New Risk • Apr 19
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 166% Dividend yield: 0.5% 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. This is currently the only risk that has been identified for the company. Announcement • Apr 15
Dawning Information Industry Co., Ltd., Annual General Meeting, May 06, 2026 Dawning Information Industry Co., Ltd., Annual General Meeting, May 06, 2026, at 14:00 China Standard Time. Location: The Company's Meeting Room, Tianjin China Reported Earnings • Apr 08
First quarter 2026 earnings released: EPS: CN¥0.15 (vs CN¥0.13 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.15 (up from CN¥0.13 in 1Q 2025). Revenue: CN¥3.07b (up 19% from 1Q 2025). Net income: CN¥225.4m (up 21% from 1Q 2025). Profit margin: 7.3% (up from 7.2% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Tech 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 increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 30
Dawning Information Industry Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Dawning Information Industry Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Price Target Changed • Mar 09
Price target increased by 11% to CN¥86.30 Up from CN¥77.70, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of CN¥84.19. The company is forecast to post earnings per share of CN¥2.04 for next year compared to CN¥1.45 last year. Announcement • Dec 26
Dawning Information Industry Co., Ltd. to Report Fiscal Year 2025 Results on Apr 24, 2026 Dawning Information Industry Co., Ltd. announced that they will report fiscal year 2025 results on Apr 24, 2026 Announcement • Dec 11
Hygon Information Technology Co., Ltd. (SHSE:688041) cancelled the acquisition of Dawning Information Industry Co., Ltd. (SHSE:603019). Hygon Information Technology Co., Ltd. (SHSE:688041) signed a letter of intent to acquire Dawning Information Industry Co., Ltd. (SHSE:603019) for approximately CNY 110 billion on May 25, 2025. The consideration consists of issuing A shares to all A share shareholders of the Company in exchange for shares, while also issuing A shares to raise supporting funds. The A shares of Dawning Information Industry Co., Ltd. will be suspended from trading starting from the opening of the market on May 26, 2025. Under the terms, Each one of Dawning's shares will be converted into 0.55 shares of Hygon at a price of CNY79.26 (USD11.03) and CNY143.46 (USD19.96), respectively. Once the merger is completed, Dawning will be delisted. Transaction has been approved by Hygon Information Technology's board of directors. Transaction has been approved by Dawning Information Industry's board of directors. This transaction has been approved by the Institute of Computing Technology of the Chinese Academy of Sciences. The supporting funds raised for this transaction are intended to be used, after deducting intermediary fees, for paying taxes and fees related to this acquisition, merger and integration costs such as personnel placement expenses, supplementing working capital, repaying debts, and investing in project construction.
The transaction still requires the completion of necessary internal decision-making procedures and approval from the competent regulatory authorities before it can be formally implemented, and there remains uncertainty regarding its implementation. The transaction plan must be reviewed and approved by the shareholders' meetings of the Company and Dawning Information Industry Co., Ltd.
Hygon Information Technology Co., Ltd. (SHSE:688041) cancelled the acquisition of Dawning Information Industry Co., Ltd. (SHSE:603019) on December 9, 2025. Dawning Information Industry Co., Ltd held the 26th Meeting of the 5th Directorate, and approved terminating Hygon Information Technology Co., Ltd.’s share exchange and absorption-type merger of the Company. Price Target Changed • Nov 15
Price target increased by 63% to CN¥77.70 Up from CN¥47.78, the current price target is an average from 3 analysts. New target price is 23% below last closing price of CN¥101. The company is forecast to post earnings per share of CN¥1.69 for next year compared to CN¥1.31 last year. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.16 (vs CN¥0.14 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.16 (up from CN¥0.14 in 3Q 2024). Revenue: CN¥2.97b (up 28% from 3Q 2024). Net income: CN¥237.5m (up 15% from 3Q 2024). Profit margin: 8.0% (down from 8.9% in 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech 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 increased by 63% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Oct 14
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 9.3% 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 (9.3% average weekly change). Minor Risk Large one-off items impacting financial results. Announcement • Sep 30
Dawning Information Industry Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Dawning Information Industry Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 New Risk • Sep 12
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 7.0% 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 (7.0% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥92.09, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 36x in the Tech industry in China. Total returns to shareholders of 283% over the past three years. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥91.11, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 41x in the Tech industry in China. Total returns to shareholders of 253% over the past three years. Reported Earnings • Aug 06
Second quarter 2025 earnings released: EPS: CN¥0.37 (vs CN¥0.29 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.37 (up from CN¥0.29 in 2Q 2024). Revenue: CN¥3.27b (up 1.1% from 2Q 2024). Net income: CN¥545.0m (up 30% from 2Q 2024). Profit margin: 17% (up from 13% in 2Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 30
Dawning Information Industry Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Dawning Information Industry Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • Jun 24
Dawning Information Industry Co., Ltd.(SHSE:603019) dropped from Shanghai Stock Exchange 180 Value Index Dawning Information Industry Co., Ltd. has been removed from Shanghai Stock Exchange 180 Value Index . Price Target Changed • Jun 10
Price target increased by 12% to CN¥53.40 Up from CN¥47.78, the current price target is an average from 3 analysts. New target price is 22% below last closing price of CN¥68.09. The company is forecast to post earnings per share of CN¥1.76 for next year compared to CN¥1.31 last year. Announcement • May 26
Hygon Information Technology Co., Ltd. (SHSE:688041) signed a letter of intent to acquire Dawning Information Industry Co., Ltd. (SHSE:603019). Hygon Information Technology Co., Ltd. (SHSE:688041) signed a letter of intent to acquire Dawning Information Industry Co., Ltd. (SHSE:603019) on May 25, 2025. The consideration consists of issuing A shares to all A share shareholders of the Company in exchange for shares, while also issuing A shares to raise supporting funds. The A shares of Dawning Information Industry Co., Ltd. will be suspended from trading starting from the opening of the market on May 26, 2025.
The transaction still requires the completion of necessary internal decision-making procedures and approval from the competent regulatory authorities before it can be formally implemented, and there remains uncertainty regarding its implementation. Reported Earnings • Apr 09
First quarter 2025 earnings released: EPS: CN¥0.13 (vs CN¥0.098 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.13 (up from CN¥0.098 in 1Q 2024). Revenue: CN¥2.59b (up 4.3% from 1Q 2024). Net income: CN¥184.7m (up 30% from 1Q 2024). Profit margin: 7.1% (up from 5.8% in 1Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Tech 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 increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 28
Dawning Information Industry Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Dawning Information Industry Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Mar 21
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 74% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Price Target Changed • Mar 06
Price target increased by 19% to CN¥53.20 Up from CN¥44.78, the current price target is an average from 5 analysts. New target price is 28% below last closing price of CN¥73.49. Stock is up 41% over the past year. The company is forecast to post earnings per share of CN¥1.71 for next year compared to CN¥1.31 last year. Announcement • Mar 05
Dawning Information Industry Co., Ltd., Annual General Meeting, Mar 31, 2025 Dawning Information Industry Co., Ltd., Annual General Meeting, Mar 31, 2025, at 14:00 China Standard Time. Location: Building 36, Zhongguancun Software Park, Haidian District, Beijing China Reported Earnings • Feb 27
Full year 2024 earnings released: EPS: CN¥1.31 (vs CN¥1.26 in FY 2023) Full year 2024 results: EPS: CN¥1.31 (up from CN¥1.26 in FY 2023). Revenue: CN¥13.2b (down 8.3% from FY 2023). Net income: CN¥1.91b (up 4.3% from FY 2023). Profit margin: 14% (up from 13% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jan 10
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 9.2% 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 (9.2% average weekly change). Large one-off items impacting financial results. Announcement • Dec 27
Dawning Information Industry Co., Ltd. to Report Fiscal Year 2024 Results on Apr 12, 2025 Dawning Information Industry Co., Ltd. announced that they will report fiscal year 2024 results on Apr 12, 2025 Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥66.50, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 25x in the Tech industry in China. Total returns to shareholders of 137% over the past three years. Reported Earnings • Oct 29
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: CN¥0.14. Revenue: CN¥2.33b (down 1.2% from 3Q 2023). Net income: CN¥206.4m (flat on 3Q 2023). Profit margin: 8.9% (up from 8.7% in 3Q 2023). Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) exceeded analyst estimates by 82%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Tech industry in China. Announcement • Sep 30
Dawning Information Industry Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Dawning Information Industry 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 19% After last week's 19% share price gain to CN¥43.38, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 21x in the Tech industry in China. Total returns to shareholders of 65% over the past three years. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: CN¥0.28 (vs CN¥0.28 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.28 (up from CN¥0.28 in 2Q 2023). Revenue: CN¥3.23b (up 4.2% from 2Q 2023). Net income: CN¥415.4m (flat on 2Q 2023). Profit margin: 13% (in line with 2Q 2023). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Tech 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 9% per year, which means it is significantly lagging earnings growth. Announcement • Jun 28
Dawning Information Industry Co., Ltd. to Report First Half, 2024 Results on Aug 23, 2024 Dawning Information Industry Co., Ltd. announced that they will report first half, 2024 results on Aug 23, 2024 Declared Dividend • Jun 03
Dividend of CN¥0.17 announced Shareholders will receive a dividend of CN¥0.17. Ex-date: 6th June 2024 Payment date: 6th June 2024 Dividend yield will be 0.6%, which is lower than the industry average of 1.3%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 32% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 79% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 27
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: CN¥0.098 (up from CN¥0.09 in 1Q 2023). Revenue: CN¥2.48b (up 7.9% from 1Q 2023). Net income: CN¥142.6m (up 8.9% from 1Q 2023). Profit margin: 5.8% (up from 5.7% in 1Q 2023). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) also surpassed analyst estimates by 132%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 22% per year. New Risk • Apr 22
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 30% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Price Target Changed • Apr 20
Price target increased by 8.2% to CN¥48.03 Up from CN¥44.41, the current price target is an average from 4 analysts. New target price is 7.5% above last closing price of CN¥44.67. Stock is down 17% over the past year. The company is forecast to post earnings per share of CN¥1.58 for next year compared to CN¥1.26 last year. Reported Earnings • Apr 19
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥1.26 (up from CN¥1.06 in FY 2022). Revenue: CN¥14.4b (up 10% from FY 2022). Net income: CN¥1.84b (up 19% from FY 2022). Profit margin: 13% (in line with FY 2022). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) also missed analyst estimates by 5.8%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 25% 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 19
Dawning Information Industry Co., Ltd., Annual General Meeting, May 10, 2024 Dawning Information Industry Co., Ltd., Annual General Meeting, May 10, 2024, at 14:00 China Standard Time. Location: Building 36, Zhongguancun Software Park, Haidian District, Beijing China Announcement • Mar 29
Dawning Information Industry Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Dawning Information Industry Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to CN¥53.50, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 25x in the Tech industry in China. Total returns to shareholders of 83% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥27.15 per share. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: CN¥1.26 (vs CN¥1.06 in FY 2022) Full year 2023 results: EPS: CN¥1.26 (up from CN¥1.06 in FY 2022). Revenue: CN¥14.4b (up 10% from FY 2022). Net income: CN¥1.84b (up 19% from FY 2022). Profit margin: 13% (in line with FY 2022). Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Dec 30
Dawning Information Industry Co., Ltd. to Report Fiscal Year 2023 Results on Apr 18, 2024 Dawning Information Industry Co., Ltd. announced that they will report fiscal year 2023 results on Apr 18, 2024 Announcement • Dec 07
Dawning Information Industry Co., Ltd. (SHSE:603019) announces an Equity Buyback for CNY 30 million worth of its shares. Dawning Information Industry Co., Ltd. (SHSE:603019) announces a share repurchase program. Under the program, the company will repurchase up to CNY 30 million worth of class A shares. The shares will be repurchased at a price of not more than CNY 45 per share. The shares purchased will be used for the company's equity incentive plan or ESOP. The program will be valid till 12 months. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: CN¥0.15 (vs CN¥0.12 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.15 (up from CN¥0.12 in 3Q 2022). Revenue: CN¥2.36b (flat on 3Q 2022). Net income: CN¥205.5m (up 14% from 3Q 2022). Profit margin: 8.7% (up from 7.7% in 3Q 2022). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Sep 30
Dawning Information Industry Co., Ltd. to Report Q3, 2023 Results on Oct 27, 2023 Dawning Information Industry Co., Ltd. announced that they will report Q3, 2023 results on Oct 27, 2023 Board Change • Sep 28
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 Yongqin Zheng was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Aug 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 41% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.4% average weekly change). Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.28 (vs CN¥0.24 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.28 (up from CN¥0.24 in 2Q 2022). Revenue: CN¥3.10b (up 9.0% from 2Q 2022). Net income: CN¥413.8m (up 12% from 2Q 2022). Profit margin: 13% (in line with 2Q 2022). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Aug 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: 0.5% 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: Major Risks Share price has been highly volatile over the past 3 months (8.8% average weekly change). High level of non-cash earnings (22% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Price Target Changed • Aug 03
Price target increased by 27% to CN¥36.10 Up from CN¥28.53, the current price target is an average from 3 analysts. New target price is 20% below last closing price of CN¥45.26. Stock is up 49% over the past year. The company is forecast to post earnings per share of CN¥1.18 for next year compared to CN¥1.06 last year. Valuation Update With 7 Day Price Move • Jun 19
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥61.12, the stock trades at a forward P/E ratio of 49x. Average forward P/E is 29x in the Tech industry in China. Total returns to shareholders of 52% over the past three years. Valuation Update With 7 Day Price Move • May 31
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥53.50, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 23x in the Tech industry in China. Total returns to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • May 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥44.20, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 21x in the Tech industry in China. Total returns to shareholders of 8.5% over the past three years. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥53.99, the stock trades at a forward P/E ratio of 43x. Average forward P/E is 26x in the Tech industry in China. Total returns to shareholders of 72% over the past three years. Reported Earnings • Apr 18
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: CN¥1.06 (up from CN¥0.80 in FY 2021). Revenue: CN¥13.0b (up 16% from FY 2021). Net income: CN¥1.54b (up 33% from FY 2021). Profit margin: 12% (up from 10% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 07
Price target decreased by 14% to CN¥28.53 Down from CN¥33.30, the current price target is an average from 3 analysts. New target price is 29% below last closing price of CN¥40.08. Stock is up 42% over the past year. The company is forecast to post earnings per share of CN¥1.21 for next year compared to CN¥1.04 last year. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥37.34, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 28x in the Tech industry in China. Total returns to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥34.18, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 28x in the Tech industry in China. Negligible returns to shareholders over past three years. Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: CN¥1.04 (vs CN¥0.80 in FY 2021) Full year 2022 results: EPS: CN¥1.04 (up from CN¥0.80 in FY 2021). Revenue: CN¥13.0b (up 16% from FY 2021). Net income: CN¥1.51b (up 31% from FY 2021). Profit margin: 12% (up from 10% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.4% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥31.63, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 26x in the Tech industry in China. Total loss to shareholders of 7.5% over the past three years. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.08 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.12 (up from CN¥0.08 in 3Q 2021). Revenue: CN¥2.36b (up 19% from 3Q 2021). Net income: CN¥171.1m (up 49% from 3Q 2021). Profit margin: 7.2% (up from 5.8% in 3Q 2021). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 19
Second quarter 2022 earnings released: EPS: CN¥0.25 (vs CN¥0.17 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.25 (up from CN¥0.17 in 2Q 2021). Revenue: CN¥2.85b (up 13% from 2Q 2021). Net income: CN¥368.2m (up 36% from 2Q 2021). Profit margin: 13% (up from 11% in 2Q 2021). Over the next year, revenue is forecast to grow 17%, compared to a 25% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥33.43, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 23x in the Tech industry in China. Total returns to shareholders of 51% over the past three years. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.08 (up from CN¥0.06 in 1Q 2021). Revenue: CN¥2.18b (up 9.7% from 1Q 2021). Net income: CN¥113.7m (up 40% from 1Q 2021). Profit margin: 5.2% (up from 4.1% in 1Q 2021). Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 12%, compared to a 20% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target increased to CN¥35.18 Up from CN¥28.45, the current price target is an average from 7 analysts. New target price is 39% above last closing price of CN¥25.32. Stock is down 5.5% over the past year. The company is forecast to post earnings per share of CN¥0.89 for next year compared to CN¥0.80 last 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. 5 independent directors (7 non-independent directors). Independent Non-Executive Director Lei Chen was the last independent 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. Reported Earnings • Apr 16
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.80 (up from CN¥0.62 in FY 2020). Revenue: CN¥11.2b (up 10% from FY 2020). Net income: CN¥1.16b (up 41% from FY 2020). Profit margin: 10% (up from 8.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%. Over the next year, revenue is forecast to grow 10%, compared to a 18% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from CN¥13.1b to CN¥12.6b. EPS estimate rose from CN¥0.83 to CN¥1.00. Net income forecast to grow 26% next year vs 39% growth forecast for Tech industry in China. Consensus price target of CN¥35.18 unchanged from last update. Share price was steady at CN¥32.96 over the past week. Reported Earnings • Feb 24
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.78 (up from CN¥0.62 in FY 2020). Revenue: CN¥11.2b (up 10% from FY 2020). Net income: CN¥1.13b (up 38% from FY 2020). Profit margin: 10% (up from 8.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 12%. Over the next year, revenue is forecast to grow 17%, compared to a 25% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 11
Price target increased to CN¥31.90 Up from CN¥28.45, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of CN¥31.90. Stock is up 8.1% over the past year. The company is forecast to post earnings per share of CN¥0.73 for next year compared to CN¥0.62 last year. Announcement • Jan 28
Dawning Information Industry Co., Ltd.(XSSC:603019) dropped from FTSE All-World Index (USD) Dawning Information Industry Co., Ltd.(XSSC:603019) dropped from FTSE All-World Index (USD) Price Target Changed • Nov 11
Price target decreased to CN¥28.45 Down from CN¥31.60, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of CN¥29.07. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥0.70 for next year compared to CN¥0.62 last year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.08 (vs CN¥0.06 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥1.99b (up 1.3% from 3Q 2020). Net income: CN¥115.1m (up 57% from 3Q 2020). Profit margin: 5.8% (up from 3.7% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.13 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥2.52b (up 30% from 2Q 2020). Net income: CN¥270.7m (up 41% from 2Q 2020). Profit margin: 11% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jun 09
Dawning Information Industry Co., Ltd. (SHSE:603019) intends to acquire 25% stake in Golaxy Data Technology Co., Ltd. from Suzhou Jinfu Technology Co., Ltd. (SZSE:300128) for CNY 90.8 million. Dawning Information Industry Co., Ltd. (SHSE:603019) intends to acquire 25% stake in Golaxy Data Technology Co., Ltd. from Suzhou Jinfu Technology Co., Ltd. (SZSE:300128) for CNY 90.8 million on June 7, 2021. As per the terms of the agreement, Dawning Information Industry Co., Ltd. shall pay 50% of the total consideration or CNY 45.42 million within 5 working days from the date when the agreement becomes effective and the remaining CNY 45.42 million within five working days from the date when Golaxy Data Technology Co., Ltd. completes the filing procedures for industrial and commercial changes related to the share transfer. As a result of the transaction, Suzhou Jinfu Technology Co., Ltd. will no longer hold any stake in Golaxy Data Technology Co., Ltd. In March 31, 2021, Golaxy Data Technology Co., Ltd. reported a total assets of CNY 123 million, negative net income of CNY 27.2 million, total common equity of CNY 68.9 million and EBIT of CNY 0.40 million. Price Target Changed • May 28
Price target decreased to CN¥31.60 Down from CN¥34.30, the current price target is an average from 6 analysts. New target price is 15% above last closing price of CN¥27.46. Stock is down 27% over the past year. Announcement • Apr 13
Dawning Information Industry Co., Ltd. announced that it has received CNY 4.779999983 billion in funding On April 12, 2021, Dawning Information Industry Co., Ltd. (SHSE:603019) closed the transaction. The company issued 148,678,071 ordinary A shares at an issue price of CNY 32.15 per share for gross proceeds of CNY 4,779,999,982.65. The company has incurred expenses of CNY 28,781,771.76 in relation to the transaction. The receipt of the funds has been verified by BDO China SHU LUN PAN Certified Public Accountants LLP and has issued a Capital Verification Report (Xinhuishibaozi [2020] No. ZG11873). Reported Earnings • Apr 12
Full year 2020 earnings released: EPS CN¥0.62 (vs CN¥0.47 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥10.2b (up 6.7% from FY 2019). Net income: CN¥822.4m (up 39% from FY 2019). Profit margin: 8.1% (up from 6.2% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% 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 • Mar 13
Price target lowered to CN¥35.63 Down from CN¥39.97, the current price target is an average from 7 analysts. The new target price is 19% above the current share price of CN¥29.99. As of last close, the stock is down 11% over the past year. Reported Earnings • Mar 12
Full year 2020 earnings released: EPS CN¥0.62 (vs CN¥0.47 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥10.1b (up 6.0% from FY 2019). Net income: CN¥819.4m (up 38% from FY 2019). Profit margin: 8.1% (up from 6.2% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 10
New 90-day low: CN¥28.15 The company is down 15% from its price of CN¥32.95 on 10 December 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech 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¥5.22 per share.