New Risk • Apr 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 48% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 18% per year over the past 5 years. High level of non-cash earnings (48% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Mar 31
Skyworth Digital Co., Ltd. to Report Q1, 2026 Results on Apr 21, 2026 Skyworth Digital Co., Ltd. announced that they will report Q1, 2026 results on Apr 21, 2026 Announcement • Mar 28
Skyworth Digital Co., Ltd., Annual General Meeting, Apr 24, 2026 Skyworth Digital Co., Ltd., Annual General Meeting, Apr 24, 2026, at 14:00 China Standard Time. Location: 13F, Tower A, Skyworth Building, Hi-tech South 1st Road, Nanshan District, Shenzhen, Guangdong China Price Target Changed • Mar 08
Price target increased by 12% to CN¥15.50 Up from CN¥13.79, the current price target is provided by 1 analyst. New target price is 40% above last closing price of CN¥11.07. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.66 for next year compared to CN¥0.22 last year. New Risk • Feb 15
New major risk - Revenue and earnings growth Earnings have declined by 11% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 11% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Announcement • Dec 31
Skyworth Digital Co., Ltd. to Report Fiscal Year 2025 Results on Mar 24, 2026 Skyworth Digital Co., Ltd. announced that they will report fiscal year 2025 results on Mar 24, 2026 Reported Earnings • Oct 25
Third quarter 2025 earnings released: EPS: CN¥0.028 (vs CN¥0.048 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.028 (down from CN¥0.048 in 3Q 2024). Revenue: CN¥2.36b (up 9.1% from 3Q 2024). Net income: CN¥32.3m (down 41% from 3Q 2024). Profit margin: 1.4% (down from 2.5% in 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Communications 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 2% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Skyworth Digital Co., Ltd. to Report Q3, 2025 Results on Oct 25, 2025 Skyworth Digital Co., Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: CN¥0.042 (vs CN¥0.066 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.042 (down from CN¥0.066 in 2Q 2024). Revenue: CN¥2.30b (up 5.9% from 2Q 2024). Net income: CN¥48.3m (down 36% from 2Q 2024). Profit margin: 2.1% (down from 3.5% in 2Q 2024). 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 fallen by 45% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Jul 02
Skyworth Digital Co., Ltd. to Report First Half, 2025 Results on Aug 23, 2025 Skyworth Digital Co., Ltd. announced that they will report first half, 2025 results on Aug 23, 2025 Declared Dividend • Jun 09
Dividend of CN¥0.05 announced Shareholders will receive a dividend of CN¥0.05. Ex-date: 13th June 2025 Payment date: 13th June 2025 Dividend yield will be 1.1%, which is about the same as the industry average. Sustainability & Growth Dividend is not adequately covered by earnings (99% earnings payout ratio). However, it is well covered by cash flows (38% cash payout ratio). The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 9.8% to bring the payout ratio under control. EPS is expected to grow by 208% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • Mar 31
Skyworth Digital Co., Ltd. to Report Q1, 2025 Results on Apr 10, 2025 Skyworth Digital Co., Ltd. announced that they will report Q1, 2025 results on Apr 10, 2025 Announcement • Mar 26
Skyworth Digital Co., Ltd. Proposes Final Cash Dividend for the Year 2024 Skyworth Digital Co., Ltd. announced on 25 March 2025 the profit distribution proposal for the year 2024 as final cash dividend per 10 shares (tax included) of CNY 0.50000000. Reported Earnings • Mar 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.22 (down from CN¥0.53 in FY 2023). Revenue: CN¥8.69b (down 18% from FY 2023). Net income: CN¥250.8m (down 58% from FY 2023). Profit margin: 2.9% (down from 5.7% in FY 2023). Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 56%. Revenue is forecast to grow 19% 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 fallen by 16% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Mar 25
Skyworth Digital Co., Ltd., Annual General Meeting, Apr 25, 2025 Skyworth Digital Co., Ltd., Annual General Meeting, Apr 25, 2025, at 14:00 China Standard Time. Location: 13F, Tower A, Skyworth Building, Hi-tech South 1st Road, Science and Technology Park, Nanshan District, Shenzhen, Guangdong China Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥14.22, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 32x in the Communications industry in China. Total returns to shareholders of 22% over the past three years. Announcement • Jan 17
Skyworth Digital Co., Ltd. Provides Earnings Guidance for the Year Ended December 31, 2024 Skyworth Digital Co., Ltd. provided earnings guidance for the year ended December 31, 2024. For the year, the company expects Net profit attributable to shareholders of the Company of RMB 210,000,000 – RMB 290,000,000 compared to RMB 602,067,700 a year ago and Basic earnings per share of RMB 0.18 – RMB 0.25 compared to RMB 0.53 a year ago. The decrease in net profit for the annual results of 2024 compared to the corresponding period last year is mainly due to the competitive market environment, the significant drop of sales unit price of smart devices, and the small and medium-sized display modules business has been under pressure, resulting in a year-on-year decrease in revenue and gross profit margin. Announcement • Jan 16
Skyworth Digital Co., Ltd. Announces 3rd Quarter Cash Dividend of the Year 2024 of A Shares, Payable on 22 January 2025 Skyworth Digital Co., Ltd. announced 3rd quarter cash dividend/10 shares (tax included) of CNY 0.80000000 for year 2024 of A shares. Record date is 21 January 2025. Ex-date is 22 January 2025. Payment date is 22 January 2025. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥12.81, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 28x in the Communications industry in China. Total returns to shareholders of 13% over the past three years. Announcement • Dec 31
Skyworth Digital Co., Ltd. to Report Fiscal Year 2024 Results on Mar 25, 2025 Skyworth Digital Co., Ltd. announced that they will report fiscal year 2024 results on Mar 25, 2025 Announcement • Dec 28
Skyworth Digital Co., Ltd. Approves Cash Dividend for the Third Quarter of 2024 Skyworth Digital Co., Ltd. at its Extraordinary General Meeting held on 26 December 2024 approved cash dividend of CNY 0.80000000 per 10 shares (tax included) for the third quarter of 2024. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥15.16, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 32x in the Communications industry in China. Total returns to shareholders of 61% over the past three years. Announcement • Dec 03
Skyworth Digital Co., Ltd. Proposes Profit Distribution Plan for Third Quarter 2024 Skyworth Digital Co., Ltd. announced on 02 December 2024 the profit distribution proposal for the third quarter of 2024 as Cash dividend/10 shares (tax included): CNY 0.80000000. Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.048 (vs CN¥0.11 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.048 (down from CN¥0.11 in 3Q 2023). Revenue: CN¥2.17b (down 12% from 3Q 2023). Net income: CN¥54.7m (down 58% from 3Q 2023). Profit margin: 2.5% (down from 5.3% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% 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 fallen by 3% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥10.26, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 28x in the Communications industry in China. Total returns to shareholders of 49% over the past three years. Announcement • Sep 30
Skyworth Digital Co., Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Skyworth Digital Co., Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥11.08, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 24x in the Communications industry in China. Total returns to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥9.79, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Communications industry in China. Total returns to shareholders of 22% over the past three years. Price Target Changed • Aug 27
Price target decreased by 13% to CN¥13.69 Down from CN¥15.80, the current price target is an average from 2 analysts. New target price is 6.1% above last closing price of CN¥12.90. Stock is down 5.7% over the past year. The company is forecast to post earnings per share of CN¥0.63 for next year compared to CN¥0.53 last year. Reported Earnings • Aug 25
Second quarter 2024 earnings released: EPS: CN¥0.066 (vs CN¥0.17 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.066 (down from CN¥0.17 in 2Q 2023). Revenue: CN¥2.17b (down 23% from 2Q 2023). Net income: CN¥75.6m (down 62% from 2Q 2023). Profit margin: 3.5% (down from 7.1% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 19% 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 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥9.15, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 23x in the Communications industry in China. Total returns to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥15.02 per share. Announcement • Jun 29
Skyworth Digital Co., Ltd. to Report First Half, 2024 Results on Aug 24, 2024 Skyworth Digital Co., Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Announcement • Jun 06
Skyworth Digital Co., Ltd. Announces Final Cash Dividend on A Shares for the Year 2023, Payable on 13 June 2024 Skyworth Digital Co., Ltd. announced final cash dividend (tax included) of CNY 1.50000000 per 10 shares on A shares for the year 2023. Record date is 12 June 2024. Ex-date is 13 June 2024. Payment date is 13 June 2024. Buy Or Sell Opportunity • May 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to CN¥10.00. The fair value is estimated to be CN¥12.72, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has grown by 9.7%. Revenue is forecast to grow by 47% in 2 years. Earnings are forecast to grow by 74% in the next 2 years. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. 3 highly experienced directors. Independent Director Ning Peng was the last 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: Insufficient board refreshment. Reported Earnings • Apr 24
First quarter 2024 earnings released: EPS: CN¥0.093 (vs CN¥0.10 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.093 (down from CN¥0.10 in 1Q 2023). Revenue: CN¥2.28b (down 2.5% from 1Q 2023). Net income: CN¥106.2m (down 9.5% from 1Q 2023). Profit margin: 4.7% (down from 5.0% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% 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 10% per year whereas the company’s share price has increased by 7% per year. Announcement • Mar 30
Skyworth Digital Co., Ltd. to Report Q1, 2024 Results on Apr 24, 2024 Skyworth Digital Co., Ltd. announced that they will report Q1, 2024 results on Apr 24, 2024 Announcement • Mar 23
Skyworth Digital Co., Ltd., Annual General Meeting, Apr 29, 2024 Skyworth Digital Co., Ltd., Annual General Meeting, Apr 29, 2024, at 14:00 China Standard Time. Location: 13F, Tower A, Skyworth Building, Hi-tech South 1st Road, Nanshan District, Shenzhen, Guangdong China Agenda: To consider 2023 work report of the board of directors; to consider 2023 work report of the supervisory committee; to consider 2023 annual accounts report; to consider 2023 annual report and its summary; to consider 2023 profit distribution plan; to consider 2023 internal control evaluation report; and to consider Reappointment of 2024 financial and internal control audit firm. Reported Earnings • Mar 22
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.53 (down from CN¥0.75 in FY 2022). Revenue: CN¥10.6b (down 12% from FY 2022). Net income: CN¥602.1m (down 27% from FY 2022). Profit margin: 5.7% (down from 6.9% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 15% per year and the company’s share price has also increased by 15% per year. Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥10.01, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 23x in the Communications industry in China. Total returns to shareholders of 47% over the past three years. Announcement • Dec 30
Skyworth Digital Co., Ltd. to Report Fiscal Year 2023 Results on Mar 22, 2024 Skyworth Digital Co., Ltd. announced that they will report fiscal year 2023 results on Mar 22, 2024 Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥14.94, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 26x in the Communications industry in China. Total returns to shareholders of 93% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥26.36 per share. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.19 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.11 (down from CN¥0.19 in 3Q 2022). Revenue: CN¥2.46b (down 12% from 3Q 2022). Net income: CN¥130.2m (down 40% from 3Q 2022). Profit margin: 5.3% (down from 7.7% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 23% 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 only increased by 11% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 19
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be CN¥16.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 19%. Revenue is forecast to grow by 52% in 2 years. Earnings is forecast to grow by 91% in the next 2 years. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.17 (vs CN¥0.27 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.17 (down from CN¥0.27 in 2Q 2022). Revenue: CN¥2.83b (down 19% from 2Q 2022). Net income: CN¥200.3m (down 29% from 2Q 2022). Profit margin: 7.1% (down from 8.2% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 20% 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 19% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 22
Price target decreased by 14% to CN¥18.85 Down from CN¥22.03, the current price target is an average from 2 analysts. New target price is 41% above last closing price of CN¥13.40. Stock is down 45% over the past year. The company is forecast to post earnings per share of CN¥0.84 for next year compared to CN¥0.75 last year. Announcement • Jul 01
Skyworth Digital Co., Ltd. to Report First Half, 2023 Results on Aug 22, 2023 Skyworth Digital Co., Ltd. announced that they will report first half, 2023 results on Aug 22, 2023 Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥15.45, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 31x in the Communications industry in China. Total returns to shareholders of 34% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.33 per share. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥18.30, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 28x in the Communications industry in China. Total returns to shareholders of 70% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.32 per share. Announcement • May 12
Skyworth Digital Co., Ltd. Announces Final Dividend on A Shares for the Year 2022, Payable on May 18, 2023 Skyworth Digital Co., Ltd. announced final cash dividend/10 shares (tax included) of CNY 2.00000000 on A shares for the year 2022. Record date is May 17, 2023. Ex-date is May 18, 2023. Payment date is May 18, 2023. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥20.64, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 29x in the Communications industry in China. Total returns to shareholders of 80% over the past three years. Price Target Changed • Mar 21
Price target increased by 14% to CN¥24.18 Up from CN¥21.12, the current price target is an average from 2 analysts. New target price is 28% above last closing price of CN¥18.91. Stock is up 26% over the past year. The company is forecast to post earnings per share of CN¥0.94 for next year compared to CN¥0.75 last year. Reported Earnings • Mar 21
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.75 (up from CN¥0.40 in FY 2021). Revenue: CN¥12.0b (up 11% from FY 2021). Net income: CN¥823.0m (up 95% from FY 2021). Profit margin: 6.9% (up from 3.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 9.0%. Earnings per share (EPS) also missed analyst estimates by 6.0%. Revenue is forecast to grow 17% p.a. on average during the next 3 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 11% per year whereas the company’s share price has increased by 15% per year. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥17.79, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 25x in the Communications industry in China. Total returns to shareholders of 58% over the past three years. Price Target Changed • Nov 16
Price target decreased to CN¥22.40 Down from CN¥30.66, the current price target is an average from 2 analysts. New target price is 40% above last closing price of CN¥16.01. Stock is up 84% over the past year. The company is forecast to post earnings per share of CN¥0.84 for next year compared to CN¥0.40 last year. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥16.97, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 22x in the Communications industry in China. Total returns to shareholders of 57% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥21.17 per share. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.19 (vs CN¥0.014 loss in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.19 (up from CN¥0.014 loss in 3Q 2021). Revenue: CN¥2.79b (down 8.5% from 3Q 2021). Net income: CN¥215.5m (up CN¥230.8m from 3Q 2021). Profit margin: 7.7% (up from net loss in 3Q 2021). The move to profitability was driven by lower expenses. Revenue is forecast to grow 18% 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 2% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Aug 26
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥13.5b to CN¥14.2b. EPS estimate increased from CN¥0.75 to CN¥0.86 per share. Net income forecast to grow 73% next year vs 57% growth forecast for Communications industry in China. Consensus price target up from CN¥19.90 to CN¥25.94. Share price fell 15% to CN¥21.40 over the past week. Reported Earnings • Aug 21
Second quarter 2022 earnings released: EPS: CN¥0.27 (vs CN¥0.12 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.27 (up from CN¥0.12 in 2Q 2021). Revenue: CN¥3.47b (up 47% from 2Q 2021). Net income: CN¥283.3m (up 120% from 2Q 2021). Profit margin: 8.2% (up from 5.5% in 2Q 2021). Over the next year, revenue is forecast to grow 19%, compared to a 29% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 43% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥22.73, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 26x in the Communications industry in China. Total returns to shareholders of 175% over the past three years. Announcement • Jun 09
Skyworth Digital Co., Ltd. Announces Cessation of Lai Weide as Chairman and Director, Effective 7 July 2022 Skyworth Digital Co., Ltd. announced cessation of Mr. Lai Weide as chairman and director of the company, effective 7 July 2022. Upcoming Dividend • Apr 29
Upcoming dividend of CN¥0.10 per share Eligible shareholders must have bought the stock before 06 May 2022. Payment date: 06 May 2022. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Chinese dividend payers (2.4%). In line with average of industry peers (0.9%). Price Target Changed • Apr 27
Price target increased to CN¥15.36 Up from CN¥12.08, the current price target is an average from 2 analysts. New target price is 27% above last closing price of CN¥12.10. Stock is up 48% over the past year. The company is forecast to post earnings per share of CN¥0.69 for next year compared to CN¥0.40 last year. Announcement • Apr 21
Skyworth Digital Co., Ltd. Approves Cash Dividend for the Year 2021 Skyworth Digital Co., Ltd. announced that at its Annual General Meeting held on 19 April 2022, approved cash dividend/10 shares (tax included) of CNY 1.00000000 for the year 2021. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥11.96, 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 11% over the past three years. Price Target Changed • Mar 24
Price target increased to CN¥15.36 Up from CN¥12.08, the current price target is an average from 2 analysts. New target price is 9.9% above last closing price of CN¥13.98. Stock is up 76% over the past year. The company is forecast to post earnings per share of CN¥0.69 for next year compared to CN¥0.40 last year. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥13.81, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 30x in the Communications industry in China. Total returns to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥11.64, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 31x in the Communications industry in China. Total returns to shareholders of 80% over the past three years. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥10.84, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 33x in the Communications industry in China. Total returns to shareholders of 85% over the past three years. Reported Earnings • Oct 23
Third quarter 2021 earnings released: CN¥0.014 loss per share (vs CN¥0.098 profit in 3Q 2020) The company reported a mediocre third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: CN¥3.05b (up 37% from 3Q 2020). Net loss: CN¥15.3m (down 115% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Reported Earnings • Aug 25
Second quarter 2021 earnings released: EPS CN¥0.12 (vs CN¥0.096 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥2.36b (up 18% from 2Q 2020). Net income: CN¥128.6m (up 28% from 2Q 2020). Profit margin: 5.5% (up from 5.0% in 2Q 2020). The increase in margin was driven by higher revenue. 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. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.15 (vs CN¥0.073 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥2.22b (up 30% from 1Q 2020). Net income: CN¥155.6m (up 105% from 1Q 2020). Profit margin: 7.0% (up from 4.4% in 1Q 2020). The increase in margin was driven by higher revenue. 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. Reported Earnings • Mar 23
Full year 2020 earnings released: EPS CN¥0.37 (vs CN¥0.61 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥8.51b (down 4.4% from FY 2019). Net income: CN¥383.7m (down 39% from FY 2019). Profit margin: 4.5% (down from 7.1% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 20
Skyworth Digital Co., Ltd. to Report Fiscal Year 2020 Results on Mar 23, 2021 Skyworth Digital Co., Ltd. announced that they will report fiscal year 2020 results on Mar 23, 2021 Is New 90 Day High Low • Jan 25
New 90-day low: CN¥7.64 The company is down 20% from its price of CN¥9.59 on 27 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 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥113 per share. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥7.71 The company is down 22% from its price of CN¥9.88 on 09 October 2020. The Chinese market is up 11% 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¥114 per share. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥8.68 The company is down 15% from its price of CN¥10.19 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¥116 per share. Major Estimate Revision • Nov 02
Analysts lower EPS estimates to CN¥0.55 The 2020 consensus revenue estimate was lowered from CN¥9.92b to CN¥9.09b. Earning per share (EPS) estimate was also lowered from CN¥0.64 to CN¥0.55 for the same period. Net income is expected to grow by 57% next year compared to 57% growth forecast for the Communications industry in China. The consensus price target was lowered from CN¥14.80 to CN¥12.46. Share price is down by 11% to CN¥8.96 over the past week. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥415.6m, down 31% from the prior year. Total revenue was CN¥8.55b over the last 12 months, down 1.3% from the prior year. Is New 90 Day High Low • Oct 27
New 90-day low: CN¥9.59 The company is down 28% from its price of CN¥13.24 on 29 July 2020. The Chinese market is flat 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¥25.61 per share. Announcement • Oct 19
Skyworth Digital Co., Ltd. to Report Q3, 2020 Results on Oct 27, 2020 Skyworth Digital Co., Ltd. announced that they will report Q3, 2020 results on Oct 27, 2020 Is New 90 Day High Low • Sep 24
New 90-day low: CN¥9.87 The company is down 18% from its price of CN¥12.07 on 24 June 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 up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥188 per share. Announcement • Aug 02
Skyworth Digital Co., Ltd. to Report First Half, 2020 Results on Aug 25, 2020 Skyworth Digital Co., Ltd. announced that they will report first half, 2020 results on Aug 25, 2020