Declared Dividend • May 23
Dividend reduced to CN¥0.02 Dividend of CN¥0.02 is 67% lower than last year. Ex-date: 28th May 2026 Payment date: 28th May 2026 Dividend yield will be 0.1%, which is lower than the industry average of 0.8%. Reported Earnings • Apr 29
Full year 2025 earnings released: CN¥0.42 loss per share (vs CN¥0.21 profit in FY 2024) Full year 2025 results: CN¥0.42 loss per share (down from CN¥0.21 profit in FY 2024). Revenue: CN¥7.18b (down 1.4% from FY 2024). Net loss: CN¥759.2m (down 299% from profit in FY 2024). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Apr 29
Beijing Sinnet Technology Co.,Ltd, Annual General Meeting, May 19, 2026 Beijing Sinnet Technology Co.,Ltd, Annual General Meeting, May 19, 2026, at 14:00 China Standard Time. Location: 3F, Tower A, No. 9, Dongzhong Street, Dongcheng District, Beijing China Announcement • Mar 31
Beijing Sinnet Technology Co.,Ltd to Report Q1, 2026 Results on Apr 29, 2026 Beijing Sinnet Technology Co.,Ltd announced that they will report Q1, 2026 results on Apr 29, 2026 New Risk • Feb 18
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 7.5% 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: Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Profit margins are more than 30% lower than last year (2.4% net profit margin). Major Estimate Revision • Feb 04
Consensus EPS estimates fall by 41% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥7.55b to CN¥7.25b. EPS estimate also fell from CN¥0.183 per share to CN¥0.107 per share. Net income forecast to grow 117% next year vs 65% growth forecast for IT industry in China. Consensus price target broadly unchanged at CN¥15.92. Share price fell 3.8% to CN¥15.00 over the past week. Announcement • Dec 31
Beijing Sinnet Technology Co.,Ltd to Report Fiscal Year 2025 Results on Apr 29, 2026 Beijing Sinnet Technology Co.,Ltd announced that they will report fiscal year 2025 results on Apr 29, 2026 Reported Earnings • Oct 23
Third quarter 2025 earnings: EPS and revenues miss analyst expectations Third quarter 2025 results: EPS: CN¥0.018 (down from CN¥0.051 in 3Q 2024). Revenue: CN¥1.76b (down 7.6% from 3Q 2024). Net income: CN¥28.6m (down 69% from 3Q 2024). Profit margin: 1.6% (down from 4.9% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 88%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Sep 30
Beijing Sinnet Technology Co.,Ltd to Report Q3, 2025 Results on Oct 23, 2025 Beijing Sinnet Technology Co.,Ltd announced that they will report Q3, 2025 results on Oct 23, 2025 New Risk • Sep 09
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.2% net profit margin). Major Estimate Revision • Sep 02
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥7.71b to CN¥7.41b. EPS estimate also fell from CN¥0.234 per share to CN¥0.183 per share. Net income forecast to grow 81% next year vs 59% growth forecast for IT industry in China. Consensus price target up from CN¥13.81 to CN¥15.78. Share price fell 7.4% to CN¥15.41 over the past week. Price Target Changed • Aug 29
Price target increased by 12% to CN¥15.48 Up from CN¥13.81, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of CN¥16.15. Stock is up 101% over the past year. The company is forecast to post earnings per share of CN¥0.18 for next year compared to CN¥0.21 last year. Reported Earnings • Aug 27
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: CN¥0.022 (down from CN¥0.059 in 2Q 2024). Revenue: CN¥1.88b (down 2.8% from 2Q 2024). Net income: CN¥45.9m (down 56% from 2Q 2024). Profit margin: 2.4% (down from 5.3% in 2Q 2024). Revenue missed analyst estimates by 9.4%. Earnings per share (EPS) also missed analyst estimates by 82%. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Price Target Changed • Jul 11
Price target increased by 7.1% to CN¥12.86 Up from CN¥12.01, the current price target is an average from 9 analysts. New target price is 9.1% below last closing price of CN¥14.15. Stock is up 70% over the past year. The company is forecast to post earnings per share of CN¥0.23 for next year compared to CN¥0.21 last year. Announcement • Jul 02
Beijing Sinnet Technology Co.,Ltd to Report First Half, 2025 Results on Aug 27, 2025 Beijing Sinnet Technology Co.,Ltd announced that they will report first half, 2025 results on Aug 27, 2025 Declared Dividend • May 16
Dividend reduced to CN¥0.06 Dividend of CN¥0.06 is 40% lower than last year. Ex-date: 21st May 2025 Payment date: 21st May 2025 Dividend yield will be 0.4%, which is lower than the industry average of 0.8%. Sustainability & Growth Dividend is covered by earnings (38% 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 7.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 95% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • May 07
Price target increased by 10% to CN¥12.01 Up from CN¥10.90, the current price target is an average from 7 analysts. New target price is 19% below last closing price of CN¥14.92. Stock is up 64% over the past year. The company is forecast to post earnings per share of CN¥0.24 for next year compared to CN¥0.21 last year. Major Estimate Revision • Apr 25
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥9.19b to CN¥8.02b. EPS estimate fell from CN¥0.385 to CN¥0.261 per share. Net income forecast to grow 73% next year vs 70% growth forecast for IT industry in China. Consensus price target broadly unchanged at CN¥11.56. Share price fell 7.0% to CN¥13.32 over the past week. Reported Earnings • Apr 23
First quarter 2025 earnings released: EPS: CN¥0.04 (vs CN¥0.09 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.04 (down from CN¥0.09 in 1Q 2024). Revenue: CN¥1.83b (down 7.4% from 1Q 2024). Net income: CN¥69.2m (down 58% from 1Q 2024). Profit margin: 3.8% (down from 8.3% in 1Q 2024). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 14% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 22
Beijing Sinnet Technology Co.,Ltd Proposes Final Cash Dividend for the Year 2024 Beijing Sinnet Technology Co.,Ltd proposed final cash dividend of CNY 0.60000000 per 10 shares (tax included) for the year 2024. Announcement • Apr 20
Beijing Sinnet Technology Co.,Ltd, Annual General Meeting, May 12, 2025 Beijing Sinnet Technology Co.,Ltd, Annual General Meeting, May 12, 2025, at 14:00 China Standard Time. Location: 3F, Tower A, No. 9, Dongzhong Street, Dongcheng District, Beijing China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥13.35, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 45x in the IT industry in China. Total returns to shareholders of 14% over the past three years. Announcement • Mar 31
Beijing Sinnet Technology Co.,Ltd to Report Q1, 2025 Results on Apr 19, 2025 Beijing Sinnet Technology Co.,Ltd announced that they will report Q1, 2025 results on Apr 19, 2025 Price Target Changed • Feb 21
Price target increased by 14% to CN¥11.38 Up from CN¥9.99, the current price target is an average from 8 analysts. New target price is 45% below last closing price of CN¥20.77. Stock is up 127% over the past year. The company is forecast to post earnings per share of CN¥0.30 for next year compared to CN¥0.22 last year. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥16.01, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 36x in the IT industry in China. Total returns to shareholders of 16% over the past three years. New Risk • Jan 23
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 8.9% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.9% average weekly change). Announcement • Dec 31
Beijing Sinnet Technology Co.,Ltd to Report Fiscal Year 2024 Results on Apr 19, 2025 Beijing Sinnet Technology Co.,Ltd announced that they will report fiscal year 2024 results on Apr 19, 2025 Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥14.10, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 35x in the IT industry in China. Total loss to shareholders of 1.4% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.85 per share. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥12.11, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 33x in the IT industry in China. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.68 per share. Major Estimate Revision • Nov 05
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥0.34 to CN¥0.296 per share. Revenue forecast steady at CN¥8.48b. Net income forecast to grow 64% next year vs 64% growth forecast for IT industry in China. Consensus price target of CN¥10.01 unchanged from last update. Share price was steady at CN¥10.88 over the past week. Reported Earnings • Oct 25
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CN¥0.051 (down from CN¥0.06 in 3Q 2023). Revenue: CN¥1.91b (down 11% from 3Q 2023). Net income: CN¥93.5m (down 7.7% from 3Q 2023). Profit margin: 4.9% (up from 4.7% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 63%. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to CN¥10.52, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 24x in the IT industry in China. Total loss to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.10 per share. Buy Or Sell Opportunity • Sep 30
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 24% to CN¥10.52. The fair value is estimated to be CN¥8.10, 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. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.0% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Announcement • Sep 30
Beijing Sinnet Technology Co.,Ltd to Report Q3, 2024 Results on Oct 25, 2024 Beijing Sinnet Technology Co.,Ltd announced that they will report Q3, 2024 results on Oct 25, 2024 Price Target Changed • Sep 03
Price target decreased by 7.1% to CN¥9.86 Down from CN¥10.62, the current price target is an average from 9 analysts. New target price is 25% above last closing price of CN¥7.92. Stock is down 21% over the past year. The company is forecast to post earnings per share of CN¥0.31 for next year compared to CN¥0.22 last year. Reported Earnings • Aug 29
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CN¥0.059 (up from CN¥0.042 in 2Q 2023). Revenue: CN¥1.94b (up 1.0% from 2Q 2023). Net income: CN¥103.6m (up 31% from 2Q 2023). Profit margin: 5.3% (up from 4.1% in 2Q 2023). Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) also missed analyst estimates by 46%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 15% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 11
Now 20% overvalued Over the last 90 days, the stock has fallen 5.7% to CN¥8.41. The fair value is estimated to be CN¥6.99, 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. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 8.2% per annum. Earnings are also forecast to grow by 19% per annum over the same time period. Announcement • Jun 29
Beijing Sinnet Technology Co.,Ltd to Report First Half, 2024 Results on Aug 29, 2024 Beijing Sinnet Technology Co.,Ltd announced that they will report first half, 2024 results on Aug 29, 2024 Upcoming Dividend • May 01
Upcoming dividend of CN¥0.10 per share Eligible shareholders must have bought the stock before 08 May 2024. Payment date: 08 May 2024. Payout ratio is a comfortable 47% and the cash payout ratio is 79%. Trailing yield: 1.1%. Lower than top quartile of Chinese dividend payers (2.4%). In line with average of industry peers (1.0%). Announcement • Apr 27
Beijing Sinnet Technology Co.,Ltd Implements Final Cash Dividend of A Shares, Payable on 08 May 2024 Beijing Sinnet Technology Co.,Ltd implemented final cash dividend of CNY 1.00000000 per 10 A shares (tax included) for 2023. Record date is 07 May 2024. Ex-date is 08 May 2024. Payment date is 08 May 2024. Announcement • Apr 03
Beijing Sinnet Technology Co.,Ltd Proposes Final Dividend for the Year 2023 Beijing Sinnet Technology Co.,Ltd proposed Cash dividend/10 shares (tax included) of CNY 1.00000000 for the year 2023. Reported Earnings • Mar 31
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.22 (up from CN¥0.49 loss in FY 2022). Revenue: CN¥7.86b (up 9.2% from FY 2022). Net income: CN¥388.0m (up CN¥1.27b from FY 2022). Profit margin: 4.9% (up from net loss in FY 2022). The move to profitability was primarily driven by higher revenue. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 15%. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 18% growth forecast for the IT industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Announcement • Dec 30
Beijing Sinnet Technology Co.,Ltd to Report Fiscal Year 2023 Results on Mar 30, 2024 Beijing Sinnet Technology Co.,Ltd announced that they will report fiscal year 2023 results on Mar 30, 2024 Buying Opportunity • Dec 05
Now 22% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be CN¥12.89, 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. Meanwhile, the company became loss making. Buying Opportunity • Nov 15
Now 20% undervalued Over the last 90 days, the stock is up 7.3%. The fair value is estimated to be CN¥13.53, 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. Meanwhile, the company became loss making. Reported Earnings • Oct 24
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: CN¥0.06 (up from CN¥0.042 in 3Q 2022). Revenue: CN¥2.13b (up 14% from 3Q 2022). Net income: CN¥101.3m (up 27% from 3Q 2022). Profit margin: 4.7% (up from 4.3% in 3Q 2022). Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) missed analyst estimates by 55%. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 20% growth forecast for the IT industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 60 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Beijing Sinnet Technology Co.,Ltd to Report Q3, 2023 Results on Oct 24, 2023 Beijing Sinnet Technology Co.,Ltd announced that they will report Q3, 2023 results on Oct 24, 2023 Reported Earnings • Aug 26
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: CN¥0.042 (down from CN¥0.08 in 2Q 2022). Revenue: CN¥1.92b (up 8.5% from 2Q 2022). Net income: CN¥79.4m (down 43% from 2Q 2022). Profit margin: 4.1% (down from 7.9% in 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 70%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 19% growth forecast for the IT industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Price Target Changed • May 01
Price target increased by 9.1% to CN¥12.35 Up from CN¥11.32, the current price target is an average from 10 analysts. New target price is approximately in line with last closing price of CN¥12.31. Stock is up 27% over the past year. The company is forecast to post earnings per share of CN¥0.35 next year compared to a net loss per share of CN¥0.49 last year. Reported Earnings • Apr 23
First quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.11 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.11 in 1Q 2022). Revenue: CN¥1.88b (up 2.6% from 1Q 2022). Net income: CN¥173.5m (down 10% from 1Q 2022). Profit margin: 9.2% (down from 11% in 1Q 2022). Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 19% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥14.61, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 37x in the IT industry in China. Total loss to shareholders of 41% over the past three years. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥12.31, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 35x in the IT industry in China. Total loss to shareholders of 54% over the past three years. Price Target Changed • Jan 02
Price target decreased to CN¥10.25 Down from CN¥12.07, the current price target is an average from 9 analysts. New target price is 26% above last closing price of CN¥8.16. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥0.31 for next year compared to CN¥0.54 last year. Board Change • Nov 16
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 3 experienced directors. No highly experienced directors. President & Chairman of the Board Yuhang Yang is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Nov 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from CN¥0.32 to CN¥0.45. Revenue forecast unchanged at CN¥7.65b. Net income forecast to grow 65% next year vs 65% growth forecast for IT industry in China. Consensus price target broadly unchanged at CN¥12.04. Share price rose 5.8% to CN¥8.78 over the past week. Reported Earnings • Oct 26
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: CN¥0.042. Net income: CN¥79.5m (up CN¥79.5m from 3Q 2021). Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates by 79%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 20% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Sep 02
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥7.99b to CN¥7.51b. EPS estimate also fell from CN¥0.52 per share to CN¥0.43 per share. Net income forecast to grow 24% next year vs 50% growth forecast for IT industry in China. Consensus price target down from CN¥12.98 to CN¥12.41. Share price was steady at CN¥9.41 over the past week. Reported Earnings • Aug 28
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: CN¥0.08 (down from CN¥0.15 in 2Q 2021). Revenue: CN¥1.77b (down 9.7% from 2Q 2021). Net income: CN¥140.1m (down 37% from 2Q 2021). Profit margin: 7.9% (down from 11% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) also missed analyst estimates by 52%. Over the next year, revenue is forecast to grow 13%, compared to a 25% growth forecast for the IT 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 fallen by 20% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jun 09
Price target decreased to CN¥13.92 Down from CN¥15.35, the current price target is an average from 10 analysts. New target price is 41% above last closing price of CN¥9.85. Stock is down 38% over the past year. The company is forecast to post earnings per share of CN¥0.50 for next year compared to CN¥0.54 last year. Announcement • May 20
Beijing Sinnet Technology Co., Ltd Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2021, Payable on 25 May 2022 Beijing Sinnet Technology Co. Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 0.20000000 for the year 2021, payable on 25 May 2022. Record date: 24 May 2022. Ex-date: 25 May 2022. Buying Opportunity • Apr 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 31%. The fair value is estimated to be CN¥11.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 29% in 2 years. Earnings is forecast to grow by 56% in the next 2 years. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.11 (down from CN¥0.15 in 1Q 2021). Revenue: CN¥1.83b (down 6.5% from 1Q 2021). Net income: CN¥193.4m (down 14% from 1Q 2021). Profit margin: 11% (in line with 1Q 2021). Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates by 39%. Over the next year, revenue is forecast to grow 15%, compared to a 24% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Board Change • Apr 27
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. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Hou Chengxun was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥16.30, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 28x in the IT industry in China. Total loss to shareholders of 6.0% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.22 per share. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥13.44, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 27x in the IT industry in China. Total loss to shareholders of 8.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥12.07 per share. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.15 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥2.00b (up 14% from 3Q 2020). Net income: CN¥236.4m (up 2.4% from 3Q 2020). Profit margin: 12% (down from 13% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS CN¥0.14 (vs CN¥0.15 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¥1.98b (up 27% from 2Q 2020). Net income: CN¥223.7m (down 2.8% from 2Q 2020). Profit margin: 11% (down from 15% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • May 14
Beijing Sinnet Technology Co. Ltd. Approves Cash Dividend for 2020 Beijing Sinnet Technology Co. Ltd. approved cash dividend per 10 shares (tax included) of CNY 0.25000000 for 2020, at its Annual General Meeting of 2020 on 12 May 2021. Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥14.17, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 23x in the IT industry in China. Total loss to shareholders of 6.6% over the past three years. Reported Earnings • Apr 21
First quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.14 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: CN¥1.96b (down 19% from 1Q 2020). Net income: CN¥223.9m (up 1.4% from 1Q 2020). Profit margin: 11% (up from 9.1% in 1Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Mar 09
Beijing Sinnet Technology Co., Ltd to Report Fiscal Year 2020 Results on Apr 21, 2021 Beijing Sinnet Technology Co., Ltd announced that they will report fiscal year 2020 results on Apr 21, 2021 Is New 90 Day High Low • Feb 20
New 90-day high: CN¥19.76 The company is up 4.0% from its price of CN¥19.06 on 20 November 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥6.87 per share. Is New 90 Day High Low • Dec 16
New 90-day low: CN¥18.82 The company is down 21% from its price of CN¥23.70 on 17 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 IT industry, which is down 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥7.06 per share. Is New 90 Day High Low • Nov 27
New 90-day low: CN¥18.83 The company is down 29% from its price of CN¥26.34 on 28 August 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is down 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥6.08 per share. Valuation Update With 7 Day Price Move • Nov 03
Market pulls back on stock over the past week After last week's 16% share price decline to CN¥19.23, the stock is trading at a trailing P/E ratio of 33.1x, down from the previous P/E ratio of 39.5x. This compares to an average P/E of 76x in the IT industry in China. Total returns to shareholders over the past three years are 46%.