Announcement • Jul 01
Shenzhen Senior Technology Material Co., Ltd. to Report First Half, 2026 Results on Aug 28, 2026 Shenzhen Senior Technology Material Co., Ltd. announced that they will report first half, 2026 results on Aug 28, 2026 New Risk • Jun 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 9.0% 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 Interest payments are not well covered by earnings (1.0x net interest cover). Minor Risks Share price has been volatile over the past 3 months (9.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.4% net profit margin). Announcement • Jun 24
Shenzhen Senior Technology Material Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 1.342721 billion. Shenzhen Senior Technology Material Co., Ltd. has completed a Follow-on Equity Offering in the amount of HKD 1.342721 billion.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 14,952,500
Price\Range: HKD 8.98
Discount Per Security: HKD 0.0898
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 67,075,500
Price\Range: HKD 8.98
Discount Per Security: HKD 0.0898
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 67,495,500
Price\Range: HKD 8.98
Discount Per Security: HKD 0.0898
Transaction Features: New Market Listing; Regulation S; Sponsor Backed Offering Board Change • Jun 15
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Changjiang Tang was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 12
Shenzhen Senior Technology Material Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 1.476994 billion. Shenzhen Senior Technology Material Co., Ltd. has filed a Follow-on Equity Offering in the amount of HKD 1.476994 billion.
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 14,952,500
Price(maximum): HKD 8.98
Discount Per Security: HKD 0.0898
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 81,864,257
Price(maximum): HKD 8.98
Discount Per Security: HKD 0.0898
Security Name: H Shares
Security Type: Common Stock
Securities Offered: 67,659,243
Price(maximum): HKD 8.98
Discount Per Security: HKD 0.0898
Transaction Features: New Market Listing; Regulation S; Sponsor Backed Offering New Risk • Apr 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 196% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.1x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Announcement • Apr 02
Shenzhen Senior Technology Material Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Shenzhen Senior Technology Material Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.027 (down from CN¥0.27 in FY 2024). Revenue: CN¥4.13b (up 17% from FY 2024). Net income: CN¥36.4m (down 90% from FY 2024). Profit margin: 0.9% (down from 10% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 77%. Revenue is forecast to grow 23% 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 fallen by 58% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Mar 31
Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, Apr 22, 2026 Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, Apr 22, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Announcement • Dec 31
Shenzhen Senior Technology Material Co., Ltd. to Report Fiscal Year 2025 Results on Mar 31, 2026 Shenzhen Senior Technology Material Co., Ltd. announced that they will report fiscal year 2025 results on Mar 31, 2026 New Risk • Nov 13
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 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). High level of non-cash earnings (24% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.3% average weekly change). Profit margins are more than 30% lower than last year (3.3% net profit margin). Price Target Changed • Nov 05
Price target increased by 15% to CN¥13.70 Up from CN¥11.93, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of CN¥13.95. Stock is up 26% over the past year. The company is forecast to post earnings per share of CN¥0.21 for next year compared to CN¥0.27 last year. New Risk • Oct 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (4.9% operating cash flow to total debt). High level of non-cash earnings (24% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (3.3% net profit margin). Reported Earnings • Oct 27
Third quarter 2025 earnings released: EPS: CN¥0.011 (vs CN¥0.08 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.011 (down from CN¥0.08 in 3Q 2024). Revenue: CN¥1.06b (up 11% from 3Q 2024). Net income: CN¥14.0m (down 87% from 3Q 2024). Profit margin: 1.3% (down from 11% in 3Q 2024). Revenue is forecast to grow 25% 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 47% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Shenzhen Senior Technology Material Co., Ltd. to Report Q3, 2025 Results on Oct 27, 2025 Shenzhen Senior Technology Material Co., Ltd. announced that they will report Q3, 2025 results on Oct 27, 2025 Major Estimate Revision • Aug 26
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥0.321 to CN¥0.264 per share. Revenue forecast steady at CN¥4.29b. Net income forecast to grow 114% next year vs 48% growth forecast for Chemicals industry in China. Consensus price target up from CN¥11.31 to CN¥11.93. Share price was steady at CN¥12.57 over the past week. Reported Earnings • Aug 21
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: CN¥0.056 (down from CN¥0.10 in 2Q 2024). Revenue: CN¥1.01b (up 7.4% from 2Q 2024). Net income: CN¥53.7m (down 60% from 2Q 2024). Profit margin: 5.3% (down from 14% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 23% 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 36% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Price Target Changed • Jul 23
Price target decreased by 7.8% to CN¥11.31 Down from CN¥12.28, the current price target is an average from 7 analysts. New target price is 5.4% below last closing price of CN¥11.96. Stock is up 64% over the past year. The company is forecast to post earnings per share of CN¥0.32 for next year compared to CN¥0.27 last year. Announcement • Jul 02
Shenzhen Senior Technology Material Co., Ltd. to Report First Half, 2025 Results on Aug 20, 2025 Shenzhen Senior Technology Material Co., Ltd. announced that they will report first half, 2025 results on Aug 20, 2025 New Risk • Jun 27
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 8.2% 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 Risks Debt is not well covered by operating cash flow (4.2% operating cash flow to total debt). High level of non-cash earnings (32% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Profit margins are more than 30% lower than last year (8.2% net profit margin). Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥12.37, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 22x in the Chemicals industry in China. Total loss to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥10.69, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 20x in the Chemicals industry in China. Total loss to shareholders of 52% over the past three years. Major Estimate Revision • May 05
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥4.74b to CN¥4.15b. EPS estimate fell from CN¥0.50 to CN¥0.35 per share. Net income forecast to grow 78% next year vs 42% growth forecast for Chemicals industry in China. Consensus price target broadly unchanged at CN¥12.63. Share price was steady at CN¥9.08 over the past week. New Risk • May 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 4.2% 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 Risks Debt is not well covered by operating cash flow (4.2% operating cash flow to total debt). High level of non-cash earnings (32% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (8.2% net profit margin). Reported Earnings • Apr 30
Third quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.08 (down from CN¥0.22 in 3Q 2023). Revenue: CN¥951.7m (up 12% from 3Q 2023). Net income: CN¥107.2m (down 63% from 3Q 2023). Profit margin: 11% (down from 34% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 26% 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 2% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Announcement • Apr 29
Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, May 21, 2025 Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, May 21, 2025, at 14:30 China Standard Time. Announcement • Apr 17
Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) announces an Equity Buyback for CNY 200 million worth of its shares. Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its A shares. The shares will be repurchased at a price of not more than CNY 14 per share. The program will be financed via own funds and special loans. The purpose of the program is to maintain the company's value and protect the rights and interests of shareholders. The program will be valid for 3 months. New Risk • Apr 07
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 7.8% 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 Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 113% Paying a dividend despite having no free cash flows. High level of non-cash earnings (36% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.8% average weekly change). Profit margins are more than 30% lower than last year (7.6% net profit margin). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥8.19, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Chemicals industry in China. Total loss to shareholders of 60% over the past three years. Announcement • Mar 31
Shenzhen Senior Technology Material Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Shenzhen Senior Technology Material Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Price Target Changed • Mar 11
Price target increased by 8.0% to CN¥12.80 Up from CN¥11.85, the current price target is an average from 8 analysts. New target price is 14% above last closing price of CN¥11.19. Stock is down 12% over the past year. The company is forecast to post earnings per share of CN¥0.36 for next year compared to CN¥0.45 last year. Announcement • Feb 18
Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) announces an Equity Buyback for CNY 100 million worth of its shares. Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be purchased at a price not exceeding CNY 14.60 per share. The repurchased shares are intended for equity incentive plans and/or employee stock ownership plans. The company intends to use its own funds and special stock repurchase loan funds to repurchase its own shares. The program will be valid for a period of 6 months. Announcement • Dec 31
Shenzhen Senior Technology Material Co., Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Shenzhen Senior Technology Material Co., Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥13.03, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 20x in the Chemicals industry in China. Total loss to shareholders of 56% over the past three years. Price Target Changed • Nov 01
Price target increased by 8.3% to CN¥10.85 Up from CN¥10.01, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of CN¥10.35. Stock is down 31% over the past year. The company is forecast to post earnings per share of CN¥0.45 for next year compared to CN¥0.45 last year. Reported Earnings • Oct 30
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CN¥0.08 (down from CN¥0.22 in 3Q 2023). Revenue: CN¥951.7m (up 12% from 3Q 2023). Net income: CN¥107.2m (down 63% from 3Q 2023). Profit margin: 11% (down from 34% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) also missed analyst estimates by 65%. Revenue is forecast to grow 25% 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 2% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 23
Price target decreased by 10% to CN¥10.01 Down from CN¥11.18, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of CN¥10.19. Stock is down 30% over the past year. The company is forecast to post earnings per share of CN¥0.41 for next year compared to CN¥0.45 last year. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to CN¥9.24, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 73% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥4.41 per share. New Risk • Sep 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.1% average weekly change). Profit margins are more than 30% lower than last year (13% net profit margin). Shareholders have been diluted in the past year (4.8% increase in shares outstanding). Announcement • Sep 30
Shenzhen Senior Technology Material Co., Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Shenzhen Senior Technology Material Co., Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to CN¥8.65, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 70% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥4.75 per share. Major Estimate Revision • Sep 04
Consensus EPS estimates fall by 39% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥4.09b to CN¥3.90b. EPS estimate also fell from CN¥0.661 per share to CN¥0.403 per share. Net income forecast to grow 70% next year vs 45% growth forecast for Chemicals industry in China. Consensus price target down from CN¥11.74 to CN¥11.43. Share price rose 10% to CN¥7.77 over the past week. Reported Earnings • Aug 29
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CN¥0.10 (down from CN¥0.16 in 2Q 2023). Revenue: CN¥938.9m (up 36% from 2Q 2023). Net income: CN¥135.1m (down 31% from 2Q 2023). Profit margin: 14% (down from 28% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 67%. 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, earnings per share has increased by 20% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 14
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥0.816 to CN¥0.726 per share. Revenue forecast steady at CN¥4.18b. Net income forecast to grow 57% next year vs 48% growth forecast for Chemicals industry in China. Consensus price target down from CN¥14.28 to CN¥12.74. Share price fell 2.8% to CN¥7.60 over the past week. Price Target Changed • Aug 13
Price target decreased by 12% to CN¥12.74 Down from CN¥14.48, the current price target is an average from 8 analysts. New target price is 64% above last closing price of CN¥7.78. Stock is down 49% over the past year. The company is forecast to post earnings per share of CN¥0.73 for next year compared to CN¥0.45 last year. Major Estimate Revision • Jul 30
Consensus revenue estimates increase by 12% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥4.21b to CN¥4.72b. EPS estimate increased from CN¥0.726 to CN¥0.816 per share. Net income forecast to grow 102% next year vs 48% growth forecast for Chemicals industry in China. Consensus price target broadly unchanged at CN¥14.28. Share price was steady at CN¥7.53 over the past week. Announcement • Jun 29
Shenzhen Senior Technology Material Co., Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Shenzhen Senior Technology Material Co., Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Announcement • Jun 08
Shenzhen Senior Technology Material Co., Ltd. Announces 2023 Final Profit Distribution Plan to Be Implemented (A Shares), Payable 13 June 2024 Shenzhen Senior Technology Material Co., Ltd. announced 2023 final profit distribution plan to be implemented (A shares). Cash dividend/10 shares (tax included): CNY 2.20000000. Record date is 12 June 2024.Ex-date is 13 June 2024. Payment date is 13 June 2024. Board Change • Jun 04
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Zhenzhen Sun was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. New Risk • May 30
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 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (39% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Profit margins are more than 30% lower than last year (16% net profit margin). Shareholders have been diluted in the past year (4.9% increase in shares outstanding). Price Target Changed • Apr 28
Price target decreased by 9.6% to CN¥14.83 Down from CN¥16.40, the current price target is an average from 7 analysts. New target price is 50% above last closing price of CN¥9.90. Stock is down 43% over the past year. The company is forecast to post earnings per share of CN¥0.85 for next year compared to CN¥0.45 last year. Major Estimate Revision • Apr 24
Consensus revenue estimates fall by 17% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥5.12b to CN¥4.23b. EPS estimate fell from CN¥0.992 to CN¥0.665 per share. Net income forecast to grow 113% next year vs 43% growth forecast for Chemicals industry in China. Consensus price target down from CN¥18.03 to CN¥16.40. Share price fell 19% to CN¥9.41 over the past week. Announcement • Apr 19
Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, May 13, 2024 Shenzhen Senior Technology Material Co., Ltd., Annual General Meeting, May 13, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Reported Earnings • Apr 18
First quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.14 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.08 (down from CN¥0.14 in 1Q 2023). Revenue: CN¥714.7m (up 7.5% from 1Q 2023). Net income: CN¥107.1m (down 41% from 1Q 2023). Profit margin: 15% (down from 28% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 32% 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 32% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 18
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥10.39, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 18% over the past three years. Announcement • Mar 30
Shenzhen Senior Technology Material Co., Ltd. to Report Q1, 2024 Results on Apr 18, 2024 Shenzhen Senior Technology Material Co., Ltd. announced that they will report Q1, 2024 results on Apr 18, 2024 Price Target Changed • Feb 23
Price target decreased by 11% to CN¥18.67 Down from CN¥20.87, the current price target is an average from 7 analysts. New target price is 55% above last closing price of CN¥12.08. Stock is down 43% over the past year. The company is forecast to post earnings per share of CN¥0.75 for next year compared to CN¥0.60 last year. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥12.46, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Chemicals industry in China. Total returns to shareholders of 19% over the past three years. Announcement • Jan 03
Shenzhen Senior Technology Material Co., Ltd. Announces Board Appointments Shenzhen Senior Technology Material Co., Ltd. at its Extraordinary General Meeting held on 29 December 2023, approved election and nomination of ZHANG XIAOMIN, Liu Rui and Zhu Bide as non-independent directors and election and nomination of Sun Zhenzhen as independent director. Announcement • Dec 29
Shenzhen Senior Technology Material Co., Ltd. to Report Fiscal Year 2023 Results on Apr 18, 2024 Shenzhen Senior Technology Material Co., Ltd. announced that they will report fiscal year 2023 results on Apr 18, 2024 New Risk • Dec 18
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (40% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.5% average weekly change). Shareholders have been diluted in the past year (5.0% increase in shares outstanding). New Risk • Nov 30
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 6.0% 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 High level of non-cash earnings (40% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.0% average weekly change). Announcement • Nov 18
Celgard, LLC Settles Litigations Against Shenzhen Senior Technology Material Co. Ltd Celgard, LLC (Celgard), a subsidiary of Polypore International, LP, (Polypore) settled its litigations against Shenzhen Senior Technology Material Co. Ltd. (Senior China) and several United States defendants in the United States District Court for the Northern District of California and against Senior China in the United Kingdom (UK), and Senior China's litigations against Celgard. The terms of the settlement are confidential. In the public California District Court and UK litigation filings: Celgard voluntarily dismissed all claims against the Senior defendants asserted in its Sixth Amended Complaint in the California District Court. Also, the Senior defendants voluntarily dismissed all counterclaims against Celgard and Polypore. Celgard also dismissed its UK litigation against Senior China. Earlier, Celgard announced the successful outcome of the Targray MTI and Farasis cases. Celgard will continue to protect its intellectual property (IP) regarding coated and uncoated separators for lithium-ion batteries and proprietary technology and safeguard its assets and customers. Reported Earnings • Oct 18
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.19 in 3Q 2022). Revenue: CN¥853.9m (up 13% from 3Q 2022). Net income: CN¥288.5m (up 31% from 3Q 2022). Profit margin: 34% (up from 29% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 34%. Earnings per share (EPS) also missed analyst estimates by 4.3%. Revenue is forecast to grow 37% 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 59% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 01
Price target decreased by 8.5% to CN¥18.89 Down from CN¥20.64, the current price target is an average from 8 analysts. New target price is 37% above last closing price of CN¥13.83. Stock is down 39% over the past year. The company is forecast to post earnings per share of CN¥0.74 for next year compared to CN¥0.60 last year. Major Estimate Revision • Aug 21
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥4.42b to CN¥4.11b. EPS estimate also fell from CN¥0.888 per share to CN¥0.756 per share. Net income forecast to grow 68% next year vs 52% growth forecast for Chemicals industry in China. Consensus price target down from CN¥22.55 to CN¥20.64. Share price fell 5.0% to CN¥14.92 over the past week. Price Target Changed • Aug 16
Price target decreased by 8.5% to CN¥20.64 Down from CN¥22.55, the current price target is an average from 8 analysts. New target price is 37% above last closing price of CN¥15.09. Stock is down 44% over the past year. The company is forecast to post earnings per share of CN¥0.77 for next year compared to CN¥0.60 last year. Reported Earnings • Aug 15
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.16 (down from CN¥0.17 in 2Q 2022). Revenue: CN¥691.9m (up 3.3% from 2Q 2022). Net income: CN¥196.1m (down 2.2% from 2Q 2022). Profit margin: 28% (down from 30% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 39%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 39% 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 69% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Board Change • Jul 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Xuecheng Ju was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Jul 01
Shenzhen Senior Technology Material Co., LTD to Report First Half, 2023 Results on Aug 15, 2023 Shenzhen Senior Technology Material Co., LTD announced that they will report first half, 2023 results on Aug 15, 2023 Announcement • May 19
Shenzhen Senior Technology Material Co., LTD Approves Final Dividend for 2022 Shenzhen Senior Technology Material Co., LTD at its Annual General Meeting held on 17 May 2023 approved the final cash dividend of CNY 1.00000000 per 10 shares (tax included) for 2022. Price Target Changed • Apr 29
Price target decreased by 11% to CN¥25.25 Down from CN¥28.25, the current price target is an average from 8 analysts. New target price is 47% above last closing price of CN¥17.23. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥0.90 for next year compared to CN¥0.60 last year. Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥0.60 (vs CN¥0.26 in FY 2021) Full year 2022 results: EPS: CN¥0.60 (up from CN¥0.26 in FY 2021). Revenue: CN¥2.88b (up 55% from FY 2021). Net income: CN¥719.3m (up 154% from FY 2021). Profit margin: 25% (up from 15% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 34% 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 73% 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 • Nov 04
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥21.38, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 14x in the Chemicals industry in China. Total returns to shareholders of 260% over the past three years. Price Target Changed • Oct 18
Price target decreased to CN¥32.29 Down from CN¥36.43, the current price target is an average from 7 analysts. New target price is 54% above last closing price of CN¥21.03. Stock is down 40% over the past year. The company is forecast to post earnings per share of CN¥0.63 for next year compared to CN¥0.26 last year. Announcement • Oct 18
Shenzhen Senior Technology Material Co., LTD (SZSE:300568) announces an Equity Buyback for CNY 100 million worth of its shares. Shenzhen Senior Technology Material Co., LTD (SZSE:300568) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The shares will be purchased at a price not exceeding CNY 25 per share. The purpose of the program is to safeguard the interests of the majority of shareholders, enhance investor confidence, and establish and improve the company's long-term incentive mechanism. The repurchased shares will be used for the implementation of ESOP or equity incentive plan, otherwise will be cancelled if the company fails to transfer them within 36 months after the completion of the share repurchase. The program will be funded from company's own funds. The program will be valid for 3 months. Reported Earnings • Oct 17
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.19 (up from CN¥0.092 in 3Q 2021). Revenue: CN¥758.3m (up 57% from 3Q 2021). Net income: CN¥219.9m (up 118% from 3Q 2021). Profit margin: 29% (up from 21% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) also missed analyst estimates by 5.0%. Revenue is forecast to grow 38% 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 56% per year whereas the company’s share price has increased by 53% per year. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: CN¥0.17 (vs CN¥0.048 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.17 (up from CN¥0.048 in 2Q 2021). Revenue: CN¥669.8m (up 64% from 2Q 2021). Net income: CN¥200.4m (up 303% from 2Q 2021). Profit margin: 30% (up from 12% in 2Q 2021). Over the next year, revenue is forecast to grow 72%, compared to a 42% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Aug 16
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥3.24b to CN¥3.06b. EPS estimate also fell from CN¥0.67 per share to CN¥0.60 per share. Net income forecast to grow 138% next year vs 41% growth forecast for Chemicals industry in China. Consensus price target reaffirmed at CN¥36.43. Share price was steady at CN¥29.21 over the past week. Price Target Changed • Jul 07
Price target increased to CN¥33.77 Up from CN¥30.52, the current price target is an average from 9 analysts. New target price is approximately in line with last closing price of CN¥33.58. Stock is up 19% over the past year. The company is forecast to post earnings per share of CN¥0.59 for next year compared to CN¥0.26 last year. Valuation Update With 7 Day Price Move • Jun 06
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥26.90, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 17x in the Chemicals industry in China. Total returns to shareholders of 409% over the past three years. Major Estimate Revision • May 07
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from CN¥0.51 to CN¥0.70. Revenue forecast unchanged at CN¥2.98b. Net income forecast to grow 91% next year vs 40% growth forecast for Chemicals industry in China. Consensus price target up from CN¥29.57 to CN¥31.19. Share price was steady at CN¥21.51 over the past week. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: CN¥0.22 (up from CN¥0.058 in 1Q 2021). Revenue: CN¥664.4m (up 57% from 1Q 2021). Net income: CN¥167.6m (up 171% from 1Q 2021). Profit margin: 25% (up from 15% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.6%. Earnings per share (EPS) also surpassed analyst estimates by 47%. Over the next year, revenue is forecast to grow 63%, compared to a 43% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 47% per year, which means it is tracking significantly ahead of earnings growth.