New Risk • May 08
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 37% 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 Dividend is not well covered by cash flows (259% cash payout ratio). Large one-off items impacting financial results. 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. 12 experienced directors. No highly experienced directors. Deputy GM & Director Shu'e Deng was the last 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: Insufficient board refreshment. Reported Earnings • Apr 22
Full year 2025 earnings released: EPS: CN¥0.36 (vs CN¥0.38 in FY 2024) Full year 2025 results: EPS: CN¥0.36 (down from CN¥0.38 in FY 2024). Revenue: CN¥3.79b (up 20% from FY 2024). Net income: CN¥316.3m (down 5.1% from FY 2024). Profit margin: 8.3% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 15% per year. Announcement • Apr 21
Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 12, 2026 Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 12, 2026, at 14:30 China Standard Time. Location: 9F, Building T3, Microgate Technology Smart Park, Pingshankeji Road, Zhukeng Community, Longtian Subdistrict, Pingshan District, Shenzhen, Guangdong China Announcement • Mar 31
Shenzhen Microgate Technology Co., Ltd. to Report Q1, 2026 Results on Apr 23, 2026 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q1, 2026 results on Apr 23, 2026 Announcement • Dec 31
Shenzhen Microgate Technology Co., Ltd. to Report Fiscal Year 2025 Results on Apr 21, 2026 Shenzhen Microgate Technology Co., Ltd. announced that they will report fiscal year 2025 results on Apr 21, 2026 New Risk • Oct 25
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% 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 Dividend is not well covered by cash flows (dividend per share is over 13x cash flows per share). Large one-off items impacting financial results. Reported Earnings • Oct 23
Third quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.11 (down from CN¥0.11 in 3Q 2024). Revenue: CN¥1.11b (up 19% from 3Q 2024). Net income: CN¥95.8m (down 1.1% from 3Q 2024). Profit margin: 8.7% (down from 10% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 2 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 18% per year whereas the company’s share price has increased by 16% per year. Announcement • Sep 30
Shenzhen Microgate Technology Co., Ltd. to Report Q3, 2025 Results on Oct 23, 2025 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 23, 2025 New Risk • Sep 19
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 36% 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 Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: CN¥0.099 (vs CN¥0.095 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.099 (up from CN¥0.095 in 2Q 2024). Revenue: CN¥1.02b (up 31% from 2Q 2024). Net income: CN¥86.9m (up 5.4% from 2Q 2024). Profit margin: 8.6% (down from 11% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.4% 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 17% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Announcement • Jul 02
Shenzhen Microgate Technology Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Shenzhen Microgate Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Declared Dividend • Jun 09
Dividend increased to CN¥0.11 Dividend of CN¥0.11 is 22% higher than last year. Ex-date: 12th June 2025 Payment date: 12th June 2025 Dividend yield will be 1.1%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (30% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 22
Shenzhen Microgate Technology Co., Ltd. Approves Cash Dividend for the Year 2024 Shenzhen Microgate Technology Co., Ltd. held its Annual General Meeting of 2024 on 18 April 2025, approved cash dividend/10 shares (tax included): CNY 1.16000000 for the year 2024. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥9.12, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 27x in the Electronic industry in China. Total returns to shareholders of 12% over the past three years. Announcement • Mar 31
Shenzhen Microgate Technology Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Reported Earnings • Mar 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.38 (up from CN¥0.32 in FY 2023). Revenue: CN¥3.15b (up 4.4% from FY 2023). Net income: CN¥333.4m (up 24% from FY 2023). Profit margin: 11% (up from 8.9% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 1.6%. Revenue is forecast to grow 12% 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 5% per year whereas the company’s share price has increased by 7% per year. Announcement • Mar 28
Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, Apr 18, 2025 Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, Apr 18, 2025, at 14:30 China Standard Time. Location: 9F, Building T3, Microgate Technology Smart Park, Pingshankeji Road, Zhukeng Community, Longtian Subdistrict, Pingshan District, Shenzhen, Guangdong China Valuation Update With 7 Day Price Move • Jan 02
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥11.80, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 11% over the past three years. Announcement • Dec 31
Shenzhen Microgate Technology Co., Ltd. to Report Fiscal Year 2024 Results on Mar 28, 2025 Shenzhen Microgate Technology Co., Ltd. announced that they will report fiscal year 2024 results on Mar 28, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.096 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.11 (up from CN¥0.096 in 3Q 2023). Revenue: CN¥932.1m (up 11% from 3Q 2023). Net income: CN¥96.8m (up 17% from 3Q 2023). Profit margin: 10% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 1% per year. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥13.30, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 6.4% over the past three years. New Risk • Sep 30
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 9.0% 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 (9.0% average weekly change). Minor Risk Dividend is not well covered by cash flows (348% cash payout ratio). Announcement • Sep 30
Shenzhen Microgate Technology Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥9.45, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 20x in the Electronic industry in China. Total loss to shareholders of 33% over the past three years. Reported Earnings • Aug 21
Second quarter 2024 earnings released: EPS: CN¥0.095 (vs CN¥0.064 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.095 (up from CN¥0.064 in 2Q 2023). Revenue: CN¥776.5m (up 5.3% from 2Q 2023). Net income: CN¥82.5m (up 51% from 2Q 2023). Profit margin: 11% (up from 7.4% in 2Q 2023). 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 fallen by 12% per year, which means it is significantly lagging earnings. New Risk • Jul 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.3% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.3% average weekly change). Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥10.12, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 22x in the Electronic industry in China. Total loss to shareholders of 19% over the past three years. Announcement • Jun 29
Shenzhen Microgate Technology Co., Ltd. to Report First Half, 2024 Results on Aug 21, 2024 Shenzhen Microgate Technology Co., Ltd. announced that they will report first half, 2024 results on Aug 21, 2024 Declared Dividend • Jun 14
Dividend reduced to CN¥0.094 Dividend of CN¥0.094 is 26% lower than last year. Ex-date: 18th June 2024 Payment date: 18th June 2024 Dividend yield will be 1.2%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (28% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 31% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 24
Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 15, 2024 Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 15, 2024, at 14:30 China Standard Time. Location: 9F, Building T3, Microgate Technology Smart Park, Pingshankeji Road, Zhukeng Community, Longtian Subdistrict, Pingshan District, Shenzhen, Guangdong China Reported Earnings • Apr 24
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.32 (up from CN¥0.23 in FY 2022). Revenue: CN¥3.02b (down 4.3% from FY 2022). Net income: CN¥270.0m (up 35% from FY 2022). Profit margin: 8.9% (up from 6.3% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 24%. Earnings per share (EPS) also missed analyst estimates by 12%. Revenue is forecast to grow 25% 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 increased by 20% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Apr 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Announcement • Mar 30
Shenzhen Microgate Technology Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥6.57, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 2.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥4.25 per share. Announcement • Dec 30
Shenzhen Microgate Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 24, 2024 Shenzhen Microgate Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 24, 2024 Reported Earnings • Oct 23
Third quarter 2023 earnings released: EPS: CN¥0.096 (vs CN¥0.087 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.096 (up from CN¥0.087 in 3Q 2022). Revenue: CN¥838.6m (up 3.1% from 3Q 2022). Net income: CN¥82.7m (up 11% from 3Q 2022). Profit margin: 9.9% (in line with 3Q 2022). Revenue is forecast to grow 23% 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 25% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Oct 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.3% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.3% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to CN¥11.72, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 20% over the past three years. New Risk • Aug 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.064 (vs CN¥0.054 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.064 (up from CN¥0.054 in 2Q 2022). Revenue: CN¥737.1m (down 7.0% from 2Q 2022). Net income: CN¥54.5m (up 18% from 2Q 2022). Profit margin: 7.4% (up from 5.8% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 19% 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 13% per year, which means it is significantly lagging earnings. Announcement • Jun 30
Shenzhen Microgate Technology to Buy Stakes in Two Electronic Component Makers Shenzhen Microgate Technology Co., Ltd. (SZSE:300319) said it plans to buy stakes in two electronic component makers via cash, share issue. Board Change • Jun 28
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. 11 experienced directors. No highly experienced directors. Deputy GM & Non-Independent Director Zhao Qian Zhang was the last 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: Insufficient board refreshment. Announcement • Jun 15
Shenzhen Microgate Technology Co., Ltd. Announces Implementation of Final Dividend on Share A for 2022, Payable on June 20, 2023 Shenzhen Microgate Technology Co., Ltd. announced final Cash dividend per 10 shares (tax included) of CNY 1.26938800 on share A for 2022. Record date: 19 June 2023, Ex-date: 20 June 2023, Payment date: 20 June 2023. Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: CN¥0.055 (vs CN¥0.051 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.055 (up from CN¥0.051 in 1Q 2022). Revenue: CN¥671.9m (down 16% from 1Q 2022). Net income: CN¥46.8m (up 7.0% from 1Q 2022). Profit margin: 7.0% (up from 5.5% in 1Q 2022). 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 43% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Board Change • Nov 16
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 4 experienced directors. No highly experienced directors. Independent Director Sen Huang is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.087 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.087 (down from CN¥0.11 in 3Q 2021). Revenue: CN¥813.4m (down 1.4% from 3Q 2021). Net income: CN¥74.4m (down 19% from 3Q 2021). Profit margin: 9.1% (down from 11% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 53% 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 2022 earnings released: EPS: CN¥0.054 (vs CN¥0.10 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.054 (down from CN¥0.10 in 2Q 2021). Revenue: CN¥792.6m (down 19% from 2Q 2021). Net income: CN¥46.1m (down 37% from 2Q 2021). Profit margin: 5.8% (down from 7.4% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥9.75, the stock trades at a trailing P/E ratio of 29.8x. Average trailing P/E is 34x in the Electronic industry in China. Total returns to shareholders of 61% over the past three years. Announcement • Jun 14
Shenzhen Microgate Technology Co., Ltd. Implements Final Cash Dividend for 2021, Payable on 17 June 2022 Shenzhen Microgate Technology Co., Ltd. implemented final cash dividend per 10 shares (tax included) of CNY 0.60061600 for 2021. Record date is 16 June 2022. Ex-date is 17 June 2022. Payment date is 17 June 2022. Valuation Update With 7 Day Price Move • May 24
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥9.22, the stock trades at a trailing P/E ratio of 28.2x. Average trailing P/E is 31x in the Electronic industry in China. Total returns to shareholders of 37% over the past three years. Announcement • May 18
Shenzhen Microgate Technology Co., Ltd. Approves 2021 Profit Distribution Plan Shenzhen Microgate Technology Co., Ltd. held its Annual General Meeting of 2021 on 13 May 2022 approved the Cash dividend/10 shares (tax included) is CNY 0.60000000. Board Change • Apr 27
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. 2 experienced directors. No highly experienced directors. Independent Director Sen Huang is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Apr 24
Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 13, 2022 Shenzhen Microgate Technology Co., Ltd., Annual General Meeting, May 13, 2022, at 14:30 China Standard Time. Agenda: To approve 2021 work report of the board of directors; to approve 2021 work report of the supervisory committee; to approve 2021 annual report and its summary; to approve 2021 annual accounts; to approve 2021 profit distribution plan; to approve 2021 remuneration for directors and 2022 remuneration plan; to approve 2021 remuneration for supervisors and 2022 remuneration plan; to approve 2022 application for comprehensive credit line to banks by the Company and its subsidiaries; and to approve 2022 provision of guarantee for the bank comprehensive credit line applied for by a subsidiary. Announcement • Apr 23
Shenzhen Microgate Technology Co., Ltd. Proposes Final Dividend for 2021 Shenzhen Microgate Technology Co., Ltd. announced on 22 April 2022 the profit distribution proposal for 2021 of CNY 0.60000000 per 10 shares (tax included). Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥15.29, the stock trades at a trailing P/E ratio of 66.6x. Average trailing P/E is 42x in the Electronic industry in China. Total returns to shareholders of 158% over the past three years. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.045 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥825.2m (up 15% from 3Q 2020). Net income: CN¥92.2m (up 193% from 3Q 2020). Profit margin: 11% (up from 4.4% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 48% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥12.57, the stock trades at a trailing P/E ratio of 79.4x. Average trailing P/E is 37x in the Electronic industry in China. Total returns to shareholders of 186% over the past three years. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS CN¥0.10 (vs CN¥0.034 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥978.0m (up 81% from 2Q 2020). Net income: CN¥72.8m (up 204% from 2Q 2020). Profit margin: 7.4% (up from 4.4% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 01
First quarter 2021 earnings released: EPS CN¥0.095 (vs CN¥0.022 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥670.6m (up 100% from 1Q 2020). Net income: CN¥66.2m (up 324% from 1Q 2020). Profit margin: 9.9% (up from 4.7% 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 88% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 14
Full year 2020 earnings released: EPS CN¥0.051 (vs CN¥0.065 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: CN¥2.33b (up 28% from FY 2019). Net income: CN¥35.7m (down 21% from FY 2019). Profit margin: 1.5% (down from 2.5% in FY 2019). Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Mar 09
Shenzhen Microgate Technology Co., Ltd. to Report Fiscal Year 2020 Results on Apr 23, 2021 Shenzhen Microgate Technology Co., Ltd. announced that they will report fiscal year 2020 results on Apr 23, 2021 Is New 90 Day High Low • Jan 26
New 90-day low: CN¥8.05 The company is down 18% from its price of CN¥9.81 on 28 October 2020. The Chinese market is up 12% 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 22
New 90-day low: CN¥8.87 The company is down 16% from its price of CN¥10.54 on 23 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 1.0% over the same period. Is New 90 Day High Low • Oct 29
New 90-day low: CN¥9.65 The company is down 18% from its price of CN¥11.79 on 31 July 2020. The Chinese market is down 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 2.0% over the same period. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥41.2m, down 63% from the prior year. Total revenue was CN¥2.18b over the last 12 months, up 31% from the prior year. Announcement • Oct 20
Shenzhen Microgate Technology Co., Ltd. to Report Q3, 2020 Results on Oct 28, 2020 Shenzhen Microgate Technology Co., Ltd. announced that they will report Q3, 2020 results on Oct 28, 2020 Announcement • Sep 05
Shenzhen Microgate Technology Co., Ltd. announced that it expects to receive CNY 1.39 billion in funding from Shenzhen Special Economic Zone Development Group Co., Ltd. Shenzhen Microgate Technology Co., Ltd. (SZSE:300319) announced a private placement of not more than 209,094,321 common shares for gross proceeds of no more than CNY 1,390,000,000 on September 2, 2020. The company will issue shares at a price of not lower than 80% of the median market price of the company’s shares as of 20 previous days to issuance date. The transaction will include participation from no more than 35 specific investors including the actual controllers Shenzhen Special Economic Zone Development Group Co., Ltd for not less than 55,138,172 shares and Zhang Meirong for not less than CNY 20,000,000 and not more than CNY 50,000,000. The transaction has been approved by the board of directors of the company at its seventh meeting of the company's fifth board of directors. The transaction is subject to approval from company’s shareholders meeting and China Securities Regulatory Commission. The shares issued are subject to a hold period of 18 months from the date of issuance. The transaction will be valid for 12 months since approval from the shareholders’ meeting of the company. Announcement • Aug 11
Shenzhen Microgate Technology Co., Ltd. to Report First Half, 2020 Results on Aug 27, 2020 Shenzhen Microgate Technology Co., Ltd. announced that they will report first half, 2020 results on Aug 27, 2020