China Resources Microelectronics (SHSE:688396) - Share price, News & Analysis

688396 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

688396 Stock Overview

China Resources Microelectronics Limited, an investment holding company, engages in the open foundry, integrated circuits (IC) design, IC testing and packaging, and discrete device businesses.

Rewards

PE ratio (26.7x) is below the CN market (30.4x)

Earnings are forecast to grow 15.68% per year

Earnings grew by 99% over the past year

Risk Analysis

No risks detected for 688396 from our risk checks.

China Resources Microelectronics Competitors

Taiwan Semiconductor Manufacturing

TWSE:2330

NT$13.3t

United Microelectronics

TWSE:2303

NT$609.8b

Semiconductor Manufacturing International

SEHK:981

HK$126.4b

Episil Holding

TPEX:3707

NT$37.5b

Price History & Performance

Summary of all time highs, changes and price drops for China Resources Microelectronics
Historical stock prices
Current Share Price	CN¥50.28
52 Week High	CN¥104.47
52 Week Low	CN¥43.60
Beta	1.48
1 Month Change	4.32%
3 Month Change	-10.95%
1 Year Change	-16.09%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	19.69%

Shareholder Returns

	688396	CN Semiconductor	CN Market
7D	6.8%	7.3%	3.6%
1Y	-16.1%	9.8%	-14.6%

Return vs Industry: 688396 underperformed the CN Semiconductor industry which returned 9.8% over the past year.

Return vs Market: 688396 underperformed the CN Market which returned -14.6% over the past year.

Price Volatility

Is 688396's price volatile compared to industry and market?
688396 volatility
688396 Average Weekly Movement	6.2%
Semiconductor Industry Average Movement	7.9%
Market Average Movement	7.3%
10% most volatile stocks in CN Market	10.3%
10% least volatile stocks in CN Market	5.3%

Stable Share Price: 688396 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 688396's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	8,989	Hong Li	https://www.crmicro.com

China Resources Microelectronics Limited, an investment holding company, engages in the open foundry, integrated circuits (IC) design, IC testing and packaging, and discrete device businesses. The company provides IC manufacturing services for fables design houses and integrated device manufacturers. It also offers analog and power process technologies, including mixed signal, complementary metal-oxide-semiconductor (CMOS) logic, planar and trench double diffused metal oxide semiconductor (DMOS), an integration of bipolar and CMOS technology (BiCMOS), and DMOS devices (BCDMOS).

China Resources Microelectronics Fundamentals Summary

How do China Resources Microelectronics's earnings and revenue compare to its market cap?
688396 fundamental statistics
Market Cap	CN¥66.37b
Earnings (TTM)	CN¥2.49b
Revenue (TTM)	CN¥9.72b

26.7x

P/E Ratio

6.8x

P/S Ratio

Is 688396 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
688396 income statement (TTM)
Revenue	CN¥9.72b
Cost of Revenue	CN¥6.15b
Gross Profit	CN¥3.57b
Other Expenses	CN¥1.08b
Earnings	CN¥2.49b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.88
Gross Margin	36.73%
Net Profit Margin	25.59%
Debt/Equity Ratio	5.4%

How did 688396 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

9%

Payout Ratio

Valuation

Is China Resources Microelectronics undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

26.68x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 688396 (CN¥50.28) is trading above our estimate of fair value (CN¥5.35)

Significantly Below Fair Value: 688396 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 688396 is good value based on its PE Ratio (26.7x) compared to the CN Semiconductor industry average (44.8x).

PE vs Market: 688396 is good value based on its PE Ratio (26.7x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 688396 is poor value based on its PEG Ratio (1.7x)

Price to Book Ratio

PB vs Industry: 688396 is good value based on its PB Ratio (3.7x) compared to the CN Semiconductor industry average (4.3x).

Future Growth

How is China Resources Microelectronics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

15.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 688396's forecast earnings growth (15.7% per year) is above the savings rate (3.3%).

Earnings vs Market: 688396's earnings (15.7% per year) are forecast to grow slower than the CN market (23.7% per year).

High Growth Earnings: 688396's earnings are forecast to grow, but not significantly.

Revenue vs Market: 688396's revenue (20.2% per year) is forecast to grow faster than the CN market (17.2% per year).

High Growth Revenue: 688396's revenue (20.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 688396's Return on Equity is forecast to be low in 3 years time (13.1%).

Past Performance

How has China Resources Microelectronics 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

51.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 688396 has high quality earnings.

Growing Profit Margin: 688396's current net profit margins (25.6%) are higher than last year (16.4%).

Past Earnings Growth Analysis

Earnings Trend: 688396 has become profitable over the past 5 years, growing earnings by 51.2% per year.

Accelerating Growth: 688396's earnings growth over the past year (99%) exceeds its 5-year average (51.2% per year).

Earnings vs Industry: 688396 earnings growth over the past year (99%) exceeded the Semiconductor industry 66.5%.

Return on Equity

High ROE: 688396's Return on Equity (13.6%) is considered low.

Financial Health

How is China Resources Microelectronics'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: 688396's short term assets (CN¥15.6B) exceed its short term liabilities (CN¥4.0B).

Long Term Liabilities: 688396's short term assets (CN¥15.6B) exceed its long term liabilities (CN¥1.2B).

Debt to Equity History and Analysis

Debt Level: 688396 has more cash than its total debt.

Reducing Debt: 688396's debt to equity ratio has reduced from 6.4% to 5.4% over the past 5 years.

Debt Coverage: 688396's debt is well covered by operating cash flow (384%).

Interest Coverage: 688396 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is China Resources Microelectronics's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

0.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 688396's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.54%).

High Dividend: 688396's dividend (0.34%) is low compared to the top 25% of dividend payers in the CN market (2.13%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 688396 has been paying a dividend for less than 10 years.

Growing Dividend: 688396's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.1%), 688396's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.8%), 688396's dividend payments are thoroughly covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

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

0.7yrs

Average management tenure

CEO

Hong Li

0.083

Tenure

Mr. Hong Li is President & Director of China Resources Microelectronics Limited from April 2022. He was COO & Director of China Resources Microelectronics Limited until April 2022. He is General Manager of...

Leadership Team

Experienced Management: 688396's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.

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	2022/05/14 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31