Shanghai Tianyang Hot Melt Adhesives (SHSE:603330) - Share price, News & Analysis

Q: What is the Fair Price of 603330 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603330 (CN¥15.28) is trading above our estimate of [[fair value]] (CN¥2.59)

603330 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	3/6
Financial Health	4/6
Dividends	2/6

603330 Stock Overview

Shanghai Tianyang Hot Melt Adhesives Co., Ltd.

Rewards

Earnings are forecast to grow 59.83% per year

Earnings grew by 44.9% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 0.65% is not well covered by earnings

Volatile share price over the past 3 months

Shanghai Tianyang Hot Melt Adhesives Competitors

Zhejiang Jiaao Enprotech Stock

SHSE:603822

CN¥4.7b

Jiangsu Yuxing Film Technology

SZSE:300305

CN¥4.8b

Xinxiang Chemical Fiber

SZSE:000949

CN¥5.2b

Ningbo Exciton Technology

SZSE:300566

CN¥5.4b

Price History & Performance

Summary of all time highs, changes and price drops for Shanghai Tianyang Hot Melt Adhesives
Historical stock prices
Current Share Price	CN¥15.28
52 Week High	CN¥16.49
52 Week Low	CN¥7.37
Beta	0.91
1 Month Change	27.97%
3 Month Change	74.91%
1 Year Change	33.45%
3 Year Change	198.64%
5 Year Change	93.43%
Change since IPO	191.37%

Shareholder Returns

	603330	CN Chemicals	CN Market
7D	6.5%	3.9%	1.6%
1Y	33.5%	-9.4%	-10.1%

Return vs Industry: 603330 exceeded the CN Chemicals industry which returned -9.4% over the past year.

Return vs Market: 603330 exceeded the CN Market which returned -10.1% over the past year.

Price Volatility

Is 603330's price volatile compared to industry and market?
603330 volatility
603330 Average Weekly Movement	8.6%
Chemicals Industry Average Movement	6.2%
Market Average Movement	6.0%
10% most volatile stocks in CN Market	9.1%
10% least volatile stocks in CN Market	3.9%

Stable Share Price: 603330 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 603330's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

Founded	Employees	CEO	Website
1993	890	Zhe Li	https://www.hotmelt.com.cn

Shanghai Tianyang Hot Melt Adhesives Co., Ltd. engages in the manufacture and sale of thermoplastic and reactive adhesive materials in China and internationally. It offers copolyester and copolyamide powders; modified polyamide materials; web, film, and PUR adhesives; solar encapsulation films; and electronic adhesives.

Shanghai Tianyang Hot Melt Adhesives Fundamentals Summary

How do Shanghai Tianyang Hot Melt Adhesives's earnings and revenue compare to its market cap?
603330 fundamental statistics
Market Cap	CN¥5.09b
Earnings (TTM)	CN¥92.52m
Revenue (TTM)	CN¥1.16b

55.0x

P/E Ratio

4.4x

P/S Ratio

Is 603330 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
603330 income statement (TTM)
Revenue	CN¥1.16b
Cost of Revenue	CN¥907.62m
Gross Profit	CN¥254.24m
Other Expenses	CN¥161.72m
Earnings	CN¥92.52m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.28
Gross Margin	21.88%
Net Profit Margin	7.96%
Debt/Equity Ratio	43.7%

How did 603330 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

36%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 603330 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603330?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 603330. This is calculated by dividing 603330's market cap by their current preferred multiple.
What is 603330's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥5.09b

603330 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.7x
Enterprise Value/EBITDA	51.4x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does 603330's PE Ratio compare to its peers?

603330 PE Ratio vs Peers

The above table shows the PE ratio for 603330 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.6x
603822 Zhejiang Jiaao Enprotech Stock	42.7x	n/a	CN¥4.7b
300305 Jiangsu Yuxing Film Technology	20.5x	28.8%	CN¥4.8b
000949 Xinxiang Chemical Fiber	8.2x	n/a	CN¥5.2b
300566 Ningbo Exciton Technology	43.2x	n/a	CN¥5.4b
603330 Shanghai Tianyang Hot Melt Adhesives	55x	59.8%	CN¥5.1b

Price-To-Earnings vs Peers: 603330 is expensive based on its Price-To-Earnings Ratio (55x) compared to the peer average (28.6x).

Price to Earnings Ratio vs Industry

How does 603330's PE Ratio compare vs other companies in the CN Chemicals Industry?

Price-To-Earnings vs Industry: 603330 is expensive based on its Price-To-Earnings Ratio (55x) compared to the CN Chemicals industry average (30x)

Price to Earnings Ratio vs Fair Ratio

What is 603330's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603330 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	55x
Fair PE Ratio	44.8x

Price-To-Earnings vs Fair Ratio: 603330 is expensive based on its Price-To-Earnings Ratio (55x) compared to the estimated Fair Price-To-Earnings Ratio (44.8x).

Share Price vs Fair Value

What is the Fair Price of 603330 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603330 (CN¥15.28) is trading above our estimate of fair value (CN¥2.59)

Significantly Below Fair Value: 603330 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Shanghai Tianyang Hot Melt Adhesives forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

59.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603330's forecast earnings growth (59.8% per year) is above the savings rate (3.2%).

Earnings vs Market: 603330's earnings (59.8% per year) are forecast to grow faster than the CN market (24.5% per year).

High Growth Earnings: 603330's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603330's revenue (53.9% per year) is forecast to grow faster than the CN market (17.7% per year).

High Growth Revenue: 603330's revenue (53.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 603330's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Shanghai Tianyang Hot Melt Adhesives performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603330 has a high level of non-cash earnings.

Growing Profit Margin: 603330's current net profit margins (8%) are lower than last year (8%).

Past Earnings Growth Analysis

Earnings Trend: 603330's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: 603330's earnings growth over the past year (44.9%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: 603330 earnings growth over the past year (44.9%) exceeded the Chemicals industry 23.2%.

Return on Equity

High ROE: 603330's Return on Equity (7.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Shanghai Tianyang Hot Melt Adhesives's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 603330's short term assets (CN¥1.0B) exceed its short term liabilities (CN¥609.3M).

Long Term Liabilities: 603330's short term assets (CN¥1.0B) exceed its long term liabilities (CN¥147.8M).

Debt to Equity History and Analysis

Debt Level: 603330's net debt to equity ratio (30.7%) is considered satisfactory.

Reducing Debt: 603330's debt to equity ratio has increased from 6.2% to 43.7% over the past 5 years.

Debt Coverage: 603330's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 603330's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

What is Shanghai Tianyang Hot Melt Adhesives's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 603330's dividend (0.65%) is higher than the bottom 25% of dividend payers in the CN market (0.45%).

High Dividend: 603330's dividend (0.65%) is low compared to the top 25% of dividend payers in the CN market (1.88%).

Stability and Growth of Payments

Stable Dividend: 603330 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 603330's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.5%), 603330's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 603330 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure

CEO

Zhe Li (59 yo)

8.75yrs

Tenure

CN¥960,000

Compensation

Mr. Zhe Long Li has been Chairman of the Board of Directors and General Manager at Shanghai Tianyang Hot Melt Adhesives Co., Ltd. since November 2013. Mr. Li serves as Executive Director and General Manage...

Leadership Team

Experienced Management: 603330's management team is seasoned and experienced (8.8 years average tenure).

Board Members

Experienced Board: 603330's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31