JCET Group (SHSE:600584) - Share price, News & Analysis

Q: What is the Fair Price of 600584 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

600584 (CN¥27) is trading below our estimate of [[fair value]] (CN¥32.68)

600584 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

600584 Stock Overview

JCET Group Co., Ltd. provides integrated-circuit manufacturing and technology services worldwide.

Rewards

Trading at 17.4% below our estimate of its fair value

Earnings are forecast to grow 11.28% per year

Earnings grew by 120.6% over the past year

Risk Analysis

Unstable dividend track record

JCET Group Competitors

3Peak

SHSE:688536

CN¥45.1b

Montage Technology

SHSE:688008

CN¥68.6b

GalaxyCore

SHSE:688728

CN¥51.3b

Suzhou Novosense Microelectronics

SHSE:688052

CN¥38.3b

Price History & Performance

Summary of all time highs, changes and price drops for JCET Group
Historical stock prices
Current Share Price	CN¥27.00
52 Week High	CN¥43.00
52 Week Low	CN¥19.49
Beta	1.0
1 Month Change	11.57%
3 Month Change	10.20%
1 Year Change	-28.17%
3 Year Change	117.39%
5 Year Change	61.00%
Change since IPO	528.82%

Shareholder Returns

	600584	CN Semiconductor	CN Market
7D	8.2%	4.9%	3.2%
1Y	-28.2%	-6.6%	-10.1%

Return vs Industry: 600584 underperformed the CN Semiconductor industry which returned -6.6% over the past year.

Return vs Market: 600584 underperformed the CN Market which returned -10.1% over the past year.

Price Volatility

Is 600584's price volatile compared to industry and market?
600584 volatility
600584 Average Weekly Movement	6.0%
Semiconductor Industry Average Movement	8.2%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.1%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 600584 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 600584's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	23,255	Zheng Li	https://www.jcetglobal.com

JCET Group Co., Ltd. provides integrated-circuit manufacturing and technology services worldwide. The company offers wafer level packaging, system-in-packaging, flip chip, and wire bonding products for various semiconductor applications, such as mobile, communication, compute, consumer, automotive, industry, etc. It also provides design and characterization, research and development, wafer probe, water bump, package assembly, shipment, and test services. The company was formerly known as Jiangsu Changjiang Electronics Technology Co., Ltd.

JCET Group Fundamentals Summary

How do JCET Group's earnings and revenue compare to its market cap?
600584 fundamental statistics
Market Cap	CN¥47.96b
Earnings (TTM)	CN¥3.43b
Revenue (TTM)	CN¥31.93b

14.0x

P/E Ratio

1.5x

P/S Ratio

Is 600584 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
600584 income statement (TTM)
Revenue	CN¥31.93b
Cost of Revenue	CN¥25.95b
Gross Profit	CN¥5.98b
Other Expenses	CN¥2.54b
Earnings	CN¥3.43b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.93
Gross Margin	18.72%
Net Profit Margin	10.76%
Debt/Equity Ratio	30.6%

How did 600584 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 600584 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600584?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 600584. This is calculated by dividing 600584's market cap by their current preferred multiple.
What is 600584's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥47.96b

600584 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	7.1x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 600584's PE Ratio compare to its peers?

600584 PE Ratio vs Peers

The above table shows the PE ratio for 600584 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	82x
688536 3Peak	89.4x	35.4%	CN¥45.1b
688008 Montage Technology	68.6x	38.2%	CN¥68.6b
688728 GalaxyCore	42.4x	22.1%	CN¥51.3b
688052 Suzhou Novosense Microelectronics	141.4x	40.4%	CN¥38.3b
600584 JCET Group	14x	11.3%	CN¥48.0b

Forward PE

Price-To-Earnings vs Peers: 600584 is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (85.4x).

Price to Earnings Ratio vs Industry

How does 600584's PE Ratio compare vs other companies in the CN Semiconductor Industry?

Price-To-Earnings vs Industry: 600584 is good value based on its Price-To-Earnings Ratio (14x) compared to the CN Semiconductor industry average (54.1x)

Price to Earnings Ratio vs Fair Ratio

What is 600584's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600584 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14x
Fair PE Ratio	30x

Price-To-Earnings vs Fair Ratio: 600584 is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (30x).

Share Price vs Fair Value

What is the Fair Price of 600584 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600584 (CN¥27) is trading below our estimate of fair value (CN¥32.68)

Significantly Below Fair Value: 600584 is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: 600584 is poor value based on its PEG Ratio (1.2x)

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600584's forecast earnings growth (11.3% per year) is above the savings rate (3.2%).

Earnings vs Market: 600584's earnings (11.3% per year) are forecast to grow slower than the CN market (23.9% per year).

High Growth Earnings: 600584's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600584's revenue (10.3% per year) is forecast to grow slower than the CN market (17.5% per year).

High Growth Revenue: 600584's revenue (10.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 600584's Return on Equity is forecast to be low in 3 years time (13.7%).

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Past Performance

How has JCET Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

57.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 600584 has high quality earnings.

Growing Profit Margin: 600584's current net profit margins (10.8%) are higher than last year (5.7%).

Past Earnings Growth Analysis

Earnings Trend: 600584's earnings have grown significantly by 57% per year over the past 5 years.

Accelerating Growth: 600584's earnings growth over the past year (120.6%) exceeds its 5-year average (57% per year).

Earnings vs Industry: 600584 earnings growth over the past year (120.6%) exceeded the Semiconductor industry 68.3%.

Return on Equity

High ROE: 600584's Return on Equity (15.7%) is considered low.

Discover strong past performing companies

Financial Health

How is JCET Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 600584's short term assets (CN¥13.5B) exceed its short term liabilities (CN¥10.3B).

Long Term Liabilities: 600584's short term assets (CN¥13.5B) exceed its long term liabilities (CN¥4.8B).

Debt to Equity History and Analysis

Debt Level: 600584's net debt to equity ratio (4%) is considered satisfactory.

Reducing Debt: 600584's debt to equity ratio has reduced from 168.9% to 30.6% over the past 5 years.

Debt Coverage: 600584's debt is well covered by operating cash flow (117.7%).

Interest Coverage: 600584 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is JCET Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 600584's dividend (0.74%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 600584's dividend (0.74%) is low compared to the top 25% of dividend payers in the CN market (1.94%).

Stability and Growth of Payments

Stable Dividend: 600584 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 600584's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (10.3%), 600584's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.1%), 600584's dividend payments are thoroughly covered by cash flows.

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Management

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

2.7yrs

Average management tenure

CEO

Zheng Li (54 yo)

2.75yrs

Tenure

CN¥11,722,700

Compensation

Mr. Zheng Li serves as Chief Executive Officer at JCET Group Co., Ltd. (formerly known as Jiangsu Changjiang Electronics Technology Co., Ltd.) since September 9, 2019 and also serves as it's Director since...

Leadership Team

Experienced Management: 600584's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: 600584's board of directors are considered experienced (3.1 years average tenure).

Ownership

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

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31