Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥46.70, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Chemicals industry in China. Total returns to shareholders of 96% over the past three years. Reported Earnings • Apr 29
First quarter 2026 earnings released: EPS: CN¥0.28 (vs CN¥0.39 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.28 (down from CN¥0.39 in 1Q 2025). Revenue: CN¥1.02b (up 29% from 1Q 2025). Net income: CN¥51.0m (down 29% from 1Q 2025). Profit margin: 5.0% (down from 9.1% in 1Q 2025). Revenue is forecast to grow 9.5% 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 increased by 18% per year whereas the company’s share price has increased by 20% per year. New Risk • Apr 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 8.4% 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 (13% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.4% average weekly change). Announcement • Apr 28
Intco Recycling Resources Co., Ltd., Annual General Meeting, May 19, 2026 Intco Recycling Resources Co., Ltd., Annual General Meeting, May 19, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Shanghai China Announcement • Mar 30
Intco Recycling Resources Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Intco Recycling Resources Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Reported Earnings • Mar 05
Full year 2025 earnings released: EPS: CN¥1.61 (vs CN¥1.65 in FY 2024) Full year 2025 results: EPS: CN¥1.61 (down from CN¥1.65 in FY 2024). Revenue: CN¥3.54b (up 21% from FY 2024). Net income: CN¥300.9m (down 2.1% from FY 2024). Profit margin: 8.5% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% 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 19% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥37.00, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 28x in the Chemicals industry in China. Total returns to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.26 per share. Announcement • Dec 26
Intco Recycling Resources Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Intco Recycling Resources Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.44 (vs CN¥0.21 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.44 (up from CN¥0.21 in 3Q 2024). Revenue: CN¥917.1m (up 15% from 3Q 2024). Net income: CN¥80.4m (up 104% from 3Q 2024). Profit margin: 8.8% (up from 4.9% in 3Q 2024). Revenue is forecast to grow 14% 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 increased by 16% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
Intco Recycling Resources Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Intco Recycling Resources Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 New Risk • Aug 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: 9.8% 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 (9.8% operating cash flow to total debt). Minor Risk Large one-off items impacting financial results. New Risk • Aug 29
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 114% Dividend yield: 0.4% 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. This is currently the only risk that has been identified for the company. Announcement • Jun 30
Intco Recycling Resources Co., Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Intco Recycling Resources Co., Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Reported Earnings • Apr 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: CN¥1.65 (up from CN¥1.05 in FY 2023). Revenue: CN¥2.92b (up 19% from FY 2023). Net income: CN¥307.3m (up 57% from FY 2023). Profit margin: 11% (up from 8.0% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) also surpassed analyst estimates by 9.5%. Revenue is forecast to grow 11% 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 2% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Announcement • Apr 28
Intco Recycling Resources Co., Ltd., Annual General Meeting, May 20, 2025 Intco Recycling Resources Co., Ltd., Annual General Meeting, May 20, 2025, at 14:00 China Standard Time. Location: Meeting Room of Shandong Yinglang Environmental Protection Technology Co., Ltd., Zibo, Shandong China Announcement • Apr 09
Intco Recycling Resources Co., Ltd. (SHSE:688087) announces an Equity Buyback for CNY 80 million worth of its shares. Intco Recycling Resources Co., Ltd. (SHSE:688087) announces a share repurchase program. Under the program, the company will repurchase up to CNY 80 million worth of its shares. The shares will be repurchased at no more than CNY 41.44 per share. The purpose of the program is to use the repurchased share for employee stock ownership plans and/or equity incentives. The program will be funded from company's own funds and dedicated loans for stock buyback. The program will be valid for 12 months. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to CN¥19.99, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 21x in the Chemicals industry in China. Total loss to shareholders of 48% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥37.92 per share. Announcement • Mar 28
Intco Recycling Resources Co., Ltd. to Report Q1, 2025 Results on Apr 28, 2025 Intco Recycling Resources Co., Ltd. announced that they will report Q1, 2025 results on Apr 28, 2025 Buy Or Sell Opportunity • Feb 18
Now 21% undervalued Over the last 90 days, the stock has risen 4.8% to CN¥30.22. The fair value is estimated to be CN¥38.42, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 9.9%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 54% in the next 2 years. Announcement • Dec 27
Intco Recycling Resources Co., Ltd. to Report Fiscal Year 2024 Results on Apr 28, 2025 Intco Recycling Resources Co., Ltd. announced that they will report fiscal year 2024 results on Apr 28, 2025 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: 14% 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. This is currently the only risk that has been identified for the company. Announcement • Sep 30
Intco Recycling Resources Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Intco Recycling Resources Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥30.12, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 44% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.44 (vs CN¥0.55 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.44 (down from CN¥0.55 in 2Q 2023). Revenue: CN¥801.4m (up 30% from 2Q 2023). Net income: CN¥82.8m (down 23% from 2Q 2023). Profit margin: 10% (down from 17% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.7% 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 12% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Announcement • Jun 28
Intco Recycling Resources Co., Ltd. to Report First Half, 2024 Results on Aug 27, 2024 Intco Recycling Resources Co., Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Reported Earnings • Apr 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥1.05 (down from CN¥1.24 in FY 2022). Revenue: CN¥2.46b (up 19% from FY 2022). Net income: CN¥195.7m (down 15% from FY 2022). Profit margin: 8.0% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in China. Announcement • Apr 16
Shandong Intco Recycling Resources Co., Ltd., Annual General Meeting, May 24, 2024 Shandong Intco Recycling Resources Co., Ltd., Annual General Meeting, May 24, 2024, at 14:00 China Standard Time. Location: Weisan Road, Linzi District, Zibo, Shandong China Announcement • Mar 29
Shandong Intco Recycling Resources Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Shandong Intco Recycling Resources Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Reported Earnings • Feb 27
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥1.00 (down from CN¥1.24 in FY 2022). Revenue: CN¥2.47b (up 20% from FY 2022). Net income: CN¥187.2m (down 19% from FY 2022). Profit margin: 7.6% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Chemicals industry in China. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥21.50, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 26% over the past year. Announcement • Dec 30
Shandong Intco Recycling Resources Co., Ltd. to Report Fiscal Year 2023 Results on Apr 16, 2024 Shandong Intco Recycling Resources Co., Ltd. announced that they will report fiscal year 2023 results on Apr 16, 2024 New Risk • Nov 01
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.7% Last year net profit margin: 12% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.7% net profit margin). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.20 (vs CN¥0.36 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.20 (down from CN¥0.36 in 3Q 2022). Revenue: CN¥690.3m (up 36% from 3Q 2022). Net income: CN¥37.1m (down 44% from 3Q 2022). Profit margin: 5.4% (down from 13% in 3Q 2022). The decrease in margin was driven by higher expenses. 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. Valuation Update With 7 Day Price Move • Oct 23
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥21.48, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 14x in the Chemicals industry in China. Total loss to shareholders of 35% over the past year. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.55 (vs CN¥0.51 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.55 (up from CN¥0.51 in 2Q 2022). Revenue: CN¥617.5m (up 8.9% from 2Q 2022). Net income: CN¥107.0m (up 13% from 2Q 2022). Profit margin: 17% (in line with 2Q 2022). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to CN¥22.39, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 65% over the past year. Reported Earnings • Apr 24
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥1.73 (down from CN¥2.11 in FY 2021). Revenue: CN¥2.06b (up 3.3% from FY 2021). Net income: CN¥230.8m (down 3.8% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue missed analyst estimates by 22%. Earnings per share (EPS) also missed analyst estimates by 24%. Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Chemicals industry in China. Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: CN¥1.74 (vs CN¥2.11 in FY 2021) Full year 2022 results: EPS: CN¥1.74 (down from CN¥2.11 in FY 2021). Revenue: CN¥2.06b (up 3.6% from FY 2021). Net income: CN¥232.3m (down 3.1% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue is forecast to grow 38% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Chemicals industry in China. 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. 5 experienced directors. 3 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Director Wei Guan was the last independent director to join the board, commencing their role in 2019. 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¥0.50 (vs CN¥0.67 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.50 (down from CN¥0.67 in 3Q 2021). Revenue: CN¥507.4m (down 13% from 3Q 2021). Net income: CN¥66.2m (down 18% from 3Q 2021). Profit margin: 13% (in line with 3Q 2021). Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.71 (vs CN¥0.71 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.71. Revenue: CN¥567.1m (up 16% from 2Q 2021). Net income: CN¥94.9m (up 34% from 2Q 2021). Profit margin: 17% (up from 14% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 50%, compared to a 42% growth forecast for the Chemicals industry in China. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.37. Revenue: CN¥504.1m (up 22% from 1Q 2021). Net income: CN¥49.0m (up 14% from 1Q 2021). Profit margin: 9.7% (in line with 1Q 2021). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 3.7%. Over the next year, revenue is forecast to grow 43%, compared to a 43% growth forecast for the industry in China. Reported Earnings • Apr 16
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥2.11. Revenue: CN¥1.99b (up 17% from FY 2020). Net income: CN¥239.8m (up 10% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 3.7%. Over the next year, revenue is forecast to grow 48%, compared to a 51% growth forecast for the industry in China. Reported Earnings • Feb 28
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥2.10 (down from CN¥2.19 in FY 2020). Revenue: CN¥1.99b (up 17% from FY 2020). Net income: CN¥238.4m (up 9.7% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue missed analyst estimates by 7.0%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 48%, compared to a 47% growth forecast for the industry in China. Reported Earnings • Feb 28
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥2.10 (down from CN¥2.19 in FY 2020). Revenue: CN¥1.99b (up 17% from FY 2020). Net income: CN¥238.4m (up 9.7% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue missed analyst estimates by 7.0%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 48%, compared to a 47% growth forecast for the industry in China.