Declared Dividend • May 27
Dividend of CN¥0.10 announced Dividend of CN¥0.10 is the same as last year. Ex-date: 1st June 2026 Payment date: 1st June 2026 Dividend yield will be 0.9%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (31% earnings payout ratio) and cash flows (73% cash payout ratio). The dividend has increased by an average of 30% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 83% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥13.95, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 22x in the Chemicals industry in China. Total returns to shareholders of 11% over the past three years. Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.29 (vs CN¥0.06 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.29 (up from CN¥0.06 in 1Q 2025). Revenue: CN¥60.6b (down 19% from 1Q 2025). Net income: CN¥2.82b (up 379% from 1Q 2025). Profit margin: 4.6% (up from 0.8% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.2% 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 increased by 58% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 29
Consensus EPS estimates increase by 65% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from CN¥317.2b to CN¥321.9b. EPS estimate increased from CN¥0.358 to CN¥0.59 per share. Net income forecast to grow 558% next year vs 56% growth forecast for Chemicals industry in China. Consensus price target of CN¥11.63 unchanged from last update. Share price rose 13% to CN¥13.64 over the past week. Price Target Changed • Apr 28
Price target increased by 7.9% to CN¥11.63 Up from CN¥10.78, the current price target is an average from 5 analysts. New target price is 11% below last closing price of CN¥13.03. Stock is up 59% over the past year. The company is forecast to post earnings per share of CN¥0.18 for next year compared to CN¥0.076 last year. Announcement • Apr 28
Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 21, 2026 Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 21, 2026, at 14:00 China Standard Time. Location: Meeting Room of Zhejiang Rongsheng Holding Group Co., Ltd., Hangzhou, Zhejiang China Announcement • Mar 31
Rongsheng Petrochemical Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Rongsheng Petrochemical Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Announcement • Dec 31
Rongsheng Petrochemical Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Rongsheng Petrochemical Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.03 (vs CN¥0.002 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.03 (up from CN¥0.002 in 3Q 2024). Revenue: CN¥79.2b (down 5.7% from 3Q 2024). Net income: CN¥286.4m (up CN¥267.6m from 3Q 2024). Profit margin: 0.4% (up from 0% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 5.2% 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 28% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Rongsheng Petrochemical Co., Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Rongsheng Petrochemical Co., Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.001 (vs CN¥0.031 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.001 (down from CN¥0.031 in 2Q 2024). Revenue: CN¥73.7b (down 8.1% from 2Q 2024). Net income: CN¥13.7m (down 96% from 2Q 2024). Profit margin: 0% (down from 0.4% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.1% 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, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Price Target Changed • Jul 30
Price target increased by 7.7% to CN¥9.59 Up from CN¥8.90, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of CN¥9.59. Stock is up 5.7% over the past year. The company is forecast to post earnings per share of CN¥0.27 for next year compared to CN¥0.076 last year. Announcement • Jul 02
Rongsheng Petrochemical Co., Ltd. to Report First Half, 2025 Results on Aug 23, 2025 Rongsheng Petrochemical Co., Ltd. announced that they will report first half, 2025 results on Aug 23, 2025 Declared Dividend • May 23
Dividend of CN¥0.10 announced Dividend of CN¥0.10 is the same as last year. Ex-date: 28th May 2025 Payment date: 28th May 2025 Dividend yield will be 1.2%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is not covered by earnings (128% earnings payout ratio). However, it is well covered by cash flows (12% cash payout ratio). The dividend has increased by an average of 30% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 42% to bring the payout ratio under control. EPS is expected to grow by 267% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Major Estimate Revision • May 06
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥376.0b to CN¥337.3b. EPS estimate fell from CN¥0.388 to CN¥0.28 per share. Net income forecast to grow 326% next year vs 42% growth forecast for Chemicals industry in China. Consensus price target down from CN¥9.55 to CN¥8.90. Share price was steady at CN¥8.33 over the past week. New Risk • Apr 25
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: 0.2% Last year net profit margin: 0.4% 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 Debt is not well covered by operating cash flow (17% 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. Profit margins are more than 30% lower than last year (0.2% net profit margin). Reported Earnings • Apr 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.08 (down from CN¥0.12 in FY 2023). Revenue: CN¥326.5b (flat on FY 2023). Net income: CN¥724.5m (down 37% from FY 2023). Profit margin: 0.2% (down from 0.4% in FY 2023). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 54%. 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, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Announcement • Apr 25
Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 16, 2025 Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 16, 2025, at 14:30 China Standard Time. Location: Meeting Room of Zhejiang Rongsheng Holding Group Co., Ltd., Hangzhou, Zhejiang China Price Target Changed • Apr 16
Price target decreased by 11% to CN¥9.55 Down from CN¥10.75, the current price target is an average from 4 analysts. New target price is 19% above last closing price of CN¥8.02. Stock is down 28% over the past year. The company is forecast to post earnings per share of CN¥0.17 for next year compared to CN¥0.12 last year. Announcement • Mar 31
Rongsheng Petrochemical Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Rongsheng Petrochemical Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Major Estimate Revision • Jan 29
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥340.5b to CN¥336.2b. EPS estimate also fell from CN¥0.21 per share to CN¥0.172 per share. Net income forecast to grow 80% next year vs 51% growth forecast for Chemicals industry in China. Consensus price target broadly unchanged at CN¥10.65. Share price rose 3.4% to CN¥8.83 over the past week. Announcement • Dec 31
Rongsheng Petrochemical Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Rongsheng Petrochemical Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 New Risk • Nov 05
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.9x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.9x net interest cover). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.002 (vs CN¥0.10 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.002 (down from CN¥0.10 in 3Q 2023). Revenue: CN¥83.9b (flat on 3Q 2023). Net income: CN¥18.7m (down 99% from 3Q 2023). Profit margin: 0% (down from 1.5% in 3Q 2023). Revenue is forecast to grow 8.8% 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 58 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Rongsheng Petrochemical Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Rongsheng Petrochemical Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 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¥10.35, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 43% over the past three years. Major Estimate Revision • Sep 03
Consensus EPS estimates fall by 26%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥348.0b to CN¥354.7b. EPS estimate fell from CN¥0.408 to CN¥0.304 per share. Net income forecast to grow 43% next year vs 46% growth forecast for Chemicals industry in China. Consensus price target down from CN¥12.13 to CN¥10.82. Share price was steady at CN¥8.64 over the past week. Price Target Changed • Aug 29
Price target decreased by 11% to CN¥10.82 Down from CN¥12.13, the current price target is an average from 6 analysts. New target price is 25% above last closing price of CN¥8.63. Stock is down 28% over the past year. The company is forecast to post earnings per share of CN¥0.33 for next year compared to CN¥0.12 last year. Reported Earnings • Aug 28
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: CN¥0.031 (down from CN¥0.032 in 2Q 2023). Revenue: CN¥80.2b (down 5.5% from 2Q 2023). Net income: CN¥305.6m (down 10% from 2Q 2023). Profit margin: 0.4% (in line with 2Q 2023). Revenue exceeded analyst estimates by 42%. Earnings per share (EPS) missed analyst estimates by 80%. Revenue is forecast to grow 6.9% 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 49 percentage points per year, which is a significant difference in performance. Announcement • Jun 29
Rongsheng Petrochemical Co., Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Rongsheng Petrochemical Co., Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 Declared Dividend • Jun 01
Dividend reduced to CN¥0.10 Dividend of CN¥0.10 is 33% lower than last year. Ex-date: 5th June 2024 Payment date: 5th June 2024 Dividend yield will be 1.0%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (13% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 156% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 31
Rongsheng Petrochemical Co., Ltd. Announces Cash Dividend (A Shares) (Tax Included) for the Year 2023, Payable on 05 June 2024 Rongsheng Petrochemical Co., Ltd. announced as cash dividend (A shares) (tax included) of CNY 1.00000000 per 10 shares for the year 2023. The dividend will be payable on 05 June 2024 with Record date is 04 June 2024 and Ex-date is 05 June 2024. Announcement • Apr 28
Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 24, 2024 Rongsheng Petrochemical Co., Ltd., Annual General Meeting, May 24, 2024, at 14:30 China Standard Time. Location: Meeting Room of Zhejiang Rongsheng Holding Group Co., Ltd., Hangzhou, Zhejiang China Agenda: To consider 2023 work report of the board of directors; to consider 2023 work report of the supervisory committee; to consider 2023 profit distribution plan; to consider remuneration for directors, supervisors and senior management; to consider 2023 annual accounts report; to consider reappointment of 2024 audit firm; to consider 2023 annual report and its summary; to consider confirmation of 2023 continuing connected transactions and estimation of 2024 continuing connected transactions; and to consider other matters. Announcement • Apr 27
Rongsheng Petrochemical Co., Ltd. Proposes Final Cash Dividend for 2023 Rongsheng Petrochemical Co., Ltd. proposed final cash dividend of CNY 1.00000000 per 10 shares (tax included) for 2023. Reported Earnings • Apr 26
Full year 2023 earnings: EPS in line with analyst expectations despite revenue beat Full year 2023 results: EPS: CN¥0.12 (down from CN¥0.33 in FY 2022). Revenue: CN¥325.1b (up 13% from FY 2022). Net income: CN¥1.16b (down 65% from FY 2022). Profit margin: 0.4% (down from 1.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 5.8% 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 62% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Mar 30
Rongsheng Petrochemical Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Rongsheng Petrochemical Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Dec 30
Rongsheng Petrochemical Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Rongsheng Petrochemical Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Price Target Changed • Dec 19
Price target decreased by 10% to CN¥12.37 Down from CN¥13.76, the current price target is an average from 9 analysts. New target price is 23% above last closing price of CN¥10.09. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥0.17 for next year compared to CN¥0.33 last year. Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: CN¥0.10 (up from CN¥0.008 in 3Q 2022). Revenue: CN¥84.5b (up 9.1% from 3Q 2022). Net income: CN¥1.23b (up CN¥1.15b from 3Q 2022). Profit margin: 1.5% (up from 0.1% in 3Q 2022). Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 7.4% 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 fallen by 49% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.032 (vs CN¥0.22 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.032 (down from CN¥0.22 in 2Q 2022). Revenue: CN¥84.8b (up 7.3% from 2Q 2022). Net income: CN¥341.2m (down 85% from 2Q 2022). Profit margin: 0.4% (down from 2.8% in 2Q 2022). Revenue is forecast to grow 8.8% 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 fallen by 28% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Aug 22
Rongsheng Petrochemical Co., Ltd. (SZSE:002493) announces an Equity Buyback for CNY 2,000 million worth of its shares. Rongsheng Petrochemical Co., Ltd. (SZSE:002493) announces a share repurchase program. Under the program, the company will repurchase up to CNY 2,000 million worth of its shares. The program is valid for 12 months. Announcement • May 23
Rongsheng Petrochemical Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2022, Payable on 26 May 2023 Rongsheng Petrochemical Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.50000000 for the year 2022, payable on 26 May 2023. Record date is 25 May 2023. Ex-date is 26 May 2023. Announcement • May 18
Rongsheng Petrochemical Co., Ltd Approves Final Cash Dividend for 2022 Rongsheng Petrochemical Co., Ltd. approved final cash dividend of CNY 1.50000000 (tax included) per 10 shares for the year 2022, at its Annual General Meeting of 2022. Reported Earnings • Apr 21
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: CN¥0.33 (down from CN¥1.27 in FY 2021). Revenue: CN¥289.1b (up 63% from FY 2021). Net income: CN¥3.34b (down 74% from FY 2021). Profit margin: 1.2% (down from 7.2% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.0%. Earnings per share (EPS) missed analyst estimates by 31%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 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 25% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥14.20, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Chemicals industry in China. Total returns to shareholders of 100% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.20 per share. Major Estimate Revision • Feb 07
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2022 has been updated. 2022 EPS estimate fell from CN¥0.789 to CN¥0.677 per share. Revenue forecast steady at CN¥274.2b. Net income forecast to grow 34% next year vs 41% growth forecast for Chemicals industry in China. Consensus price target up from CN¥15.26 to CN¥15.74. Share price fell 3.2% to CN¥12.81 over the past week. Price Target Changed • Nov 16
Price target decreased to CN¥14.92 Down from CN¥16.86, the current price target is an average from 9 analysts. New target price is 21% above last closing price of CN¥12.32. Stock is down 23% over the past year. The company is forecast to post earnings per share of CN¥0.75 for next year compared to CN¥1.27 last year. 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. 11 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Independent Director Jianmiao Yan 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. Major Estimate Revision • Nov 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from CN¥1.23 to CN¥0.77 per share. Revenue forecast steady at CN¥271.9b. Net income forecast to grow 49% next year vs 44% growth forecast for Chemicals industry in China. Consensus price target down from CN¥16.86 to CN¥14.96. Share price was steady at CN¥10.70 over the past week. Price Target Changed • Oct 27
Price target decreased to CN¥15.67 Down from CN¥17.03, the current price target is an average from 9 analysts. New target price is 39% above last closing price of CN¥11.24. Stock is down 35% over the past year. The company is forecast to post earnings per share of CN¥0.73 for next year compared to CN¥1.27 last year. Reported Earnings • Oct 27
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.008 (down from CN¥0.35 in 3Q 2021). Revenue: CN¥77.5b (up 72% from 3Q 2021). Net income: CN¥84.0m (down 98% from 3Q 2021). Profit margin: 0.1% (down from 7.9% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) also missed analyst estimates by 97%. Revenue is forecast to grow 3.2% 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 46% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 24
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥263.5b to CN¥270.0b. EPS estimate fell from CN¥1.53 to CN¥1.22 per share. Net income forecast to grow 22% next year vs 41% growth forecast for Chemicals industry in China. Consensus price target down from CN¥19.58 to CN¥17.84. Share price fell 6.1% to CN¥14.47 over the past week. Price Target Changed • Aug 19
Price target decreased to CN¥18.21 Down from CN¥19.58, the current price target is an average from 11 analysts. New target price is 20% above last closing price of CN¥15.19. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥1.17 for next year compared to CN¥1.27 last year. Reported Earnings • Aug 18
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: CN¥0.22 (down from CN¥0.39 in 2Q 2021). Revenue: CN¥79.0b (up 59% from 2Q 2021). Net income: CN¥2.25b (down 43% from 2Q 2021). Profit margin: 2.8% (down from 7.9% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 34%. Earnings per share (EPS) missed analyst estimates by 43%. Over the next year, revenue is forecast to grow 13%, compared to a 41% growth forecast for the Chemicals industry in China. 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 28% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥15.99, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 119% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥28.01 per share. Announcement • Aug 05
Rongsheng Petrochemical Co., Ltd. (SZSE:002493) announces an Equity Buyback for CNY 2,000 million worth of its shares. Rongsheng Petrochemical Co., Ltd. (SZSE:002493) announces a share repurchase program. Under the program, the company will repurchase up to CNY 2,000 million worth of its shares. The program is valid for 12 months. Announcement • May 29
Rongsheng Petrochemical Co., Ltd. Announces Cash Dividend, Payable on 06 June 2022 Rongsheng Petrochemical Co., Ltd. announced 2021 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 1.50000000. Record date as 02 June 2022, ex-date as 06 June 2022 and payment date as 06 June 2022. Announcement • May 24
Rongsheng Petrochemical Co., Ltd. Approves Dividend for the Year 2021 Rongsheng Petrochemical Co., Ltd. announced at annual general meeting held on May 20, 2022, the shareholders approved dividend of CNY 1.50000000 per ten shares (tax included) for the year 2021. Major Estimate Revision • May 02
Consensus revenue estimates increase by 16% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from CN¥237.5b to CN¥275.8b. EPS estimate increased from CN¥1.61 to CN¥1.66 per share. Net income forecast to grow 23% next year vs 40% growth forecast for Chemicals industry in China. Consensus price target down from CN¥22.63 to CN¥20.84. Share price rose 4.3% to CN¥13.72 over the past week. Price Target Changed • Apr 29
Price target decreased to CN¥20.84 Down from CN¥22.63, the current price target is an average from 12 analysts. New target price is 52% above last closing price of CN¥13.72. Stock is down 27% over the past year. Announcement • Apr 27
Rongsheng Petrochemical Co., Ltd. Announces Final Cash Dividend Proposal for 2021 Rongsheng Petrochemical Co., Ltd. announced on April 26, 2022 the profit distribution proposal for 2021 is cash dividend/10 shares (tax included): CNY 1.50000000. Reported Earnings • Apr 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥1.27 (up from CN¥0.76 in FY 2020). Revenue: CN¥177.0b (up 65% from FY 2020). Net income: CN¥12.8b (up 76% from FY 2020). Profit margin: 7.2% (up from 6.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 6.8%. Over the next year, revenue is forecast to grow 38%, compared to a 43% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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. 11 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Jianmiao Yan 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 • Mar 14
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: CN¥1.27 (up from CN¥0.76 in FY 2020). Revenue: CN¥181.5b (up 69% from FY 2020). Net income: CN¥12.8b (up 76% from FY 2020). Profit margin: 7.1% (up from 6.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 28%, compared to a 46% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 21% share price decline to CN¥14.86, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 105% over the past three years. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.26 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥44.9b (up 64% from 3Q 2020). Net income: CN¥3.56b (up 46% from 3Q 2020). Profit margin: 7.9% (down from 8.9% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥22.24, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 218% over the past three years. Major Estimate Revision • Aug 19
Consensus EPS estimates increase to CN¥1.47 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CN¥173.6b to CN¥178.3b. EPS estimate increased from CN¥1.29 to CN¥1.47 per share. Net income forecast to grow 44% next year vs 41% growth forecast for Chemicals industry in China. Consensus price target up from CN¥22.93 to CN¥23.98. Share price rose 2.6% to CN¥19.04 over the past week. Reported Earnings • Aug 13
Second quarter 2021 earnings released: EPS CN¥0.39 (vs CN¥0.22 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥49.8b (up 71% from 2Q 2020). Net income: CN¥3.94b (up 99% from 2Q 2020). Profit margin: 7.9% (up from 6.8% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥20.47, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 197% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥16.09 per share. Announcement • May 28
Rongsheng Petrochemical Co., Ltd. Announces Cash Dividend for the Year 2020, Payable on June 01, 2021 Rongsheng Petrochemical Co., Ltd. announced 2020 final profit distribution plan to be implemented (A shares): of CNY 1.50 per 10 shares (tax included) for the year 2020. Record date is May 31, 2021. Ex-date is June 01, 2021. Payment date is June 01, 2021. Announcement • May 21
Rongsheng Petrochemical Co., Ltd. Approves Cash Dividend for 2020 Rongsheng Petrochemical Co., Ltd. announced that at the Annual General Meeting held on 19 May 2021 approved cash dividend of CNY 1.50 per ten shares(tax included) for 2020. Price Target Changed • Apr 25
Price target increased to CN¥36.31 Up from CN¥32.78, the current price target is an average from 13 analysts. New target price is 29% above last closing price of CN¥28.19. Stock is up 136% over the past year. Price Target Changed • Apr 17
Price target increased to CN¥36.14 Up from CN¥32.78, the current price target is an average from 12 analysts. New target price is 31% above last closing price of CN¥27.51. Stock is up 131% over the past year. Reported Earnings • Apr 15
Full year 2020 earnings released: EPS CN¥1.14 (vs CN¥0.35 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥107.3b (up 30% from FY 2019). Net income: CN¥7.31b (up 231% from FY 2019). Profit margin: 6.8% (up from 2.7% 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 44% per year whereas the company’s share price has increased by 40% per year. Announcement • Feb 25
Rongsheng Petrochemical Co., Ltd. to Report Fiscal Year 2020 Results on Apr 15, 2021 Rongsheng Petrochemical Co., Ltd. announced that they will report fiscal year 2020 results on Apr 15, 2021 Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CN¥35.53, the stock is trading at a trailing P/E ratio of 36.9x, down from the previous P/E ratio of 45.8x. This compares to an average P/E of 38x in the Chemicals industry in China. Total returns to shareholders over the past three years are 228%. Is New 90 Day High Low • Feb 08
New 90-day high: CN¥41.49 The company is up 78% from its price of CN¥23.26 on 10 November 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.36 per share. Price Target Changed • Feb 05
Price target raised to CN¥28.29 Up from CN¥22.32, the current price target is an average from 12 analysts. The new target price is 25% below the current share price of CN¥37.72. As of last close, the stock is up 260% over the past year. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥39.70, the stock is trading at a trailing P/E ratio of 41.2x, up from the previous P/E ratio of 35.3x. 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 332%. Is New 90 Day High Low • Jan 18
New 90-day high: CN¥33.20 The company is up 70% from its price of CN¥19.53 on 20 October 2020. The Chinese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.36 per share. Is New 90 Day High Low • Dec 30
New 90-day high: CN¥27.37 The company is up 46% from its price of CN¥18.76 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. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.10 per share.