New Risk • Jun 15
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 11% 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 • May 22
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to CN¥115, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 37x in the Electronic industry in China. Total returns to shareholders of 285% over the past three years. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥85.70, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 33x in the Electronic industry in China. Total returns to shareholders of 193% over the past three years. Price Target Changed • Apr 25
Price target increased by 19% to CN¥70.50 Up from CN¥59.00, the current price target is an average from 4 analysts. New target price is 6.0% below last closing price of CN¥74.99. Stock is up 112% over the past year. The company is forecast to post earnings per share of CN¥1.98 for next year compared to CN¥1.37 last year. Announcement • Mar 31
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q1, 2026 Results on Apr 24, 2026 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q1, 2026 results on Apr 24, 2026 Reported Earnings • Mar 29
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥1.37 (up from CN¥1.14 in FY 2024). Revenue: CN¥9.01b (up 22% from FY 2024). Net income: CN¥2.62b (up 20% from FY 2024). Profit margin: 29% (in line with FY 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 3.8%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 22% per year. Announcement • Mar 28
Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Apr 20, 2026 Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Apr 20, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Chaozhou, Guangdong China Price Target Changed • Mar 19
Price target increased by 7.8% to CN¥59.00 Up from CN¥54.75, the current price target is an average from 4 analysts. New target price is 5.5% above last closing price of CN¥55.95. Stock is up 46% over the past year. The company is forecast to post earnings per share of CN¥1.42 for next year compared to CN¥1.14 last year. New Risk • Feb 24
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 7.5% 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: 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 (7.5% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥65.97, the stock trades at a forward P/E ratio of 39x. Average forward P/E is 33x in the Electronic industry in China. Total returns to shareholders of 113% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥31.26 per share. Announcement • Dec 31
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Fiscal Year 2025 Results on Mar 28, 2026 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report fiscal year 2025 results on Mar 28, 2026 New Risk • Oct 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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. Share price has been volatile over the past 3 months (8.9% average weekly change). Large one-off items impacting financial results. Price Target Changed • Oct 31
Price target increased by 7.9% to CN¥53.00 Up from CN¥49.10, the current price target is an average from 4 analysts. New target price is 6.7% above last closing price of CN¥49.69. Stock is up 37% over the past year. The company is forecast to post earnings per share of CN¥1.41 for next year compared to CN¥1.14 last year. Reported Earnings • Oct 30
Third quarter 2025 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2025 results: EPS: CN¥0.37 (up from CN¥0.30 in 3Q 2024). Revenue: CN¥2.36b (up 21% from 3Q 2024). Net income: CN¥721.4m (up 25% from 3Q 2024). Profit margin: 31% (up from 30% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 20% 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 22% per year and the company’s share price has also increased by 22% per year. Announcement • Sep 30
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥49.70, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 33x in the Electronic industry in China. Total returns to shareholders of 108% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥21.37 per share. New Risk • Sep 19
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 7.0% 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 (7.0% average weekly change). Price Target Changed • Sep 01
Price target increased by 7.8% to CN¥46.85 Up from CN¥43.48, the current price target is an average from 4 analysts. New target price is 5.9% above last closing price of CN¥44.22. Stock is up 45% over the past year. The company is forecast to post earnings per share of CN¥1.42 for next year compared to CN¥1.14 last year. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥40.66, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 30x in the Electronic industry in China. Total returns to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥18.00 per share. Announcement • Jul 02
Chaozhou Three-Circle (Group) Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • May 14
Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 05, 2025 Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 05, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Chaozhou, Guangdong China Announcement • Apr 25
Chaozhou Three-Circle (Group) Co.,Ltd. Proposes Cash Dividend for 2024 Chaozhou Three-Circle (Group) Co.,Ltd. announced on 24 April 2025 the profit distribution proposal for 2024 as Cash dividend/10 shares (tax included): CNY 3.80000000. Reported Earnings • Apr 24
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: CN¥1.14 (up from CN¥0.82 in FY 2023). Revenue: CN¥7.37b (up 29% from FY 2023). Net income: CN¥2.19b (up 39% from FY 2023). Profit margin: 30% (up from 28% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 3.1%. Revenue is forecast to grow 18% 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 1% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 11
Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408) announces an Equity Buyback for CNY 200 million worth of its shares. Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its A shares. The repurchase price will not exceed CNY 57.79 per share. The purpose of the buyback is for ESOP or equity incentives. The repurchase will be funded through own funds or self-financing. The repurchase period will be not more than 12 months from the approval date. Announcement • Mar 31
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Feb 27
Full year 2024 earnings released: EPS: CN¥1.14 (vs CN¥0.82 in FY 2023) Full year 2024 results: EPS: CN¥1.14 (up from CN¥0.82 in FY 2023). Revenue: CN¥7.38b (up 29% from FY 2023). Net income: CN¥2.19b (up 39% from FY 2023). Profit margin: 30% (up from 28% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% 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 1% per year whereas the company’s share price has increased by 6% per year. Announcement • Dec 31
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 24, 2025 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 24, 2025 Price Target Changed • Nov 15
Price target increased by 7.4% to CN¥37.18 Up from CN¥34.63, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of CN¥35.53. Stock is up 15% over the past year. The company is forecast to post earnings per share of CN¥1.09 for next year compared to CN¥0.82 last year. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.30 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.30 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥1.95b (up 32% from 3Q 2023). Net income: CN¥577.7m (up 41% from 3Q 2023). Profit margin: 30% (up from 28% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 18% 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 7% per year whereas the company’s share price has fallen by 3% per year. Announcement • Sep 30
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥37.10, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 21x in the Electronic industry in China. Total returns to shareholders of 2.9% over the past three years. Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: CN¥0.31 (vs CN¥0.21 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.31 (up from CN¥0.21 in 2Q 2023). Revenue: CN¥1.86b (up 29% from 2Q 2023). Net income: CN¥592.6m (up 44% from 2Q 2023). Profit margin: 32% (up from 29% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Electronic industry in China. 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 5% per year, which means it has not declined as severely as earnings. Declared Dividend • Jul 05
Dividend of CN¥0.28 announced Shareholders will receive a dividend of CN¥0.28. Ex-date: 9th July 2024 Payment date: 9th July 2024 Dividend yield will be 1.0%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by both earnings (32% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 9.4% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to grow by 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 29
Chaozhou Three-Circle (Group) Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Announcement • May 29
Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 20, 2024 Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 20, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Chaozhou, Guangdong China Major Estimate Revision • May 03
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥7.49b to CN¥7.34b. EPS estimate also fell from CN¥1.13 per share to CN¥1.01 per share. Net income forecast to grow 25% next year vs 61% growth forecast for Electronic industry in China. Consensus price target of CN¥32.85 unchanged from last update. Share price rose 7.0% to CN¥27.92 over the past week. Reported Earnings • Apr 28
First quarter 2024 earnings released: EPS: CN¥0.23 (vs CN¥0.17 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.23 (up from CN¥0.17 in 1Q 2023). Revenue: CN¥1.56b (up 32% from 1Q 2023). Net income: CN¥433.0m (up 35% from 1Q 2023). Profit margin: 28% (in line with 1Q 2023). Revenue is forecast to grow 24% 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 14% per year whereas the company’s share price has fallen by 16% per year. Price Target Changed • Apr 05
Price target decreased by 8.6% to CN¥32.85 Down from CN¥35.93, the current price target is an average from 2 analysts. New target price is 28% above last closing price of CN¥25.64. Stock is down 23% over the past year. The company is forecast to post earnings per share of CN¥0.84 for next year compared to CN¥0.79 last year. Announcement • Mar 30
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Announcement • Dec 29
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 29, 2024 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 29, 2024 Reported Earnings • Oct 26
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.16 in 3Q 2022). Revenue: CN¥1.48b (up 39% from 3Q 2022). Net income: CN¥410.9m (up 35% from 3Q 2022). Profit margin: 28% (in line with 3Q 2022). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) also missed analyst estimates by 13%. 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 fallen by 8% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Chaozhou Three-Circle (Group) Co.,Ltd. to Report Q3, 2023 Results on Oct 26, 2023 Chaozhou Three-Circle (Group) Co.,Ltd. announced that they will report Q3, 2023 results on Oct 26, 2023 Reported Earnings • Aug 30
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.21 (down from CN¥0.23 in 2Q 2022). Revenue: CN¥1.44b (down 3.5% from 2Q 2022). Net income: CN¥411.2m (down 6.9% from 2Q 2022). Profit margin: 29% (down from 30% in 2Q 2022). Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 3% per year. Announcement • Jul 12
Chaozhou Three-Circle (Group) Co.,Ltd. Announces Final Cash Dividend Implementation of A Shares for 2022 Chaozhou Three-Circle (Group) Co.,Ltd. announced Final Cash Dividend Implementation of A Shares of CNY CNY 2.50000000 for 2022. Record date: 14 July 2023. Ex-date: 17 July 2023. Payment date: 17 July 2023. New Risk • Jun 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 • Jun 02
Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 20, 2023 Chaozhou Three-Circle (Group) Co.,Ltd., Annual General Meeting, Jun 20, 2023, at 14:45 China Standard Time. Agenda: To consider 2022 annual report and its summary; to consider 2022 work report of the board of directors; to consider 2022 work report of the supervisory committee; to consider 2022 annual accounts; to consider 2022 profit distribution plan; and to consider other matters. Major Estimate Revision • May 05
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥6.66b to CN¥6.08b. EPS estimate also fell from CN¥1.20 per share to CN¥0.94 per share. Net income forecast to grow 19% next year vs 52% growth forecast for Electronic industry in China. Consensus price target of CN¥37.33 unchanged from last update. Share price fell 2.5% to CN¥29.50 over the past week. Price Target Changed • Apr 25
Price target increased by 11% to CN¥37.33 Up from CN¥33.60, the current price target is an average from 3 analysts. New target price is 25% above last closing price of CN¥29.87. Stock is up 23% over the past year. The company is forecast to post earnings per share of CN¥1.20 for next year compared to CN¥0.79 last year. Reported Earnings • Apr 24
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.79 (down from CN¥1.10 in FY 2021). Revenue: CN¥5.15b (down 17% from FY 2021). Net income: CN¥1.50b (down 25% from FY 2021). Profit margin: 29% (down from 32% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates by 2.9%. Revenue is forecast to grow 27% 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 19% per year whereas the company’s share price has increased by 16% per year. Price Target Changed • Feb 16
Price target increased by 9.2% to CN¥36.70 Up from CN¥33.60, the current price target is an average from 4 analysts. New target price is 11% above last closing price of CN¥33.03. Stock is down 5.4% over the past year. The company is forecast to post earnings per share of CN¥0.81 for next year compared to CN¥1.10 last year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Director Yejun Xu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Major Estimate Revision • Nov 02
Consensus revenue estimates fall by 18% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥6.62b to CN¥5.42b. EPS estimate fell from CN¥0.98 to CN¥0.87 per share. Net income forecast to grow 57% next year vs 56% growth forecast for Electronic industry in China. Consensus price target of CN¥33.60 unchanged from last update. Share price rose 2.4% to CN¥28.85 over the past week. Reported Earnings • Oct 27
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.16 (down from CN¥0.35 in 3Q 2021). Revenue: CN¥1.06b (down 38% from 3Q 2021). Net income: CN¥303.4m (down 52% from 3Q 2021). Profit margin: 29% (down from 37% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 34%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 30% 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 24% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 31
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: CN¥0.23 (down from CN¥0.32 in 2Q 2021). Revenue: CN¥1.49b (down 4.8% from 2Q 2021). Net income: CN¥441.8m (down 25% from 2Q 2021). Profit margin: 30% (down from 38% in 2Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 33%, compared to a 27% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 30
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥7.77b to CN¥7.03b. EPS estimate also fell from CN¥1.25 per share to CN¥1.09 per share. Net income forecast to grow 27% next year vs 46% growth forecast for Electronic industry in China. Consensus price target reaffirmed at CN¥33.60. Share price fell 7.6% to CN¥27.42 over the past week. Announcement • Jun 03
Chaozhou Three-Circle (Group) Co.,Ltd. Announces Final Dividend on A Shares for the Year 2021, Payable on June 10, 2022 Chaozhou Three-Circle (Group) Co.,Ltd. announced final cash dividend/10 shares (tax included) of CNY 3.20000000 on A shares for the year 2021. Record date is June 9, 2022. Ex-date is June 10, 2022. Payment date is June 10, 2022. Announcement • May 19
Chaozhou Three-Circle (Group) Co.,Ltd. Approves Profit Distribution of 2021 Chaozhou Three-Circle (Group) Co.,Ltd. at its Annual General Meeting of 2021 held on 16 May 2022 approved 2021 profit distribution plan with cash dividend (tax included) of CNY 3.20000000 per 10 shares. Buying Opportunity • May 06
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be CN¥34.90, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has grown by 25%. Revenue is forecast to grow by 32% in a year. Earnings is forecast to grow by 24% in the next year. Valuation Update With 7 Day Price Move • May 05
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥28.65, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 18x in the Electronic industry in China. Total returns to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥33.82 per share. Reported Earnings • Apr 27
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: CN¥1.10 (up from CN¥0.82 in FY 2020). Revenue: CN¥6.22b (up 56% from FY 2020). Net income: CN¥2.01b (up 40% from FY 2020). Profit margin: 32% (down from 36% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) missed analyst estimates by 5.1%. Over the next year, revenue is forecast to grow 25%, compared to a 24% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
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, Research Institute Director & Director Ji Qiu was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Apr 26
Chaozhou Three-Circle (Group) Co.,Ltd. Proposes Final Cash Dividend for the Year 2021 Chaozhou Three-Circle (Group) Co.,Ltd. announced on 25 April 2022 the profit distribution proposal for 2021 as follows: Cash dividend/10 shares (tax included) of CNY 3.20000000. Buying Opportunity • Apr 11
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 36%. The fair value is estimated to be CN¥33.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 16%. Revenue is forecast to grow by 60% in 2 years. Earnings is forecast to grow by 60% in the next 2 years. Price Target Changed • Mar 16
Price target decreased to CN¥42.03 Down from CN¥45.47, the current price target is an average from 5 analysts. New target price is 43% above last closing price of CN¥29.45. Stock is down 21% over the past year. The company is forecast to post earnings per share of CN¥1.16 for next year compared to CN¥0.82 last year. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.26 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: CN¥1.71b (up 56% from 3Q 2020). Net income: CN¥627.9m (up 41% from 3Q 2020). Profit margin: 37% (down from 41% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.32 (vs CN¥0.21 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥1.57b (up 50% from 2Q 2020). Net income: CN¥589.2m (up 59% from 2Q 2020). Profit margin: 38% (up from 36% 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 9% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 03
Chaozhou Three-Circle (Group) Co.,Ltd. Approves Cash Dividend for the Year 2020 ChaoZhou Three-Circle (Group) Co.,Ltd. approved tax included cash dividend of CNY 2.5 per ten shares for the year 2020, at the Annual General Meeting held on 1 June 2021. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥36.42, 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 47% over the past three years. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.11 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥1.31b (up 118% from 1Q 2020). Net income: CN¥489.8m (up 165% from 1Q 2020). Profit margin: 37% (up from 31% 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 3% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 29
Chaozhou Three-Circle (Group) Co.,Ltd. Proposes Final Cash Dividend for the Year 2020 Chaozhou Three-Circle (Group) Co.,Ltd. proposed final cash dividend of CNY 2.50000000 for the year 2020. Reported Earnings • Mar 26
Full year 2020 earnings released: EPS CN¥0.82 (vs CN¥0.50 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.99b (up 47% from FY 2019). Net income: CN¥1.44b (up 65% from FY 2019). Profit margin: 36% (up from 32% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Feb 03
New 90-day high: CN¥43.00 The company is up 29% from its price of CN¥33.36 on 05 November 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.89 per share. Price Target Changed • Jan 20
Price target raised to CN¥52.00 Up from CN¥42.00, the current price target is an average from 4 analysts. The new target price is 27% above the current share price of CN¥41.00. As of last close, the stock is up 69% over the past year. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥41.15, the stock is trading at a trailing P/E ratio of 59.9x, up from the previous P/E ratio of 50.2x. This compares to an average P/E of 41x in the Electronic industry in China. Total returns to shareholders over the past three years are 112%. Is New 90 Day High Low • Jan 13
New 90-day high: CN¥38.36 The company is up 29% from its price of CN¥29.79 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥4.28 per share. Is New 90 Day High Low • Dec 21
New 90-day high: CN¥36.38 The company is up 31% from its price of CN¥27.80 on 22 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.91 per share. Is New 90 Day High Low • Dec 04
New 90-day high: CN¥34.20 The company is up 18% from its price of CN¥28.89 on 04 September 2020. The Chinese market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.36 per share. Major Estimate Revision • Nov 05
Analysts increase EPS estimates to CN¥0.82 The 2020 consensus revenue estimate increased from CN¥3.84b to CN¥4.01b. The earnings per share estimate also received an upgrade from CN¥0.73 to CN¥0.82 for the same period. Net income is expected to grow by 31% next year compared to 47% growth forecast for the Electronic industry in China. The consensus price target of CN¥42.00 was unchanged from the last update. Share price is up 6.0% to CN¥33.36 over the past week. Is New 90 Day High Low • Nov 03
New 90-day high: CN¥32.86 The company is up 14% from its price of CN¥28.88 on 05 August 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.44 per share. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥1.21b, up 15% from the prior year. Total revenue was CN¥3.48b over the last 12 months, up 20% from the prior year. Price Target Changed • Oct 23
Price target raised to CN¥42.00 Up from CN¥30.84, the current price target is an average from 4 analysts. The new target price is 33% above the current share price of CN¥31.67. As of last close, the stock is up 66% over the past year. Major Estimate Revision • Oct 22
Analysts increase EPS estimates to CN¥0.73 The 2020 consensus revenue estimate increased from CN¥3.76b to CN¥3.84b. The earnings per share estimate also received an upgrade from CN¥0.66 to CN¥0.73 for the same period. Net income is expected to grow by 49% next year compared to 47% growth forecast for the Electronic industry in China. The consensus price target increased from CN¥30.84 to CN¥31.84. Share price is up 8.3% to CN¥32.25 over the past week. Is New 90 Day High Low • Oct 09
New 90-day high: CN¥30.63 The company is up 8.0% from its price of CN¥28.29 on 10 July 2020. The Chinese market is down 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is down 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.45 per share. Announcement • Sep 26
Chaozhou Three-Circle (Group) Co.,Ltd. announced that it expects to receive CNY 2.175 billion in funding Chaozhou Three-Circle (Group) Co.,Ltd. (SZSE:300408) announced a private placement of not more than 348,632,604 common shares at a price not less than 80% of the average price in the 20 trading days before the pricing reference date for gross proceeds of not more than CNY 2,175,000,000 on March 5, 2020. The transaction will include participation from not more than 35 investors. The transaction has been approved in the 28th meeting of the company's 9th directorate and is subject to the approvals of the shareholders meeting and the China Securities Regulatory Commission. The shares the investors will subscribe to cannot be transferred within 6 months from the issuance closing date. 
