NOT FOR DISTRIBUTION
Header cover image

Market Cap

CN¥48.9b

Last Updated

2021/05/15 11:46 UTC

Data Sources

Company Financials +

Executive Summary

GEM Co., Ltd. operates in the recycling industry in China and internationally. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has GEM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002340 is more volatile than 90% of CN stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 002340's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-3.9%

2340

-2.7%

CN Metals and Mining

2.3%

CN Market


1 Year Return

126.3%

2340

45.9%

CN Metals and Mining

25.3%

CN Market

Return vs Industry: 002340 exceeded the CN Metals and Mining industry which returned 46% over the past year.

Return vs Market: 002340 exceeded the CN Market which returned 25.2% over the past year.


Shareholder returns

2340IndustryMarket
7 Day-3.9%-2.7%2.3%
30 Day21.5%4.3%3.4%
90 Day36.2%7.7%-6.3%
1 Year127.8%126.3%48.2%45.9%27.2%25.3%
3 Year43.9%41.5%17.6%11.7%29.1%23.0%
5 Year100.0%96.0%35.8%29.0%40.1%30.9%

Long-Term Price Volatility Vs. Market

How volatile is GEM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GEM undervalued compared to its fair value and its price relative to the market?

85.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 002340 (CN¥10.23) is trading above our estimate of fair value (CN¥0.51)

Significantly Below Fair Value: 002340 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002340 is poor value based on its PE Ratio (85.2x) compared to the CN Metals and Mining industry average (27.2x).

PE vs Market: 002340 is poor value based on its PE Ratio (85.2x) compared to the CN market (30.8x).


Price to Earnings Growth Ratio

PEG Ratio: 002340 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 002340 is overvalued based on its PB Ratio (3.6x) compared to the CN Metals and Mining industry average (2.4x).


Future Growth

How is GEM forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002340's forecast earnings growth (32.4% per year) is above the savings rate (3.3%).

Earnings vs Market: 002340's earnings (32.4% per year) are forecast to grow faster than the CN market (21% per year).

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

Revenue vs Market: 002340's revenue (21.9% per year) is forecast to grow faster than the CN market (16.8% per year).

High Growth Revenue: 002340's revenue (21.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002340's Return on Equity is forecast to be low in 3 years time (10.6%).


Past Performance

How has GEM performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002340 has high quality earnings.

Growing Profit Margin: 002340's current net profit margins (4.2%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 002340's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 002340's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 002340 had negative earnings growth (-13.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (40.8%).


Return on Equity

High ROE: 002340's Return on Equity (4.2%) is considered low.


Financial Health

How is GEM's financial position?


Financial Position Analysis

Short Term Liabilities: 002340's short term assets (CN¥16.4B) exceed its short term liabilities (CN¥14.6B).

Long Term Liabilities: 002340's short term assets (CN¥16.4B) exceed its long term liabilities (CN¥2.3B).


Debt to Equity History and Analysis

Debt Level: 002340's debt to equity ratio (65.9%) is considered high.

Reducing Debt: 002340's debt to equity ratio has reduced from 113.1% to 65.9% over the past 5 years.

Debt Coverage: 002340's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: 002340's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is GEM current dividend yield, its reliability and sustainability?

0.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002340's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 002340's dividend (0.15%) is low compared to the top 25% of dividend payers in the CN market (1.86%).


Stability and Growth of Payments

Stable Dividend: 002340 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 002340 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 002340 is not paying a notable dividend for the CN market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 002340's dividend in 3 years as they are not forecast to pay a notable one for the CN market.


Next Steps

Management

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

CN¥1m

CEO Compensation


CEO

Kai Hua Xu (54 yo)

no data

Tenure

CN¥1,044,900

Compensation

Mr. Kai Hua Xu serves as General Manager at GEM Co., Ltd. Mr. Xu serves as the Chairman of GEM Co., Ltd. He has been an Executive Director of Fengcheng Xinyuanxing New Materials Co., Ltd. since October 20,...


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.3%.


Top Shareholders

Company Information

GEM Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GEM Co., Ltd.
  • Ticker: 2340
  • Exchange: SZSE
  • Founded: 2001
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CN¥48.935b
  • Shares outstanding: 4.78b
  • Website: https://www.gemchina.com

Number of Employees


Location

  • GEM Co., Ltd.
  • Marina Bay Center
  • 20th Floor
  • Shenzhen
  • Guangdong Province
  • 518101
  • China

Listings


Biography

GEM Co., Ltd. operates in the recycling industry in China and internationally. The company offers remanufactured battery raw materials, such as nickel, cobalt, manganese, copper, aluminum, iron, and lithiu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 11:46
End of Day Share Price2021/05/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.