Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥17.95, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥27.42 per share. Announcement • Jun 30
Xinfengming Group Co., Ltd. to Report First Half, 2026 Results on Aug 28, 2026 Xinfengming Group Co., Ltd. announced that they will report first half, 2026 results on Aug 28, 2026 Buy Or Sell Opportunity • Jun 26
Now 23% undervalued Over the last 90 days, the stock has risen 26% to CN¥21.21. The fair value is estimated to be CN¥27.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 131% in the next 2 years. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥20.33, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 93% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥26.90 per share. Price Target Changed • Apr 18
Price target increased by 10% to CN¥20.45 Up from CN¥18.55, the current price target is an average from 2 analysts. New target price is 22% above last closing price of CN¥16.78. Stock is up 63% over the past year. The company is forecast to post earnings per share of CN¥1.18 for next year compared to CN¥0.69 last year. Reported Earnings • Apr 17
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.69 (down from CN¥0.73 in FY 2024). Revenue: CN¥71.6b (up 6.7% from FY 2024). Net income: CN¥1.02b (down 7.5% from FY 2024). Profit margin: 1.4% (down from 1.6% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.8%. Earnings per share (EPS) missed analyst estimates by 7.3%. Revenue is forecast to grow 4.5% 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 increased by 58% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Apr 17
Xinfengming Group Co., Ltd., Annual General Meeting, May 07, 2026 Xinfengming Group Co., Ltd., Annual General Meeting, May 07, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Tongxiang, Zhejiang China Announcement • Mar 30
Xinfengming Group Co., Ltd. to Report Q1, 2026 Results on Apr 29, 2026 Xinfengming Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 29, 2026 Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥17.44, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 25x in the Chemicals industry in China. Total returns to shareholders of 61% over the past three years. Announcement • Dec 26
Xinfengming Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 17, 2026 Xinfengming Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 17, 2026 Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥19.29, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 25x in the Chemicals industry in China. Total returns to shareholders of 81% over the past three years. New Risk • Nov 11
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 7.4% 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 Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.4% average weekly change). Valuation Update With 7 Day Price Move • Nov 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥18.15, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 24x in the Chemicals industry in China. Total returns to shareholders of 89% over the past three years. New Risk • Oct 31
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Sep 30
Xinfengming Group Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Xinfengming Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Price Target Changed • Aug 31
Price target increased by 9.5% to CN¥15.87 Up from CN¥14.49, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥15.33. Stock is up 41% over the past year. The company is forecast to post earnings per share of CN¥0.91 for next year compared to CN¥0.73 last year. Announcement • Jun 30
Xinfengming Group Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Xinfengming Group Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 New Risk • May 06
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 12% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. New Risk • May 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 16% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Price Target Changed • Apr 29
Price target decreased by 7.1% to CN¥14.47 Down from CN¥15.58, the current price target is an average from 4 analysts. New target price is 33% above last closing price of CN¥10.84. Stock is down 24% over the past year. The company is forecast to post earnings per share of CN¥1.10 for next year compared to CN¥0.73 last year. Reported Earnings • Apr 25
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥0.73 (up from CN¥0.72 in FY 2023). Revenue: CN¥67.1b (up 9.1% from FY 2023). Net income: CN¥1.10b (up 1.3% from FY 2023). Profit margin: 1.6% (down from 1.8% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates by 5.8%. Revenue is forecast to grow 6.3% 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, earnings per share has fallen by 20% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Apr 25
Xinfengming Group Co., Ltd., Annual General Meeting, May 19, 2025 Xinfengming Group Co., Ltd., Annual General Meeting, May 19, 2025, at 13:30 China Standard Time. Location: The Company's Meeting Room, Tongxiang, Zhejiang China Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥10.21, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 6.0% over the past three years. Announcement • Mar 28
Xinfengming Group Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Xinfengming Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Xinfengming Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Xinfengming Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.097 (vs CN¥0.27 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.097 (down from CN¥0.27 in 3Q 2023). Revenue: CN¥17.9b (up 12% from 3Q 2023). Net income: CN¥140.9m (down 65% from 3Q 2023). Profit margin: 0.8% (down from 2.5% in 3Q 2023). Revenue is forecast to grow 8.0% 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, earnings per share has fallen by 39% 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 • Sep 30
Xinfengming Group Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Xinfengming Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥11.70, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 27% over the past three years. New Risk • Sep 08
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 27% 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 Debt is not well covered by operating cash flow (7.7% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.22 (vs CN¥0.19 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.22 (up from CN¥0.19 in 2Q 2023). Revenue: CN¥16.8b (up 7.3% from 2Q 2023). Net income: CN¥329.5m (up 14% from 2Q 2023). Profit margin: 2.0% (up from 1.8% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.4% 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 45% 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. Price Target Changed • Jul 13
Price target increased by 8.5% to CN¥16.36 Up from CN¥15.07, the current price target is an average from 4 analysts. New target price is 9.7% above last closing price of CN¥14.91. Stock is up 20% over the past year. The company is forecast to post earnings per share of CN¥1.19 for next year compared to CN¥0.72 last year. Announcement • Jun 29
Xinfengming Group Co., Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Xinfengming Group Co., Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 New Risk • May 15
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% 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 Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (91% cash payout ratio). Large one-off items impacting financial results. New Risk • May 01
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 92% Dividend yield: 1.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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 Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (92% cash payout ratio). Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.18 (vs CN¥0.13 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.18 (up from CN¥0.13 in 1Q 2023). Revenue: CN¥14.5b (up 16% from 1Q 2023). Net income: CN¥275.2m (up 45% from 1Q 2023). Profit margin: 1.9% (up from 1.5% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.3% 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, earnings per share has fallen by 48% 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. Price Target Changed • Apr 11
Price target increased by 7.7% to CN¥15.07 Up from CN¥14.00, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥14.77. Stock is up 34% over the past year. The company is forecast to post earnings per share of CN¥1.21 for next year compared to CN¥0.72 last year. Announcement • Mar 29
Xinfengming Group Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Xinfengming Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Announcement • Mar 26
Xinfengming Group Co., Ltd., Annual General Meeting, Apr 15, 2024 Xinfengming Group Co., Ltd., Annual General Meeting, Apr 15, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Tongxiang, Zhejiang China Reported Earnings • Mar 26
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: CN¥0.72 (up from CN¥0.14 loss in FY 2022). Revenue: CN¥61.5b (up 21% from FY 2022). Net income: CN¥1.09b (up CN¥1.29b from FY 2022). Profit margin: 1.8% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.9% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 46% 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. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥13.72, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Chemicals industry in China. Total loss to shareholders of 37% over the past three years. Announcement • Feb 01
Xinfengming Group Co., Ltd. (SHSE:603225) announces an Equity Buyback for CNY 150 million worth of its shares. Xinfengming Group Co., Ltd. (SHSE:603225) announces a share repurchase program. Under the program, the company will repurchase up to CNY 150 million worth of its class A shares. The shares will be repurchased at no more than CNY 16 per share. The repurchased shares will be used for ESOP or equity incentives. The program will be valid for 12 months. Announcement • Dec 30
Xinfengming Group Co., Ltd. to Report Fiscal Year 2023 Results on Mar 26, 2024 Xinfengming Group Co., Ltd. announced that they will report fiscal year 2023 results on Mar 26, 2024 Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥13.57, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 16x in the Chemicals industry in China. Total returns to shareholders of 15% over the past three years. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.27 (vs CN¥0.075 loss in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.27 (up from CN¥0.075 loss in 3Q 2022). Revenue: CN¥16.0b (up 13% from 3Q 2022). Net income: CN¥407.4m (up CN¥517.0m from 3Q 2022). Profit margin: 2.5% (up from net loss in 3Q 2022). Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 19% 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 increased by 8% per year, which means it is well ahead of earnings. Announcement • Sep 30
Xinfengming Group Co., Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Xinfengming Group Co., Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 Price Target Changed • Sep 19
Price target increased by 17% to CN¥14.13 Up from CN¥12.08, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of CN¥13.63. Stock is up 38% over the past year. The company is forecast to post earnings per share of CN¥0.63 next year compared to a net loss per share of CN¥0.14 last year. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.19 (vs CN¥0.071 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.19 (up from CN¥0.071 in 2Q 2022). Revenue: CN¥15.7b (up 20% from 2Q 2022). Net income: CN¥289.8m (up 166% from 2Q 2022). Profit margin: 1.8% (up from 0.8% in 2Q 2022). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Mar 30
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: CN¥0.14 loss per share (down from CN¥1.57 profit in FY 2021). Revenue: CN¥50.8b (up 13% from FY 2021). Net loss: CN¥205.1m (down 109% from profit in FY 2021). Revenue exceeded analyst estimates by 6.4%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Feb 17
Xinfengming Group Co., Ltd. (SHSE:603225) entered into an equity transfer agreement to acquire Rocky Spark Limited from Xinfengming Holding Group Co., Ltd for CNY 3.30 million. Xinfengming Group Co., Ltd. (SHSE:603225) entered into an equity transfer agreement to acquire Rocky Spark Limited from Xinfengming Holding Group Co., Ltd. for CNY 3.30 million on February 15, 2023. Xinfengming Group's board of directors approves the acquisition. As of December 31, 2022, total assets of CNY 3.30662519 million, net assets of CNY 3.30662519 million, operating income of CNY 0, and net income of CNY -0.48211548 million. Announcement • Jan 18
Xinfengming Group Co., Ltd. announced that it expects to receive CNY 999.999998 million in funding from Xinfengming Holding Group Co., Ltd. and other investor Xinfengming Group Co., Ltd. announced that it has entered into the share subscription agreement of 114,285,714 A shares at an issue price of CNY 8.75 per share for the gross proceeds of CNY 1,000,000,000 on January 17, 2023. The transaction will include participation from Xinfengming Holding Group Co., Ltd. for not more than 68,571,428 shares and individual investor Zhuang Kuilong for not more than 45,714,286 shares. The shares cannot be transferred within 18 months from the issuance closing date. The transaction has been approved approved in the 37th meeting of the company’s 5th directorate and the 24th meeting of the 5th supervisory board, and is subject to the approvals of the company’s shareholders and the China Securities Regulatory Commission. The company’s total share capital is 1,529,469,778 shares. Xinfengming Holding Group Co., Ltd. holds 15.41% stake for 235,693,920 shares and Zhuang Kuilong holds 22.07% stake for 337,521,813 shares. Post the completion, Xinfengming Holding Group Co., Ltd. will hold 304,265,348 shares and Zhuang Kuilong will hold 383,236,099 shares. Price Target Changed • Dec 19
Price target decreased to CN¥10.93 Down from CN¥12.05, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥11.03. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.28 for next year compared to CN¥1.57 last 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. 4 experienced directors. 4 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Jianzhong Shao 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. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥9.58, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 14% over the past three years. Major Estimate Revision • Nov 04
Consensus EPS estimates fall by 35% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥52.9b to CN¥51.1b. EPS estimate also fell from CN¥0.99 per share to CN¥0.64 per share. Net income forecast to grow 189% next year vs 44% growth forecast for Chemicals industry in China. Consensus price target down from CN¥12.05 to CN¥11.43. Share price was steady at CN¥8.42 over the past week. Reported Earnings • Oct 28
Third quarter 2022 earnings released: CN¥0.075 loss per share (vs CN¥0.42 profit in 3Q 2021) Third quarter 2022 results: CN¥0.075 loss per share (down from CN¥0.42 profit in 3Q 2021). Revenue: CN¥14.2b (up 10% from 3Q 2021). Net loss: CN¥109.5m (down 118% from profit in 3Q 2021). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals 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 10% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 11
Price target decreased to CN¥12.05 Down from CN¥13.18, the current price target is an average from 4 analysts. New target price is 37% above last closing price of CN¥8.82. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥0.99 for next year compared to CN¥1.57 last year. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.071 (vs CN¥0.59 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.071 (down from CN¥0.59 in 2Q 2021). Revenue: CN¥13.1b (up 1.9% from 2Q 2021). Net income: CN¥108.8m (down 87% from 2Q 2021). Profit margin: 0.8% (down from 6.4% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 27%, compared to a 40% growth forecast for the Chemicals industry in China. 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 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • Jul 20
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥53.9b to CN¥53.2b. EPS estimate also fell from CN¥1.25 per share to CN¥1.11 per share. Net income forecast to shrink 1.6% next year vs 41% growth forecast for Chemicals industry in China . Consensus price target broadly unchanged at CN¥13.18. Share price was steady at CN¥10.47 over the past week. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥11.59, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 5.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥4.87 per share. Price Target Changed • May 12
Price target decreased to CN¥13.55 Down from CN¥15.09, the current price target is an average from 8 analysts. New target price is 40% above last closing price of CN¥9.65. Stock is down 46% over the past year. The company is forecast to post earnings per share of CN¥1.34 for next year compared to CN¥1.57 last year. Reported Earnings • Apr 29
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.19 (down from CN¥0.36 in 1Q 2021). Revenue: CN¥10.6b (down 2.0% from 1Q 2021). Net income: CN¥284.8m (down 43% from 1Q 2021). Profit margin: 2.7% (down from 4.6% in 1Q 2021). Revenue missed analyst estimates by 9.3%. Earnings per share (EPS) also missed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 28%, compared to a 42% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target decreased to CN¥15.09 Down from CN¥18.44, the current price target is an average from 7 analysts. New target price is 61% above last closing price of CN¥9.39. Stock is down 48% over the past year. The company is forecast to post earnings per share of CN¥1.40 for next year compared to CN¥1.57 last year. 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. 6 experienced directors. 4 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Director Jianzhong Shao 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. Major Estimate Revision • Apr 21
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥59.9b to CN¥54.7b. EPS estimate also fell from CN¥1.87 per share to CN¥1.40 per share. Net income forecast to shrink 6.4% next year vs 39% growth forecast for Chemicals industry in China . Consensus price target down from CN¥18.44 to CN¥15.09. Share price fell 9.2% to CN¥10.30 over the past week. Price Target Changed • Apr 19
Price target decreased to CN¥15.09 Down from CN¥18.44, the current price target is an average from 7 analysts. New target price is 46% above last closing price of CN¥10.30. Stock is down 39% over the past year. The company is forecast to post earnings per share of CN¥1.40 for next year compared to CN¥1.57 last year. Reported Earnings • Apr 17
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥1.57 (up from CN¥0.43 in FY 2020). Revenue: CN¥44.8b (up 21% from FY 2020). Net income: CN¥2.25b (up 274% from FY 2020). Profit margin: 5.0% (up from 1.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 9.3%. Earnings per share (EPS) also missed analyst estimates by 1.9%. Over the next year, revenue is forecast to grow 32%, compared to a 50% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 10
Xinfengming Group Co., Ltd. (SHSE:603225) announces an Equity Buyback for CNY 300 million worth of its shares. Xinfengming Group Co., Ltd. (SHSE:603225) announces a share repurchase program. Under the program, the company will repurchase up to CNY 300 million worth of its shares. The shares will be repurchased at a price of not more than CNY 18 per share. The authorization will be valid for a period of 12 months. Price Target Changed • Jan 21
Price target increased to CN¥21.88 Up from CN¥18.98, the current price target is an average from 6 analysts. New target price is 48% above last closing price of CN¥14.80. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥1.67 for next year compared to CN¥0.43 last year. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.42 (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¥12.9b (up 36% from 3Q 2020). Net income: CN¥610.6m (up CN¥551.1m from 3Q 2020). Profit margin: 4.7% (up from 0.6% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% 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. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥17.00, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 8.8% over the past three years. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 24% share price gain to CN¥21.40, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 22x in the Chemicals industry in China. Total returns to shareholders of 43% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.59 (vs CN¥0.098 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥12.9b (up 51% from 2Q 2020). Net income: CN¥826.3m (up 485% from 2Q 2020). Profit margin: 6.4% (up from 1.7% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥19.15, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 24% over the past three years. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥23.90, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 67% over the past three years. Major Estimate Revision • Jul 14
Consensus EPS estimates increase to CN¥1.54 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CN¥49.9b to CN¥52.7b. EPS estimate increased from CN¥1.39 to CN¥1.54 per share. Net income forecast to grow 117% next year vs 44% growth forecast for Chemicals industry in China. Consensus price target up from CN¥16.86 to CN¥21.43. Share price rose 8.9% to CN¥22.45 over the past week. Price Target Changed • Jul 09
Price target increased to CN¥21.43 Up from CN¥17.45, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of CN¥20.91. Stock is up 84% over the past year. Announcement • Jun 05
An unknown buyer agree to acquire Tongxiang Wujiang Technology Development Co., Ltd. from Xinfengming Group Co., Ltd. (SHSE:603225) for CNY 10.3 million. An unknown buyer agree to acquire Tongxiang Wujiang Technology Development Co., Ltd. from Xinfengming Group Co., Ltd. (SHSE:603225) for CNY 10.3 million on June 3, 2021. As on May 5, 2021, Tongxiang Wujiang Technology Development Co., Ltd. reported total assets of CNY 14.03 million, net assets of CNY 10.3 million, operating income of CNY 7.8 million and net profit of CNY 1.8 million. Transaction is approved by the Board of Xinfengming Group Co., Ltd. Reported Earnings • Apr 20
Full year 2020 earnings released: EPS CN¥0.43 (vs CN¥1.13 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: CN¥37.0b (up 8.3% from FY 2019). Net income: CN¥603.0m (down 56% from FY 2019). Profit margin: 1.6% (down from 4.0% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥16.35, the stock is trading at a trailing P/E ratio of 42.8x, down from the previous P/E ratio of 51.2x. This compares to an average P/E of 36x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 13%. Is New 90 Day High Low • Feb 08
New 90-day high: CN¥21.13 The company is up 100% from its price of CN¥10.58 on 10 November 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.76 per share. Is New 90 Day High Low • Jan 21
New 90-day high: CN¥19.02 The company is up 79% from its price of CN¥10.62 on 23 October 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.74 per share. Price Target Changed • Jan 19
Price target raised to CN¥16.70 Up from CN¥14.05, the current price target is an average from 4 analysts. The new target price is close to the current share price of CN¥17.50. As of last close, the stock is up 41% over the past year. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥16.93, the stock is trading at a trailing P/E ratio of 44.3x, up from the previous P/E ratio of 36.3x. This compares to an average P/E of 35x in the Chemicals industry in China. Total return to shareholders over the past three years is a loss of 9.1%.