Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥36.99, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 44x in the Electronic industry in China. Total loss to shareholders of 14% over the past three years. Announcement • Jun 30
DongHua Testing Technology Co. , Ltd. to Report First Half, 2026 Results on Aug 24, 2026 DongHua Testing Technology Co. , Ltd. announced that they will report first half, 2026 results on Aug 24, 2026 Declared Dividend • May 30
Dividend increased to CN¥0.20 Dividend of CN¥0.20 is 13% higher than last year. Ex-date: 3rd June 2026 Payment date: 3rd June 2026 Dividend yield will be 0.6%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (14% cash payout ratio). The dividend has increased by an average of 32% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 54% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Apr 23
Price target decreased by 29% to CN¥41.44 Down from CN¥57.96, the current price target is provided by 1 analyst. New target price is 15% above last closing price of CN¥36.03. Stock is down 9.5% over the past year. The company is forecast to post earnings per share of CN¥1.12 for next year compared to CN¥0.99 last year. Reported Earnings • Apr 21
First quarter 2026 earnings released: EPS: CN¥0.20 (vs CN¥0.21 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.20 (down from CN¥0.21 in 1Q 2025). Revenue: CN¥105.3m (down 3.2% from 1Q 2025). Net income: CN¥27.2m (down 5.6% from 1Q 2025). Profit margin: 26% (in line with 1Q 2025). Revenue is forecast to grow 43% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Apr 21
DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 12, 2026 DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 12, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Jingjiang, Jiangsu China Announcement • Mar 31
DongHua Testing Technology Co. , Ltd. to Report Q1, 2026 Results on Apr 21, 2026 DongHua Testing Technology Co. , Ltd. announced that they will report Q1, 2026 results on Apr 21, 2026 New Risk • Jan 20
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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 • Dec 31
DongHua Testing Technology Co. , Ltd. to Report Fiscal Year 2025 Results on Apr 21, 2026 DongHua Testing Technology Co. , Ltd. announced that they will report fiscal year 2025 results on Apr 21, 2026 Valuation Update With 7 Day Price Move • Oct 31
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥53.99, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥50.11 per share. Reported Earnings • Oct 22
Third quarter 2025 earnings released: EPS: CN¥0.18 (vs CN¥0.18 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.18 (up from CN¥0.18 in 3Q 2024). Revenue: CN¥102.4m (up 31% from 3Q 2024). Net income: CN¥24.9m (flat on 3Q 2024). Profit margin: 24% (down from 32% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Announcement • Sep 30
DongHua Testing Technology Co. , Ltd. to Report Q3, 2025 Results on Oct 22, 2025 DongHua Testing Technology Co. , Ltd. announced that they will report Q3, 2025 results on Oct 22, 2025 Buy Or Sell Opportunity • Sep 23
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to CN¥49.70. The fair value is estimated to be CN¥41.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 3.0%. Revenue is forecast to grow by 82% in 2 years. Earnings are forecast to grow by 107% in the next 2 years. New Risk • Sep 15
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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. Reported Earnings • Aug 18
Second quarter 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.34 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.34. Revenue: CN¥173.8m (up 1.3% from 2Q 2024). Net income: CN¥47.5m (up 1.1% from 2Q 2024). Profit margin: 27% (in line with 2Q 2024). Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Price Target Changed • Aug 17
Price target increased by 14% to CN¥57.96 Up from CN¥51.00, the current price target is provided by 1 analyst. New target price is 38% above last closing price of CN¥42.15. Stock is up 39% over the past year. The company is forecast to post earnings per share of CN¥1.36 for next year compared to CN¥0.88 last year. Announcement • Jul 02
DongHua Testing Technology Co. , Ltd. to Report First Half, 2025 Results on Aug 15, 2025 DongHua Testing Technology Co. , Ltd. announced that they will report first half, 2025 results on Aug 15, 2025 Announcement • Apr 26
DongHua Testing Technology Co. , Ltd. announced that it expects to receive CNY 150.2825 million in funding DongHua Testing Technology Co. , Ltd. announced a private placement of 5,000,000 ordinary shares (A share) for the gross proceeds of CNY 150,282,500 on April 24, 2025. The issue price of this offering shall not be lower than the issue floor price, that is, not less than 80% of the average trading price of the company's shares in the 20 trading days before the pricing benchmark date. The transaction will include participation from securities investment fund management companies, securities companies, trust companies, finance companies, asset management companies, insurance institutional investors, qualified foreign institutional investors, CNY qualified foreign institutional investors (including the self-operated accounts or managed investment product accounts of the above investors) and other institutional investors in accordance with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, as well as other legal persons, No more than 35 specific targets, such as natural persons or other qualified investors. The shares in this offering are not transferable for a period of 6 months from the date of closing of the offering. The transaction has been approved by the shareholders of the company in the 5th meeting of the 6th board of directors and the 5th meeting of the 6th board of supervisors of the company. The transaction is subjected to company's shareholders' meeting has approved the proposal, Company's shareholders' meeting has approved the proposal, Company's shareholders' meeting has approved the proposal. Major Estimate Revision • Apr 24
Consensus revenue estimates fall by 21% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥839.0m to CN¥659.3m. EPS estimate fell from CN¥1.77 to CN¥1.26 per share. Net income forecast to grow 65% next year vs 48% growth forecast for Electronic industry in China. Consensus price target up from CN¥51.00 to CN¥52.92. Share price rose 2.9% to CN¥39.82 over the past week. Reported Earnings • Apr 19
First quarter 2025 earnings released: EPS: CN¥0.21 (vs CN¥0.20 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.21 (up from CN¥0.20 in 1Q 2024). Revenue: CN¥108.8m (up 4.3% from 1Q 2024). Net income: CN¥28.9m (up 5.6% from 1Q 2024). Profit margin: 27% (in line with 1Q 2024). Revenue is forecast to grow 32% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 19
DongHua Testing Technology Co. , Ltd. Proposes Final Cash Dividend for the Year 2024 DongHua Testing Technology Co., Ltd. proposed final Cash dividend/10 shares (tax included) of CNY 1.77000000 for the year 2024. Announcement • Apr 18
DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 09, 2025 DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 09, 2025, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jingjiang, Jiangsu China New Risk • Apr 07
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 10% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to CN¥34.54, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 27x in the Electronic industry in China. Total returns to shareholders of 27% over the past three years. Announcement • Mar 31
DongHua Testing Technology Co. , Ltd. to Report Q1, 2025 Results on Apr 18, 2025 DongHua Testing Technology Co. , Ltd. announced that they will report Q1, 2025 results on Apr 18, 2025 Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥47.61, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 28x in the Electronic industry in China. Total returns to shareholders of 51% over the past three years. Announcement • Dec 31
DongHua Testing Technology Co. , Ltd. to Report Fiscal Year 2024 Results on Apr 18, 2025 DongHua Testing Technology Co. , Ltd. announced that they will report fiscal year 2024 results on Apr 18, 2025 Valuation Update With 7 Day Price Move • Dec 10
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥44.44, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 26x in the Electronic industry in China. Total returns to shareholders of 25% over the past three years. Reported Earnings • Oct 22
Third quarter 2024 earnings released: EPS: CN¥0.18 (vs CN¥0.26 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.18 (down from CN¥0.26 in 3Q 2023). Revenue: CN¥78.3m (down 26% from 3Q 2023). Net income: CN¥24.7m (down 34% from 3Q 2023). Profit margin: 32% (down from 35% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 36% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥32.80, 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 1.0% over the past three years. Announcement • Sep 30
DongHua Testing Technology Co. , Ltd. to Report Q3, 2024 Results on Oct 22, 2024 DongHua Testing Technology Co. , Ltd. announced that they will report Q3, 2024 results on Oct 22, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to CN¥36.46, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 21x in the Electronic industry in China. Total returns to shareholders of 23% over the past three years. Announcement • Aug 22
Xu Jiankang agreed to acquire 16% stake in Shanghai Donghao Smart Hydrogen Energy Technology Co., Ltd. from DongHua Testing Technology Co. , Ltd. (SZSE:300354), You Siming and Chen Ming for CNY 0.8 million. Xu Jiankang agreed to acquire 16% stake in Shanghai Donghao Smart Hydrogen Energy Technology Co., Ltd. from DongHua Testing Technology Co. , Ltd. (SZSE:300354), You Siming and Chen Ming for CNY 0.8 million on August 16, 2024. As of June 30, 2024, Shanghai Donghao Smart Hydrogen Energy Technology Co., Ltd. reported total assets of CNY 4.99 million and total common equity of CNY 4.99 million. The transaction is subject to approval of merger agreement by target board. The deal has been approved by the board. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: CN¥0.34 (vs CN¥0.26 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.34 (up from CN¥0.26 in 2Q 2023). Revenue: CN¥171.5m (up 34% from 2Q 2023). Net income: CN¥47.0m (up 35% from 2Q 2023). Profit margin: 27% (in line with 2Q 2023). Revenue is forecast to grow 32% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Jun 29
DongHua Testing Technology Co. , Ltd. to Report First Half, 2024 Results on Aug 20, 2024 DongHua Testing Technology Co. , Ltd. announced that they will report first half, 2024 results on Aug 20, 2024 Buy Or Sell Opportunity • May 10
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.6% to CN¥39.51. The fair value is estimated to be CN¥51.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 141% in 2 years. Earnings are forecast to grow by 193% in the next 2 years. Buy Or Sell Opportunity • Apr 20
Now 24% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.6% to CN¥39.60. The fair value is estimated to be CN¥52.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 20%. Revenue is forecast to grow by 141% in 2 years. Earnings are forecast to grow by 193% in the next 2 years. Reported Earnings • Apr 18
First quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.074 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.20 (up from CN¥0.074 in 1Q 2023). Revenue: CN¥104.3m (up 45% from 1Q 2023). Net income: CN¥27.3m (up 166% from 1Q 2023). Profit margin: 26% (up from 14% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 17
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥783.3m to CN¥679.0m. EPS estimate fell from CN¥1.83 to CN¥1.47 per share. Net income forecast to grow 25% next year vs 54% growth forecast for Electronic industry in China. Consensus price target down from CN¥54.74 to CN¥47.04. Share price rose 3.1% to CN¥41.54 over the past week. Announcement • Apr 16
DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 07, 2024 DongHua Testing Technology Co. , Ltd., Annual General Meeting, May 07, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Jingjiang, Jiangsu China New Risk • Apr 03
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (31% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (11% average weekly change). Buy Or Sell Opportunity • Apr 03
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to CN¥41.95. The fair value is estimated to be CN¥53.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 44%. Revenue is forecast to grow by 110% in 2 years. Earnings are forecast to grow by 107% in the next 2 years. Announcement • Mar 30
DongHua Testing Technology Co. , Ltd. to Report Q1, 2024 Results on Apr 16, 2024 DongHua Testing Technology Co. , Ltd. announced that they will report Q1, 2024 results on Apr 16, 2024 Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥42.45, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 219% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥60.70 per share. Buy Or Sell Opportunity • Mar 07
Now 21% undervalued Over the last 90 days, the stock has risen 7.4% to CN¥47.80. The fair value is estimated to be CN¥60.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 41%. Revenue is forecast to grow by 129% in 2 years. Earnings are forecast to grow by 121% in the next 2 years. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥49.99, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 314% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥60.75 per share. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥40.15, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 19x in the Electronic industry in China. Total returns to shareholders of 244% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥60.85 per share. New Risk • Feb 08
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 9.1% 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 Risks Share price has been highly volatile over the past 3 months (9.1% average weekly change). High level of non-cash earnings (30% accrual ratio). Buying Opportunity • Jan 17
Now 21% undervalued Over the last 90 days, the stock is up 36%. The fair value is estimated to be CN¥55.92, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 41%. Revenue is forecast to grow by 142% in 2 years. Earnings is forecast to grow by 139% in the next 2 years. Announcement • Dec 30
DongHua Testing Technology Co. , Ltd. to Report Fiscal Year 2023 Results on Apr 16, 2024 DongHua Testing Technology Co. , Ltd. announced that they will report fiscal year 2023 results on Apr 16, 2024 Buying Opportunity • Dec 04
Now 20% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be CN¥56.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 41%. Revenue is forecast to grow by 142% in 2 years. Earnings is forecast to grow by 139% in the next 2 years. New Risk • Nov 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 6.5% 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: Major Risk High level of non-cash earnings (30% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.5% average weekly change). Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥38.58, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 123% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥57.16 per share. Announcement • Oct 28
DongHua Testing Technology Co. , Ltd. (SZSE:300354) announces an Equity Buyback for CNY 13.5 million worth of its shares. DongHua Testing Technology Co. , Ltd. (SZSE:300354) announces a share repurchase program. Under the program, the company will repurchase up to CNY 13.5 million worth of class A shares. The shares will be repurchased at a price of not more than CNY 45 per share. The shares purchased will be used for the company's equity incentive plan. The program will be valid till 6 months. Reported Earnings • Oct 23
Third quarter 2023 earnings released: EPS: CN¥0.26 (vs CN¥0.21 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.26 (up from CN¥0.21 in 3Q 2022). Revenue: CN¥105.4m (up 27% from 3Q 2022). Net income: CN¥37.3m (up 30% from 3Q 2022). Profit margin: 35% (in line with 3Q 2022). Revenue is forecast to grow 39% 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 41% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: CN¥0.26 (vs CN¥0.16 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.26 (up from CN¥0.16 in 2Q 2022). Revenue: CN¥128.4m (up 37% from 2Q 2022). Net income: CN¥34.7m (up 56% from 2Q 2022). Profit margin: 27% (up from 24% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 37% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Announcement • Jul 01
DongHua Testing Technology Co. , Ltd. to Report First Half, 2023 Results on Aug 22, 2023 DongHua Testing Technology Co. , Ltd. announced that they will report first half, 2023 results on Aug 22, 2023 Reported Earnings • Mar 10
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.88 (up from CN¥0.58 in FY 2021). Revenue: CN¥367.1m (up 43% from FY 2021). Net income: CN¥121.8m (up 52% from FY 2021). Profit margin: 33% (up from 31% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 42% 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 46% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. 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 Zhushi Rao was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Buying Opportunity • Oct 24
Now 21% undervalued Over the last 90 days, the stock is up 6.8%. The fair value is estimated to be CN¥50.54, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years. Earnings per share has grown by 47%. Revenue is forecast to grow by 147% in 2 years. Earnings is forecast to grow by 171% in the next 2 years. Reported Earnings • Oct 21
Third quarter 2022 earnings released: EPS: CN¥0.21 (vs CN¥0.17 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.21 (up from CN¥0.17 in 3Q 2021). Revenue: CN¥82.7m (up 31% from 3Q 2021). Net income: CN¥28.6m (up 19% from 3Q 2021). Profit margin: 35% (down from 38% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 39% 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 47% per year whereas the company’s share price has increased by 46% per year. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 25% share price gain to CN¥38.00, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 20x in the Electronic industry in China. Total returns to shareholders of 177% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥26.10 per share. Price Target Changed • Sep 23
Price target decreased to CN¥42.90 Down from CN¥47.50, the current price target is an average from 2 analysts. New target price is 37% above last closing price of CN¥31.32. Stock is down 8.1% over the past year. The company is forecast to post earnings per share of CN¥0.99 for next year compared to CN¥0.58 last year. Board Change • Jul 17
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Zhushi Rao was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 27
Jiangsu Donghua Testing Technology Co., Ltd. Announces Cash Dividend for the Year 2021, Payable on April 29, 2022 Jiangsu DongHua Testing Technology Co., Ltd. announced Cash dividend per 10 shares (tax included) of CNY 1.75000000 for the year 2021, payable on April 29, 2022 with record date of April 28, 2022 and ex-date of April 29, 2022. Announcement • Apr 22
Jiangsu DongHua Testing Technology Co., Ltd. Approves Cash Dividend for 2021 Jiangsu DongHua Testing Technology Co., Ltd. at the AGM held on April 19, 2022, approved the Cash dividend per 10 shares (tax included) of CNY 1.75000000 for the year 2021. Announcement • Mar 30
Jiangsu Donghua Testing Technology Co., Ltd. Proposes Final Cash Dividend for the Year 2021 Jiangsu DongHua Testing Technology Co., Ltd. proposed final cash dividend of CNY 1.75000 (tax included) per 10 shares for the year 2021. Reported Earnings • Mar 30
Full year 2021 earnings released: EPS: CN¥0.58 (vs CN¥0.36 in FY 2020) Full year 2021 results: EPS: CN¥0.58 (up from CN¥0.36 in FY 2020). Revenue: CN¥257.0m (up 25% from FY 2020). Net income: CN¥80.0m (up 59% from FY 2020). Profit margin: 31% (up from 25% in FY 2020). The increase in margin was driven by higher revenue. 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 40% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥33.18, the stock trades at a trailing P/E ratio of 56.5x. Average trailing P/E is 36x in the Electronic industry in China. Total returns to shareholders of 224% over the past three years. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥29.85, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 25x in the Electronic industry in China. Total returns to shareholders of 231% over the past three years. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥43.36, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 404% over the past three years. Reported Earnings • Oct 20
Third quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.038 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥63.0m (up 42% from 3Q 2020). Net income: CN¥24.0m (up 354% from 3Q 2020). Profit margin: 38% (up from 12% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥32.99, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 27x in the Electronic industry in China. Total returns to shareholders of 308% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥30.05, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 27x in the Electronic industry in China. Total returns to shareholders of 232% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 30% share price gain to CN¥35.60, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 294% over the past three years. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥30.85, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 30x in the Electronic industry in China. Total returns to shareholders of 242% over the past three years. Reported Earnings • Aug 04
Second quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.031 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥72.5m (up 51% from 2Q 2020). Net income: CN¥14.5m (up 229% from 2Q 2020). Profit margin: 20% (up from 9.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 58% 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 • Jul 28
Investor sentiment deteriorated over the past week After last week's 23% share price decline to CN¥25.23, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 160% over the past three years. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improved over the past week After last week's 32% share price gain to CN¥26.12, the stock trades at a forward P/E ratio of 32x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 175% over the past three years. Valuation Update With 7 Day Price Move • Jun 21
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥16.52, the stock trades at a trailing P/E ratio of 45x. Average trailing P/E is 38x in the Electronic industry in China. Total returns to shareholders of 75% over the past three years. Announcement • May 19
Jiangsu Donghua Testing Technology Co., Ltd. Announces Final Cash Dividend for 2020, Payable on 24 May 2021 Jiangsu DongHua Testing Technology Co., Ltd. announced final tax included cash dividend of CNY 1.10 per 10 A shares for 2020. Record date is 21 May 2021, ex-date is 24 May 2021, and the payment date is 24 May 2021. Announcement • May 08
Jiangsu Donghua Testing Technology Co., Ltd. Approves Cash Dividend/ for 2020 Jiangsu DongHua Testing Technology Co., Ltd. announced that at the Annual General Meeting held on 30 April 2021 approved the dividend of CNY 1.100 per ten shares (tax included) for 2020. Reported Earnings • Apr 11
First quarter 2021 earnings released: EPS CN¥0.007 (vs CN¥0.007 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥30.0m (up 38% from 1Q 2020). Net income: CN¥1.03m (up CN¥1.98m from 1Q 2020). Profit margin: 3.4% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 29
New 90-day low: CN¥13.62 The company is down 24% from its price of CN¥17.92 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 4.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: CN¥14.28 The company is down 19% from its price of CN¥17.62 on 29 September 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 4.0% over the same period. Is New 90 Day High Low • Dec 11
New 90-day low: CN¥15.28 The company is down 22% from its price of CN¥19.49 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 Electronic industry, which is up 3.0% over the same period. Is New 90 Day High Low • Nov 25
New 90-day low: CN¥16.26 The company is down 3.0% from its price of CN¥16.70 on 27 August 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is flat over the same period.