Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥69.98, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 136% over the past three years. Announcement • Jun 30
Red Avenue New Materials Group Co., Ltd. to Report First Half, 2026 Results on Aug 20, 2026 Red Avenue New Materials Group Co., Ltd. announced that they will report first half, 2026 results on Aug 20, 2026 New Risk • Jun 26
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 8.8% 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 Risk Debt is not well covered by operating cash flow (8.5% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.8% average weekly change). Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥50.89, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 54% over the past three years. Declared Dividend • May 31
Dividend of CN¥0.50 announced Shareholders will receive a dividend of CN¥0.50. 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 earnings (51% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 5.7% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 87% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • May 20
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. 10 experienced directors. 2 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Shengwu Wu was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 17
Red Avenue New Materials Group Co., Ltd., Annual General Meeting, May 08, 2026 Red Avenue New Materials Group Co., Ltd., Annual General Meeting, May 08, 2026, at 14:00 China Standard Time. Location: 25F, No. 501, Yincheng Middle Road, Pudong New Area, Shanghai China Announcement • Mar 30
Red Avenue New Materials Group Co., Ltd. to Report Q1, 2026 Results on Apr 18, 2026 Red Avenue New Materials Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 18, 2026 Announcement • Dec 26
Red Avenue New Materials Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 18, 2026 Red Avenue New Materials Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 18, 2026 Announcement • Sep 30
Red Avenue New Materials Group Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Red Avenue New Materials Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Announcement • Jun 30
Red Avenue New Materials Group Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Red Avenue New Materials Group Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Announcement • Mar 28
Red Avenue New Materials Group Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Red Avenue New Materials Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Announcement • Dec 27
Red Avenue New Materials Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 18, 2025 Red Avenue New Materials Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 18, 2025 Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥38.00, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 43% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥31.79, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 35% over the past three years. Announcement • Sep 30
Red Avenue New Materials Group Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Red Avenue New Materials Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 New Risk • Aug 31
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 353% Dividend yield: 1.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (8.5% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 353% Reported Earnings • Aug 22
Second quarter 2024 earnings released: EPS: CN¥0.28 (vs CN¥0.24 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.28 (up from CN¥0.24 in 2Q 2023). Revenue: CN¥793.9m (up 13% from 2Q 2023). Net income: CN¥168.7m (up 20% from 2Q 2023). Profit margin: 21% (up from 20% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% 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 9% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Announcement • Jun 28
Red Avenue New Materials Group Co., Ltd. to Report First Half, 2024 Results on Aug 22, 2024 Red Avenue New Materials Group Co., Ltd. announced that they will report first half, 2024 results on Aug 22, 2024 Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥31.59, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 17x in the Chemicals industry in China. Total loss to shareholders of 26% over the past three years. New Risk • Apr 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 7.3% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 27
Full year 2023 earnings released: EPS: CN¥0.68 (vs CN¥0.50 in FY 2022) Full year 2023 results: EPS: CN¥0.68 (up from CN¥0.50 in FY 2022). Revenue: CN¥2.94b (up 18% from FY 2022). Net income: CN¥406.6m (up 36% from FY 2022). Profit margin: 14% (up from 12% in FY 2022). The increase in margin was driven by higher revenue. 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 fallen by 8% per year whereas the company’s share price has fallen by 3% per year. Announcement • Apr 26
Red Avenue New Materials Group Co., Ltd., Annual General Meeting, May 15, 2024 Red Avenue New Materials Group Co., Ltd., Annual General Meeting, May 15, 2024, at 14:00 China Standard Time. Location: 25F, No. 501, Yincheng Middle Road, Pudong New Area, Shanghai China Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥28.92, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 11% over the past three years. Announcement • Mar 29
Red Avenue New Materials Group Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Red Avenue New Materials Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Feb 08
Red Avenue New Materials Group Co., Ltd. (SHSE:603650) announces an Equity Buyback for CNY 120 million worth of its shares. Red Avenue New Materials Group Co., Ltd. (SHSE:603650) announces a share repurchase program. Under the program, the company will repurchase up to CNY 120 million worth of its shares. The shares will be repurchased at no more than CNY 40 per share. The purpose of the program is to use repurchased shares for equity incentives. The program will be funded from company's own funds. The plan will be valid for 12 months. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥20.82, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 12x in the Chemicals industry in China. Total loss to shareholders of 34% over the past three years. Announcement • Dec 30
Red Avenue New Materials Group Co., Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 Red Avenue New Materials Group Co., Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 New Risk • Nov 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 6.3% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Share price has been volatile over the past 3 months (6.3% average weekly change). Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.21 (vs CN¥0.092 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.21 (up from CN¥0.092 in 3Q 2022). Revenue: CN¥826.2m (up 23% from 3Q 2022). Net income: CN¥126.9m (up 125% from 3Q 2022). Profit margin: 15% (up from 8.4% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 4% per year. Reported Earnings • Aug 23
Second quarter 2023 earnings released: EPS: CN¥0.24 (vs CN¥0.19 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.24 (up from CN¥0.19 in 2Q 2022). Revenue: CN¥703.9m (up 17% from 2Q 2022). Net income: CN¥140.3m (up 25% from 2Q 2022). Profit margin: 20% (up from 19% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 5% per year. Announcement • Jun 28
Red Avenue New Materials Group Co., Ltd. to Report Q2, 2023 Results on Aug 23, 2023 Red Avenue New Materials Group Co., Ltd. announced that they will report Q2, 2023 results on Aug 23, 2023 Reported Earnings • Apr 12
Full year 2022 earnings released: EPS: CN¥0.50 (vs CN¥0.55 in FY 2021) Full year 2022 results: EPS: CN¥0.50 (down from CN¥0.55 in FY 2021). Revenue: CN¥2.50b (up 8.3% from FY 2021). Net income: CN¥298.2m (down 8.7% from FY 2021). Profit margin: 12% (down from 14% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 22% p.a. on average during the next 2 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 5% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 18
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥38.94, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 15x in the Chemicals industry in China. Total returns to shareholders of 146% over the past three years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 5 non-independent directors. Independent Director Hwangyuh Chang was the last independent director to join the board, commencing their role in 2016. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.092 (vs CN¥0.068 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.092 (up from CN¥0.068 in 3Q 2021). Revenue: CN¥670.6m (up 24% from 3Q 2021). Net income: CN¥56.5m (up 45% from 3Q 2021). Profit margin: 8.4% (up from 7.2% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 24% 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 6% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥33.01, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 15x in the Chemicals industry in China. Total returns to shareholders of 91% over the past three years. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥34.12, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 17x in the Chemicals industry in China. Total returns to shareholders of 73% over the past three years. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.19 (vs CN¥0.15 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.19 (up from CN¥0.15 in 2Q 2021). Revenue: CN¥604.2m (up 1.1% from 2Q 2021). Net income: CN¥111.9m (up 22% from 2Q 2021). Profit margin: 19% (up from 15% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Over the next year, revenue is forecast to grow 58%, compared to a 41% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥31.79, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 72% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥31.85, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 58% over the past three years. Reported Earnings • Apr 29
First quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.25 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.25 in 1Q 2021). Revenue: CN¥572.0m (flat on 1Q 2021). Net income: CN¥72.0m (down 51% from 1Q 2021). Profit margin: 13% (down from 25% in 1Q 2021). Over the next year, revenue is forecast to grow 55%, compared to a 42% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • Apr 16
Full year 2021 earnings released: EPS: CN¥0.55 (vs CN¥0.70 in FY 2020) Full year 2021 results: EPS: CN¥0.55 (down from CN¥0.70 in FY 2020). Revenue: CN¥2.31b (up 13% from FY 2020). Net income: CN¥326.6m (down 20% from FY 2020). Profit margin: 14% (down from 20% in FY 2020). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 48%, compared to a 51% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥41.72, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 113% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.068 (vs CN¥0.25 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥542.3m (down 2.7% from 3Q 2020). Net income: CN¥38.9m (down 74% from 3Q 2020). Profit margin: 7.2% (down from 27% in 3Q 2020). The decrease in margin was primarily driven by higher expenses. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥56.45, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 50% over the past year. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥52.45, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 21x in the Chemicals industry in China. Total returns to shareholders of 63% over the past year. Reported Earnings • Aug 19
Second quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.20 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥597.5m (up 23% from 2Q 2020). Net income: CN¥91.6m (down 21% from 2Q 2020). Profit margin: 15% (down from 24% in 2Q 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥64.25, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 84% over the past year. Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥58.28, the stock trades at a forward P/E ratio of 56x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 88% over the past year. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥47.36, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 18x in the Chemicals industry in China. Total returns to shareholders of 114% over the past year. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥37.47, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 19x in the Chemicals industry in China. Total returns to shareholders of 114% over the past year. Reported Earnings • Apr 18
Full year 2020 earnings released: EPS CN¥0.70 (vs CN¥0.56 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: CN¥2.05b (down 7.3% from FY 2019). Net income: CN¥410.5m (up 24% from FY 2019). Profit margin: 20% (up from 15% in FY 2019). The increase in margin was driven by lower expenses. Is New 90 Day High Low • Feb 25
New 90-day high: CN¥38.63 The company is up 4.0% from its price of CN¥37.00 on 27 November 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.72 per share. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥36.63, the stock is trading at a trailing P/E ratio of 65.4x, up from the previous P/E ratio of 56.6x. This compares to an average P/E of 35x in the Chemicals industry in China. Total returns to shareholders over the past year are 114%. Is New 90 Day High Low • Jan 29
New 90-day low: CN¥29.10 The company is down 25% from its price of CN¥38.69 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 22% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.35 per share. Is New 90 Day High Low • Dec 16
New 90-day low: CN¥31.52 The company is down 1.0% from its price of CN¥31.79 on 18 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.14 per share. Is New 90 Day High Low • Nov 04
New 90-day high: CN¥39.09 The company is up 8.0% from its price of CN¥36.36 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 Chemicals industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.58 per share. Reported Earnings • Oct 26
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥331.6m, down 21% from the prior year. Total revenue was CN¥2.07b over the last 12 months, down 5.2% from the prior year. Reported Earnings • Oct 23
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥331.6m, down 21% from the prior year. Total revenue was CN¥2.07b over the last 12 months, down 5.2% from the prior year. Is New 90 Day High Low • Oct 13
New 90-day high: CN¥37.80 The company is up 13% from its price of CN¥33.37 on 15 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.57 per share. 
