New Risk • Apr 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (9.8% average weekly change). Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.51 (vs CN¥0.17 loss in 1Q 2025) First quarter 2026 results: EPS: CN¥0.51 (up from CN¥0.17 loss in 1Q 2025). Revenue: CN¥3.28b (up 379% from 1Q 2025). Net income: CN¥464.0m (up CN¥618.8m from 1Q 2025). Profit margin: 14% (up from net loss in 1Q 2025). Revenue is forecast to grow 23% 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 148 percentage points per year, which is a significant difference in performance. Announcement • Mar 31
Chengxin Lithium Group Co., Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Chengxin Lithium Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Reported Earnings • Mar 30
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: CN¥0.98 loss per share (further deteriorated from CN¥0.69 loss in FY 2024). Revenue: CN¥5.06b (up 11% from FY 2024). Net loss: CN¥888.1m (loss widened 43% from FY 2024). Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) missed analyst estimates by 60%. Revenue is forecast to grow 31% 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, the company's share price growth rate has exceeded its earnings growth rate by 134 percentage points per year, which is a significant difference in performance. New Risk • Mar 29
New major risk - Revenue and earnings growth Earnings have declined by 30% 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 (7.9% operating cash flow to total debt). Earnings have declined by 30% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (9.2% average weekly change). Announcement • Mar 28
Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 17, 2026 Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 17, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Chengdu, Sichuan China Announcement • Dec 31
Chengxin Lithium Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Chengxin Lithium Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 New Risk • Nov 21
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.7% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (7.9% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (9.7% average weekly change). Reported Earnings • Oct 25
Third quarter 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.33 loss in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.10 (up from CN¥0.33 loss in 3Q 2024). Revenue: CN¥1.48b (up 61% from 3Q 2024). Net income: CN¥88.7m (up CN¥363.4m from 3Q 2024). Profit margin: 6.0% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 36% 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 100 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Chengxin Lithium Group Co., Ltd. to Report Q3, 2025 Results on Oct 25, 2025 Chengxin Lithium Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Major Estimate Revision • Sep 29
Consensus EPS estimates fall by 211% The consensus outlook for fiscal year 2025 has been updated. 2025 expected loss increased from -CN¥0.166 to -CN¥0.517 per share. Revenue forecast of CN¥5.38b unchanged since last update. Chemicals industry in China expected to see average net income growth of 51% next year. Consensus price target up from CN¥13.87 to CN¥15.53. Share price rose 2.2% to CN¥18.56 over the past week. Price Target Changed • Sep 29
Price target increased by 12% to CN¥15.53 Up from CN¥13.87, the current price target is an average from 3 analysts. New target price is 16% below last closing price of CN¥18.56. Stock is up 21% over the past year. The company is forecast to post a net loss per share of CN¥0.52 next year compared to a net loss per share of CN¥0.69 last year. Reported Earnings • Aug 25
Second quarter 2025 earnings released: CN¥0.75 loss per share (vs CN¥0.045 loss in 2Q 2024) Second quarter 2025 results: CN¥0.75 loss per share (further deteriorated from CN¥0.045 loss in 2Q 2024). Revenue: CN¥927.7m (down 32% from 2Q 2024). Net loss: CN¥686.3m (loss widened CN¥643.1m from 2Q 2024). Revenue is forecast to grow 33% 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 76 percentage points per year, which is a significant difference in performance. New Risk • Aug 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 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (7.0% average weekly change). Announcement • Jul 02
Chengxin Lithium Group Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Chengxin Lithium Group Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Price Target Changed • Jun 27
Price target decreased by 11% to CN¥13.87 Down from CN¥15.53, the current price target is an average from 3 analysts. New target price is 8.2% above last closing price of CN¥12.81. Stock is down 4.5% over the past year. The company is forecast to post earnings per share of CN¥0.26 next year compared to a net loss per share of CN¥0.69 last year. Reported Earnings • Apr 29
First quarter 2025 earnings released: CN¥0.17 loss per share (vs CN¥0.16 loss in 1Q 2024) First quarter 2025 results: CN¥0.17 loss per share (further deteriorated from CN¥0.16 loss in 1Q 2024). Revenue: CN¥686.2m (down 43% from 1Q 2024). Net loss: CN¥154.7m (loss widened 7.7% from 1Q 2024). Revenue is forecast to grow 30% 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 50 percentage points per year, which is a significant difference in performance. Announcement • Mar 31
Chengxin Lithium Group Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Chengxin Lithium Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Mar 24
Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 11, 2025 Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 11, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Chengdu, Sichuan China Reported Earnings • Mar 22
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: CN¥0.69 loss per share (down from CN¥0.77 profit in FY 2023). Revenue: CN¥4.58b (down 42% from FY 2023). Net loss: CN¥621.6m (down 189% from profit in FY 2023). Revenue missed analyst estimates by 4.5%. Earnings per share (EPS) also missed analyst estimates by 31%. Revenue is forecast to grow 35% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 25 percentage points per year, which is a significant difference in performance. Announcement • Dec 31
Chengxin Lithium Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 28, 2025 Chengxin Lithium Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 28, 2025 Price Target Changed • Dec 17
Price target increased by 8.6% to CN¥15.46 Up from CN¥14.24, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of CN¥14.85. Stock is down 32% over the past year. The company is forecast to post a net loss per share of CN¥0.53 compared to earnings per share of CN¥0.77 last year. New Risk • Oct 31
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 40% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk High level of debt (40% net debt to equity). Reported Earnings • Oct 31
Third quarter 2024 earnings released: CN¥0.33 loss per share (vs CN¥0.53 profit in 3Q 2023) Third quarter 2024 results: CN¥0.33 loss per share (down from CN¥0.53 profit in 3Q 2023). Revenue: CN¥919.3m (down 51% from 3Q 2023). Net loss: CN¥274.7m (down 157% from profit in 3Q 2023). Revenue is forecast to grow 31% 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 37% per year whereas the company’s share price has fallen by 36% per year. Announcement • Sep 30
Chengxin Lithium Group Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Chengxin Lithium Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 New Risk • Sep 24
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 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (6.7% average weekly change). Reported Earnings • Aug 31
Second quarter 2024 earnings released: CN¥0.045 loss per share (vs CN¥0.16 profit in 2Q 2023) Second quarter 2024 results: CN¥0.045 loss per share (down from CN¥0.16 profit in 2Q 2023). Revenue: CN¥1.37b (down 31% from 2Q 2023). Net loss: CN¥43.3m (down 129% from profit in 2Q 2023). Revenue is forecast to grow 28% 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 8% per year but the company’s share price has fallen by 42% per year, which means it is performing significantly worse than earnings. Announcement • Jun 29
Chengxin Lithium Group Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Chengxin Lithium Group Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Major Estimate Revision • Jun 25
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥5.71b to CN¥5.22b. EPS estimate also fell from CN¥0.955 per share to CN¥0.728 per share. Net income forecast to grow 716% next year vs 48% growth forecast for Chemicals industry in China. Consensus price target down from CN¥17.45 to CN¥14.40. Share price fell 9.1% to CN¥13.41 over the past week. Reported Earnings • Apr 30
First quarter 2024 earnings released: CN¥0.16 loss per share (vs CN¥0.51 profit in 1Q 2023) First quarter 2024 results: CN¥0.16 loss per share (down from CN¥0.51 profit in 1Q 2023). Revenue: CN¥1.21b (down 56% from 1Q 2023). Net loss: CN¥143.7m (down 131% from profit in 1Q 2023). Revenue is forecast to grow 18% 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 19% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 03
Consensus EPS estimates fall by 17%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥6.81b to CN¥7.03b. EPS estimate fell from CN¥1.32 to CN¥1.10 per share. Net income forecast to grow 43% next year vs 49% growth forecast for Chemicals industry in China. Consensus price target of CN¥17.45 unchanged from last update. Share price rose 8.0% to CN¥20.68 over the past week. Announcement • Mar 30
Chengxin Lithium Group Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Chengxin Lithium Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Reported Earnings • Mar 29
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥0.77 (down from CN¥6.40 in FY 2022). Revenue: CN¥7.95b (down 34% from FY 2022). Net income: CN¥702.2m (down 87% from FY 2022). Profit margin: 8.8% (down from 46% in FY 2022). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 40%. Revenue is forecast to grow 15% 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 increased by 46% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Mar 28
Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 17, 2024 Chengxin Lithium Group Co., Ltd., Annual General Meeting, Apr 17, 2024, at 14:30 China Standard Time. Location: 15F, Area B, No. 199, Tianfu 3rd Street, Hi-tech Zone, Chengdu, Sichuan China Major Estimate Revision • Mar 21
Consensus EPS estimates fall by 16%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from CN¥7.77b to CN¥7.96b. EPS estimate fell from CN¥1.53 to CN¥1.28 per share. Net income forecast to shrink 48% next year vs 55% growth forecast for Chemicals industry in China . Consensus price target up from CN¥14.95 to CN¥17.45. Share price was steady at CN¥21.14 over the past week. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥19.96, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Chemicals industry in China. Total loss to shareholders of 19% over the past three years. Announcement • Dec 30
Chengxin Lithium Group Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Chengxin Lithium Group Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Price Target Changed • Dec 22
Price target decreased by 45% to CN¥14.95 Down from CN¥27.01, the current price target is an average from 2 analysts. New target price is 33% below last closing price of CN¥22.24. Stock is down 43% over the past year. The company is forecast to post earnings per share of CN¥1.53 for next year compared to CN¥6.40 last year. Major Estimate Revision • Dec 16
Consensus EPS estimates fall by 45%, revenue upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from CN¥7.48b to CN¥7.77b. EPS estimate fell from CN¥2.77 to CN¥1.53 per share. Net income forecast to grow 49% next year vs 66% growth forecast for Chemicals industry in China. Consensus price target down from CN¥27.01 to CN¥26.21. Share price fell 5.0% to CN¥22.09 over the past week. New Risk • Dec 01
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 5.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (36% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (5.9% average weekly change). Profit margins are more than 30% lower than last year (22% net profit margin). Shareholders have been diluted in the past year (6.6% increase in shares outstanding). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.53 (vs CN¥1.59 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.53 (down from CN¥1.59 in 3Q 2022). Revenue: CN¥1.87b (down 38% from 3Q 2022). Net income: CN¥483.4m (down 64% from 3Q 2022). Profit margin: 26% (down from 44% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% 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 73% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Sep 22
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥10.9b to CN¥9.58b. EPS estimate fell from CN¥1.61 to CN¥1.12 per share. Net income forecast to shrink 10% next year vs 55% growth forecast for Chemicals industry in China . Consensus price target down from CN¥43.26 to CN¥35.01. Share price was steady at CN¥22.50 over the past week. Price Target Changed • Sep 21
Price target decreased by 22% to CN¥35.01 Down from CN¥45.14, the current price target is an average from 2 analysts. New target price is 58% above last closing price of CN¥22.09. Stock is down 59% over the past year. The company is forecast to post earnings per share of CN¥1.12 for next year compared to CN¥6.40 last year. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.16 (vs CN¥2.26 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.16 (down from CN¥2.26 in 2Q 2022). Revenue: CN¥1.97b (down 43% from 2Q 2022). Net income: CN¥147.8m (down 92% from 2Q 2022). Profit margin: 7.5% (down from 57% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 9.7% 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 increased by 95% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jun 27
Consensus revenue estimates decrease by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥17.8b to CN¥15.1b. EPS estimate unchanged from CN¥4.71 per share at last update. Chemicals industry in China expected to see average net income growth of 51% next year. Consensus price target down from CN¥45.14 to CN¥44.17. Share price fell 3.3% to CN¥31.71 over the past week. Major Estimate Revision • Apr 27
Consensus revenue estimates decrease by 25% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥16.2b to CN¥12.3b. EPS estimate unchanged from CN¥4.93 per share at last update. Chemicals industry in China expected to see average net income growth of 43% next year. Consensus price target down from CN¥47.10 to CN¥43.35. Share price fell 7.5% to CN¥32.00 over the past week. Major Estimate Revision • Jan 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from CN¥15.0b to CN¥14.0b. EPS estimate rose from CN¥5.81 to CN¥6.60. Net income forecast to grow 20% next year vs 64% growth forecast for Forestry industry in China. Consensus price target down from CN¥55.10 to CN¥47.10. Share price rose 3.1% to CN¥39.75 over the past week. Price Target Changed • Jan 09
Price target decreased to CN¥47.10 Down from CN¥57.60, the current price target is an average from 2 analysts. New target price is 19% above last closing price of CN¥39.63. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥6.60 for next year compared to CN¥1.08 last year. Announcement • Dec 07
Chengxin Lithium Group Co., Ltd. announced that it has received CNY 2 billion in funding from BYD Company Limited On December 6, 2022, Chengxin Lithium Group Co., Ltd. closed the transaction. The company raised CNY 2,000,000,000 in the transaction. Announcement • Nov 22
Chengxin Lithium Plans to Bid for Stake in Lithium Mining Firm Chengxin Lithium Group Co., Ltd. (SZSE:002240) said it plans to bid for 54.3% stake in lithium mining firm, auction result is uncertain. Price Target Changed • Nov 16
Price target increased to CN¥62.00 Up from CN¥52.00, the current price target is provided by 1 analyst. New target price is 34% above last closing price of CN¥46.26. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥5.81 for next year compared to CN¥1.08 last year. Board Change • Nov 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 3 experienced directors. No highly experienced directors. Chairman Yi Zhou is the most experienced director on the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥1.59 (vs CN¥0.30 in 3Q 2021) Third quarter 2022 results: EPS: CN¥1.59 (up from CN¥0.30 in 3Q 2021). Revenue: CN¥3.01b (up 314% from 3Q 2021). Net income: CN¥1.33b (up 438% from 3Q 2021). Profit margin: 44% (up from 34% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 31% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Forestry industry in China. Over the last 3 years on average, earnings per share has increased by 128% per year but the company’s share price has only increased by 85% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 02
Consensus revenue estimates increase by 19% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥13.1b to CN¥15.5b. EPS estimate increased from CN¥4.40 to CN¥5.81 per share. Net income forecast to grow 12% next year vs 40% growth forecast for Forestry industry in China. Consensus price target of CN¥62.00 unchanged from last update. Share price fell 7.6% to CN¥53.99 over the past week. Announcement • Jul 30
Guangdong Shengtun Technology Co., Ltd. completed the acquisition of 45% stake in Hubei Weilibang Wood Co., Ltd from Chengxin Lithium Group Co., Ltd. Guangdong Shengtun Technology Co., Ltd. agreed to acquire 45% stake in Hubei Weilibang Wood Co., Ltd from Chengxin Lithium Group Co., Ltd. (SZSE:002240) on July 22, 2022. In related transaction Guangdong Shengtun Technology Co., Ltd. also acquired Hebei Weilibang Wood Co., Ltd. for total consideration of CNY 319.14 million.
Guangdong Shengtun Technology Co., Ltd. completed the acquisition of 45% stake in Hubei Weilibang Wood Co., Ltd from Chengxin Lithium Group Co., Ltd. (SZSE:002240) on July 26, 2022 Reported Earnings • Jul 28
Second quarter 2022 earnings released: EPS: CN¥2.26 (vs CN¥0.25 in 2Q 2021) Second quarter 2022 results: EPS: CN¥2.26 (up from CN¥0.25 in 2Q 2021). Revenue: CN¥3.45b (up 475% from 2Q 2021). Net income: CN¥1.95b (up CN¥1.76b from 2Q 2021). Profit margin: 57% (up from 31% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 89%, compared to a 81% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 123% per year but the company’s share price has only increased by 92% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥68.69, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Forestry industry in China. Total returns to shareholders of 734% over the past three years. Major Estimate Revision • Jun 25
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥8.95b to CN¥11.0b. EPS estimate fell from CN¥4.43 to CN¥4.38. Net income forecast to grow 98% next year vs 39% growth forecast for Forestry industry in China. Consensus price target up from CN¥52.00 to CN¥62.00. Share price fell 4.3% to CN¥58.65 over the past week. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥57.51, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Forestry industry in China. Total returns to shareholders of 514% over the past three years. Announcement • May 24
Chengxin Lithium Group Co., Ltd. Announces Dividend for Year 2021 , Payable on May 30 2022 Chengxin Lithium Group Co., Ltd. announced dividend of CNY 1.00000000 for the year 2021. Record date is 27 May 2022, Ex-date is 30 May 2022 and Payment date is 30 May 2022. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improved over the past week After last week's 30% share price gain to CN¥44.39, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Forestry industry in China. Total returns to shareholders of 463% over the past three years. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥1.24 (up from CN¥0.14 in 1Q 2021). Revenue: CN¥1.69b (up 215% from 1Q 2021). Net income: CN¥1.07b (up CN¥965.8m from 1Q 2021). Profit margin: 63% (up from 20% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) exceeded analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 145%, compared to a 64% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 68% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target increased to CN¥52.00 Up from CN¥12.13, the current price target is an average from 4 analysts. New target price is 39% above last closing price of CN¥37.46. Stock is up 44% over the past year. The company is forecast to post earnings per share of CN¥4.43 for next year compared to CN¥1.08 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 6 experienced directors. No highly experienced directors. Chairman of Supervisory Board Xiao Feng is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Mar 30
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: CN¥2.93b (up 64% from FY 2020). Net income: CN¥850.6m (up CN¥823.5m from FY 2020). Profit margin: 29% (up from 1.5% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.4%. Over the next year, revenue is forecast to grow 92%, compared to a 53% growth forecast for the industry in China. Announcement • Mar 30
Chengxin Lithium Group Co., Ltd. Proposes Final Cash Dividend for 2021 Chengxin Lithium Group Co., Ltd. proposed final cash dividend (tax included) of CNY 1.00000000 per ten shares for 2021. Buying Opportunity • Mar 04
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 10.0%. The fair value is estimated to be CN¥69.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.9% per annum over the last 3 years. The company has become profitable over the last year. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.30 (vs CN¥0.29 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were flat. Third quarter 2021 results: Revenue: CN¥725.9m (flat on 3Q 2020). Net income: CN¥247.5m (up 14% from 3Q 2020). Profit margin: 34% (up from 30% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 96% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥54.20, the stock trades at a forward P/E ratio of 51x. Average forward P/E is 12x in the Forestry industry in China. Total returns to shareholders of 358% over the past three years. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥40.22, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 14x in the Forestry industry in China. Total returns to shareholders of 231% over the past three years. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS CN¥0.25 (vs CN¥0.14 loss in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥599.2m (up 17% from 2Q 2020). Net income: CN¥186.8m (up CN¥297.0m from 2Q 2020). Profit margin: 31% (up from net loss in 2Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.14 (vs CN¥0.087 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥534.7m (up 121% from 1Q 2020). Net income: CN¥104.0m (up CN¥161.2m from 1Q 2020). Profit margin: 20% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Jan 25
New 90-day high: CN¥29.88 The company is up 127% from its price of CN¥13.16 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 20% over the same period. Is New 90 Day High Low • Jan 04
New 90-day high: CN¥25.80 The company is up 121% from its price of CN¥11.68 on 30 September 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 12% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: CN¥19.80 The company is up 32% from its price of CN¥14.99 on 16 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 3.0% over the same period. Is New 90 Day High Low • Nov 04
New 90-day high: CN¥15.84 The company is up 1.0% from its price of CN¥15.75 on 06 August 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is down 9.0% over the same period. Reported Earnings • Oct 26
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥86.0m, with earnings decreasing by CN¥145.3m from the prior year. Total revenue was CN¥2.05b over the last 12 months, down 14% from the prior year. Reported Earnings • Oct 23
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥87.2m, with earnings decreasing by CN¥147.6m from the prior year. Total revenue was CN¥2.05b over the last 12 months, down 14% from the prior year. Announcement • Oct 20
Guangdong Weihua Corporation to Report Q3, 2020 Results on Oct 27, 2020 Guangdong Weihua Corporation announced that they will report Q3, 2020 results on Oct 27, 2020 Is New 90 Day High Low • Sep 25
New 90-day low: CN¥12.19 The company is down 7.0% from its price of CN¥13.06 on 24 June 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Forestry industry, which is up 16% over the same period. Announcement • Jun 18
Situ Minjing cancelled the acquisition of 5% stake in Guangdong Weihua Corporation (SZSE:002240) from Li Xiaoqi. Situ Minjing signed an agreement to acquire 5% stake in Guangdong Weihua Corporation (SZSE:002240) from Li Xiaoqi for approximately CNY 180 million on August 16, 2019. Li Xiaoqi will transfer 26.77 million shares of Guangdong Weihua to Situ Minjing.
Situ Minjing cancelled the acquisition of 5% stake in Guangdong Weihua Corporation (SZSE:002240) from Li Xiaoqi on June 12, 2020. 
