On June 17, 2020, the transaction was approved in the Extraordinary Shareholders General Meeting of Epoxy.
Soochow Securities Co., Ltd. acted as financial advisor for Epoxy. Cheng Yiqun and Gao Maoying of Commerce & Finance Law Offices acted as legal advisor and Han Yanguang and Mai Jianqing of Baker Tilly China Certified Public Accountants as accountant to Epoxy Base Electronic Material Corporation Limited. Announcement • Jul 08
Epoxy Base Electronic Material Corporation Limited to Report First Half, 2020 Results on Aug 18, 2020 Epoxy Base Electronic Material Corporation Limited announced that they will report first half, 2020 results on Aug 18, 2020