New Risk • Apr 24
New major risk - Revenue and earnings growth Earnings have declined by 4.6% 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 4.6% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Announcement • Apr 24
WCON Electronics Co., Ltd., Annual General Meeting, May 15, 2026 WCON Electronics Co., Ltd., Annual General Meeting, May 15, 2026, at 15:00 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥52.11, the stock trades at a trailing P/E ratio of 57.3x. Average trailing P/E is 63x in the Electronic industry in China. Total loss to shareholders of 8.2% over the past three years. Announcement • Mar 31
WCON Electronics Co., Ltd. to Report Q1, 2026 Results on Apr 24, 2026 WCON Electronics Co., Ltd. announced that they will report Q1, 2026 results on Apr 24, 2026 Board Change • Jan 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. 7 experienced directors. No highly experienced directors. Non-Independent Director Ruixin Li 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. Announcement • Dec 31
WCON Electronics (Guangdong) Co., Ltd. to Report Fiscal Year 2025 Results on Apr 24, 2026 WCON Electronics (Guangdong) Co., Ltd. announced that they will report fiscal year 2025 results on Apr 24, 2026 Reported Earnings • Oct 25
Third quarter 2025 earnings released: EPS: CN¥0.25 (vs CN¥0.19 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.25 (up from CN¥0.19 in 3Q 2024). Revenue: CN¥175.6m (up 22% from 3Q 2024). Net income: CN¥26.7m (up 28% from 3Q 2024). Profit margin: 15% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Sep 30
WCON Electronics (Guangdong) Co., Ltd. to Report Q3, 2025 Results on Oct 25, 2025 WCON Electronics (Guangdong) Co., Ltd. announced that they will report Q3, 2025 results on Oct 25, 2025 Declared Dividend • Sep 10
First half dividend of CN¥0.20 announced Shareholders will receive a dividend of CN¥0.20. Ex-date: 11th September 2025 Payment date: 11th September 2025 Dividend yield will be 1.0%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (59% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 34% per year over the past 2 years and payments have been stable during that time. EPS is expected to grow by 35% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 26
Second quarter 2025 earnings released: EPS: CN¥0.27 (vs CN¥0.26 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.27 (up from CN¥0.26 in 2Q 2024). Revenue: CN¥192.4m (up 37% from 2Q 2024). Net income: CN¥29.5m (up 1.8% from 2Q 2024). Profit margin: 15% (down from 21% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Electronic industry in China. Announcement • Jul 02
WCON Electronics (Guangdong) Co., Ltd. to Report First Half, 2025 Results on Aug 23, 2025 WCON Electronics (Guangdong) Co., Ltd. announced that they will report first half, 2025 results on Aug 23, 2025 Declared Dividend • May 24
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 29th May 2025 Payment date: 29th May 2025 Dividend yield will be 1.3%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (60% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 34% per year over the past 2 years and payments have been stable during that time. EPS is expected to grow by 32% 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: 16% Last year net profit margin: 27% 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 Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (16% net profit margin). Reported Earnings • Apr 27
First quarter 2025 earnings released: EPS: CN¥0.23 (vs CN¥0.17 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.23 (up from CN¥0.17 in 1Q 2024). Revenue: CN¥145.2m (up 45% from 1Q 2024). Net income: CN¥25.4m (up 40% from 1Q 2024). Profit margin: 18% (in line with 1Q 2024). Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Announcement • Apr 26
WCON Electronics (Guangdong) Co., Ltd., Annual General Meeting, May 19, 2025 WCON Electronics (Guangdong) Co., Ltd., Annual General Meeting, May 19, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥32.47, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 27x in the Electronic industry in China. Total loss to shareholders of 11% over the past year. Announcement • Mar 31
WCON Electronics (Guangdong) Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 WCON Electronics (Guangdong) Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 New Risk • Feb 28
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 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Announcement • Dec 31
WCON Electronics (Guangdong) Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 WCON Electronics (Guangdong) Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥46.21, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 26x in the Electronic industry in China. Total loss to shareholders of 2.8% over the past year. Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.19 (vs CN¥0.24 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.19 (down from CN¥0.24 in 3Q 2023). Revenue: CN¥143.7m (up 15% from 3Q 2023). Net income: CN¥20.9m (down 22% from 3Q 2023). Profit margin: 14% (down from 21% in 3Q 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥37.59, the stock trades at a trailing P/E ratio of 39.8x. Average trailing P/E is 41x in the Electronic industry in China. Total loss to shareholders of 18% over the past year. Announcement • Sep 30
WCON Electronics (Guangdong) Co., Ltd. to Report Q3, 2024 Results on Oct 26, 2024 WCON Electronics (Guangdong) Co., Ltd. announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥36.19, the stock trades at a trailing P/E ratio of 38.3x. Average trailing P/E is 37x in the Electronic industry in China. Total loss to shareholders of 25% over the past year. Reported Earnings • Aug 24
Second quarter 2024 earnings released: EPS: CN¥0.26 (vs CN¥0.25 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.26 (up from CN¥0.25 in 2Q 2023). Revenue: CN¥140.4m (up 9.5% from 2Q 2023). Net income: CN¥29.0m (up 7.3% from 2Q 2023). Profit margin: 21% (in line with 2Q 2023). Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥40.20, the stock trades at a trailing P/E ratio of 43.4x. Average trailing P/E is 41x in the Electronic industry in China. Total loss to shareholders of 28% over the past year. Announcement • Jun 29
WCON Electronics (Guangdong) Co., Ltd. to Report First Half, 2024 Results on Aug 24, 2024 WCON Electronics (Guangdong) Co., Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥35.35, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 22x in the Electronic industry in China. Total loss to shareholders of 33% over the past year. Declared Dividend • May 24
Dividend of CN¥0.30 announced Shareholders will receive a dividend of CN¥0.30. Ex-date: 29th May 2024 Payment date: 29th May 2024 Dividend yield will be 0.7%, which is lower than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (32% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. EPS is expected to grow by 54% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 27
WCON Electronics (Guangdong) Co., Ltd. Proposes Final Dividend for the Year 2023 WCON Electronics (Guangdong) Co., Ltd. announced on 25 April 2024 the final profit distribution proposal for 2023 as follows: Cash dividend/10 shares (tax included): CNY 3.00000000. Announcement • Apr 26
WCON Electronics (Guangdong) Co., Ltd., Annual General Meeting, May 16, 2024 WCON Electronics (Guangdong) Co., Ltd., Annual General Meeting, May 16, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Dongguan, Guangdong China Reported Earnings • Apr 25
First quarter 2024 earnings released: EPS: CN¥0.17 (vs CN¥0.43 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.17 (down from CN¥0.43 in 1Q 2023). Revenue: CN¥100.4m (down 12% from 1Q 2023). Net income: CN¥18.2m (down 62% from 1Q 2023). Profit margin: 18% (down from 42% in 1Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 49% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Electronic industry in China. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥37.07, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Electronic industry in China. Total loss to shareholders of 32% over the past year. New Risk • Apr 04
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). High level of non-cash earnings (41% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Mar 30
WCON Electronics (Guangdong) Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 WCON Electronics (Guangdong) Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥46.45, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 23x in the Electronic industry in China. Total loss to shareholders of 16% over the past year. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to CN¥29.03, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Electronic industry in China. Total loss to shareholders of 50% over the past year. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥37.87, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 20x in the Electronic industry in China. Total loss to shareholders of 35% over the past year. Announcement • Dec 30
WCON Electronics (Guangdong) Co., Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 WCON Electronics (Guangdong) Co., Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥60.20, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 23x in the Electronic industry in China. Total returns to shareholders of 28% over the past year. New Risk • Nov 29
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 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (41% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.3% average weekly change). Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥51.28, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 22x in the Electronic industry in China. Total returns to shareholders of 3.7% over the past year. New Risk • Oct 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 41% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (41% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 25
Second quarter 2023 earnings released Second quarter 2023 results: EPS: CN¥0.25. Net income: CN¥27.0m (up CN¥27.0m from 2Q 2022). Revenue is forecast to grow 39% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Electronic industry in China. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥50.12, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 24x in the Electronic industry in China. New Risk • Jul 07
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 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (49% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.9% average weekly change). Announcement • Jul 01
WCON Electronics (Guangdong) Co., Ltd. to Report First Half, 2023 Results on Aug 25, 2023 WCON Electronics (Guangdong) Co., Ltd. announced that they will report first half, 2023 results on Aug 25, 2023 Announcement • May 06
WCON Electronics (Guangdong) Co., Ltd. Approves Cash Dividend for 2022 WCON Electronics (Guangdong) Co., Ltd. at its Annual General Meeting of 2022 held on 04 May 2023, approved cash dividend/10 shares (tax included): CNY 5.00000000. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥82.10, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 22x in the Electronic industry in China. Announcement • Dec 06
Wcon Electronics (Guangdong) Co., Ltd. Directorate Appointments WCON Electronics (Guangdong) Co., Ltd. at its Extraordinary General Meeting of 2022 held on 02 December 2022, approved Election and nomination of Li Wenhua, Li Ruixin, Zhao Shizhi appointment of Election and nomination of Tan Xuming, Liu Bin as independent and Election of Fu Jiajun, Long Dezhi as non-employee supervisors. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorated over the past week After last week's 18% share price decline to CN¥67.11, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 20x in the Electronic industry in China.