New Risk • Apr 30
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 105% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 20
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: CN¥0.49 (up from CN¥0.23 in FY 2024). Revenue: CN¥2.41b (up 8.4% from FY 2024). Net income: CN¥158.8m (up 107% from FY 2024). Profit margin: 6.6% (up from 3.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 75%. Revenue is forecast to grow 8.0% 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 fallen by 37% per year but the company’s share price has increased by 38% per year, which means it is well ahead of earnings. Announcement • Apr 20
Hanwei Electronics Group Corporation, Annual General Meeting, May 08, 2026 Hanwei Electronics Group Corporation, Annual General Meeting, May 08, 2026, at 14:00 China Standard Time. Location: Building 7, No. 169, Xuesong Road, Zhengzhou Hi-tech Development Zone, Henan China Announcement • Mar 31
Hanwei Electronics Group Corporation to Report Q1, 2026 Results on Apr 29, 2026 Hanwei Electronics Group Corporation announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Feb 04
Hanwei Electronics Group Corporation Announces Directorate Appointments Hanwei Electronics Co. Ltd. announced that at its Extraordinary General Meeting held on 02 February 2026, approved appointment of Shen Xianghua as independent director; Wu Yu as independent director and Liu Zhifei as independent director. Announcement • Dec 31
Hanwei Electronics Group Corporation to Report Fiscal Year 2025 Results on Mar 31, 2026 Hanwei Electronics Group Corporation announced that they will report fiscal year 2025 results on Mar 31, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.08 (vs CN¥0.08 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.08 (in line with 3Q 2024). Revenue: CN¥525.3m (up 15% from 3Q 2024). Net income: CN¥25.8m (down 8.6% from 3Q 2024). Profit margin: 4.9% (down from 6.2% in 3Q 2024). Revenue is forecast to grow 13% 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 fallen by 49% per year but the company’s share price has increased by 42% per year, which means it is well ahead of earnings. Announcement • Sep 30
Hanwei Electronics Group Corporation to Report Q3, 2025 Results on Oct 25, 2025 Hanwei Electronics Group Corporation announced that they will report Q3, 2025 results on Oct 25, 2025 New Risk • Sep 16
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.8% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Announcement • Jul 02
Hanwei Electronics Group Corporation to Report First Half, 2025 Results on Aug 29, 2025 Hanwei Electronics Group Corporation announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • May 24
Dividend of CN¥0.04 announced Shareholders will receive a dividend of CN¥0.04. Ex-date: 28th May 2025 Payment date: 28th May 2025 Dividend yield will be 0.2%, which is lower than the industry average of 1.8%. Payout Ratios Payout ratio: 29%. Cash payout ratio: 42%. New Risk • May 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 378% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Reported Earnings • Apr 30
First quarter 2025 earnings released: EPS: CN¥0.05 (vs CN¥0.08 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.05 (down from CN¥0.08 in 1Q 2024). Revenue: CN¥602.6m (up 8.2% from 1Q 2024). Net income: CN¥16.9m (down 34% from 1Q 2024). Profit margin: 2.8% (down from 4.6% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 2 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 46% per year but the company’s share price has increased by 40% per year, which means it is well ahead of earnings. Announcement • Apr 01
Hanwei Electronics Group Corporation Proposes Final Cash Dividend for the Year 2024 Hanwei Electronics Group Corporation proposed final cash dividend/10 shares (tax included) of CNY 0.40000000 for the year 2024. Announcement • Mar 31
Hanwei Electronics Group Corporation to Report Q1, 2025 Results on Apr 29, 2025 Hanwei Electronics Group Corporation announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.23 (down from CN¥0.40 in FY 2023). Revenue: CN¥2.23b (down 2.6% from FY 2023). Net income: CN¥76.7m (down 41% from FY 2023). Profit margin: 3.4% (down from 5.7% in FY 2023). Revenue missed analyst estimates by 9.8%. Earnings per share (EPS) also missed analyst estimates by 54%. Revenue is forecast to grow 14% 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 fallen by 41% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Announcement • Mar 29
Hanwei Electronics Group Corporation, Annual General Meeting, Apr 25, 2025 Hanwei Electronics Group Corporation, Annual General Meeting, Apr 25, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Zhengzhou, Henan China New Risk • Jan 14
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (12% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.1% net profit margin). Valuation Update With 7 Day Price Move • Jan 03
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥18.88, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 25x in the Electronic industry in China. Total loss to shareholders of 24% over the past three years. Announcement • Dec 31
Hanwei Electronics Group Corporation to Report Fiscal Year 2024 Results on Mar 29, 2025 Hanwei Electronics Group Corporation announced that they will report fiscal year 2024 results on Mar 29, 2025 Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥21.28, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 20% over the past three years. New Risk • Dec 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.1% net profit margin). Valuation Update With 7 Day Price Move • Dec 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥19.69, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥19.62, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 24x in the Electronic industry in China. Total loss to shareholders of 14% over the past three years. Announcement • Oct 25
Hanwei Electronics Group Corporation Proposes Dividend for the Third Quarter of 2024 Hanwei Electronics Group Corporation proposed dividend of CNY 0.30000000 per 10 shares for the third quarter of 2024. Reported Earnings • Oct 24
Third quarter 2024 earnings released: EPS: CN¥0.08 (vs CN¥0.14 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.08 (down from CN¥0.14 in 3Q 2023). Revenue: CN¥456.0m (up 1.7% from 3Q 2023). Net income: CN¥28.2m (down 38% from 3Q 2023). Profit margin: 6.2% (down from 10% in 3Q 2023). Revenue is forecast to grow 10.0% 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 33% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Hanwei Electronics Group Corporation to Report Q3, 2024 Results on Oct 24, 2024 Hanwei Electronics Group Corporation announced that they will report Q3, 2024 results on Oct 24, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥16.24, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 21x in the Electronic industry in China. Total loss to shareholders of 25% over the past three years. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.18 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.18 in 2Q 2023). Revenue: CN¥520.4m (up 2.4% from 2Q 2023). Net income: CN¥37.1m (down 34% from 2Q 2023). Profit margin: 7.1% (down from 11% in 2Q 2023). Revenue is forecast to grow 5.6% 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 24% per year whereas the company’s share price has fallen by 21% per year. Announcement • Jun 29
Hanwei Electronics Group Corporation to Report First Half, 2024 Results on Aug 27, 2024 Hanwei Electronics Group Corporation announced that they will report first half, 2024 results on Aug 27, 2024 Declared Dividend • May 25
Dividend reduced to CN¥0.10 Dividend of CN¥0.10 is 17% lower than last year. Ex-date: 29th May 2024 Payment date: 29th May 2024 Dividend yield will be 0.7%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (25% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 25
Hanwei Electronics Group Corporation Announces Final Dividend on A Shares for the Year 2023, Payable on 29 May 2024 Hanwei Electronics Group Corporation announced final cash dividend/10 shares (tax included) of CNY 1.00000000 on A shares for the year 2023. Record date is 28 May 2024. Ex-date is 29 May 2024. Payment date is 29 May 2024. Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.04 (vs CN¥0.04 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.04 (in line with 1Q 2023). Revenue: CN¥593.4m (up 1.5% from 1Q 2023). Net income: CN¥14.5m (up 2.9% from 1Q 2023). Profit margin: 2.4% (in line with 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Apr 11
Full year 2023 earnings released: EPS: CN¥0.40 (vs CN¥0.85 in FY 2022) Full year 2023 results: EPS: CN¥0.40 (down from CN¥0.85 in FY 2022). Revenue: CN¥2.29b (down 4.5% from FY 2022). Net income: CN¥130.8m (down 53% from FY 2022). Profit margin: 5.7% (down from 12% in FY 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 12% 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 • Apr 10
Hanwei Electronics Group Corporation, Annual General Meeting, May 07, 2024 Hanwei Electronics Group Corporation, Annual General Meeting, May 07, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Zhengzhou, Henan China Announcement • Mar 30
Hanwei Electronics Group Corporation to Report Q1, 2024 Results on Apr 27, 2024 Hanwei Electronics Group Corporation announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥12.26, the stock trades at a trailing P/E ratio of 24.8x. Average trailing P/E is 32x in the Electronic industry in China. Total loss to shareholders of 5.3% over the past three years. Announcement • Dec 29
Hanwei Electronics Group Corporation to Report Fiscal Year 2023 Results on Mar 30, 2024 Hanwei Electronics Group Corporation announced that they will report fiscal year 2023 results on Mar 30, 2024 Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥20.15, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 18% over the past three years. New Risk • Nov 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.6% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.6% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.4% net profit margin). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.14 (vs CN¥0.27 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.14 (down from CN¥0.27 in 3Q 2022). Revenue: CN¥448.4m (down 23% from 3Q 2022). Net income: CN¥45.5m (down 47% from 3Q 2022). Profit margin: 10% (down from 15% in 3Q 2022). Revenue is forecast to grow 27% 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 12% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.18 (vs CN¥0.28 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.18 (down from CN¥0.28 in 2Q 2022). Revenue: CN¥508.4m (down 13% from 2Q 2022). Net income: CN¥55.8m (down 40% from 2Q 2022). Profit margin: 11% (down from 16% in 2Q 2022). Revenue is forecast to grow 23% 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 34% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Jun 21
New major 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 8.9% 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 Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.9% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥21.71, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Electronic industry in China. Total returns to shareholders of 42% over the past three years. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥20.02, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 24x in the Electronic industry in China. Total returns to shareholders of 54% over the past three years. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥14.06, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 24x in the Electronic industry in China. Total returns to shareholders of 14% over the past three years. Reported Earnings • Apr 01
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.85. Revenue: CN¥2.40b (up 3.4% from FY 2021). Net income: CN¥276.2m (up 4.9% from FY 2021). Profit margin: 12% (in line with FY 2021). Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 7.6%. Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Electronic industry in China. Announcement • Feb 18
Zhengzhou Water Investment H completed the acquisition of 65% stake in Zhengzhou Hanwei Public Utilities Technology Co., Ltd. from Hanwei Electronics Group Corporation (SZSE:300007). Zhengzhou Water Investment H agreed to acquire a 65% stake in Zhengzhou Hanwei Public Utilities Technology Co., Ltd. from Hanwei Electronics Group Corporation (SZSE:300007) for approximately CNY 490 million on November 11, 2022. Post acquisition, Hanwei Electronics Group Corporation will no longer hold stake in Zhengzhou Hanwei Public. For the period September 30, 2022, Zhengzhou Hanwei Public reported CNY 516.1079 million of Total owners’ equity and CNY 1318.2976 million.
Zhengzhou Water Investment H completed the acquisition of 65% stake in Zhengzhou Hanwei Public Utilities Technology Co., Ltd. from Hanwei Electronics Group Corporation (SZSE:300007) on February 16, 2023. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Huanhuan Yi was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 18
Third quarter 2022 earnings released: EPS: CN¥0.27 (vs CN¥0.23 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.27 (up from CN¥0.23 in 3Q 2021). Revenue: CN¥581.9m (up 19% from 3Q 2021). Net income: CN¥85.8m (up 22% from 3Q 2021). Profit margin: 15% (in line with 3Q 2021). Revenue is forecast to grow 27% 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 71% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥18.22, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 20x in the Electronic industry in China. Total returns to shareholders of 26% over the past three years. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: CN¥0.28 (vs CN¥0.33 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.28 (down from CN¥0.33 in 2Q 2021). Revenue: CN¥586.3m (up 2.7% from 2Q 2021). Net income: CN¥92.7m (down 4.0% from 2Q 2021). Profit margin: 16% (down from 17% in 2Q 2021). Over the next year, revenue is forecast to grow 34%, compared to a 25% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥19.13, 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 50% over the past three years. Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improved over the past week After last week's 21% share price gain to CN¥23.78, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 87% over the past three years. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥19.94, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Electronic industry in China. Total returns to shareholders of 52% over the past three years. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥18.63, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 21x in the Electronic industry in China. Total returns to shareholders of 49% over the past three years. Announcement • May 08
Hanwei Electronics Group Corporation Announces Cash Dividend for 2021, Payable on 11 May 2022 Hanwei Electronics Group Corporation announced 2021 final profit distribution plan to be implemented (A shares) of cash dividend/10 shares (tax included): CNY 0.80000000. Record date is 10 May 2022. Ex-date is 11 May 2022. Payment date is 11 May 2022. Reported Earnings • Apr 29
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: CN¥0.16 (up from CN¥0.14 in 1Q 2021). Revenue: CN¥594.3m (up 12% from 1Q 2021). Net income: CN¥51.5m (up 22% from 1Q 2021). Profit margin: 8.7% (up from 8.0% in 1Q 2021). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) exceeded analyst estimates by 4.8%. Over the next year, revenue is forecast to grow 29%, compared to a 24% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. 5 experienced directors. No highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Lizhang Wang is the most experienced director on the board, commencing their role in 2020. Independent Director Huanhuan Yi was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Apr 23
Hanwei Electronics Group Corporation Approves Cash Dividend for 2021 Hanwei Electronics Group Corporation announced that at its AGM held on 21 April 2022, the shareholders approved the profit distribution for 2021 as cash dividend/10 shares (tax included): CNY 0.80000000. Announcement • Apr 02
Hanwei Electronics Group Corporation, Annual General Meeting, Apr 21, 2022 Hanwei Electronics Group Corporation, Annual General Meeting, Apr 21, 2022, at 14:00 China Standard Time. Agenda: To consider the 2021 work report of the board of directors; to consider the 2021 work report of the supervisory committee; to consider the 2021 annual report and its summary; to consider the 2021 annual accounts; to consider the 2021 profit distribution plan; to consider the 2022 remuneration policy for directors; to consider the amendments to the Company's articles of association; and to consider the other resolutions. Reported Earnings • Apr 01
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: CN¥0.87 (up from CN¥0.70 in FY 2020). Revenue: CN¥2.32b (up 19% from FY 2020). Net income: CN¥263.2m (up 28% from FY 2020). Profit margin: 11% (in line with FY 2020). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) exceeded analyst estimates by 4.8%. Over the next year, revenue is forecast to grow 42%, compared to a 24% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Apr 01
Hanwei Electronics Group Corporation Proposes Final Cash Dividend for the Year 2021 Hanwei Electronics Group Corporation proposed the profit distribution of final cash dividend of CNY 0.80000000 per ten shares (tax included) for the year 2021. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥30.00, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 196% over the past three years. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.23 (vs CN¥0.18 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥489.9m (up 11% from 3Q 2020). Net income: CN¥70.2m (up 36% from 3Q 2020). Profit margin: 14% (up from 12% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.33 (vs CN¥0.32 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥571.1m (up 15% from 2Q 2020). Net income: CN¥96.6m (up 3.0% from 2Q 2020). Profit margin: 17% (down from 19% in 2Q 2020). 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 32% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥22.19, the stock trades at a trailing P/E ratio of 30x. Average trailing P/E is 39x in the Electronic industry in China. Total returns to shareholders of 77% over the past three years. Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥16.89, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 37x in the Electronic industry in China. Total returns to shareholders of 34% over the past three years. Announcement • May 15
Hanwei Electronics Group Corporation Announces Final Cash Dividend on A Shares for the Year 2020, Payable on May 21, 2021 Hanwei Electronics Group Corporation announced final cash dividend on A shares of CNY 0.60 per 10 shares (tax included) for the year 2020. The dividend is payable on May 21, 2021 with record date as May 20, 2021 and ex-date as May 21, 2021. Reported Earnings • Apr 28
First quarter 2021 earnings released: EPS CN¥0.14 (vs CN¥0.10 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥529.4m (up 29% from 1Q 2020). Net income: CN¥42.3m (up 42% from 1Q 2020). Profit margin: 8.0% (up from 7.3% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 12% 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. Is New 90 Day High Low • Mar 16
New 90-day high: CN¥15.92 The company is up 5.0% from a price of CN¥15.16 on 16 December 2020. Outperformed the Chinese market which is down 2.0% over the last 90 days. Exceeded the Electronic industry, which is down 8.0% over the same period. Reported Earnings • Mar 07
Full year 2020 earnings released: EPS CN¥0.70 (vs CN¥0.35 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥1.94b (up 6.5% from FY 2019). Net income: CN¥204.6m (up CN¥308.4m from FY 2019). Profit margin: 11% (up from net loss in FY 2019). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Analyst Estimate Surprise Post Earnings • Mar 07
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 8.9%. Earnings per share (EPS) exceeded analyst estimates by 32%. Over the next year, revenue is forecast to grow 26%, compared to a 31% growth forecast for the Electronic industry in China. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥13.99 The company is down 27% from its price of CN¥19.08 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 5.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥14.25 The company is down 17% from its price of CN¥17.25 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 Electronic industry, which is up 7.0% over the same period. Is New 90 Day High Low • Dec 10
New 90-day low: CN¥16.14 The company is down 10.0% from its price of CN¥17.99 on 11 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 6.0% over the same period. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥49.3m, with earnings decreasing by CN¥139.3m from the prior year. Total revenue was CN¥1.89b over the last 12 months, up 10% from the prior year. Announcement • Oct 20
Hanwei Electronics Group Corporation to Report Q3, 2020 Results on Oct 28, 2020 Hanwei Electronics Group Corporation announced that they will report Q3, 2020 results on Oct 28, 2020 Announcement • Sep 22
Hanwei Electronics Group Corporation announced that it expects to receive CNY 1.00882 billion in funding Hanwei Electronics Group Corporation (SZSE:300007) announced a private placement of not more than 87,906,841 shares for gross proceeds of not more than CNY 1,008,820,000 on August 26, 2020. The transaction will involve participation from not more than 35 investors. The company will issue not more than 30% of total share capital, 293,022,806 shares at an issue price of not less than 80% of the average price in the 20 trading days before the pricing reference date. The transaction has been approved by the board of directors of the company at the 8th session of the 5th directorate and is subject to approval by the shareholders of the company, the Shenzhen Stock Exchange, and China Securities Regulatory Commission. The shares to be issued will have a hold period of 6 months from the issuance. If the investor is a holding shareholder, actual controller, or their controlled enterprise, the shares cannot be transferred within 18 months from the issuance closing date.
On September 16, 2020, the company announced that the application of the transaction has been accepted by Shenzhen Stock Exchange.