New Risk • May 06
New major risk - Revenue and earnings growth Earnings have declined by 1.3% 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 Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Earnings have declined by 1.3% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.8% net profit margin). New Risk • Apr 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 30% 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: Major Risk Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.2% net profit margin). Reported Earnings • Apr 23
Full year 2025 earnings released: EPS: CN¥0.34 (vs CN¥0.48 in FY 2024) Full year 2025 results: EPS: CN¥0.34 (down from CN¥0.48 in FY 2024). Revenue: CN¥6.57b (up 50% from FY 2024). Net income: CN¥539.9m (down 30% from FY 2024). Profit margin: 8.2% (down from 18% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Apr 23
Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 15, 2026 Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 15, 2026, at 14:30 China Standard Time. Location: 24F, East Tower, No. 26, Sixin Avenue, Hanyang District, Wuhan, Hubei China Announcement • Mar 30
Hubei Chutian Smart Communication Co.,Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Announcement • Dec 26
Hubei Chutian Smart Communication Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 23, 2026 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 23, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.13 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.10 (down from CN¥0.13 in 3Q 2024). Revenue: CN¥1.38b (up 57% from 3Q 2024). Net income: CN¥165.8m (down 25% from 3Q 2024). Profit margin: 12% (down from 25% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Sep 30
Hubei Chutian Smart Communication Co.,Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 New Risk • Sep 07
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 18% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (18% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (15% net profit margin). Announcement • Jun 30
Hubei Chutian Smart Communication Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 New Risk • May 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). 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 (17% net profit margin). Reported Earnings • Apr 25
Full year 2024 earnings released: EPS: CN¥0.48 (vs CN¥0.59 in FY 2023) Full year 2024 results: EPS: CN¥0.48 (down from CN¥0.59 in FY 2023). Revenue: CN¥4.39b (up 37% from FY 2023). Net income: CN¥767.6m (down 19% from FY 2023). Profit margin: 18% (down from 30% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 11% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 25
Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 23, 2025 Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 23, 2025, at 14:30 China Standard Time. Location: 24F, East Tower, No. 26, Sixin Avenue, Hanyang District, Wuhan, Hubei China Announcement • Apr 21
Hubei Chutian Smart Communication Co.,Ltd. (SHSE:600035) completed the acquisition of Wuhan Huaqing Electric Technology Co., Ltd. from Hubei Runxi Construction Installation Co., Ltd. and Xiang Dingdang. Hubei Chutian Smart Communication Co.,Ltd. (SHSE:600035) agreed to acquire Wuhan Huaqing Electric Technology Co., Ltd. from Hubei Runxi Construction Installation Co., Ltd. and Xiang Dingdang for CNY 4.08 million on March 9, 2025. A cash consideration of CNY 4.08 million will be paid by Hubei Chutian Smart Communication Co.,Ltd. As part of consideration, CNY 4.08 million is paid towards common equity of Wuhan Huaqing Electric Technology Co., Ltd.
As of December 31, 2024, Wuhan Huaqing Electric Technology Co., Ltd. reported total assets of CNY 4.08 million and total common equity of CNY 4.08 million. The general managers of Hubei Chutian Smart Communication Co., Ltd. approved the deal.
Hubei Chutian Smart Communication Co.,Ltd. (SHSE:600035) completed the acquisition of Wuhan Huaqing Electric Technology Co., Ltd. from Hubei Runxi Construction Installation Co., Ltd. and Xiang Dingdang on April 16, 2025. Announcement • Mar 28
Hubei Chutian Smart Communication Co.,Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 New Risk • Feb 20
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: 18% Last year net profit margin: 29% 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 High level of debt (78% net debt to equity). 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 • Feb 20
Full year 2024 earnings released: EPS: CN¥0.49 (vs CN¥0.59 in FY 2023) Full year 2024 results: EPS: CN¥0.49 (down from CN¥0.59 in FY 2023). Revenue: CN¥4.39b (up 37% from FY 2023). Net income: CN¥789.5m (down 16% from FY 2023). Profit margin: 18% (down from 30% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 10% per year. Announcement • Dec 27
Hubei Chutian Smart Communication Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 25, 2025 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 25, 2025 Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.14 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.14 in 3Q 2023). Revenue: CN¥880.4m (up 14% from 3Q 2023). Net income: CN¥220.1m (flat on 3Q 2023). Profit margin: 25% (down from 28% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 12% per year. Announcement • Sep 30
Hubei Chutian Smart Communication Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Hubei Chutian Smart Communication 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 16% After last week's 16% share price gain to CN¥4.34, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 15x in the Infrastructure industry in China. Total returns to shareholders of 54% over the past three years. Reported Earnings • Sep 04
Second quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.14 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.11 (down from CN¥0.14 in 2Q 2023). Revenue: CN¥822.0m (up 13% from 2Q 2023). Net income: CN¥162.1m (down 30% from 2Q 2023). Profit margin: 20% (down from 32% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 6% per year. Announcement • Jun 28
Hubei Chutian Smart Communication Co.,Ltd. to Report First Half, 2024 Results on Aug 30, 2024 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report first half, 2024 results on Aug 30, 2024 Declared Dividend • Jun 01
Dividend increased to CN¥0.19 Dividend of CN¥0.19 is 36% higher than last year. Ex-date: 7th June 2024 Payment date: 7th June 2024 Dividend yield will be 4.2%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is covered by both earnings (35% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 30
First quarter 2024 earnings released: EPS: CN¥0.17 (vs CN¥0.22 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.17 (down from CN¥0.22 in 1Q 2023). Revenue: CN¥981.4m (up 28% from 1Q 2023). Net income: CN¥280.8m (down 21% from 1Q 2023). Profit margin: 29% (down from 46% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 14% per year. Reported Earnings • Apr 20
Full year 2023 earnings released: EPS: CN¥0.59 (vs CN¥0.45 in FY 2022) Full year 2023 results: EPS: CN¥0.59 (up from CN¥0.45 in FY 2022). Revenue: CN¥3.20b (up 9.6% from FY 2022). Net income: CN¥942.3m (up 30% from FY 2022). Profit margin: 30% (up from 25% in FY 2022). The increase in margin was driven by higher revenue. 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 17% per year. Announcement • Apr 20
Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 15, 2024 Hubei Chutian Smart Communication Co.,Ltd., Annual General Meeting, May 15, 2024, at 14:00 China Standard Time. Location: East Tower, No. 26, Sixin Avenue, Hanyang District, Wuhan, Hubei China Announcement • Mar 29
Hubei Chutian Smart Communication Co.,Ltd. to Report Q1, 2024 Results on Apr 30, 2024 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Announcement • Dec 29
Hubei Chutian Smart Communication Co.,Ltd. to Report Fiscal Year 2023 Results on Apr 19, 2024 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report fiscal year 2023 results on Apr 19, 2024 Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.14 (vs CN¥0.12 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.14 (up from CN¥0.12 in 3Q 2022). Revenue: CN¥773.8m (up 1.1% from 3Q 2022). Net income: CN¥220.3m (up 13% from 3Q 2022). Profit margin: 28% (up from 26% in 3Q 2022). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.14 (vs CN¥0.12 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.14 (up from CN¥0.12 in 2Q 2022). Revenue: CN¥727.4m (up 7.5% from 2Q 2022). Net income: CN¥230.2m (up 20% from 2Q 2022). Profit margin: 32% (up from 28% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Announcement • Aug 11
Hubei Chutian Smart Communication Co.,Ltd. announced that it expects to receive CNY 108.7757 million in funding from Hubei Chutian High Speed Digital Technology Co., Ltd. Hubei Chutian Smart Communication Co.,Ltd. announced that it will raises CNY 108,775,700 equity round of funding on August 10, 2023. The transaction included the participation from new investor Hubei Chutian High Speed Digital Technology Co., Ltd. own funds in cash of CNY 50,000,000 and hold 100% stake. After the capital increase, the registered capital increased from CNY 110,000,000 to CNY 160,000,000. The company held sixth meeting of the eighth board of directors, and does not need to be submitted to the company's shareholders' meeting for review. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥4.33, the stock trades at a trailing P/E ratio of 8.4x. Average trailing P/E is 18x in the Infrastructure industry in China. Total returns to shareholders of 53% over the past three years. Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.15 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.15 in 1Q 2022). Revenue: CN¥763.9m (flat on 1Q 2022). Net income: CN¥354.3m (up 43% from 1Q 2022). Profit margin: 46% (up from 33% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Xu Yimin was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.12 (up from CN¥0.11 in 3Q 2021). Revenue: CN¥765.6m (down 5.1% from 3Q 2021). Net income: CN¥194.9m (up 8.0% from 3Q 2021). Profit margin: 26% (up from 22% in 3Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.12 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.12 in 2Q 2021). Revenue: CN¥676.8m (down 9.1% from 2Q 2021). Net income: CN¥192.1m (down 2.2% from 2Q 2021). Profit margin: 28% (up from 26% in 2Q 2021). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥3.76, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 14x in the Infrastructure industry in China. Total returns to shareholders of 17% over the past three years. Reported Earnings • Apr 30
First quarter 2022 earnings released: EPS: CN¥0.15 (vs CN¥0.16 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.15 (down from CN¥0.16 in 1Q 2021). Revenue: CN¥762.7m (down 7.3% from 1Q 2021). Net income: CN¥247.7m (flat on 1Q 2021). Profit margin: 33% (up from 30% in 1Q 2021). The increase in margin was driven by lower expenses. 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 4% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Xu Yimin was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 01
Third quarter 2021 earnings released: EPS CN¥0.11 (vs CN¥0.14 in 3Q 2020) The company reported a poor third quarter result with weaker earnings and profit margins, although revenues were flat. Third quarter 2021 results: Revenue: CN¥806.4m (flat on 3Q 2020). Net income: CN¥180.4m (down 20% from 3Q 2020). Profit margin: 22% (down from 28% in 3Q 2020). 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 1% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 15% share price gain to CN¥3.37, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 15x in the Infrastructure industry in China. Total returns to shareholders of 23% over the past three years. Reported Earnings • Aug 31
Second quarter 2021 earnings released: EPS CN¥0.12 (vs CN¥0.02 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥744.9m (up 49% from 2Q 2020). Net income: CN¥196.3m (up 253% from 2Q 2020). Profit margin: 26% (up from 11% 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 3% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • May 04
Third quarter 2020 earnings released: EPS CN¥0.14 (vs CN¥0.12 in 3Q 2019) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: CN¥807.8m (up 29% from 3Q 2019). Net income: CN¥225.0m (up 9.6% from 3Q 2019). Profit margin: 28% (down from 33% in 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 9% per year. Is New 90 Day High Low • Jan 28
New 90-day low: CN¥2.69 The company is down 5.0% from its price of CN¥2.83 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Infrastructure industry, which is up 3.0% over the same period. Is New 90 Day High Low • Jan 13
New 90-day low: CN¥2.80 The company is down 3.0% from its price of CN¥2.89 on 15 October 2020. The Chinese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Infrastructure industry, which is up 1.0% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥386.8m, down 18% from the prior year. Total revenue was CN¥2.54b over the last 12 months, down 9.1% from the prior year. Is New 90 Day High Low • Oct 27
New 90-day low: CN¥2.87 The company is down 10.0% from its price of CN¥3.19 on 29 July 2020. The Chinese market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Infrastructure industry, which is down 3.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: CN¥2.92 The company is down 3.0% from its price of CN¥3.00 on 24 June 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Infrastructure industry, which is up 4.0% over the same period. Announcement • Jul 10
Hubei Chutian Smart Communication Co.,Ltd. to Report First Half, 2020 Results on Aug 28, 2020 Hubei Chutian Smart Communication Co.,Ltd. announced that they will report first half, 2020 results on Aug 28, 2020