New Risk • May 16
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 37% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). High level of non-cash earnings (37% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.8% average weekly change). New Risk • Apr 29
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 8.1% 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 Earnings have declined by 48% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.1% average weekly change). Reported Earnings • Apr 04
Full year 2025 earnings released: CN¥0.25 loss per share (vs CN¥1.10 loss in FY 2024) Full year 2025 results: CN¥0.25 loss per share (improved from CN¥1.10 loss in FY 2024). Revenue: CN¥8.94b (up 17% from FY 2024). Net loss: CN¥170.6m (loss narrowed 73% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Mar 30
Jiangsu Lopal Tech. Group Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Jiangsu Lopal Tech. Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 26
Jiangsu Lopal Tech. Group Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 Jiangsu Lopal Tech. Group Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 New Risk • Nov 15
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. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 01
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: CN¥2.20b (up 5.3% from 3Q 2024). Net loss: CN¥25.3m (loss narrowed 69% from 3Q 2024). Revenue is forecast to grow 22% 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 56 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Jiangsu Lopal Tech. Group Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Jiangsu Lopal Tech. Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Aug 25
Second quarter 2025 earnings released: CN¥0.09 loss per share (vs CN¥0.25 loss in 2Q 2024) Second quarter 2025 results: CN¥0.09 loss per share (improved from CN¥0.25 loss in 2Q 2024). Revenue: CN¥2.03b (down 3.1% from 2Q 2024). Net loss: CN¥59.2m (loss narrowed 59% from 2Q 2024). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 14% 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 54 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 17
Price target increased by 27% to CN¥14.65 Up from CN¥11.55, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of CN¥14.85. Stock is up 122% over the past year. The company is forecast to post earnings per share of CN¥0.42 next year compared to a net loss per share of CN¥1.10 last year. Announcement • Jun 30
Jiangsu Lopal Tech. Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Jiangsu Lopal Tech. Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Board Change • Jun 28
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Non-Executive Director Kam Le Hong was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 13
Jiangsu Lopal Tech. Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 120 million. Jiangsu Lopal Tech. Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 120 million.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 20,000,000
Price\Range: HKD 6
Discount Per Security: HKD 0.16
Transaction Features: Subsequent Direct Listing Announcement • Jun 05
Jiangsu Lopal Tech. Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 120 million. Jiangsu Lopal Tech. Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 120 million.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 20,000,000
Price\Range: HKD 6
Discount Per Security: HKD 0.16
Transaction Features: Subsequent Direct Listing Announcement • May 06
Jiangsu Lopal Tech. Co., Ltd., Annual General Meeting, May 28, 2025 Jiangsu Lopal Tech. Co., Ltd., Annual General Meeting, May 28, 2025, at 14:00 China Standard Time. Location: 2nd floor, large conference room, no. 6 hengtong avenue, nanjing economic and, technological development zone, jiangsu province, nanjing China Announcement • Mar 28
Jiangsu Lopal Tech. Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Jiangsu Lopal Tech. Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Jan 23
Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) completed the acquisition of Shandong Meiduo Technology Co., Ltd. from Shi Junfeng Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) agreed to acquire Shandong Meiduo Technology Co., Ltd. from Shi Junfeng for CNY 100 million on March 6, 2024. As per the announcement dated January 16, 2025 all conditions have been fulfilled.
Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) completed the acquisition of Shandong Meiduo Technology Co., Ltd. from Shi Junfeng on January 21, 2025. Announcement • Jan 17
Jiangsu Lopal Tech. Co., Ltd. Provides Earnings Guidance for the Year 2024 Jiangsu Lopal Tech. Co., Ltd. provided earnings guidance for the year 2024. For the year, the company showed indications of impairment within the scope of consolidation, and recognized corresponding provision for impairment losses on the assets whose recoverable amounts are lower than their respective carrying amounts based on the impairment test results, which is expected to reduce the net profit attributable to owners of the Company by an estimated range of RMB 140.04 million to RMB 164.86 million, as the exact amount has yet to be
determined. The aforementioned provision for impairment losses is expected to reduce the net profit attributable to the owners of the Company by an estimated range of approximately RMB 140.04 million to RMB 164.86 million, as the exact amount has yet to be determined. The amount of the provision for impairment losses has not been audited, and the final accounting treatment and its impact on the Group's financial results for the year 2024 shall be subject to the 2024 annual report of the Company to be published by the Company in due course. New Risk • Jan 10
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 9.3% 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 (19% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (9.3% average weekly change). Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Dec 27
Jiangsu Lopal Tech. Co., Ltd. to Report Fiscal Year 2024 Results on Mar 29, 2025 Jiangsu Lopal Tech. Co., Ltd. announced that they will report fiscal year 2024 results on Mar 29, 2025 Reported Earnings • Nov 04
Third quarter 2024 earnings released: CN¥0.15 loss per share (vs CN¥0.15 loss in 3Q 2023) Third quarter 2024 results: CN¥0.15 loss per share (in line with 3Q 2023). Revenue: CN¥2.09b (down 22% from 3Q 2023). Net loss: CN¥81.9m (loss widened 13% from 3Q 2023). Revenue is forecast to grow 26% 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 48 percentage points per year, which is a significant difference in performance. 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: 19% 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 (19% operating cash flow to total debt). Minor Risk Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Oct 29
Jiangsu Lopal Tech. Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 550 million. Jiangsu Lopal Tech. Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 550 million.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 10,000,000
Price\Range: HKD 5.5
Discount Per Security: HKD 0.12375
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 70,000,000
Price\Range: HKD 5.5
Discount Per Security: HKD 0.12375
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 20,000,000
Price\Range: HKD 5.5
Discount Per Security: HKD 0.12375
Transaction Features: New Market Listing; Regulation S; Sponsor Backed Offering Announcement • Oct 24
Jiangsu Lopal Tech. Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 700 million. Jiangsu Lopal Tech. Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 700 million.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 10,000,000
Price\Range: HKD 4.5 to HKD 7
Discount Per Security: HKD 0.1575
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 70,000,000
Price\Range: HKD 4.5 to HKD 7
Discount Per Security: HKD 0.1575
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 20,000,000
Price\Range: HKD 4.5 to HKD 7
Discount Per Security: HKD 0.1575
Transaction Features: New Market Listing; Regulation S; Sponsor Backed Offering New Risk • Oct 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 17% 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: Minor Risks High level of debt (136% net debt to equity). Shareholders have been diluted in the past year (17% increase in shares outstanding). Announcement • Sep 30
Jiangsu Lopal Tech. Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Jiangsu Lopal Tech. Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Reported Earnings • Aug 16
Second quarter 2024 earnings released: CN¥0.25 loss per share (vs CN¥0.76 loss in 2Q 2023) Second quarter 2024 results: CN¥0.25 loss per share (improved from CN¥0.76 loss in 2Q 2023). Revenue: CN¥2.09b (up 21% from 2Q 2023). Net loss: CN¥142.8m (loss narrowed 67% from 2Q 2023). Revenue is forecast to grow 21% 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 45 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Jul 15
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 10% to CN¥7.37. The fair value is estimated to be CN¥9.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 39% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Jul 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 23% to CN¥7.94. The fair value is estimated to be CN¥9.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 39% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jun 28
Jiangsu Lopal Tech. Co., Ltd. to Report First Half, 2024 Results on Aug 16, 2024 Jiangsu Lopal Tech. Co., Ltd. announced that they will report first half, 2024 results on Aug 16, 2024 Buy Or Sell Opportunity • Jun 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 22% to CN¥7.75. The fair value is estimated to be CN¥9.98, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 39% over the last 3 years. Meanwhile, the company became loss making. New Risk • May 02
New major risk - Revenue and earnings growth Earnings have declined by 31% 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 Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings have declined by 31% per year over the past 5 years. Announcement • Apr 30
Jiangsu Lopal Tech. Co., Ltd., Annual General Meeting, May 24, 2024 Jiangsu Lopal Tech. Co., Ltd., Annual General Meeting, May 24, 2024, at 10:00 China Standard Time. Location: The Company's Meeting Room, Nanjing, Jiangsu China Reported Earnings • Apr 29
Full year 2023 earnings released: CN¥2.18 loss per share (vs CN¥1.42 profit in FY 2022) Full year 2023 results: CN¥2.18 loss per share (down from CN¥1.42 profit in FY 2022). Revenue: CN¥8.73b (down 38% from FY 2022). Net loss: CN¥1.23b (down 264% from profit in FY 2022). Revenue is forecast to grow 44% 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 60% per year but the company’s share price has only fallen by 25% per year, which means it has not declined as severely as earnings. Announcement • Mar 29
Jiangsu Lopal Tech. Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Jiangsu Lopal Tech. Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Mar 07
Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) agreed to acquire Shandong Meiduo Technology Co., Ltd. from Shi Junfeng for CNY 100 million Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) agreed to acquire Shandong Meiduo Technology Co., Ltd. from Shi Junfeng for CNY 100 million on March 6, 2024. New Risk • Feb 05
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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Announcement • Dec 30
Jiangsu Lopal Tech. Co., Ltd. to Report Fiscal Year 2023 Results on Mar 28, 2024 Jiangsu Lopal Tech. Co., Ltd. announced that they will report fiscal year 2023 results on Mar 28, 2024 Reported Earnings • Aug 31
Second quarter 2023 earnings released: CN¥0.76 loss per share (vs CN¥0.43 profit in 2Q 2022) Second quarter 2023 results: CN¥0.76 loss per share (down from CN¥0.43 profit in 2Q 2022). Revenue: CN¥1.73b (down 50% from 2Q 2022). Net loss: CN¥431.4m (down 296% from profit in 2Q 2022). Revenue is forecast to grow 21% 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 increased by 12% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • May 19
Jiangsu Lopal Tech. Co., Ltd. announced a financing transaction Jiangsu Lopal Tech. Co., Ltd. announced a private placement of common shares on May 17, 2023. The transaction has been approved in the annual general meeting of shareholders. Major Estimate Revision • May 08
Consensus revenue estimates fall by 21% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥19.7b to CN¥15.5b. EPS estimate fell from CN¥1.73 to CN¥0.66 per share. Net income forecast to grow 45% next year vs 54% growth forecast for Chemicals industry in China. Consensus price target down from CN¥35.00 to CN¥23.00. Share price fell 5.9% to CN¥18.15 over the past week. Reported Earnings • Apr 28
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥1.42 (up from CN¥0.73 in FY 2021). Revenue: CN¥14.1b (up 247% from FY 2021). Net income: CN¥752.9m (up 115% from FY 2021). Profit margin: 5.4% (down from 8.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 12%. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 45% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to CN¥35.00 Down from CN¥45.00, the current price target is provided by 1 analyst. New target price is 22% above last closing price of CN¥28.60. Stock is down 44% over the past year. The company is forecast to post earnings per share of CN¥1.61 for next year compared to CN¥0.73 last year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 7 experienced directors. 1 highly experienced director. 2 independent directors (5 non-independent directors). Independent Director Qingwen Li was the last independent director to join the board, commencing their role in 2020. 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¥0.51 (vs CN¥0.10 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.51 (up from CN¥0.10 in 3Q 2021). Revenue: CN¥3.93b (up 278% from 3Q 2021). Net income: CN¥274.9m (up 473% from 3Q 2021). Profit margin: 7.0% (up from 4.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 40% 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 increased by 60% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Announcement • Sep 28
Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) announces an Equity Buyback for CNY 100 million worth of its shares. Jiangsu Lopal Tech. Co., Ltd. (SHSE:603906) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be repurchased at a price not more than CNY 38 per share. The shares purchased will be used for ESOP or equity incentives. The program is valid for 6 months. Reported Earnings • Aug 08
Second quarter 2022 earnings released: EPS: CN¥0.43 (vs CN¥0.17 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.43 (up from CN¥0.17 in 2Q 2021). Revenue: CN¥3.45b (up 407% from 2Q 2021). Net income: CN¥220.3m (up 157% from 2Q 2021). Profit margin: 6.4% (down from 13% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 94%, compared to a 41% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has increased by 71% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 02
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CN¥0.44 (up from CN¥0.13 in 1Q 2021). Revenue: CN¥2.56b (up 330% from 1Q 2021). Net income: CN¥213.0m (up 252% from 1Q 2021). Profit margin: 8.3% (down from 10% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 9.7%. Earnings per share (EPS) also surpassed analyst estimates by 2.8%. Over the next year, revenue is forecast to grow 161%, compared to a 42% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of 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. 9 experienced directors. 3 highly experienced directors. 2 independent directors (8 non-independent directors). Independent Director Yu Zhen was the last independent director to join the board, commencing their role in 2014. 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 • Apr 18
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥30.29, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 17x in the Chemicals industry in China. Total returns to shareholders of 316% over the past three years. Reported Earnings • Apr 10
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: CN¥0.73 (up from CN¥0.48 in FY 2020). Revenue: CN¥4.05b (up 112% from FY 2020). Net income: CN¥350.8m (up 73% from FY 2020). Profit margin: 8.7% (down from 11% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 9.7%. Earnings per share (EPS) also surpassed analyst estimates by 2.8%. Over the next year, revenue is forecast to grow 157%, compared to a 51% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥34.49, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 524% over the past three years. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥38.61, the stock trades at a trailing P/E ratio of 73.5x. Average trailing P/E is 34x in the Chemicals industry in China. Total returns to shareholders of 685% over the past three years. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥41.73, the stock trades at a trailing P/E ratio of 79.5x. Average trailing P/E is 34x in the Chemicals industry in China. Total returns to shareholders of 659% 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 15% share price gain to CN¥43.76, the stock trades at a trailing P/E ratio of 76.5x. Average trailing P/E is 33x in the Chemicals industry in China. Total returns to shareholders of 745% over the past three years. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥38.48, the stock trades at a trailing P/E ratio of 67.2x. Average trailing P/E is 32x in the Chemicals industry in China. Total returns to shareholders of 609% over the past three years. Reported Earnings • Jul 30
Second quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.16 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥680.7m (up 35% from 2Q 2020). Net income: CN¥85.7m (up 30% from 2Q 2020). Profit margin: 13% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 91% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 28
Investor sentiment deteriorated over the past week After last week's 21% share price decline to CN¥37.99, the stock trades at a trailing P/E ratio of 68.9x. Average trailing P/E is 30x in the Chemicals industry in China. Total returns to shareholders of 556% over the past three years. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥39.65, the stock trades at a trailing P/E ratio of 71.9x. Average trailing P/E is 30x in the Chemicals industry in China. Total returns to shareholders of 554% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥35.17, the stock trades at a trailing P/E ratio of 63.8x. Average trailing P/E is 30x in the Chemicals industry in China. Total returns to shareholders of 470% over the past three years. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥23.71, the stock trades at a trailing P/E ratio of 43x. Average trailing P/E is 28x in the Chemicals industry in China. Total returns to shareholders of 213% over the past three years. Reported Earnings • Apr 17
First quarter 2021 earnings released: EPS CN¥0.18 (vs CN¥0.08 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥595.1m (up 89% from 1Q 2020). Net income: CN¥60.5m (up 143% from 1Q 2020). Profit margin: 10% (up from 7.9% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has increased by 48% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 29
Full year 2020 earnings released: EPS CN¥0.67 (vs CN¥0.42 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥1.91b (up 12% from FY 2019). Net income: CN¥202.8m (up 59% from FY 2019). Profit margin: 11% (up from 7.4% 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 30% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥29.85, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 23x in the Chemicals industry in China. Total returns to shareholders of 242% over the past three years. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥32.58, the stock is trading at a trailing P/E ratio of 55.2x, up from the previous P/E ratio of 46.9x. This compares to an average P/E of 37x in the Chemicals industry in China. Total returns to shareholders over the past three years are 202%. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥28.66, the stock is trading at a trailing P/E ratio of 48.5x, down from the previous P/E ratio of 57.8x. This compares to an average P/E of 35x in the Chemicals industry in China. Total returns to shareholders over the past three years are 187%. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥28.00, the stock is trading at a trailing P/E ratio of 47.4x, down from the previous P/E ratio of 57x. This compares to an average P/E of 36x in the Chemicals industry in China. Total returns to shareholders over the past three years are 172%. Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improved over the past week After last week's 35% share price gain to CN¥33.65, the stock is trading at a trailing P/E ratio of 57x, up from the previous P/E ratio of 42.3x. This compares to an average P/E of 35x in the Chemicals industry in China. Total returns to shareholders over the past three years are 223%. Is New 90 Day High Low • Dec 29
New 90-day high: CN¥31.65 The company is up 19% from its price of CN¥26.70 on 30 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 11% over the same period. Is New 90 Day High Low • Oct 29
New 90-day low: CN¥24.00 The company is down 3.0% from its price of CN¥24.82 on 31 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 3.0% over the same period. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥176.7m, up 46% from the prior year. Total revenue was CN¥1.87b over the last 12 months, up 12% from the prior year. 
