Announcement • Jun 30
MLS Co., Ltd. to Report First Half, 2026 Results on Aug 28, 2026 MLS Co., Ltd. announced that they will report first half, 2026 results on Aug 28, 2026 Reported Earnings • Apr 28
Full year 2025 earnings released: CN¥1.00 loss per share (vs CN¥0.25 profit in FY 2024) Full year 2025 results: CN¥1.00 loss per share (down from CN¥0.25 profit in FY 2024). Revenue: CN¥17.4b (up 3.1% from FY 2024). Net loss: CN¥1.48b (down 495% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Apr 28
MLS Co., Ltd., Annual General Meeting, May 21, 2026 MLS Co., Ltd., Annual General Meeting, May 21, 2026, at 15:00 China Standard Time. Location: The Company's Meeting Room, Zhongshan, Guangdong China Announcement • Mar 31
MLS Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 MLS Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 New Risk • Feb 08
New major risk - Revenue and earnings growth Earnings have declined by 16% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 16% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (111% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Announcement • Dec 31
MLS Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 MLS Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.039 (vs CN¥0.062 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.039 (down from CN¥0.062 in 3Q 2024). Revenue: CN¥4.26b (up 6.3% from 3Q 2024). Net income: CN¥55.6m (down 45% from 3Q 2024). Profit margin: 1.3% (down from 2.5% in 3Q 2024). Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 27% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 1% per year. Board Change • Oct 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 2 highly experienced directors. Independent Director Zhe Mi was the last 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: Insufficient board refreshment. Announcement • Sep 30
MLS Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 MLS Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 New Risk • Aug 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.6% Last year net profit margin: 2.8% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Announcement • Jul 02
MLS Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 MLS Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Announcement • May 22
Mls Co., Ltd. Approves Final Dividend for 2024 MLS Co., Ltd. in its Annual General Meeting of 2024 on 20 May 2025 approved Cash dividend/10 shares (tax included): CNY 0.50000000. Reported Earnings • Apr 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.25 (down from CN¥0.29 in FY 2023). Revenue: CN¥16.9b (down 3.6% from FY 2023). Net income: CN¥373.8m (down 13% from FY 2023). Profit margin: 2.2% (down from 2.5% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 44%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Apr 25
MLS Co., Ltd., Annual General Meeting, May 20, 2025 MLS Co., Ltd., Annual General Meeting, May 20, 2025, at 15:00 China Standard Time. Location: The Company's Meeting Room, Zhongshan, Guangdong China Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥7.47, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 33x in the Semiconductor industry in China. Total loss to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥5.66 per share. Announcement • Mar 31
MLS Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 MLS Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥9.35, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 35x in the Semiconductor industry in China. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.28 per share. Buy Or Sell Opportunity • Jan 14
Now 24% overvalued The stock has been flat over the last 90 days, currently trading at CN¥8.13. The fair value is estimated to be CN¥6.55, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 2.8% over the last 3 years. Earnings per share has declined by 35%. Revenue is forecast to grow by 31% in 2 years. Earnings are forecast to grow by 118% in the next 2 years. Announcement • Dec 31
MLS Co., Ltd. to Report Fiscal Year 2024 Results on Apr 18, 2025 MLS Co., Ltd. announced that they will report fiscal year 2024 results on Apr 18, 2025 Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.062 (vs CN¥0.10 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.062 (down from CN¥0.10 in 3Q 2023). Revenue: CN¥4.01b (down 9.6% from 3Q 2023). Net income: CN¥100.6m (down 32% from 3Q 2023). Profit margin: 2.5% (down from 3.3% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
MLS Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 MLS Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥8.07, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 27x in the Semiconductor industry in China. Total loss to shareholders of 44% over the past three years. Announcement • Sep 14
MLS Co., Ltd. Approves Interim Cash Dividend for the Year 2024 MLS Co., Ltd. at its EGM held on September 12, 2024, approved interim cash dividend/10 shares (tax included) of CNY 3.60000000 for the year 2024. Buy Or Sell Opportunity • Sep 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to CN¥6.86. The fair value is estimated to be CN¥8.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.8% over the last 3 years. Earnings per share has declined by 37%. Revenue is forecast to grow by 22% in 2 years. Earnings are forecast to grow by 65% in the next 2 years. New Risk • Aug 30
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 212% Cash payout ratio: 96% Dividend yield: 9.3% 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. This is currently the only risk that has been identified for the company. Announcement • Aug 29
Mls Co., Ltd. Proposes Dividend for the First Half of 2024 MLS Co., Ltd. proposes Cash dividend/10 shares (tax included): CNY 3.60000000 for the first half of 2024. Reported Earnings • Aug 28
Second quarter 2024 earnings released: EPS: CN¥0.058 (vs CN¥0.047 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.058 (up from CN¥0.047 in 2Q 2023). Revenue: CN¥4.18b (down 1.2% from 2Q 2023). Net income: CN¥80.9m (up 29% from 2Q 2023). Profit margin: 1.9% (up from 1.5% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Announcement • Jun 29
MLS Co., Ltd. to Report First Half, 2024 Results on Aug 28, 2024 MLS Co., Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 Declared Dividend • May 17
Dividend increased to CN¥0.34 Dividend of CN¥0.34 is 238% higher than last year. Ex-date: 22nd May 2024 Payment date: 22nd May 2024 Dividend yield will be 3.9%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is not covered by earnings (106% earnings payout ratio). However, it is well covered by cash flows (47% cash payout ratio). The dividend has increased by an average of 14% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 17% to bring the payout ratio under control. EPS is expected to grow by 97% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • May 16
MLS Co., Ltd. Implements Final Dividend for 2023, Payable on 22 May 2024 MLS Co., Ltd. implemented final cash dividend of CNY 3.38000000 per 10 shares (tax included) for 2023. Record date is 21 May 2024. Ex-date is 22 May 2024. Payment date is 22 May 2024. Announcement • May 11
MLS Co., Ltd. Approves Cash Dividend MLS Co., Ltd. held its Annual General Meeting of 2023 on 09 May 2024, during which the following proposal(s) was/were approved Cash dividend/10 shares (tax included): CNY 3.38000000. Major Estimate Revision • May 09
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥0.53 to CN¥0.45. Revenue forecast unchanged from CN¥19.0b at last update. Net income forecast to grow 50% next year vs 56% growth forecast for Semiconductor industry in China. Consensus price target of CN¥9.20 unchanged from last update. Share price rose 2.3% to CN¥8.58 over the past week. Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.09 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.12 (up from CN¥0.09 in 1Q 2023). Revenue: CN¥4.00b (down 2.0% from 1Q 2023). Net income: CN¥181.4m (up 29% from 1Q 2023). Profit margin: 4.5% (up from 3.5% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Apr 19
MLS Co., Ltd., Annual General Meeting, May 09, 2024 MLS Co., Ltd., Annual General Meeting, May 09, 2024, at 15:00 China Standard Time. Location: The Company's Meeting Room, Zhongshan, Guangdong China Reported Earnings • Apr 18
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.29 (up from CN¥0.13 in FY 2022). Revenue: CN¥17.5b (up 6.2% from FY 2022). Net income: CN¥429.9m (up 122% from FY 2022). Profit margin: 2.5% (up from 1.2% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.4%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Apr 17
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to CN¥8.70. The fair value is estimated to be CN¥7.15, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 27%. Revenue is forecast to grow by 34% in 2 years. Earnings are forecast to grow by 561% in the next 2 years. Announcement • Mar 30
MLS Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 MLS Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 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¥6.03, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 24x in the Semiconductor industry in China. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.75 per share. Announcement • Dec 29
MLS Co., Ltd. to Report Fiscal Year 2023 Results on Apr 18, 2024 MLS Co., Ltd. announced that they will report fiscal year 2023 results on Apr 18, 2024 New Risk • Dec 22
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 13% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (99% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.13 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.13 in 3Q 2022). Revenue: CN¥4.43b (up 8.3% from 3Q 2022). Net income: CN¥147.0m (down 24% from 3Q 2022). Profit margin: 3.3% (down from 4.7% in 3Q 2022). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.047 (vs CN¥0.015 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.047 (up from CN¥0.015 in 2Q 2022). Revenue: CN¥4.23b (up 2.9% from 2Q 2022). Net income: CN¥62.9m (up 213% from 2Q 2022). Profit margin: 1.5% (up from 0.5% in 2Q 2022). Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Announcement • May 23
MLS Co., Ltd Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2022, Payable on 29 May 2023 MLS Co. Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.00000000 for the year 2022, payable on 29 May 2023. Record date is 26 May 2023. Ex-date is 29 May 2023. Announcement • May 20
MLS Co., Ltd Approves Final Cash Dividend for the Year 2022 MLS Co. Ltd. at its AGM held on 18 May 2023 approved the profit distribution proposal of final cash dividend per ten shares (tax included) of CNY 1.00000000 for the year 2022. Reported Earnings • Apr 18
Full year 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.78 in FY 2021) Full year 2022 results: EPS: CN¥0.13 (down from CN¥0.78 in FY 2021). Revenue: CN¥16.5b (down 11% from FY 2021). Net income: CN¥193.9m (down 83% from FY 2021). Profit margin: 1.2% (down from 6.2% in FY 2021). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. 3 highly experienced directors. Chairman of the Supervisory Board Yu Shan Lin is the most experienced director on the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Nov 01
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. 3 highly experienced directors. Chairman of the Supervisory Board Yu Shan Lin is the most experienced director on the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.19 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.13 (down from CN¥0.19 in 3Q 2021). Revenue: CN¥4.09b (down 5.4% from 3Q 2021). Net income: CN¥192.4m (down 34% from 3Q 2021). Profit margin: 4.7% (down from 6.7% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Buying Opportunity • Oct 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be CN¥10.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 52% in 2 years. Earnings is forecast to grow by 177% in the next 2 years. Board Change • Oct 02
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. 3 highly experienced directors. Chairman of the Supervisory Board Yu Shan Lin is the most experienced director on the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥8.95, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 32x in the Semiconductor industry in China. Total loss to shareholders of 15% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.58 per share. Buying Opportunity • Sep 16
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 4.0%. The fair value is estimated to be CN¥11.69, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 11%. Revenue is forecast to grow by 52% in 2 years. Earnings is forecast to grow by 177% in the next 2 years. Announcement • Sep 03
MLS Co., Ltd Announces Management Appointments MLS Co. Ltd. at its Extraordinary General Meeting of 2022 on 01 September 2022, elected Sun Qinghuan; Zhou Lihong; and Li Guanqun as non-independent directors. Mi Zhe and Ye Lei were appointed as independent directors. Yan Ling and An Hui were also elected as non-employee supervisors. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.015 (vs CN¥0.24 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.015 (down from CN¥0.24 in 2Q 2021). Revenue: CN¥4.11b (down 12% from 2Q 2021). Net income: CN¥20.1m (down 94% from 2Q 2021). Profit margin: 0.5% (down from 7.5% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 32%, compared to a 49% growth forecast for the Semiconductor industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥12.06, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 41x in the Semiconductor industry in China. Total returns to shareholders of 17% over the past three years. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥10.05, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 39x in the Semiconductor industry in China. Total loss to shareholders of 13% over the past three years. Board Change • May 24
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. 3 non-independent directors. Independent Director Guo Yao Chen was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 21
MLS Co., Ltd Announces 2021 Final Profit Distribution Plan to Be Implemented (A Shares), Payable on May 27, 2022 MLS Co. Ltd. announced 2021 final profit distribution plan to be implemented (A shares), payable on May 27, 2022. The company announced Cash dividend/10 shares (tax included) of CNY 1.38000000 with record date May 26, 2022 and ex-dividend date May 27, 2022. Announcement • May 20
MLS Co., Ltd Approves Cash Dividend for 2021 MLS Co. Ltd. held its Annual General Meeting of 2021 on May 18, 2022, approved cash dividend (tax included) of CNY 1.38000000 per 10 shares for 2021. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.20 in 1Q 2021). Revenue: CN¥3.99b (down 11% from 1Q 2021). Net income: CN¥181.9m (down 39% from 1Q 2021). Profit margin: 4.6% (down from 6.6% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 14%. Over the next year, revenue is forecast to grow 26%, compared to a 44% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 08
Consensus revenue estimates fall by 11% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥24.3b to CN¥21.6b. EPS estimate fell from CN¥1.12 to CN¥1.03 per share. Net income forecast to grow 32% next year vs 45% growth forecast for Semiconductor industry in China. Consensus price target down from CN¥16.84 to CN¥16.31. Share price fell 7.2% to CN¥10.88 over the past week. Announcement • Apr 02
MLS Co., Ltd, Annual General Meeting, May 18, 2022 MLS Co., Ltd, Annual General Meeting, May 18, 2022, at 15:00 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual report and its summary; to consider 2021 annual accounts; to consider reappointment of 2022 audit firm; to consider 2021 special report on the deposit and use of raised funds; to consider 2021 profit distribution plan; to consider launching financial leasing business; to consider 2022 entrusted wealth management with proprietary funds; to consider 2022 estimated external guarantee quota; and to consider Connected transaction regarding loans from the controlling shareholder. Announcement • Mar 31
MLS Co., Ltd Announces Final Profit Distribution Proposal for 2021 MLS Co. Ltd. announced on 30 March 2022 the final profit distribution proposal for 2021 as follows: Cash dividend/10 shares (tax included): CNY 1.38000000. Reported Earnings • Mar 11
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.78 (up from CN¥0.22 in FY 2020). Revenue: CN¥18.6b (up 7.1% from FY 2020). Net income: CN¥1.16b (up 284% from FY 2020). Profit margin: 6.2% (up from 1.7% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 30%, compared to a 54% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 5% per year. Price Target Changed • Dec 01
Price target decreased to CN¥15.30 Down from CN¥20.48, the current price target is an average from 4 analysts. New target price is 10% below last closing price of CN¥17.04. Stock is up 9.2% over the past year. The company is forecast to post earnings per share of CN¥0.85 for next year compared to CN¥0.22 last year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.19 (vs CN¥0.35 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥4.33b (down 6.0% from 3Q 2020). Net income: CN¥290.6m (down 37% from 3Q 2020). Profit margin: 6.7% (down from 10.0% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Aug 25
Second quarter 2021 earnings released: EPS CN¥0.24 (vs CN¥0.09 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥4.65b (up 38% from 2Q 2020). Net income: CN¥349.5m (up 196% from 2Q 2020). Profit margin: 7.5% (up from 3.5% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • May 21
MLS Co., Ltd Approves Final Cash Dividend for 2020 MLS Co. Ltd. at its annual general meeting of 2020 on 19 May 2021, approved final cash dividend of CNY 1.26000000 per 10 shares (tax included) for 2020. Major Estimate Revision • May 08
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from CN¥18.2b to CN¥19.6b. EPS estimate fell from CN¥0.94 to CN¥0.82 per share. Net income forecast to grow 163% next year vs 47% growth forecast for Semiconductor industry in China. Consensus price target of CN¥20.48 unchanged from last update. Share price rose 2.1% to CN¥13.37 over the past week. Announcement • Apr 29
MLS Co. Ltd. Announces Profit Distribution Proposal for 2020 MLS Co. Ltd. announced profit distribution proposal for 2020 a cash dividend of CNY 1.26000000 per 10 share (tax included). Reported Earnings • Apr 29
First quarter 2021 earnings released: EPS CN¥0.20 (vs CN¥0.09 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥4.47b (up 19% from 1Q 2020). Net income: CN¥296.5m (up 165% from 1Q 2020). Profit margin: 6.6% (up from 3.0% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Feb 06
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from CN¥1.12 to CN¥0.94. Revenue estimate was approximately flat at CN¥20.9b. Net income is expected to grow by 312% next year compared to 50% growth forecast for the Semiconductor industry in China. The consensus price target increased from CN¥20.34 to CN¥20.48. Share price is down by 22% to CN¥12.47 over the past week. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment deteriorated over the past week After last week's 24% share price decline to CN¥12.88, the stock is trading at a trailing P/E ratio of 56x, down from the previous P/E ratio of 73.9x. This compares to an average P/E of 67x in the Semiconductor industry in China. Total return to shareholders over the past three years is a loss of 31%. Is New 90 Day High Low • Feb 03
New 90-day low: CN¥12.90 The company is down 3.0% from its price of CN¥13.24 on 05 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 Semiconductor industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.25 per share. Reported Earnings • Jan 30
Full year 2020 earnings released: EPS CN¥0.23 (vs CN¥0.38 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥16.7b (down 12% from FY 2019). Net income: CN¥312.9m (down 36% from FY 2019). Profit margin: 1.9% (down from 2.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Revenue and earnings miss expectations Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) also missed analyst estimates by 69%. Over the next year, revenue is forecast to grow 25%, compared to a 43% growth forecast for the Semiconductor industry in China. Is New 90 Day High Low • Jan 13
New 90-day high: CN¥15.61 The company is up 14% from its price of CN¥13.66 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.37 per share. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥491.7m, down 39% from the prior year. Total revenue was CN¥16.4b over the last 12 months, down 18% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 30
Annual earnings released: Earnings beat expectations Earnings per share (EPS) surpassed analyst estimates by 25% at CN¥0.35. Revenue is forecast to grow 21% over the next year, compared to a 37% growth forecast for the Semiconductor industry in China. Is New 90 Day High Low • Oct 21
New 90-day low: CN¥13.24 The company is down 23% from its price of CN¥17.13 on 23 July 2020. The Chinese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is down 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.16 per share. Is New 90 Day High Low • Sep 25
New 90-day low: CN¥14.72 The company is down 8.0% from its price of CN¥16.07 on 24 June 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.12 per share.