Declared Dividend • May 23
Dividend of CN¥0.20 announced Shareholders will receive a dividend of CN¥0.20. Ex-date: 28th May 2026 Payment date: 28th May 2026 Dividend yield will be 3.3%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is not covered by earnings (109% earnings payout ratio) nor is it adequately covered by cash flows (100% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 21% to bring the payout ratio under control. EPS is expected to grow by 53% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. New Risk • Apr 25
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 109% Cash payout ratio: 100% Dividend yield: 3.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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 • Mar 31
GRG Banking Equipment Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 GRG Banking Equipment Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Reported Earnings • Mar 30
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.35 (down from CN¥0.37 in FY 2024). Revenue: CN¥12.1b (up 11% from FY 2024). Net income: CN¥860.9m (down 6.4% from FY 2024). Profit margin: 7.1% (down from 8.5% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 13% 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 1% per year whereas the company’s share price has fallen by 3% per year. Announcement • Mar 28
GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 17, 2026 GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 17, 2026, at 15:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Buy Or Sell Opportunity • Mar 20
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at CN¥12.31. The fair value is estimated to be CN¥15.79, 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, while earnings per share has been flat. Revenue is forecast to grow by 31% in 2 years. Earnings are forecast to grow by 79% in the next 2 years. Reported Earnings • Feb 28
Full year 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.37 in FY 2024) Full year 2025 results: EPS: CN¥0.34 (down from CN¥0.37 in FY 2024). Revenue: CN¥12.1b (up 11% from FY 2024). Net income: CN¥856.3m (down 6.9% from FY 2024). Profit margin: 7.1% (down from 8.5% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Dec 31
GRG Banking Equipment Co., Ltd. to Report Fiscal Year 2025 Results on Mar 28, 2026 GRG Banking Equipment Co., Ltd. announced that they will report fiscal year 2025 results on Mar 28, 2026 Announcement • Nov 19
Grg Banking Equipment Co., Ltd. Approves Interim Profit Distribution Plan as Cash Dividend for 2025 GRG Banking Equipment Co., Ltd. at its EGM, held on 17 November 2025, approved 2025 interim profit distribution plan as Cash dividend of CNY 1.70000000 per 10 shares (tax included). Price Target Changed • Nov 10
Price target increased by 16% to CN¥17.18 Up from CN¥14.76, the current price target is an average from 2 analysts. New target price is 34% above last closing price of CN¥12.85. Stock is up 1.4% over the past year. The company is forecast to post earnings per share of CN¥0.41 for next year compared to CN¥0.37 last year. Announcement • Nov 01
GRG Banking Equipment Co., Ltd. Proposes Interim Profit Distribution Plan as Cash Dividend for 2025 GRG Banking Equipment Co., Ltd. at its EGM, held on 17 November 2025, proposed 2025 interim profit distribution plan as Cash dividend of CNY 1.70000000 per 10 shares (tax included). Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.052 (vs CN¥0.07 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.052 (down from CN¥0.07 in 3Q 2024). Revenue: CN¥2.63b (up 9.1% from 3Q 2024). Net income: CN¥136.3m (down 22% from 3Q 2024). Profit margin: 5.2% (down from 7.2% in 3Q 2024). The decrease in margin was driven by higher expenses. 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 2% per year but the company’s share price has increased by 11% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 30
GRG Banking Equipment Co., Ltd. to Report Q3, 2025 Results on Oct 31, 2025 GRG Banking Equipment Co., Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Price Target Changed • Sep 03
Price target increased by 7.9% to CN¥15.76 Up from CN¥14.60, the current price target is an average from 2 analysts. New target price is 15% above last closing price of CN¥13.76. Stock is up 48% over the past year. The company is forecast to post earnings per share of CN¥0.41 for next year compared to CN¥0.37 last year. Reported Earnings • Sep 02
Second quarter 2025 earnings released: EPS: CN¥0.09 (vs CN¥0.10 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.09 (down from CN¥0.10 in 2Q 2024). Revenue: CN¥3.13b (up 16% from 2Q 2024). Net income: CN¥225.3m (down 10% from 2Q 2024). Profit margin: 7.2% (down from 9.3% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% 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 4% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 02
GRG Banking Equipment Co., Ltd. to Report First Half, 2025 Results on Aug 29, 2025 GRG Banking Equipment Co., Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • May 17
Dividend of CN¥0.20 announced Dividend of CN¥0.20 is the same as last year. Ex-date: 22nd May 2025 Payment date: 22nd May 2025 Dividend yield will be 1.7%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by both earnings (54% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 22
GRG Banking Equipment Co., Ltd. Approves Cash Dividend for 2024 GRG Banking Equipment Co., Ltd. at its Annual General Meeting of 2024, held on 18 April 2025, approved the profit distribution proposal for 2024 of CNY 2.00000000 per 10 shares (tax included) as Cash dividend. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥11.10, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 27x in the Tech industry in China. Total returns to shareholders of 14% over the past three years. Major Estimate Revision • Apr 04
Consensus EPS estimates fall by 18% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥12.9b to CN¥12.8b. EPS estimate also fell from CN¥0.485 per share to CN¥0.40 per share. Net income forecast to grow 7.1% next year vs 34% growth forecast for Tech industry in China. Consensus price target up from CN¥13.10 to CN¥14.60. Share price fell 2.0% to CN¥12.99 over the past week. Announcement • Apr 01
Grg Banking Equipment Co., Ltd. Proposes Final Cash Distribution for 2024 GRG Banking Equipment Co., Ltd. announced on 31 March 2025 the profit distribution proposal for 2024 as Cash dividend/10 shares (tax included): CNY 2.00000000. Announcement • Mar 31
GRG Banking Equipment Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 GRG Banking Equipment Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 Reported Earnings • Mar 30
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.37 (down from CN¥0.39 in FY 2023). Revenue: CN¥10.9b (up 20% from FY 2023). Net income: CN¥919.8m (down 5.8% from FY 2023). Profit margin: 8.5% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 16% 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 5% per year whereas the company’s share price has increased by 8% per year. Announcement • Mar 29
GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 18, 2025 GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 18, 2025, at 15:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Reported Earnings • Feb 25
Full year 2024 earnings released: EPS: CN¥0.37 (vs CN¥0.39 in FY 2023) Full year 2024 results: EPS: CN¥0.37 (down from CN¥0.39 in FY 2023). Revenue: CN¥10.9b (up 20% from FY 2023). Net income: CN¥917.1m (down 6.1% from FY 2023). Profit margin: 8.4% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% 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 5% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥14.68, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 35x in the Tech industry in China. Total returns to shareholders of 33% over the past three years. Announcement • Dec 31
GRG Banking Equipment Co., Ltd. to Report Fiscal Year 2024 Results on Mar 29, 2025 GRG Banking Equipment Co., Ltd. announced that they will report fiscal year 2024 results on Mar 29, 2025 Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥13.66, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 28x in the Tech industry in China. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥5.72 per share. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.07 (vs CN¥0.11 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.07 (down from CN¥0.11 in 3Q 2023). Revenue: CN¥2.41b (up 14% from 3Q 2023). Net income: CN¥174.6m (down 37% from 3Q 2023). Profit margin: 7.2% (down from 13% in 3Q 2023). The decrease in margin was driven by higher expenses. 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. Over the last 3 years on average, earnings per share has increased by 5% per year and the company’s share price has also increased by 5% per year. Announcement • Sep 30
GRG Banking Equipment Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 GRG Banking Equipment Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 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¥11.70, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 23x in the Tech industry in China. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.60 per share. Price Target Changed • Sep 03
Price target decreased by 16% to CN¥13.00 Down from CN¥15.43, the current price target is provided by 1 analyst. New target price is 38% above last closing price of CN¥9.44. Stock is down 23% over the past year. The company is forecast to post earnings per share of CN¥0.45 for next year compared to CN¥0.39 last year. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.10 (vs CN¥0.091 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.10 (up from CN¥0.091 in 2Q 2023). Revenue: CN¥2.70b (up 25% from 2Q 2023). Net income: CN¥251.1m (up 5.6% from 2Q 2023). Profit margin: 9.3% (down from 11% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Tech industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Jun 29
GRG Banking Equipment Co., Ltd. to Report First Half, 2024 Results on Aug 30, 2024 GRG Banking Equipment Co., Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • Jun 01
GRG Banking Equipment Co., Ltd. (SZSE:002152) agreed to acquire 10% stake in Guangzhou Wuzhou Technology Co., Ltd. from Liu Ying for CNY 57 million. GRG Banking Equipment Co., Ltd. (SZSE:002152) agreed to acquire 10% stake in Guangzhou Wuzhou Technology Co., Ltd. from Liu Ying for CNY 57 million on May 29, 2024. As part of the transaction, GRG will acquire 12.6 million shares at a a price of CNY 4.5170 per share. Upon completion of this transaction, GRG will hold 26.23% stake in Guangzhou Wuzhou. GRG will fund the transaction from its own funds. The board of GRG approved the transaction. Declared Dividend • May 25
Dividend of CN¥0.20 announced Dividend of CN¥0.20 is the same as last year. Ex-date: 30th May 2024 Payment date: 30th May 2024 Dividend yield will be 1.8%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 57% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 25
GRG Banking Equipment Co., Ltd. Announces Final Cash Dividend on A Shares for the Year 2023, Payable on 30 May 2024 GRG Banking Equipment Co., Ltd. announced final cash dividend/10 shares (tax included) of CNY 2.00000000 on A shares for the year 2023. Record date: 29 May 2024. Ex-date: 30 May 2024. Payment date: 30 May 2024. Reported Earnings • Mar 31
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.33 in FY 2022). Revenue: CN¥9.04b (up 20% from FY 2022). Net income: CN¥976.9m (up 18% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 3.2%. Revenue is forecast to grow 9.6% 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 6% per year whereas the company’s share price has increased by 2% per year. Buy Or Sell Opportunity • Mar 19
Now 21% undervalued Over the last 90 days, the stock has risen 1.1% to CN¥12.43. The fair value is estimated to be CN¥15.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 5.8%. Revenue is forecast to grow by 35% in 2 years. Earnings are forecast to grow by 35% in the next 2 years. Reported Earnings • Feb 28
Full year 2023 earnings released: EPS: CN¥0.39 (vs CN¥0.33 in FY 2022) Full year 2023 results: EPS: CN¥0.39 (up from CN¥0.33 in FY 2022). Revenue: CN¥9.04b (up 20% from FY 2022). Net income: CN¥979.5m (up 18% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue is forecast to grow 15% 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 6% per year whereas the company’s share price has increased by 2% per year. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥8.61, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 19x in the Tech industry in China. Total returns to shareholders of 2.1% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥8.18 per share. Buy Or Sell Opportunity • Jan 24
Now 22% overvalued Over the last 90 days, the stock has fallen 16% to CN¥9.97. The fair value is estimated to be CN¥8.20, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.1% over the last 3 years. Earnings per share has grown by 5.5%. Revenue is forecast to grow by 42% in 2 years. Earnings are forecast to grow by 41% in the next 2 years. Announcement • Dec 30
GRG Banking Equipment Co., Ltd. to Report Fiscal Year 2023 Results on Mar 30, 2024 GRG Banking Equipment Co., Ltd. announced that they will report fiscal year 2023 results on Mar 30, 2024 Announcement • Dec 27
GRG Banking Equipment Co., Ltd. Announces Director Appointments GRG Banking Equipment Co., Ltd. announced that at its Extraordinary General Meeting held on 25 December 2023, approved the election of Deng Jiaqing, Zhao Qian as non-independent directors; and Huang Shuping as independent director. Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.099 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.11 (up from CN¥0.099 in 3Q 2022). Revenue: CN¥2.11b (up 25% from 3Q 2022). Net income: CN¥278.8m (up 9.5% from 3Q 2022). Profit margin: 13% (down from 15% in 3Q 2022). The decrease in margin was driven by higher expenses. 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 5% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Oct 08
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent Director Guochang Liu was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Sep 29
GRG Banking Equipment Co., Ltd. Announces Executive Appointments GRG Banking Equipment Co., Ltd. at the Extraordinary General Meeting of 2023 on 27 September 2023 approved by-election of Huang Jiyuan as a director and election of Chen Rong as a supervisor. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.091 (vs CN¥0.08 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.091 (up from CN¥0.08 in 2Q 2022). Revenue: CN¥2.16b (up 28% from 2Q 2022). Net income: CN¥237.7m (up 27% from 2Q 2022). Profit margin: 11% (in line with 2Q 2022). Revenue is forecast to grow 6.2% 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 6% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Aug 19
Grg Banking Equipment Co., Ltd. Approves Election of Liu Guochang as an Independent Director GRG Banking Equipment Co., Ltd. at its 1st Extraordinary General Meeting of 2023 on 17 August 2023, during which the company approved election of Liu Guochang as an independent director. Announcement • Aug 04
GRG Banking Equipment Co., Ltd. (SZSE:002152) agreed to acquire Guangzhou GRG International Trading Co., Ltd. from Guangzhou GRG Pingyun Capital Management Co., Ltd. CNY 69 million. GRG Banking Equipment Co., Ltd. (SZSE:002152) agreed to acquire Guangzhou GRG International Trading Co., Ltd. from Guangzhou GRG Pingyun Capital Management Co., Ltd. CNY 69 million on July 31, 2023. As of May 31, 2023, Guangzhou GRG International Trading Co., Ltd reported total assets of CNY 910 million and net assets of CNY 25.9 million. The deal has been approved by board of directors of GRG Banking Equipment Co., Ltd. Board Change • Aug 04
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Jin Yi Li was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 03
Grg Banking Equipment Co., Ltd. Announces 2022 Final Profit Distribution Plan to Be Implemented (A Shares), Payment Date: 09 June 2023 GRG Banking Equipment Co., Ltd. announced 2022 final profit distribution plan to be implemented (A shares): Cash dividend/10 shares (tax included): CNY 2.00000000, Record date: 08 June 2023, Ex-date: 09 June 2023 and Payment date: 09 June 2023. Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: CN¥0.10 (vs CN¥0.09 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.10 (up from CN¥0.09 in 1Q 2022). Revenue: CN¥1.47b (up 5.1% from 1Q 2022). Net income: CN¥235.9m (up 4.9% from 1Q 2022). Profit margin: 16% (in line with 1Q 2022). Revenue is forecast to grow 7.7% 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 6% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Price Target Changed • Dec 07
Price target decreased to CN¥13.10 Down from CN¥15.43, the current price target is an average from 2 analysts. New target price is 30% above last closing price of CN¥10.10. Stock is down 12% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.33 last year. Announcement • Nov 24
GRG Banking Equipment Co., Ltd. (SZSE:002152) acquired 90% stake in China Payment & Clearing Network Co., Ltd. for CNY 265.5 million. GRG Banking Equipment Co., Ltd. (SZSE:002152) acquired 90% stake in China Payment & Clearing Network Co., Ltd. for CNY 265.5 million on November 23, 2022.
GRG Banking Equipment Co., Ltd. (SZSE:002152) completed the acquisition of 90% stake in China Payment & Clearing Network Co., Ltd. on November 23, 2022. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Jin Yi Li 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 • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.099 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.099. Revenue: CN¥1.69b (up 9.6% from 3Q 2021). Net income: CN¥254.7m (up 10% from 3Q 2021). Profit margin: 15% (in line with 3Q 2021). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Tech industry in China. Announcement • Oct 26
Zhejiang Yunfa Industrial Co., Ltd. agreed to acquire remaining 51% stake in Jiangsu Huijin Litong Information Technology Co., Ltd. from GRG Banking Equipment Co., Ltd. (SZSE:002152) for CNY 10.47 million. Zhejiang Yunfa Industrial Co., Ltd. agreed to acquire remaining 51% stake in Jiangsu Huijin Litong Information Technology Co., Ltd. from GRG Banking Equipment Co., Ltd. (SZSE:002152) for CNY 10.47 million on September 2, 2022. GRG Banking Equipment board approved the transaction. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.08 (vs CN¥0.075 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.08 (up from CN¥0.075 in 2Q 2021). Revenue: CN¥1.69b (up 15% from 2Q 2021). Net income: CN¥187.7m (up 9.0% from 2Q 2021). Profit margin: 11% (in line with 2Q 2021). Over the next year, revenue is forecast to grow 10%, 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 7% per year whereas the company’s share price has increased by 8% per year. Announcement • Jun 09
GRG Banking Equipment Co., Ltd. Approves 2021 Final Profit Distribution Plan to Be Implemented (A Shares), Payable on June 15, 2022 GRG Banking Equipment Co., Ltd. approved 2021 final profit distribution plan to be implemented (A shares), payable on June 15, 2022. The company announced Cash dividend/10 shares (tax included) of CNY 1.50000000. The record date is June 14, 2022 and ex-date June 15, 2022. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.09 (up from CN¥0.08 in 1Q 2021). Revenue: CN¥1.40b (up 11% from 1Q 2021). Net income: CN¥224.9m (up 11% from 1Q 2021). Profit margin: 16% (in line with 1Q 2021). Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 9.4%, compared to a 20% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 6% per year. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Jin Yi Li 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. Announcement • Apr 26
GRG Banking Equipment Co., Ltd. Approves Final Cash Dividend for 2021 GRG Banking Equipment Co., Ltd. at its Annual General Meeting held on 22 April 2022 approved final cash dividend of CNY 1.50000000 per 10 shares (tax included) for 2021. Announcement • Apr 02
GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 22, 2022 GRG Banking Equipment Co., Ltd., Annual General Meeting, Apr 22, 2022, at 15:30 China Standard Time. Agenda: To consider 2021 work report of the board of directors; to consider 2021 work report of the supervisory committee; to consider 2021 annual accounts; to consider 2021 profit distribution plan; to consider 2021 annual report and its summary; to consider Provision for assets impairment; to consider Reappointment of 2022 audit firm; and to consider any other matters. Reported Earnings • Apr 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.33 (up from CN¥0.29 in FY 2020). Revenue: CN¥6.78b (up 5.8% from FY 2020). Net income: CN¥806.5m (up 15% from FY 2020). Profit margin: 12% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 9.9%, compared to a 23% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 10% per year. Announcement • Apr 01
GRG Banking Equipment Co., Ltd. Proposes Final Cash Dividend for 2021 GRG Banking Equipment Co., Ltd. proposed final cash dividend of CNY 1.50000000 per 10 shares (tax included) for 2021. Board Change • Mar 21
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Jin Yi Li 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 • Feb 28
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.33 (up from CN¥0.29 in FY 2020). Revenue: CN¥6.78b (up 5.8% from FY 2020). Net income: CN¥806.5m (up 15% from FY 2020). Profit margin: 12% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 5.1%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 23%, compared to a 26% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Oct 23
Third quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.07 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥1.54b (up 6.7% from 3Q 2020). Net income: CN¥230.8m (up 47% from 3Q 2020). Profit margin: 15% (up from 11% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.08 (vs CN¥0.07 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¥1.47b (up 10% from 2Q 2020). Net income: CN¥172.2m (up 3.9% from 2Q 2020). Profit margin: 12% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS CN¥0.08 (vs CN¥0.06 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.27b (up 11% from 1Q 2020). Net income: CN¥202.4m (up 41% from 1Q 2020). Profit margin: 16% (up from 13% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has remained flat 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 • Apr 19
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥12.86, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 26x in the Tech industry in China. Total returns to shareholders of 79% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.47 per share. Reported Earnings • Apr 03
Full year 2020 earnings released: EPS CN¥0.29 (vs CN¥0.31 in FY 2019) The company reported a poor full year result with weaker earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥6.41b (down 1.3% from FY 2019). Net income: CN¥700.4m (down 7.6% from FY 2019). Profit margin: 11% (in line with FY 2019). 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 17% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improved over the past week After last week's 23% share price gain to CN¥11.31, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 26x in the Tech industry in China. Total returns to shareholders of 71% over the past three years. Reported Earnings • Mar 04
Full year 2020 earnings released: EPS CN¥0.29 (vs CN¥0.32 in FY 2019) The company reported a poor full year result with weaker earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥6.41b (down 1.3% from FY 2019). Net income: CN¥700.0m (down 7.6% from FY 2019). Profit margin: 11% (in line with FY 2019). 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 13% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 04
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 9.4%. Over the next year, revenue is forecast to grow 16%, compared to a 35% growth forecast for the Tech industry in China. Announcement • Feb 25
GRG Banking Equipment Co., Ltd. to Report Fiscal Year 2020 Results on Mar 31, 2021 GRG Banking Equipment Co., Ltd. announced that they will report fiscal year 2020 results on Mar 31, 2021 Is New 90 Day High Low • Jan 22
New 90-day low: CN¥9.83 The company is down 20% from its price of CN¥12.29 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 10.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥10.00 The company is down 20% from its price of CN¥12.55 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 Tech industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 12
New 90-day low: CN¥10.90 The company is down 13% from its price of CN¥12.59 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 Tech industry, which is up 1.0% over the same period. Major Estimate Revision • Oct 30
Analysts lower revenue estimates to CN¥6.48b The 2020 consensus revenue estimate decreased from CN¥7.66b. Earning per share (EPS) estimate was also lowered from CN¥0.37 to CN¥0.32 for the same period. Net income is expected to grow by 22% next year compared to 51% growth forecast for the Tech industry in China. The consensus price target was lowered from CN¥20.35 to CN¥17.60. Share price is down by 6.0% to CN¥11.55 over the past week. Is New 90 Day High Low • Oct 28
New 90-day low: CN¥12.06 The company is down 15% from its price of CN¥14.18 on 30 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is down 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.03 per share. Reported Earnings • Oct 20
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥720.5m, largely unchanged from the prior year. Total revenue was CN¥6.34b over the last 12 months, up 1.0% from the prior year.