Announcement • Jun 30
Zhuzhou Hongda Electronics Corp.,Ltd. to Report First Half, 2026 Results on Aug 28, 2026 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report first half, 2026 results on Aug 28, 2026 New Risk • Jun 18
New major risk - Revenue and earnings growth Earnings have declined by 20% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 94% Cash payout ratio: 191% Earnings have declined by 20% per year over the past 5 years. Declared Dividend • Jun 08
Dividend of CN¥1.00 announced Shareholders will receive a dividend of CN¥1.00. Ex-date: 12th June 2026 Payment date: 12th June 2026 Dividend yield will be 1.5%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is not adequately covered by earnings (94% earnings payout ratio) nor is it covered by cash flows (191% cash payout ratio). The dividend has increased by an average of 33% per year over the past 8 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 4.0% to bring the payout ratio under control. EPS is expected to grow by 24% over the next year, which is sufficient to bring the dividend into a sustainable range. New Risk • Jun 05
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 9.5% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 94% Cash payout ratio: 191% Minor Risk Share price has been volatile over the past 3 months (9.5% average weekly change). Valuation Update With 7 Day Price Move • Jun 04
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥79.92, the stock trades at a forward P/E ratio of 57x. Average forward P/E is 39x in the Electronic industry in China. Total returns to shareholders of 128% over the past three years. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥58.08, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 36x in the Electronic industry in China. Total returns to shareholders of 44% over the past three years. Announcement • Apr 24
Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 25, 2026 Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 25, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Zhuzhou, Hunan China Reported Earnings • Apr 24
First quarter 2026 earnings released: EPS: CN¥0.23 (vs CN¥0.13 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.23 (up from CN¥0.13 in 1Q 2025). Revenue: CN¥366.5m (up 12% from 1Q 2025). Net income: CN¥93.9m (up 71% from 1Q 2025). Profit margin: 26% (up from 17% in 1Q 2025). Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Mar 31
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Q1, 2026 Results on Apr 24, 2026 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report Q1, 2026 results on Apr 24, 2026 New Risk • Feb 25
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 9.7% 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 (9.7% average weekly change). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Dec 31
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Fiscal Year 2025 Results on Apr 24, 2026 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report fiscal year 2025 results on Apr 24, 2026 Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to CN¥52.85, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 30x in the Electronic industry in China. Total returns to shareholders of 36% over the past three years. Board Change • Dec 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. 9 experienced directors. 1 highly experienced director. Independent Director Ying Zhang was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Nov 06
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 7.4% 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 (7.4% average weekly change). Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.30 (vs CN¥0.20 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.30 (up from CN¥0.20 in 3Q 2024). Revenue: CN¥547.7m (up 27% from 3Q 2024). Net income: CN¥124.7m (up 55% from 3Q 2024). Profit margin: 23% (up from 19% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥45.31, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 32x in the Electronic industry in China. Total returns to shareholders of 6.7% over the past three years. Announcement • Sep 30
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Reported Earnings • Aug 29
Second quarter 2025 earnings released: EPS: CN¥0.36 (vs CN¥0.25 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.36 (up from CN¥0.25 in 2Q 2024). Revenue: CN¥528.4m (up 20% from 2Q 2024). Net income: CN¥147.6m (up 44% from 2Q 2024). Profit margin: 28% (up from 23% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 44% 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. Announcement • Jul 02
Zhuzhou Hongda Electronics Corp.,Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • May 12
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 9.1% 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 Earnings have declined by 4.7% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (97% payout ratio). Share price has been volatile over the past 3 months (9.1% average weekly change). Profit margins are more than 30% lower than last year (16% net profit margin). Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥39.88, the stock trades at a trailing P/E ratio of 64.2x. Average forward P/E is 25x in the Electronic industry in China. Total loss to shareholders of 28% over the past three years. New Risk • May 07
New major risk - Revenue and earnings growth Earnings have declined by 4.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.7% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (97% payout ratio). Profit margins are more than 30% lower than last year (16% net profit margin). New Risk • Apr 27
New major risk - Revenue and earnings growth Earnings have declined by 1.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.9% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (18% net profit margin). Reported Earnings • Apr 26
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.68 (down from CN¥1.15 in FY 2023). Revenue: CN¥1.59b (down 7.1% from FY 2023). Net income: CN¥279.2m (down 41% from FY 2023). Profit margin: 18% (down from 28% in FY 2023). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Apr 26
Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 21, 2025 Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 21, 2025, at 14:45 China Standard Time. Location: The Company's Meeting Room, Zhuzhou, Hunan China Announcement • Mar 31
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Q1, 2025 Results on Apr 26, 2025 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 Valuation Update With 7 Day Price Move • Mar 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥35.52, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 30x in the Electronic industry in China. Total loss to shareholders of 52% over the past three years. Announcement • Dec 31
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.25 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.20 (down from CN¥0.25 in 3Q 2023). Revenue: CN¥431.7m (up 5.8% from 3Q 2023). Net income: CN¥80.4m (down 22% from 3Q 2023). Profit margin: 19% (down from 25% in 3Q 2023). Revenue is forecast to grow 11% 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 29% per year whereas the company’s share price has fallen by 25% per year. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥38.50, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 51% over the past three years. Announcement • Oct 19
Zhuzhou Hongda Electronics Corp.,Ltd. Approves Board Appointments Zhuzhou Hongda Electronics Corp.,Ltd. at its Extraordinary General Meeting held on 17 October 2024, approved election of Zhong Ruonong, Zeng Chen and Liu Chang as non-independent directors. 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 9.3% 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 (9.3% average weekly change). 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. Profit margins are more than 30% lower than last year (23% net profit margin). Announcement • Sep 30
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Q3, 2024 Results on Oct 26, 2024 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to CN¥30.97, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 21x in the Electronic industry in China. Total loss to shareholders of 58% 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 24% 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 (8.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (23% net profit margin). Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.25 (vs CN¥0.33 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.25 (down from CN¥0.33 in 2Q 2023). Revenue: CN¥440.8m (flat on 2Q 2023). Net income: CN¥102.7m (down 25% from 2Q 2023). Profit margin: 23% (down from 31% in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Aug 20
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.4% to CN¥21.93. The fair value is estimated to be CN¥28.60, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Buy Or Sell Opportunity • Aug 02
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at CN¥22.49. The fair value is estimated to be CN¥28.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 12%. Announcement • Jun 29
Zhuzhou Hongda Electronics Corp.,Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Declared Dividend • May 23
Dividend reduced to CN¥0.30 Dividend of CN¥0.30 is 40% lower than last year. Ex-date: 28th May 2024 Payment date: 28th May 2024 Dividend yield will be 1.3%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (30% cash payout ratio). The dividend has increased by an average of 20% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 55% over the next year, which should provide support to the dividend and adequate earnings cover. New Risk • May 06
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 25% Last year net profit margin: 39% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. 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. Profit margins are more than 30% lower than last year (25% net profit margin). Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.19 (vs CN¥0.35 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.19 (down from CN¥0.35 in 1Q 2023). Revenue: CN¥309.5m (down 20% from 1Q 2023). Net income: CN¥78.5m (down 46% from 1Q 2023). Profit margin: 25% (down from 38% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 28% per year, which means it is performing significantly worse than earnings. Reported Earnings • Apr 18
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: CN¥1.15 (down from CN¥2.07 in FY 2022). Revenue: CN¥1.71b (down 21% from FY 2022). Net income: CN¥471.7m (down 45% from FY 2022). Profit margin: 28% (down from 40% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. 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 fallen by 1% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Announcement • Apr 16
Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 14, 2024 Zhuzhou Hongda Electronics Corp.,Ltd., Annual General Meeting, May 14, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Zhuzhou, Hunan China Announcement • Mar 30
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥20.22, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 68% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥10.86 per share. Announcement • Dec 29
Zhuzhou Hongda Electronics Corp.,Ltd. to Report Fiscal Year 2023 Results on Apr 16, 2024 Zhuzhou Hongda Electronics Corp.,Ltd. announced that they will report fiscal year 2023 results on Apr 16, 2024 Reported Earnings • Oct 25
Third quarter 2023 earnings released: EPS: CN¥0.25 (vs CN¥0.51 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.25 (down from CN¥0.51 in 3Q 2022). Revenue: CN¥408.1m (down 29% from 3Q 2022). Net income: CN¥103.3m (down 51% from 3Q 2022). Profit margin: 25% (down from 37% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 18% 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 10% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Major Estimate Revision • Sep 01
Consensus revenue estimates fall by 22% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥2.66b to CN¥2.08b. EPS estimate fell from CN¥2.42 to CN¥1.87 per share. Net income forecast to grow 32% next year vs 65% growth forecast for Electronic industry in China. Consensus price target down from CN¥64.94 to CN¥53.68. Share price was steady at CN¥35.31 over the past week. Price Target Changed • Aug 31
Price target decreased by 17% to CN¥53.68 Down from CN¥64.94, the current price target is an average from 2 analysts. New target price is 53% above last closing price of CN¥35.04. Stock is down 24% over the past year. The company is forecast to post earnings per share of CN¥1.87 for next year compared to CN¥2.07 last year. Reported Earnings • Aug 30
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.33 (down from CN¥0.67 in 2Q 2022). Revenue: CN¥442.9m (down 34% from 2Q 2022). Net income: CN¥137.5m (down 50% from 2Q 2022). Profit margin: 31% (down from 41% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 36%. Earnings per share (EPS) also missed analyst estimates by 45%. Revenue is forecast to grow 25% 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 21% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Aug 29
Price target decreased by 8.6% to CN¥62.54 Down from CN¥68.44, the current price target is an average from 2 analysts. New target price is 78% above last closing price of CN¥35.07. Stock is down 26% over the past year. The company is forecast to post earnings per share of CN¥2.23 for next year compared to CN¥2.07 last year. New Risk • Jun 27
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 7.2% 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 (7.2% average weekly change). Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to CN¥47.46, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Electronic industry in China. Total returns to shareholders of 82% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥22.84 per share. Announcement • May 10
Zhuzhou Hongda Electronics Corp.,Ltd. Implements Final Profit Distribution Plan of A Shares for 2022, Payable on 16 May 2023 Zhuzhou Hongda Electronics Corp.,Ltd. announced 2022 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 5.00000000. Record date: 15 May 2023, Ex-date: 16 May 2023, Payment date: 16 May 2023. Reported Earnings • Mar 31
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥2.07 (up from CN¥2.04 in FY 2021). Revenue: CN¥2.16b (up 7.9% from FY 2021). Net income: CN¥851.7m (up 4.4% from FY 2021). Profit margin: 40% (down from 41% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 10%. Earnings per share (EPS) also missed analyst estimates by 9.3%. 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 37% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to CN¥73.92 Down from CN¥106, the current price target is provided by 1 analyst. New target price is 56% above last closing price of CN¥47.45. Stock is down 44% over the past year. The company is forecast to post earnings per share of CN¥2.42 for next year compared to CN¥2.04 last year. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 4 experienced directors. No highly experienced directors. Chairman of the Board Ruo Nong Zhong is the most experienced director on the board, commencing their role in 2015. 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 25
Third quarter 2022 earnings released: EPS: CN¥0.51 (vs CN¥0.60 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.51 (down from CN¥0.60 in 3Q 2021). Revenue: CN¥578.0m (down 5.6% from 3Q 2021). Net income: CN¥211.5m (down 12% from 3Q 2021). Profit margin: 37% (down from 39% in 3Q 2021). The decrease in margin was driven by lower revenue. 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 increased by 41% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 26
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥48.29, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 88% over the past three years. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.67 (vs CN¥0.57 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.67 (up from CN¥0.57 in 2Q 2021). Revenue: CN¥673.6m (up 24% from 2Q 2021). Net income: CN¥274.5m (up 20% from 2Q 2021). Profit margin: 41% (down from 42% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 42%, compared to a 25% growth forecast for the Electronic industry in China. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Announcement • May 21
Zhuzhou Hongda Electronics Corp.,Ltd. Approves 2021 Final Profit Distribution Plan to Be Implemented (A Shares), Payable on May 26, 2022 Zhuzhou Hongda Electronics Corp.,Ltd. approved 2021 final profit distribution plan to be implemented (A shares), payable on May 26, 2022. The company announced Cash dividend/10 shares (tax included) of CNY 6.00000000 with ex-dividend date May 26, 2022 and record date May 25, 2022. Announcement • May 17
Zhuzhou Hongda Electronics Corp.,Ltd. Approves Profit Distribution Plan For 2021 Zhuzhou Hongda Electronics Corp.,Ltd. at its Annual General Meeting of 2021 held on 13 May 2022, approved profit distribution plan for 2021 as Cash dividend of CNY 6.00000000 per 10 shares (tax included). Major Estimate Revision • Apr 28
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from CN¥2.92b to CN¥2.62b. EPS estimate unchanged from CN¥2.73 per share at last update. Electronic industry in China expected to see average net income growth of 41% next year. Consensus price target down from CN¥106 to CN¥73.92. Share price fell 11% to CN¥49.25 over the past week. Price Target Changed • Apr 27
Price target decreased to CN¥73.92 Down from CN¥106, the current price target is an average from 4 analysts. New target price is 52% above last closing price of CN¥48.70. Stock is down 26% over the past year. The company is forecast to post earnings per share of CN¥2.73 for next year compared to CN¥2.04 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. 3 experienced directors. No highly experienced directors. Chairman of the Supervisory Board Dahui Wang is the most experienced director on the board, commencing their role in 2015. 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 • Mar 12
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥2.04 (up from CN¥1.21 in FY 2020). Revenue: CN¥2.01b (up 43% from FY 2020). Net income: CN¥817.9m (up 69% from FY 2020). Profit margin: 41% (up from 35% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 5.1%. Over the next year, revenue is forecast to grow 63%, compared to a 26% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 54% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥100, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 30x in the Electronic industry in China. Total returns to shareholders of 433% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.82 per share. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥96.44, 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 454% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥46.42 per share. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.60 (vs CN¥0.36 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥612.4m (up 47% from 3Q 2020). Net income: CN¥239.3m (up 65% from 3Q 2020). Profit margin: 39% (up from 35% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 60% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 30
Second quarter 2021 earnings released: EPS CN¥0.57 (vs CN¥0.38 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥543.3m (up 45% from 2Q 2020). Net income: CN¥228.4m (up 52% from 2Q 2020). Profit margin: 42% (up from 40% 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 38% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 20
Zhuzhou Hongda Electronics Corp.,Ltd. (SZSE:300726) and Liang Xuefei acquired 37% stake in Zhuzhou Hongda Membrane Electric Co from Fan Jinhe for CNY 2.2 million. Zhuzhou Hongda Electronics Corp.,Ltd. (SZSE:300726) and Liang Xuefei acquired 37% stake in Zhuzhou Hongda Membrane Electric Co from Fan Jinhe for CNY 2.2 million on August 9, 2021. As per terms, Zhuzhou Hongda Electronics Corp.,Ltd acquired 5% stake for CNY 0.295 million and Liang Xuefei acquired 32% stake for CNY 1.89 million on August 9, 2021.
Zhuzhou Hongda Electronics Corp.,Ltd. (SZSE:300726) and Liang Xuefei completed the acquisition of 37% stake in Zhuzhou Hongda Membrane Electric Co from Fan Jinhe on August 9, 2021. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥89.88, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 31x in the Electronic industry in China. Total returns to shareholders of 194% over the past three years. Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥76.45, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 29x in the Electronic industry in China. Total returns to shareholders of 150% over the past three years. Valuation Update With 7 Day Price Move • May 21
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥66.10, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 24x in the Electronic industry in China. Total returns to shareholders of 101% over the past three years. Reported Earnings • Apr 29
First quarter 2021 earnings released: EPS CN¥0.43 (vs CN¥0.10 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥379.4m (up 162% from 1Q 2020). Net income: CN¥170.9m (up 315% from 1Q 2020). Profit margin: 45% (up from 28% 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 32% per year whereas the company’s share price has increased by 28% per year. Upcoming Dividend • Apr 29
Upcoming dividend of CN¥0.16 per share Eligible shareholders must have bought the stock before 06 May 2021. Payment date: 06 May 2021. Trailing yield: 0.2%. Lower than top quartile of Chinese dividend payers (1.8%). Lower than average of industry peers (0.9%). Reported Earnings • Mar 26
Full year 2020 earnings released: EPS CN¥1.21 (vs CN¥0.73 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥1.40b (up 66% from FY 2019). Net income: CN¥483.8m (up 65% from FY 2019). Profit margin: 35% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 19% per year.