Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥83.12, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 63x in the Communications industry in China. Total returns to shareholders of 493% over the past three years. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥77.27, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 62x in the Communications industry in China. Total returns to shareholders of 453% over the past three years. Major Estimate Revision • May 01
Consensus EPS estimates increase by 38% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from CN¥1.53 to CN¥2.11. Revenue forecast steady at CN¥82.6b. Net income forecast to grow 61% next year vs 101% growth forecast for Communications industry in China. Consensus price target up from CN¥25.53 to CN¥45.53. Share price fell 5.5% to CN¥65.70 over the past week. Reported Earnings • Apr 25
First quarter 2026 earnings released: EPS: CN¥0.46 (vs CN¥0.23 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.46 (up from CN¥0.23 in 1Q 2025). Revenue: CN¥17.8b (up 34% from 1Q 2025). Net income: CN¥1.11b (up 99% from 1Q 2025). Profit margin: 6.2% (up from 4.2% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 32% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 68% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 25
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 22, 2026 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 22, 2026, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to CN¥65.78, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 66x in the Communications industry in China. Total returns to shareholders of 357% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥31.23 per share. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥58.05, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 59x in the Communications industry in China. Total returns to shareholders of 246% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥31.64 per share. Announcement • Mar 30
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥43.11, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 57x in the Communications industry in China. Total returns to shareholders of 185% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥30.88 per share. New Risk • Mar 03
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.9% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.9% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥47.50, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 50x in the Communications industry in China. Total returns to shareholders of 215% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥30.81 per share. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥41.85, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 49x in the Communications industry in China. Total returns to shareholders of 195% over the past three years. New Risk • Jan 30
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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.5% average weekly change). Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥27.78, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 51x in the Communications industry in China. Total returns to shareholders of 90% over the past three years. Announcement • Dec 26
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥23.76, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 45x in the Communications industry in China. Total returns to shareholders of 64% over the past three years. Reported Earnings • Oct 28
Third quarter 2025 earnings: Revenues and EPS in line with analyst expectations Third quarter 2025 results: EPS: CN¥0.32 (up from CN¥0.29 in 3Q 2024). Revenue: CN¥17.6b (up 11% from 3Q 2024). Net income: CN¥762.6m (up 8.1% from 3Q 2024). Profit margin: 4.3% (down from 4.5% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Oct 14
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 7.3% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.3% average weekly change). Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 26
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: CN¥0.43 (down from CN¥0.44 in 2Q 2024). Revenue: CN¥18.8b (up 27% from 2Q 2024). Net income: CN¥1.06b (down 3.6% from 2Q 2024). Profit margin: 5.6% (down from 7.4% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) also surpassed analyst estimates by 39%. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 14
Price target increased by 8.0% to CN¥19.57 Up from CN¥18.12, the current price target is an average from 4 analysts. New target price is 11% above last closing price of CN¥17.56. Stock is up 28% over the past year. The company is forecast to post earnings per share of CN¥1.33 for next year compared to CN¥1.14 last year. Price Target Changed • Jul 31
Price target decreased by 8.9% to CN¥18.12 Down from CN¥19.90, the current price target is an average from 3 analysts. New target price is 14% above last closing price of CN¥15.93. Stock is up 1.3% over the past year. The company is forecast to post earnings per share of CN¥1.33 for next year compared to CN¥1.14 last year. Announcement • Jun 30
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Reported Earnings • Apr 25
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: CN¥0.23 (up from CN¥0.21 in 1Q 2024). Revenue: CN¥13.3b (up 13% from 1Q 2024). Net income: CN¥556.8m (up 8.5% from 1Q 2024). Profit margin: 4.2% (down from 4.4% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 9.4%. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Apr 25
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 20, 2025 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 20, 2025, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Announcement • Mar 28
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Dec 27
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Price Target Changed • Nov 03
Price target increased by 8.7% to CN¥18.87 Up from CN¥17.35, the current price target is an average from 4 analysts. New target price is 11% above last closing price of CN¥17.03. Stock is up 30% over the past year. The company is forecast to post earnings per share of CN¥1.15 for next year compared to CN¥0.87 last year. Reported Earnings • Oct 29
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: CN¥0.29 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥15.8b (up 32% from 3Q 2023). Net income: CN¥705.5m (up 27% from 3Q 2023). Profit margin: 4.5% (down from 4.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 17%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥16.91, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 24x in the Communications industry in China. Total returns to shareholders of 25% over the past three years. Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Reported Earnings • Aug 29
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: CN¥0.44 (up from CN¥0.35 in 2Q 2023). Revenue: CN¥14.8b (up 21% from 2Q 2023). Net income: CN¥1.10b (up 28% from 2Q 2023). Profit margin: 7.4% (up from 6.9% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.0%. Earnings per share (EPS) also surpassed analyst estimates by 83%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 12
Dividend of CN¥0.15 announced Shareholders will receive a dividend of CN¥0.15. Ex-date: 16th July 2024 Payment date: 16th July 2024 Dividend yield will be 0.9%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is covered by both earnings (16% earnings payout ratio) and cash flows (66% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 72% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 28
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Price Target Changed • May 12
Price target increased by 22% to CN¥16.97 Up from CN¥13.97, the current price target is an average from 3 analysts. New target price is 17% above last closing price of CN¥14.51. Stock is up 0.8% over the past year. The company is forecast to post earnings per share of CN¥1.08 for next year compared to CN¥0.87 last year. Reported Earnings • Apr 27
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: CN¥0.21 (up from CN¥0.16 in 1Q 2023). Revenue: CN¥11.8b (up 8.4% from 1Q 2023). Net income: CN¥513.1m (up 30% from 1Q 2023). Profit margin: 4.4% (up from 3.6% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates by 16%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 27
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 17, 2024 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 17, 2024, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Price Target Changed • Apr 11
Price target decreased by 18% to CN¥13.97 Down from CN¥17.04, the current price target is an average from 2 analysts. New target price is 17% above last closing price of CN¥11.89. Stock is down 25% over the past year. The company is forecast to post earnings per share of CN¥0.89 for next year compared to CN¥0.67 last year. Announcement • Mar 30
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Announcement • Jan 17
Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces an Equity Buyback for CNY 200 million worth of its shares. Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its A shares. The shares will be repurchased at a price not more than CNY 17.64 per share. The repurchased shares will be used for employees’ shareholding program. The program will be valid for a period of 12 months. Announcement • Dec 29
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Price Target Changed • Nov 06
Price target decreased by 8.0% to CN¥17.04 Down from CN¥18.53, the current price target is an average from 3 analysts. New target price is 28% above last closing price of CN¥13.32. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.97 for next year compared to CN¥0.67 last year. Reported Earnings • Nov 02
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.22 (down from CN¥0.24 in 3Q 2022). Revenue: CN¥11.9b (down 5.0% from 3Q 2022). Net income: CN¥554.4m (flat on 3Q 2022). Profit margin: 4.6% (up from 4.5% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Oct 25
Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces an Equity Buyback for CNY 100 million worth of its shares. Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The program will be valid for 12 months. Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 25
Second quarter 2023 earnings: EPS in line with expectations, revenues disappoint Second quarter 2023 results: EPS: CN¥0.35 (up from CN¥0.22 in 2Q 2022). Revenue: CN¥12.3b (down 3.5% from 2Q 2022). Net income: CN¥854.4m (up 66% from 2Q 2022). Profit margin: 6.9% (up from 4.0% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications 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 fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥0.67 (vs CN¥0.61 in FY 2021) Full year 2022 results: EPS: CN¥0.67 (up from CN¥0.61 in FY 2021). Revenue: CN¥46.5b (up 13% from FY 2021). Net income: CN¥1.58b (up 10% from FY 2021). Profit margin: 3.4% (down from 3.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 16
Price target increased to CN¥18.83 Up from CN¥17.45, the current price target is an average from 4 analysts. New target price is 9.3% above last closing price of CN¥17.22. Stock is down 0.7% over the past year. The company is forecast to post earnings per share of CN¥0.88 for next year compared to CN¥0.61 last year. Board Change • Nov 16
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 9 new directors. 2 experienced directors. 1 highly experienced director. 2 independent directors (7 non-independent directors). Chairman of Supervisory Board Weixing Xu is the most experienced director on the board, commencing their role in 2009. Independent Director Junhui Yang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 30
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: CN¥0.24 (down from CN¥0.27 in 3Q 2021). Revenue: CN¥12.5b (up 6.7% from 3Q 2021). Net income: CN¥559.5m (down 13% from 3Q 2021). Profit margin: 4.5% (down from 5.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 8.5%. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications 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 increased by 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥17.84, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 23x in the Communications industry in China. Total returns to shareholders of 18% over the past three years. Major Estimate Revision • May 02
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from CN¥43.8b to CN¥49.7b. EPS estimate fell from CN¥1.04 to CN¥0.93. Net income forecast to grow 56% next year vs 55% growth forecast for Communications industry in China. Consensus price target down from CN¥17.62 to CN¥16.28. Share price rose 2.4% to CN¥10.10 over the past week. Price Target Changed • Apr 28
Price target decreased to CN¥16.28 Down from CN¥17.62, the current price target is an average from 5 analysts. New target price is 68% above last closing price of CN¥9.71. Stock is down 17% over the past year. The company is forecast to post earnings per share of CN¥0.93 for next year compared to CN¥0.61 last year. Reported Earnings • Apr 27
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: CN¥0.15 (up from CN¥0.11 in 1Q 2021). Revenue: CN¥9.35b (up 34% from 1Q 2021). Net income: CN¥344.1m (up 30% from 1Q 2021). Profit margin: 3.7% (down from 3.8% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 6.9%. Earnings per share (EPS) missed analyst estimates by 28%. Over the next year, revenue is forecast to grow 4.3%, compared to a 30% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has fallen by 24% per year whereas the company’s share price has fallen by 21% per year. 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. 12 experienced directors. No highly experienced directors. 4 independent directors (8 non-independent directors). Chairman Jianlin Qian was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Price Target Changed • Mar 17
Price target increased to CN¥17.62 Up from CN¥15.67, the current price target is an average from 6 analysts. New target price is 26% above last closing price of CN¥13.94. Stock is up 12% over the past year. The company is forecast to post earnings per share of CN¥0.67 for next year compared to CN¥0.55 last year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥11.8b (up 19% from 3Q 2020). Net income: CN¥644.6m (up 50% from 3Q 2020). Profit margin: 5.5% (up from 4.4% in 3Q 2020). The increase in margin was driven by higher revenue. 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 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥11.8b (up 19% from 3Q 2020). Net income: CN¥644.6m (up 50% from 3Q 2020). Profit margin: 5.5% (up from 4.4% in 3Q 2020). The increase in margin was driven by higher revenue. 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 4% per year, which means it has not declined as severely as earnings. Price Target Changed • Oct 12
Price target increased to CN¥14.29 Up from CN¥12.45, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of CN¥14.70. Stock is down 2.5% over the past year. Reported Earnings • Aug 24
Second quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.11 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥11.1b (up 16% from 2Q 2020). Net income: CN¥406.9m (up 94% from 2Q 2020). Profit margin: 3.7% (up from 2.2% in 2Q 2020). The increase in margin was driven by higher revenue. 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 20% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 02
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥13.29, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 30x in the Communications industry in China. Total loss to shareholders of 34% over the past three years. Announcement • Jul 24
Hengtong Optic-Electric Co., Ltd. (SHSE:600487) agreed to acquire Suzhou Hengtong Huanwang Information Service Co., Ltd. from Hengtong Group Co., Ltd for CNY 23.7 million on July 24, 2021. Hengtong Optic-Electric Co., Ltd. (SHSE:600487) agreed to acquire Suzhou Hengtong Huanwang Information Service Co., Ltd. from Hengtong Group Co., Ltd for CNY 23.7 million on July 24, 2021. Hengtong Optic-Electric will pay 50% of the equity transfer funds to the designated bank account of Hengtong Group in cash on the day when the equity transfer agreement is signed, and pay 50% of the equity transfer funds to Hengtong by cash within 5 days from the date of completion of the industrial and commercial change registration. The transaction has been reviewed and approved at the third meeting of Hengtong Optic-Electric's eighth board of directors and does not need to be submitted to the shareholders meeting for deliberation. The present transaction was also approved by the third meeting of the company's eighth board of supervisors. Major Estimate Revision • Jul 07
Consensus EPS estimates fall to CN¥0.70 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥35.1b to CN¥34.7b. EPS estimate also fell from CN¥0.78 to CN¥0.70. Net income forecast to grow 44% next year vs 41% growth forecast for Communications industry in China. Consensus price target down from CN¥14.12 to CN¥12.45. Share price rose 3.8% to CN¥11.83 over the past week. Price Target Changed • Jun 08
Price target decreased to CN¥14.12 Down from CN¥15.92, the current price target is an average from 4 analysts. New target price is 16% above last closing price of CN¥12.14. Stock is down 27% over the past year. Major Estimate Revision • May 05
Consensus revenue estimates fall to CN¥34.2b The consensus outlook for revenues in 2021 has deteriorated. 2021 revenue forecast decreased from CN¥38.6b to CN¥34.2b. EPS estimate fell from CN¥0.85 to CN¥0.77 per share. Net income forecast to grow 58% next year vs 41% growth forecast for Communications industry in China. Consensus price target down from CN¥16.74 to CN¥15.92. Share price fell 2.1% to CN¥11.57 over the past week. Reported Earnings • May 01
First quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.12 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥6.97b (up 17% from 1Q 2020). Net income: CN¥264.1m (up 13% from 1Q 2020). Profit margin: 3.8% (down from 3.9% in 1Q 2020). The decrease in margin was driven by higher expenses. 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 21% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Jan 22
New 90-day low: CN¥13.41 The company is down 12% from its price of CN¥15.21 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications 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¥1.75 per share. Price Target Changed • Jan 08
Price target lowered to CN¥17.42 Down from CN¥20.91, the current price target is an average from 7 analysts. The new target price is 26% above the current share price of CN¥13.82. As of last close, the stock is down 23% over the past year. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥14.10 The company is down 5.0% from its price of CN¥14.91 on 11 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 Communications industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.55 per share. Major Estimate Revision • Nov 10
Analysts lower EPS estimates to CN¥0.60 The 2020 consensus revenue estimate was lowered from CN¥34.6b to CN¥34.1b. Earning per share (EPS) estimate was also lowered from CN¥0.98 to CN¥0.60 for the same period. Net income is expected to grow by 58% next year compared to 59% growth forecast for the Communications industry in China. The consensus price target was lowered from CN¥20.91 to CN¥20.36. Share price is up 2.5% to CN¥15.35 over the past week. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.8%. Earnings per share (EPS) also missed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 17%, compared to a 29% growth forecast for the Communications industry in China. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS CN¥0.22 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: CN¥9.89b (up 7.7% from 3Q 2019). Net income: CN¥430.6m (down 5.7% from 3Q 2019). Profit margin: 4.4% (down from 5.0% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Announcement • Oct 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2020 Results on Oct 31, 2020 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2020 results on Oct 31, 2020 Price Target Changed • Oct 22
Price target lowered to CN¥20.91 Down from CN¥22.64, the current price target is an average from 7 analysts. The new target price is 34% above the current share price of CN¥15.63. Is New 90 Day High Low • Sep 26
New 90-day low: CN¥14.67 The company is down 11% from its price of CN¥16.56 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 Communications industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.61 per share. Major Estimate Revision • Sep 23
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from CN¥0.80 to CN¥0.66. Revenue estimate was approximately flat at CN¥34.1b. Net income is expected to grow by 52% next year compared to 52% growth forecast for the Communications industry in China. The consensus price target was lowered from CN¥22.64 to CN¥22.19. Share price is down by 1.1% to CN¥15.02 over the past week. Announcement • Jul 31
HeHengtong Optic-Electric Co., Ltd. (SHSE:600487) completed the acquisition of 30% stake in Huawei Marine Networks Co., Limited from Global Marine Holdings, LLC. HeHengtong Optic-Electric Co., Ltd. (SHSE:600487) agreed to acquire 30% stake in Huawei Marine Networks Co., Limited from Global Marine Holdings, LLC for $85.5 million on October 30, 2019. Global Marine Holdings, LLC holds 49% stake and will retain 19% stake in Huawei Marine Networks Co., Limited under a two-year put option agreement at the greater of the same equity value $285 million or fair market value. The transaction is subject to customary closing conditions. Completion of the sale is expected during the first quarter of 2020 with proceeds delivered to Global Marine Holdings, LLC at that time. The proceeds from the sale shall be utilized to reduce debt of HC2 Holdings, Inc. (NYSE:HCHC), parent of Global Marine Holdings, LLC and to reduce outstanding debt position of Fugro N.V. (ENXTAM:FUR) an investor in Global Marine Holdings, LLC.
HeHengtong Optic-Electric Co., Ltd. (SHSE:600487) completed the acquisition of 30% stake in Huawei Marine Networks Co., Limited from Global Marine Holdings, LLC in February 2020. Announcement • Jul 18
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2020 Results on Aug 31, 2020 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2020 results on Aug 31, 2020 Announcement • Jun 21
Hengtong New Energy Technology Co., Ltd. signed an equity transfer agreement to acquire Jiangsu Hengtong Longyun New Energy Technology Co., Ltd. from Hengtong Optic-Electric Co., Ltd. (SHSE:600487) for CNY 9.8 million. Hengtong New Energy Technology Co., Ltd. signed an equity transfer agreement to acquire Jiangsu Hengtong Longyun New Energy Technology Co., Ltd. from Hengtong Optic-Electric Co., Ltd. (SHSE:600487) for CNY 9.8 million on June19, 2020. The consideration will be paid in 10 days after signing of agreement. As of December 31, 2019, Hengtong Longyun reported total assets of CNY 52.97 million and net assets of CNY 5.5 million. In 2019, it achieved operating income of CNY 7.98 million and net loss of CNY 8.19 million. The transaction is subject to approval from shareholders of Hengtong Optic-Electric. The transaction was approved by Board of Hengtong Optic-Electric. 
