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Sanan Optoelectronics

Market Cap

CN¥104.4b

Last Updated

2021/04/14 09:05 UTC

Data Sources

Company Financials +

Executive Summary

Sanan Optoelectronics Co., Ltd. engages in the research, development, production, and marketing of LED epitaxial wafers and chips, compound solar cells, compound semiconductors, semiconductor and communication chips, and sapphire substrates in China and internationally. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 600703 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 600703's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.


Market Performance


7 Day Return

-4.8%

600703

-5.6%

CN Semiconductor

-3.2%

CN Market


1 Year Return

12.1%

600703

34.6%

CN Semiconductor

24.0%

CN Market

Return vs Industry: 600703 underperformed the CN Semiconductor industry which returned 34.6% over the past year.

Return vs Market: 600703 underperformed the CN Market which returned 24% over the past year.


Shareholder returns

600703IndustryMarket
7 Day-4.8%-5.6%-3.2%
30 Day-10.2%-1.6%-1.5%
90 Day-31.1%-18.4%-7.4%
1 Year12.5%12.1%35.0%34.6%25.9%24.0%
3 Year7.2%3.6%96.5%89.5%26.6%20.5%
5 Year110.7%98.9%115.6%106.8%22.2%14.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600703 (CN¥23.76) is trading below our estimate of fair value (CN¥111.54)

Significantly Below Fair Value: 600703 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 600703 is poor value based on its PE Ratio (91.4x) compared to the CN Semiconductor industry average (61.2x).

PE vs Market: 600703 is poor value based on its PE Ratio (91.4x) compared to the CN market (32.8x).


Price to Earnings Growth Ratio

PEG Ratio: 600703 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 600703 is good value based on its PB Ratio (3.6x) compared to the CN Semiconductor industry average (4.9x).


Future Growth

How is Sanan Optoelectronics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600703's forecast earnings growth (42% per year) is above the savings rate (3.3%).

Earnings vs Market: 600703's earnings (42% per year) are forecast to grow faster than the CN market (23.4% per year).

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

Revenue vs Market: 600703's revenue (22.8% per year) is forecast to grow faster than the CN market (17.9% per year).

High Growth Revenue: 600703's revenue (22.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600703's Return on Equity is forecast to be low in 3 years time (9.4%).


Past Performance

How has Sanan Optoelectronics performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600703 has a large one-off gain of CN¥1.0B impacting its September 30 2020 financial results.

Growing Profit Margin: 600703's current net profit margins (13.5%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: 600703's earnings have declined by 5.9% per year over the past 5 years.

Accelerating Growth: 600703's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600703 had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Semiconductor industry average (38.1%).


Return on Equity

High ROE: 600703's Return on Equity (3.7%) is considered low.


Financial Health

How is Sanan Optoelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: 600703's short term assets (CN¥16.7B) exceed its short term liabilities (CN¥5.2B).

Long Term Liabilities: 600703's short term assets (CN¥16.7B) exceed its long term liabilities (CN¥4.2B).


Debt to Equity History and Analysis

Debt Level: 600703's debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: 600703's debt to equity ratio has reduced from 21.6% to 11.4% over the past 5 years.

Debt Coverage: 600703's debt is well covered by operating cash flow (41.6%).

Interest Coverage: 600703's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Dividend

What is Sanan Optoelectronics's current dividend yield, its reliability and sustainability?

0.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600703's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 600703's dividend (0.42%) is low compared to the top 25% of dividend payers in the CN market (1.84%).


Stability and Growth of Payments

Stable Dividend: 600703's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600703's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), 600703's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Ke Chuang Lin

3.75yrs

Tenure

CN¥1,200,000

Compensation

Mr. Ke Chuang Lin has been General Manager and Vice Chairman of the Board at Sanan Optoelectronics Co.,Ltd since July 10, 2017.


Leadership Team

Experienced Management: 600703's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: 600703's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 9.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Sanan Optoelectronics Co., Ltd.
  • Ticker: 600703
  • Exchange: SHSE
  • Founded: 2000
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: CN¥104.422b
  • Shares outstanding: 4.45b
  • Website: https://www.sanan-e.com

Number of Employees


Location

  • Sanan Optoelectronics Co., Ltd.
  • NO.1721-1725 Lvling Road
  • Xiamen
  • Fujian Province
  • China

Listings


Biography

Sanan Optoelectronics Co., Ltd. engages in the research, development, production, and marketing of LED epitaxial wafers and chips, compound solar cells, compound semiconductors, semiconductor and communica...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 09:05
End of Day Share Price2021/04/14 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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