Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to CN¥58.39, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 46x in the Communications industry in China. Total returns to shareholders of 301% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥27.95 per share. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to CN¥93.84, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 60x in the Communications industry in China. Total returns to shareholders of 561% over the past three years. Announcement • Jun 30
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2026 Results on Aug 27, 2026 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2026 results on Aug 27, 2026 Declared Dividend • Jun 25
Dividend increased to CN¥0.28 Dividend of CN¥0.28 is 20% higher than last year. Ex-date: 29th June 2026 Payment date: 29th June 2026 Dividend yield will be 0.2%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is covered by earnings (21% 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 23% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 181% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥83.12, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 63x in the Communications industry in China. Total returns to shareholders of 493% over the past three years. Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Director Xiao Min Ren was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 25
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 22, 2026 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 22, 2026, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Announcement • Mar 30
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Announcement • Dec 26
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2025 Results on Oct 28, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2025 results on Oct 28, 2025 Announcement • Jun 30
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2025 Results on Aug 26, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Announcement • Apr 25
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 20, 2025 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 20, 2025, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Announcement • Mar 28
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Dec 27
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.29 (vs CN¥0.22 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.29 (up from CN¥0.22 in 3Q 2023). Revenue: CN¥15.8b (up 32% from 3Q 2023). Net income: CN¥705.5m (up 27% from 3Q 2023). Profit margin: 4.5% (down from 4.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥16.91, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 24x in the Communications industry in China. Total returns to shareholders of 25% over the past three years. Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: CN¥0.44 (vs CN¥0.35 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.44 (up from CN¥0.35 in 2Q 2023). Revenue: CN¥14.8b (up 21% from 2Q 2023). Net income: CN¥1.10b (up 28% from 2Q 2023). Profit margin: 7.4% (up from 6.9% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Declared Dividend • Jul 12
Dividend of CN¥0.15 announced Shareholders will receive a dividend of CN¥0.15. Ex-date: 16th July 2024 Payment date: 16th July 2024 Dividend yield will be 0.9%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is covered by both earnings (16% earnings payout ratio) and cash flows (66% cash payout ratio). The dividend has increased by an average of 19% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 72% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 28
Hengtong Optic-Electric Co., Ltd. to Report First Half, 2024 Results on Aug 29, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report first half, 2024 results on Aug 29, 2024 Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.21 (vs CN¥0.16 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.21 (up from CN¥0.16 in 1Q 2023). Revenue: CN¥11.8b (up 8.4% from 1Q 2023). Net income: CN¥513.1m (up 30% from 1Q 2023). Profit margin: 4.4% (up from 3.6% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 27
Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 17, 2024 Hengtong Optic-Electric Co., Ltd., Annual General Meeting, May 17, 2024, at 14:00 China Standard Time. Location: No. 2288, Zhongshan North Road, Wujiang District, Suzhou, Jiangsu China Announcement • Mar 30
Hengtong Optic-Electric Co., Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Announcement • Jan 17
Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces an Equity Buyback for CNY 200 million worth of its shares. Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces a share repurchase program. Under the program, the company will repurchase up to CNY 200 million worth of its A shares. The shares will be repurchased at a price not more than CNY 17.64 per share. The repurchased shares will be used for employees’ shareholding program. The program will be valid for a period of 12 months. Announcement • Dec 29
Hengtong Optic-Electric Co., Ltd. to Report Fiscal Year 2023 Results on Apr 26, 2024 Hengtong Optic-Electric Co., Ltd. announced that they will report fiscal year 2023 results on Apr 26, 2024 Reported Earnings • Nov 02
Third quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.24 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.22 (down from CN¥0.24 in 3Q 2022). Revenue: CN¥11.9b (down 5.0% from 3Q 2022). Net income: CN¥554.4m (flat on 3Q 2022). Profit margin: 4.6% (up from 4.5% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Oct 25
Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces an Equity Buyback for CNY 100 million worth of its shares. Hengtong Optic-Electric Co., Ltd. (SHSE:600487) announces a share repurchase program. Under the program, the company will repurchase up to CNY 100 million worth of its shares. The program will be valid for 12 months. Announcement • Sep 30
Hengtong Optic-Electric Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 Hengtong Optic-Electric Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: CN¥0.35 (vs CN¥0.22 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.35 (up from CN¥0.22 in 2Q 2022). Revenue: CN¥12.3b (down 3.5% from 2Q 2022). Net income: CN¥854.4m (up 66% from 2Q 2022). Profit margin: 6.9% (up from 4.0% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 26
Full year 2022 earnings released: EPS: CN¥0.67 (vs CN¥0.61 in FY 2021) Full year 2022 results: EPS: CN¥0.67 (up from CN¥0.61 in FY 2021). Revenue: CN¥46.5b (up 13% from FY 2021). Net income: CN¥1.58b (up 10% from FY 2021). Profit margin: 3.4% (down from 3.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 9 new directors. 2 experienced directors. 1 highly experienced director. 2 independent directors (7 non-independent directors). Chairman of Supervisory Board Weixing Xu is the most experienced director on the board, commencing their role in 2009. Independent Director Junhui Yang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.24 (vs CN¥0.27 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.24 (down from CN¥0.27 in 3Q 2021). Revenue: CN¥12.5b (up 6.7% from 3Q 2021). Net income: CN¥559.5m (down 13% from 3Q 2021). Profit margin: 4.5% (down from 5.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. 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 10% per year, which means it is well ahead of earnings. Board Change • Apr 27
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. 12 experienced directors. No highly experienced directors. 4 independent directors (8 non-independent directors). Chairman Jianlin Qian was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.27 (vs CN¥0.22 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥11.8b (up 19% from 3Q 2020). Net income: CN¥644.6m (up 50% from 3Q 2020). Profit margin: 5.5% (up from 4.4% in 3Q 2020). The increase in margin was driven by higher revenue. 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 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 24
Second quarter 2021 earnings released: EPS CN¥0.17 (vs CN¥0.11 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥11.1b (up 16% from 2Q 2020). Net income: CN¥406.9m (up 94% from 2Q 2020). Profit margin: 3.7% (up from 2.2% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 30
First quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.12 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥6.97b (up 17% from 1Q 2020). Net income: CN¥264.1m (up 13% from 1Q 2020). Profit margin: 3.8% (down from 3.9% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Jan 22
New 90-day low: CN¥13.41 The company is down 12% from its price of CN¥15.21 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.75 per share. Is New 90 Day High Low • Dec 12
New 90-day low: CN¥14.10 The company is down 5.0% from its price of CN¥14.91 on 11 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Communications industry, which is down 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.55 per share. Analyst Estimate Surprise Post Earnings • Nov 03
Revenue misses expectations Revenue missed analyst estimates by 0.8%. Over the next year, revenue is forecast to grow 17%, compared to a 29% growth forecast for the Communications industry in China. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS CN¥0.22 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: CN¥9.89b (up 7.7% from 3Q 2019). Net income: CN¥430.6m (down 5.7% from 3Q 2019). Profit margin: 4.4% (down from 5.0% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Sep 26
New 90-day low: CN¥14.67 The company is down 11% from its price of CN¥16.56 on 24 June 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥1.61 per share. 
