Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥45.19, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 30x in the Electronic industry in China. Total returns to shareholders of 75% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.83 per share. Buy Or Sell Opportunity • Jul 09
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 71% to CN¥58.48. The fair value is estimated to be CN¥47.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 50% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥61.03, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 42x in the Electronic industry in China. Total returns to shareholders of 154% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥47.52 per share. Announcement • Jun 30
Shenzhen Sunlord Electronics Co.,Ltd. to Report First Half, 2026 Results on Jul 31, 2026 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report first half, 2026 results on Jul 31, 2026 New Risk • Jun 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.4% 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 High level of debt (50% net debt to equity). Dividend is not well covered by cash flows (98% cash payout ratio). Share price has been volatile over the past 3 months (8.4% average weekly change). Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥55.66, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 38x in the Electronic industry in China. Total returns to shareholders of 147% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥43.25 per share. Buy Or Sell Opportunity • Jun 05
Now 30% overvalued after recent price rise Over the last 90 days, the stock has risen 37% to CN¥55.61. The fair value is estimated to be CN¥42.75, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 50% in 2 years. Earnings are forecast to grow by 83% in the next 2 years. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥43.30, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 37x in the Electronic industry in China. Total returns to shareholders of 95% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥42.62 per share. Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: CN¥0.23 (vs CN¥0.30 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.23 (down from CN¥0.30 in 1Q 2025). Revenue: CN¥1.68b (up 15% from 1Q 2025). Net income: CN¥177.9m (down 24% from 1Q 2025). Profit margin: 11% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Mar 31
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Declared Dividend • Mar 29
Dividend increased to CN¥0.80 Dividend of CN¥0.80 is 33% higher than last year. Ex-date: 1st April 2026 Payment date: 1st April 2026 Dividend yield will be 2.3%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (62% earnings payout ratio) and cash flows (66% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Mar 23
Now 23% undervalued The stock has been flat over the last 90 days, currently trading at CN¥34.65. The fair value is estimated to be CN¥44.72, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 33%. For the next 3 years, revenue is forecast to grow by 18% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Reported Earnings • Mar 02
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥1.30 (up from CN¥1.05 in FY 2024). Revenue: CN¥6.75b (up 14% from FY 2024). Net income: CN¥1.02b (up 23% from FY 2024). Profit margin: 15% (up from 14% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 1.6%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Feb 27
Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 20, 2026 Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 20, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Buy Or Sell Opportunity • Feb 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to CN¥36.95. The fair value is estimated to be CN¥46.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 47% in 2 years. Earnings are forecast to grow by 61% in the next 2 years. Announcement • Dec 31
Shenzhen Sunlord Electronics Co.,Ltd. to Report Fiscal Year 2025 Results on Feb 28, 2026 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report fiscal year 2025 results on Feb 28, 2026 Buy Or Sell Opportunity • Dec 31
Now 21% undervalued Over the last 90 days, the stock has risen 1.1% to CN¥35.53. The fair value is estimated to be CN¥44.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 46% in 2 years. Earnings are forecast to grow by 61% in the next 2 years. Buy Or Sell Opportunity • Dec 01
Now 21% undervalued Over the last 90 days, the stock has risen 5.3% to CN¥35.37. The fair value is estimated to be CN¥44.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 47% in 2 years. Earnings are forecast to grow by 60% in the next 2 years. Reported Earnings • Oct 28
Third quarter 2025 earnings released: EPS: CN¥0.36 (vs CN¥0.32 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.36 (up from CN¥0.32 in 3Q 2024). Revenue: CN¥1.81b (up 20% from 3Q 2024). Net income: CN¥283.2m (up 11% from 3Q 2024). Profit margin: 16% (down from 17% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥39.70, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 103% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥27.07 per share. Price Target Changed • Oct 23
Price target increased by 7.9% to CN¥41.12 Up from CN¥38.10, the current price target is an average from 4 analysts. New target price is 10% above last closing price of CN¥37.28. Stock is up 30% over the past year. The company is forecast to post earnings per share of CN¥1.35 for next year compared to CN¥1.05 last year. Announcement • Sep 30
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Buy Or Sell Opportunity • Sep 01
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to CN¥35.84. The fair value is estimated to be CN¥27.83, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 24%. Revenue is forecast to grow by 46% in 2 years. Earnings are forecast to grow by 55% in the next 2 years. New Risk • Aug 02
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 46% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (46% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Jul 31
Second quarter 2025 earnings released: EPS: CN¥0.32 (vs CN¥0.25 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.32 (up from CN¥0.25 in 2Q 2024). Revenue: CN¥1.76b (up 23% from 2Q 2024). Net income: CN¥252.7m (up 28% from 2Q 2024). Profit margin: 14% (in line with 2Q 2024). Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jul 02
Shenzhen Sunlord Electronics Co.,Ltd. to Report First Half, 2025 Results on Jul 31, 2025 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report first half, 2025 results on Jul 31, 2025 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. 8 experienced directors. 4 highly experienced directors. Supervisory Board Chairman Guocheng Hu was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Apr 19
First quarter 2025 earnings released: EPS: CN¥0.30 (vs CN¥0.22 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.30 (up from CN¥0.22 in 1Q 2024). Revenue: CN¥1.46b (up 16% from 1Q 2024). Net income: CN¥233.2m (up 37% from 1Q 2024). Profit margin: 16% (up from 14% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electronic 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 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥24.02, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥26.11 per share. Announcement • Mar 31
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q1, 2025 Results on Apr 19, 2025 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report Q1, 2025 results on Apr 19, 2025 Announcement • Mar 26
Shenzhen Sunlord Electronics Co.,Ltd. Implements 2024 Final Profit Distribution, Payable on March 31, 2025 Shenzhen Sunlord Electronics Co.,Ltd. announced 2024 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): CNY 6.00000000. Record date: 28 March 2025. Ex-date: 31 March 2025. Payment date: 31 March 2025. Price Target Changed • Mar 10
Price target increased by 8.8% to CN¥37.08 Up from CN¥34.08, the current price target is an average from 5 analysts. New target price is 22% above last closing price of CN¥30.36. Stock is up 8.6% over the past year. The company is forecast to post earnings per share of CN¥1.34 for next year compared to CN¥1.05 last year. Buy Or Sell Opportunity • Mar 06
Now 21% overvalued The stock has been flat over the last 90 days, currently trading at CN¥30.98. The fair value is estimated to be CN¥25.50, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 7.0%. For the next 3 years, revenue is forecast to grow by 18% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Announcement • Mar 01
Shenzhen Sunlord Electronics Co.,Ltd. Proposes Cash Dividend for 2024 Shenzhen Sunlord Electronics Co.,Ltd. proposed cash dividend/10 shares (tax included): CNY 6.00000000 for year 2024. Reported Earnings • Feb 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥1.05 (up from CN¥0.81 in FY 2023). Revenue: CN¥5.90b (up 17% from FY 2023). Net income: CN¥832.1m (up 30% from FY 2023). Profit margin: 14% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 4.6%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 28
Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 20, 2025 Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 20, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Shenzhen, Guangdong China Announcement • Dec 31
Shenzhen Sunlord Electronics Co.,Ltd. to Report Fiscal Year 2024 Results on Feb 28, 2025 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report fiscal year 2024 results on Feb 28, 2025 Announcement • Nov 13
Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces an Equity Buyback for CNY 400 million worth of its shares. Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces a share repurchase program. Under the program, the company will repurchase up to CNY 400 million worth of class A shares. The shares will be repurchased at a price of not more than CNY 40 per share. The program will be funded from own funds and special loan funds. The shares purchased will be used for the company's equity incentive plan or employee stock ownership plan. The program will be valid till 12 months. Reported Earnings • Oct 26
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CN¥0.32 (up from CN¥0.28 in 3Q 2023). Revenue: CN¥1.50b (up 12% from 3Q 2023). Net income: CN¥256.1m (up 16% from 3Q 2023). Profit margin: 17% (in line with 3Q 2023). Revenue missed analyst estimates by 5.4%. Earnings per share (EPS) also missed analyst estimates by 4.9%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 5% per year. Announcement • Sep 30
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Shenzhen Sunlord Electronics 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 23% After last week's 23% share price gain to CN¥28.21, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 21x in the Electronic industry in China. Total loss to shareholders of 14% over the past three years. Reported Earnings • Jul 31
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: CN¥0.25 (up from CN¥0.23 in 2Q 2023). Revenue: CN¥1.43b (up 9.6% from 2Q 2023). Net income: CN¥197.8m (up 13% from 2Q 2023). Profit margin: 14% (in line with 2Q 2023). Revenue missed analyst estimates by 9.8%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Announcement • Jun 29
Shenzhen Sunlord Electronics Co.,Ltd. to Report First Half, 2024 Results on Jul 31, 2024 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report first half, 2024 results on Jul 31, 2024 Reported Earnings • Apr 16
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: CN¥0.22 (up from CN¥0.10 in 1Q 2023). Revenue: CN¥1.26b (up 23% from 1Q 2023). Net income: CN¥170.2m (up 111% from 1Q 2023). Profit margin: 14% (up from 7.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 4.8%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 13% per year and the company’s share price has also fallen by 13% per year. Announcement • Mar 30
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q1, 2024 Results on Apr 20, 2024 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report Q1, 2024 results on Apr 20, 2024 Declared Dividend • Mar 27
Dividend increased to CN¥0.30 Dividend of CN¥0.30 is 50% higher than last year. Ex-date: 29th March 2024 Payment date: 29th March 2024 Dividend yield will be 1.2%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (37% earnings payout ratio) but not covered by cash flows (dividend approximately 5x free cash flows). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 92% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.81 (up from CN¥0.54 in FY 2022). Revenue: CN¥5.04b (up 19% from FY 2022). Net income: CN¥640.5m (up 48% from FY 2022). Profit margin: 13% (up from 10% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 5.6%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥26.63, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥25.53 per share. Announcement • Feb 05
Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces an Equity Buyback for CNY 150 million worth of its shares. Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces a share repurchase program. Under the program, the company will repurchase up to CNY 150 million worth of class A shares. The shares will be repurchased at a price of not more than CNY 35 per share. The shares purchased will be used for the company's equity incentive plan or employee stock ownership plan. The program will be valid till 12 months. Announcement • Dec 29
Shenzhen Sunlord Electronics Co.,Ltd. to Report Fiscal Year 2023 Results on Feb 29, 2024 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report fiscal year 2023 results on Feb 29, 2024 Price Target Changed • Nov 03
Price target increased by 8.9% to CN¥34.83 Up from CN¥31.99, the current price target is an average from 6 analysts. New target price is 22% above last closing price of CN¥28.56. Stock is up 24% over the past year. The company is forecast to post earnings per share of CN¥0.85 for next year compared to CN¥0.54 last year. New Risk • Oct 22
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 32% 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: Minor Risks High level of debt (50% net debt to equity). Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Oct 21
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: CN¥0.28 (up from CN¥0.14 in 3Q 2022). Revenue: CN¥1.34b (up 29% from 3Q 2022). Net income: CN¥221.6m (up 95% from 3Q 2022). Profit margin: 17% (up from 11% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 30
Shenzhen Sunlord Electronics Co.,Ltd. to Report Q3, 2023 Results on Oct 21, 2023 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report Q3, 2023 results at 3:00 PM, China Standard Time on Oct 21, 2023 New Risk • Aug 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% 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: Minor Risks High level of debt (50% net debt to equity). 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 (8.9% net profit margin). Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.17 in 2Q 2022). Revenue: CN¥1.31b (up 16% from 2Q 2022). Net income: CN¥175.3m (up 34% from 2Q 2022). Profit margin: 13% (up from 12% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Jul 01
Shenzhen Sunlord Electronics Co.,Ltd. to Report First Half, 2023 Results on Aug 05, 2023 Shenzhen Sunlord Electronics Co.,Ltd. announced that they will report first half, 2023 results on Aug 05, 2023 Reported Earnings • Apr 23
First quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.20 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.10 (down from CN¥0.20 in 1Q 2022). Revenue: CN¥1.02b (up 1.7% from 1Q 2022). Net income: CN¥80.5m (down 51% from 1Q 2022). Profit margin: 7.9% (down from 16% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 3% per year. Reported Earnings • Feb 28
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.54 (down from CN¥0.98 in FY 2021). Revenue: CN¥4.24b (down 7.4% from FY 2021). Net income: CN¥433.1m (down 45% from FY 2021). Profit margin: 10% (down from 17% in FY 2021). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Price Target Changed • Dec 19
Price target decreased to CN¥31.70 Down from CN¥34.82, the current price target is an average from 4 analysts. New target price is 23% above last closing price of CN¥25.70. Stock is down 29% over the past year. The company is forecast to post earnings per share of CN¥0.71 for next year compared to CN¥0.98 last year. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Independent Director Cong Yuan was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Nov 06
Consensus EPS estimates fall by 17% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥4.63b to CN¥4.40b. EPS estimate also fell from CN¥0.91 per share to CN¥0.75 per share. Net income forecast to grow 48% next year vs 51% growth forecast for Electronic industry in China. Consensus price target down from CN¥34.82 to CN¥32.10. Share price rose 14% to CN¥23.11 over the past week. Price Target Changed • Nov 04
Price target decreased to CN¥32.10 Down from CN¥34.82, the current price target is an average from 4 analysts. New target price is 41% above last closing price of CN¥22.76. Stock is down 37% over the past year. The company is forecast to post earnings per share of CN¥0.75 for next year compared to CN¥0.98 last year. Reported Earnings • Oct 31
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.14 (down from CN¥0.24 in 3Q 2021). Revenue: CN¥1.05b (down 10% from 3Q 2021). Net income: CN¥113.9m (down 41% from 3Q 2021). Profit margin: 11% (down from 17% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 47%. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 05
Consensus revenue estimates fall by 15% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥5.56b to CN¥4.75b. EPS estimate fell from CN¥1.14 to CN¥0.88 per share. Net income forecast to grow 38% next year vs 43% growth forecast for Electronic industry in China. Consensus price target of CN¥35.85 unchanged from last update. Share price rose 9.8% to CN¥27.05 over the past week. Reported Earnings • Jul 31
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: EPS: CN¥0.17 (down from CN¥0.27 in 2Q 2021). Revenue: CN¥1.13b (down 10% from 2Q 2021). Net income: CN¥130.7m (down 41% from 2Q 2021). Profit margin: 12% (down from 18% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) missed analyst estimates by 14%. Over the next year, revenue is forecast to grow 43%, compared to a 26% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 10
Price target decreased to CN¥37.57 Down from CN¥40.54, the current price target is an average from 7 analysts. New target price is 50% above last closing price of CN¥24.98. Stock is down 19% over the past year. The company is forecast to post earnings per share of CN¥1.19 for next year compared to CN¥0.98 last year. Board Change • Apr 27
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Independent Director Cong Yuan was the last director to join the board, commencing their role in 2020. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 20
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.20 (down from CN¥0.24 in 1Q 2021). Revenue: CN¥1.01b (down 4.5% from 1Q 2021). Net income: CN¥162.8m (down 15% from 1Q 2021). Profit margin: 16% (down from 18% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates by 47%. Over the next year, revenue is forecast to grow 35%, compared to a 24% 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 5% per year, which means it is significantly lagging earnings growth. Announcement • Apr 20
Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces an Equity Buyback for CNY 300 million worth of its shares. Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) announces a share repurchase program. Under the program, the company will repurchase up to CNY 300 million worth of its shares. The program will be valid for a period of 12 months. Major Estimate Revision • Mar 04
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥5.97b to CN¥5.70b. EPS estimate also fell from CN¥1.32 per share to CN¥1.15 per share. Net income forecast to grow 18% next year vs 38% growth forecast for Electronic industry in China. Consensus price target of CN¥43.16 unchanged from last update. Share price fell 9.9% to CN¥28.94 over the past week. Announcement • Mar 03
Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 18, 2022 Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 18, 2022, at 14:30 China Standard Time. Agenda: To discuss 2021 work report of the board of directors; to discuss 2021 work report of independent directors; to discuss 2021 work report of the supervisory committee; to discuss 2021 annual accounts; to discuss 2021 profit distribution plan; to discuss Reappointment of audit firm; to discuss 2021 annual report and its summary; to discuss Remuneration for directors; to discuss Remuneration for supervisors; to discuss 2021 continuing connected transactions statistics and 2022 estimated continuing connected transactions; and to discuss 2022 provision of guarantee for controlled companies. Announcement • Mar 01
Shenzhen Sunlord Electronics Co.,Ltd. Proposes Cash Dividend for the Year 2021 Shenzhen Sunlord Electronics Co.,Ltd. proposed cash dividend/10 shares (tax included) of CNY 3.00000000 for the year 2021. Reported Earnings • Feb 27
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.98 (up from CN¥0.74 in FY 2020). Revenue: CN¥4.58b (up 32% from FY 2020). Net income: CN¥784.6m (up 33% from FY 2020). Profit margin: 17% (in line with FY 2020). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 30%, compared to a 26% growth forecast for the 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 21% per year. Reported Earnings • Oct 16
Third quarter 2021 earnings released: EPS CN¥0.24 (vs CN¥0.21 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: CN¥1.17b (up 15% from 3Q 2020). Net income: CN¥191.7m (up 17% from 3Q 2020). Profit margin: 17% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jul 28
Second quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.18 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¥1.26b (up 50% from 2Q 2020). Net income: CN¥219.8m (up 49% from 2Q 2020). Profit margin: 18% (in line with 2Q 2020). 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 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 30
Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) signed a letter of intent tor equity transfer to acquire 60% stake in Shanghai Deman Information Technology Co., Ltd from Shanghai Deman Electronics Technology co., LTD. for approximately CNY 210 million. Shenzhen Sunlord Electronics Co.,Ltd. (SZSE:002138) signed a letter of intent tor equity transfer to acquire 60% stake in Shanghai Deman Information Technology Co., Ltd from Shanghai Deman Electronics Technology co., LTD. for approximately CNY 210 million on April 27, 2021. The consideration will be paid with own funds of Shenzhen Sunlord Electronics Co.,Ltd. As of March 31, 2021, Shanghai Deman Information Technology Co. reported total assets of CNY 351.7 million and net assets of CNY 112.4 million. The transaction was approved at the 6th meeting of the 6th directorate of Shenzhen Sunlord Electronics Co. on April 27, 2021. Reported Earnings • Apr 17
First quarter 2021 earnings released: EPS CN¥0.24 (vs CN¥0.12 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.06b (up 75% from 1Q 2020). Net income: CN¥191.0m (up 102% from 1Q 2020). Profit margin: 18% (up from 16% 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 14% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥37.09, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 112% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥31.05 per share. Price Target Changed • Mar 16
Price target increased to CN¥41.01 Up from CN¥37.96, the current price target is an average from 9 analysts. New target price is 22% above last closing price of CN¥33.69. Stock is up 60% over the past year. Announcement • Mar 02
Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 19, 2021 Shenzhen Sunlord Electronics Co.,Ltd., Annual General Meeting, Mar 19, 2021, at 14:30 China Standard Time. Agenda: To consider 2020 work report of the board of directors; to consider 2020 work report of independent directors; to consider 2020 work report of the supervisory committee; to consider 2020 annual accounts; to consider 2020 profit distribution plan; to consider Special report on the deposit and use of raised funds in 2020; to consider Reappointment of audit firm; to consider 2020 annual report and its summary; and to consider other matters thereon. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS CN¥0.74 (vs CN¥0.50 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.48b (up 29% from FY 2019). Net income: CN¥588.5m (up 47% from FY 2019). Profit margin: 17% (up from 15% 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 11% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth.