Announcement • Jul 27
Hollysys Automation Technologies Ltd.(NasdaqGS:HOLI) dropped from NASDAQ Composite Index Hollysys Automation Technologies Ltd. has bren dropped from NASDAQ Composite Index (^COMP) Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €23.60, the stock trades at a trailing P/E ratio of 20.6x. Average forward P/E is 15x in the Electronic industry in Germany. Total returns to shareholders of 91% over the past three years. New Risk • Jun 19
New major risk - Revenue and earnings growth Earnings have declined by 4.1% 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 4.1% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (9.5% net profit margin). Reported Earnings • May 17
Third quarter 2024 earnings released: EPS: US$0.063 (vs US$0.19 in 3Q 2023) Third quarter 2024 results: EPS: US$0.063 (down from US$0.19 in 3Q 2023). Revenue: US$173.5m (up 3.5% from 3Q 2023). Net income: US$3.91m (down 66% from 3Q 2023). Profit margin: 2.3% (down from 6.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 08
Second quarter 2024 earnings released: EPS: US$0.23 (vs US$0.79 in 2Q 2023) Second quarter 2024 results: EPS: US$0.23 (down from US$0.79 in 2Q 2023). Revenue: US$223.7m (down 8.6% from 2Q 2023). Net income: US$14.1m (down 71% from 2Q 2023). Profit margin: 6.3% (down from 20% in 2Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 08
Hollysys Automation Technologies Ltd. Announces Directorate Appointment Hollysys Automation Technologies Ltd. at its EGM held on Februry 8, 2024, shareholders authorized and approved the appointment of each of Guanghua Miao, Ding Wei and Dennis Demiao Zhu to the board of directors (the “Board”) of the Company as an independent director. Announcement • Feb 06
Dazheng Group Issues Statement with Hollysys On February 5, 2024, Dazheng Group Acquisition Limited announced that it has issued a statement reaffirming the merits of its offer to acquire Hollysys Automation Technologies Ltd. Dazheng Group, remains motivated to acquire the Company at US$29.50 per share, this offer represents a significantly greater value proposition for Company shareholders, providing an 11.3% premium to the Ascendant Capital offer. Dazheng Group emphasizes to Company shareholders its commitment to acquire the Company at US$29.50 per share will remain unchanged by fluctuations in the share price of the Company, market conditions, or if the proposed Ascendent transaction is rejected by shareholders at the upcoming Extraordinary General Meeting on February 8, 2024. In addition, Dazheng Group stated that independent Proxy Advisors, Institutional Shareholder Services and Glass Lewis have recently recommended shareholders to vote against the potential transaction with Ascendent Capital. Further, Dazheng Group stated that the collective decision of shareholders to vote against the Ascendent transaction will not adversely affect the Company, instead, it will safeguard a valuable opportunity for every shareholder to achieve an exit at $29.50 per share, following the conversion of the Dazheng Group offer into a signed merger agreement, which is anticipated to be promptly approved by the shareholders. Announcement • Feb 05
Dazheng Group Reaffirms Commitment to Acquire Hollysys at US$29.50 Per Share On February 03, 2024, Dazheng Group announced that, it will remain committed to acquiring Hollysys at US$29.50 per share after the proposed Ascendent transaction is rejected. Further, Dazheng Group stated that its offer provides more closing certainty than the proposed Ascendent transaction. Urges shareholders to vote against the proposed Ascendent transaction Buyer Consortium. Announcement • Dec 12
Ascendent Capital Partners (Asia) Limited agreed to acquire Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) for $1.7 billion. Ascendent Capital Partners (Asia) Limited agreed to acquire Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) for $1.7 billion on December 11, 2023. The deal will be subject to shareholder approval by the Company and certain closing conditions, including customary regulatory approval. The Board of Directors of Hollysys (the "Board"), upon the unanimous recommendation of the Special Committee of independent directors, has given its unanimous approval for the transaction. Deutsche Bank AG, Davis Polk & Wardwell, Mourant Ozannes (Hong Kong) LLP, and Haiwen & Partners are serving as advisors to Hollysys. Ascendent is advised by Morrison & Foerster LLP, Appleby and Zhong Lun Law Firm. Reported Earnings • Nov 17
First quarter 2024 earnings released: EPS: US$0.51 (vs US$0.35 in 1Q 2023) First quarter 2024 results: EPS: US$0.51 (up from US$0.35 in 1Q 2023). Revenue: US$199.9m (up 18% from 1Q 2023). Net income: US$31.6m (up 48% from 1Q 2023). Profit margin: 16% (up from 13% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 14
Buyer Consortium Increases Offer to Acquire Hollysys to $26.50 Per Share A Buyer consortium led by Recco Control Technology Pte. Ltd. and Dazheng Group announces that the consortium has submitted an increased all-cash offer of $26.50 per share, or approximately $1.64B, to acquire all outstanding shares of Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) in a letter sent to the board on November 8, 2023. Members of the consortium also include TFI Asset Management Limited, and Great Wall Capital Co., Ltd, who have entered into a memorandum of strategic cooperation with Recco Control Technology and Dazheng Group in connection with the proposed acquisition of Hollysys. The consortium has engaged in constructive negotiation with lenders and is at the final stage to secure a binding and definitive commitment in support of the offer. The new $26.50 per share offer from the consortium represents: A 42% premium to Hollysys' closing share price of $18.66 on August 23, 2023 - the undisturbed price before the consortium resubmitted its previous bid to the Company on August 24; A 28.6% premium to Hollysys' closing share price of $20.60 on November 3, 2023 - the undisturbed price before Ascendent Capital announced its takeover offer on November 6; and An increase in price of 6% from the consortium's previous offer of $25 per share, which was presented to the Board on August 24, 2023. The consortium is aware that on November 6, Ascendent Capital Partners - who owns 13.7% of the Company - expressed its support for the special meeting first requested by over 32% of the Company's shareholders to the Board on August 24, 2023. Ascendent has publicly requested that the Board hold the special meeting by December 1, 2023. Shareholders holding 46% of the shares are now demanding that the Board convene the requested special meeting. The consortium said, "This action by Hollysys' largest shareholder appears to be echoing our earlier advocacy and is reflective of shareholders' desire, and fundamental right, to have an independent Board in place that was elected by the shareholders themselves. It also invites the obvious question whether the existing Board has any legitimacy in representing its shareholders after refusing to voluntarily convene the special meeting its own shareholders have requested. The consortium urges the Company's board of directors to listen to the voice of nearly half its shareholders. The Board must respect the rights of its shareholders and convene the legitimately requested special meeting without further delay. A transparent and thorough sale process should be led by independent directors who represent, and are elected by, Hollysys shareholders. This is the best way to ensure value is maximized for all shareholders". Announcement • Oct 31
Hollysys Automation Technologies Provides Update on Sales Process Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) announced that the Special Committee of the Board of Directors, which was established to conduct a sale process as announced on October 2, 2023 and its advisors have been in contact with multiple prospective buyers. These include financial sponsors as well as strategic buyers for which there would be compelling industrial logic to an acquisition. Additionally, the Special Committee and its advisors are considering bids submitted by Recco Control Technology Pte. Ltd. and Dazheng Group (Hong Kong) Investment Holdings Company Limited and by representatives of the Hollysys management team. It is engaged in ongoing discussions with both groups and will provide updates on material developments as soon as practicable. In a statement, the members of the Special Committee stated: "We are making every effort to conduct a fair and full process and to be fully responsive to all current and potentially interested parties to facilitate due diligence and enable them to make updated and binding proposals. Our objective is to present to shareholders a recommended proposal that provides compelling value, committed financing, regulatory certainty, and a viable pathway to closing." The sale process is targeted to be at an advanced stage, with a preferred bidder identified, as soon as early December. Announcement • Aug 17
Hollysys Automation Technologies Ltd. Provides Revenue Guidance for the Full Fiscal Year 2024 Hollysys Automation Technologies Ltd. provided revenue guidance for the full fiscal year 2024. For the period, the revenue is expected to be between $852 million and $930 million, with a year-on-year increase of 10% to 20%. New Risk • Aug 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% 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 Risks Earnings have declined by 5.9% per year over the past 5 years. High level of non-cash earnings (24% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Aug 16
Full year 2023 earnings released: EPS: US$1.74 (vs US$1.36 in FY 2022) Full year 2023 results: EPS: US$1.74 (up from US$1.36 in FY 2022). Revenue: US$777.4m (up 9.9% from FY 2022). Net income: US$106.9m (up 29% from FY 2022). Profit margin: 14% (up from 12% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 17% per year. Reported Earnings • May 18
Third quarter 2023 earnings released: EPS: US$0.19 (vs US$0.26 in 3Q 2022) Third quarter 2023 results: EPS: US$0.19 (down from US$0.26 in 3Q 2022). Revenue: US$167.6m (up 7.7% from 3Q 2022). Net income: US$11.6m (down 27% from 3Q 2022). Profit margin: 6.9% (down from 10% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 6% per year. Reported Earnings • Feb 17
Second quarter 2023 earnings released: EPS: US$0.79 (vs US$0.49 in 2Q 2022) Second quarter 2023 results: EPS: US$0.79 (up from US$0.49 in 2Q 2022). Revenue: US$244.7m (up 13% from 2Q 2022). Net income: US$48.2m (up 60% from 2Q 2022). Profit margin: 20% (up from 14% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Electronic industry in Germany. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Nov 18
First quarter 2023 earnings released: EPS: US$0.35 (vs US$0.23 in 1Q 2022) First quarter 2023 results: EPS: US$0.35 (up from US$0.23 in 1Q 2022). Revenue: US$170.0m (up 11% from 1Q 2022). Net income: US$21.4m (up 50% from 1Q 2022). Profit margin: 13% (up from 9.3% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improved over the past week After last week's 16% share price gain to €18.94, the stock trades at a trailing P/E ratio of 14.7x. Average trailing P/E is 18x in the Electronic industry in Germany. Total returns to shareholders of 46% over the past three years. Reported Earnings • Aug 13
Full year 2022 earnings released: EPS: US$1.36 (vs US$1.48 in FY 2021) Full year 2022 results: EPS: US$1.36 (down from US$1.48 in FY 2021). Revenue: US$707.5m (up 19% from FY 2021). Net income: US$83.2m (down 7.3% from FY 2021). Profit margin: 12% (down from 15% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Aug 13
Hollysys Automation Technologies Ltd. Provides Earnings Guidance for the Full Fiscal Year 2023 Hollysys Automation Technologies Ltd. provided earnings guidance for the full fiscal year 2023. For the period, the company is expected to be between $810 million and $885 million, with a year-on-year increase of 15% to 25%. Announcement • May 02
Hollysys Automation Technologies, Ltd. Provides Revenue Guidance for the Full Fiscal Year 2022 Hollysys Automation Technologies, Ltd. provided revenue guidance for the full fiscal year 2022. Full-year total value of new contracts is expected to be between $900 million and $1 billion, up 23% to 36% year-over-year. Revenue is expected to be in the range of $625 million to $700 million, up 5% to 18% year-over-year. Reported Earnings • May 01
Third quarter 2022 earnings released: EPS: US$0.26 (vs US$0.26 in 3Q 2021) Third quarter 2022 results: EPS: US$0.26 (down from US$0.26 in 3Q 2021). Revenue: US$155.7m (up 42% from 3Q 2021). Net income: US$15.8m (flat on 3Q 2021). Profit margin: 10% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 9.2% compared to a 26% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 30% share price gain to €15.00, the stock trades at a trailing P/E ratio of 12.8x. Average forward P/E is 21x in the Electronic industry in Germany. Total loss to shareholders of 13% over the past three years. Buying Opportunity • Mar 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be US$14.54, 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 18% per annum over the last 3 years. Reported Earnings • Feb 19
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: US$1.48 (up from US$1.31 in FY 2020). Revenue: US$593.5m (up 18% from FY 2020). Net income: US$89.7m (up 13% from FY 2020). Profit margin: 15% (in line with FY 2020). Revenue missed analyst estimates by 6.4%. Over the next year, revenue is expected to shrink by 1.2% compared to a 23% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 18% per year whereas the company’s share price has fallen by 13% per year. Announcement • Jan 25
Recco Control Technology Pte. Ltd, Dazheng Group (Hong Kong) Investment Holdings Company Limited and others made a non-binding offer to acquire Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) for $1.5 billion. Recco Control Technology Pte. Ltd, Dazheng Group (Hong Kong) Investment Holdings Company Limited and others made a non-binding offer to acquire Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) for $1.5 billion on December 3, 2021. A consortium led by Recco Control Technology, Dazheng Group and include other members, including a Chinese state-owned strategic investor made an offer to acquire all of the outstanding ordinary shares of Hollysys Automation for $25 per share in cash. The transaction will be funded from the Industrial Bank of China. The transaction has been approved by each member of the consortium, led by Recco Control Technology Pte. Ltd and Dazheng Group (Hong Kong) Investment Holdings Company Limited and include other members, including a Chinese state-owned strategic investor. The proposal is subject to execution of the definitive agreements, and the proposed per-share price and other terms and conditions of this proposal are subject to satisfactory due diligence. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 17% share price gain to €14.43, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 23x in the Electronic industry in Germany. Total loss to shareholders of 8.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €22.52 per share. Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment deteriorated over the past week After last week's 20% share price decline to €10.53, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 24x in the Electronic industry in Germany. Total loss to shareholders of 28% over the past three years. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorated over the past week After last week's 30% share price decline to €11.76, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 23x in the Electronic industry in Germany. Total loss to shareholders of 28% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €19.04 per share. Announcement • Sep 25
HollySys Automation Technologies Ltd. Comments on BVI Court Decision Denying Claim of Mr. Baiqing Shao and Ace Lead Profits Limited HollySys Automation Technologies Ltd. ('HollySys' or the 'Company') provided an update on the litigation filed by Mr. Baiqing Shao and Ace Lead Profits Limited (Ace Lead) against the company in the Eastern Caribbean Supreme Court, Territory of the British Virgin Islands (the Court). As previously disclosed, on January 7, 2021, the company adopted amendments to the Amended and Restated Memorandum and Articles of Association of the Company (the "2021 M&AA"). Mr. Baiqing Shao and Ace Lead (the claimants) initiated proceedings against the Company in the Court on February 4, 2021 seeking to prevent the Company from enforcing the 2021 Amendments (the claim). On September 22, 2021, the Court handed down a judgment rejecting the Claim. The Court's decision means that the 2021 Amendments were validly adopted, the 2021 M&AA are currently effective, and the company can take steps in reliance on the 2021 M&AA. The Court ordered the Claimants to pay the company's costs of the litigation, which the Company will enforce, including by seeking satisfaction against the shares in the company held by Mr. Baiqing Shao. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 31% share price gain to US$16.53, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 24x in the Electronic industry in Germany. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €18.44 per share. Reported Earnings • May 18
Third quarter 2021 earnings released: EPS US$0.26 (vs US$0.23 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: US$109.9m (up 36% from 3Q 2020). Net income: US$15.9m (up 14% from 3Q 2020). Profit margin: 14% (down from 17% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 21% per year. Announcement • Mar 15
Shao Baiqing and Ace Lead Profits Limited Won Preliminary Victory against Hollysys Automation Technologies Ltd. in the BVI On March 8, 2021, Justice Gerhard Wallbank of the Commercial Division of the Eastern Caribbean Supreme Court, Territory of the British Virgin Islands (the “Court”) approved an order (the “Order”) recording a preliminary victory by Shao Baiqing (“Mr. Shao”) and Ace Lead Profits Limited (“Ace Lead”, together with Mr. Shao, the “Claimants”) in their lawsuit against Hollysys Automation Technologies Ltd., filed on February 1, 2021. In the lawsuit, the Claimants challenge the legality of recent wide-ranging amendments to the Company’s memorandum and articles, which were made without the knowledge or consent of the shareholders. The Claimants seek a final order prohibiting the company from relying on those amendments to restrict in any way the rights or powers of the shareholders to amend the memorandum and/or articles. Faced with the lawsuit, and the Claimants’ application for an urgent interim injunction restraining the company from relying on the unlawful amendments until trial, the Company was forced to concede that it should be restrained, and that the trial of the lawsuit should take place on an expedited basis in July 2021. As the Order records, the Company has undertaken, among other things, that until final disposition of the lawsuit, it will not take or fail to take any action pursuant to any of the amendments to the Company’s memorandum and articles challenged by the Claimants. As a result, the Company is prohibited for the time being from relying on the unlawful amendments to its articles of association for the improper purpose of disenfranchising shareholders, entrenching the board of directors of the company (the “Board”), and preventing the shareholders from considering the recent acquisition proposal by the buyer consortium consisting of Mr. Shao, Ace Lead, and CPE Funds Management Limited (the “Consortium”). The Order represents a major step towards final vindication for the Claimants and all other shareholders of the Company. Reported Earnings • Mar 05
Second quarter 2021 earnings released: EPS US$0.52 (vs US$0.56 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: US$195.3m (up 15% from 2Q 2020). Net income: US$31.4m (down 7.9% from 2Q 2020). Profit margin: 16% (down from 20% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 15% per year. Announcement • Feb 10
Hollysys Automation Technologies Ltd. to Report Q2, 2021 Results on Mar 04, 2021 Hollysys Automation Technologies Ltd. announced that they will report Q2, 2021 results on Mar 04, 2021 Is New 90 Day High Low • Feb 06
New 90-day high: €12.60 The company is up 31% from its price of €9.65 on 06 November 2020. The German market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 25% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €16.53 per share. Announcement • Jan 09
A consortium of Baiqing Shao and Ace Lead Profits Limited cancelled the acquisition of remaining 92.8% stake Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI). A Consortium of Baiqing Shao and Ace Lead Profits Limited submitted a preliminary non-binding proposal to acquire remaining 92.8% stake Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) for approximately $870 million on December 7, 2020. Under the terms of agreement, the shares will be acquired for for $15.47 per share in cash. The Consortium intends to finance the Transaction with a combination of debt and equity capital and welcomes additional financing sources to join the Consortium in carrying out the proposed Transaction. Upon closing of the acquisition, the Consortium will hold 100% of the Hollysys Automation Technologies. The Transaction is subject to execution of definitive agreements in connection with the Transaction. As of December 10, 2020, Board of Directors of Hollysys Automation said that shareholders are strongly advised to take no action in relation to the proposal. Fang Xue of Gibson, Dunn & Crutcher LLP acted as legal advisor to CPE Funds Management Limited in the transaction.
A onsortium of Baiqing Shao and Ace Lead Profits Limited cancelled the acquisition of remaining 92.8% stake Hollysys Automation Technologies Ltd. (NasdaqGS:HOLI) on January 8, 2021. The board of directors of Hollysys Automation rejected the offer, as per board the bid was undervalued. Is New 90 Day High Low • Jan 05
New 90-day high: €12.10 The company is up 26% from its price of €9.60 on 07 October 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €16.37 per share. Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improved over the past week After last week's 16% share price gain to US$11.50, the stock is trading at a trailing P/E ratio of 12.4x, up from the previous P/E ratio of 10.7x. This compares to an average P/E of 29x in the Electronic industry in Germany. Total return to shareholders over the past three years is a loss of 37%. Valuation Update With 7 Day Price Move • Dec 09
Market bids up stock over the past week After last week's 17% share price gain to US$12.00, the stock is trading at a trailing P/E ratio of 12.3x, up from the previous P/E ratio of 10.6x. This compares to an average P/E of 30x in the Electronic industry in Germany. Total return to shareholders over the past three years is a loss of 36%. Is New 90 Day High Low • Nov 24
New 90-day high: €10.70 The company is up 14% from its price of €9.40 on 26 August 2020. The German market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €15.12 per share. Announcement • Nov 19
Hollysys Automation Technologies Ltd. Appoints Yi MA as Chief Strategy Officer Hollysys Automation Technologies Ltd. reported that effective as of November 16, 2020, pursuant to the resolutions of the Board of Directors of the Company Yi MA was appointed as Chief Strategy Officer of the Company. Yi MA, is the current Chairman and Vice General Manager of Hollysys Group, a subsidiary of the Company. From 2010 to 2019, he was the General Manager of Chengdu Beyond Capital Management Co. Ltd. From 2007 to 2010, he was the General Manager of Sichuan Lomon Land Investment Company. From 1997 to 2007, Ma worked in Sichuan Province Economic and Trade Commission, the predecessor of Sichuan Province Economic and Information Department as Deputy Director and Director subsequently. From 1983 to 1997, he worked in China Aerodynamic Research and Development Center as an engineer and subsequently as Deputy Director of research department. Analyst Estimate Surprise Post Earnings • Nov 14
Revenue misses expectations Revenue missed analyst estimates by 6.3%. Over the next year, revenue is forecast to grow 9.8%, compared to a 25% growth forecast for the Electronic industry in Germany. Reported Earnings • Nov 14
First quarter 2021 earnings released: EPS US$0.34 The company reported a soft first quarter result with weaker earnings and profit margins, although revenues were improved. First quarter 2021 results: Revenue: US$129.5m (up 5.1% from 1Q 2020). Net income: US$20.5m (down 31% from 1Q 2020). Profit margin: 16% (down from 24% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Announcement • Oct 28
Hollysys Automation Technologies Ltd. to Report Q1, 2021 Results on Nov 12, 2020 Hollysys Automation Technologies Ltd. announced that they will report Q1, 2021 results on Nov 12, 2020 Upcoming Dividend • Oct 16
Upcoming Dividend of US$0.20 Per Share Will be paid on the 20th of November to those who are registered shareholders by the 21st of October. The trailing yield of 1.6% is below the top quartile of German dividend payers (3.7%), but it is higher than industry peers (0.7%). Reported Earnings • Sep 29
Full year earnings released - EPS €1.31 Over the last 12 months the company has reported total profits of US$79.3m, down 37% from the prior year. Total revenue was US$503.3m over the last 12 months, down 12% from the prior year. Profit margins were 16%, which is lower than the 22% margin from last year. The decrease in margin was driven by lower revenue. Announcement • Jul 08
Hollysys Automation Technologies Ltd. Announces Management Changes Effective as of July 7, 2020, pursuant to the resolutions of the Board of Directors of the Hollysys Automation Technologies Ltd., Mr. Baiqing Shao was removed from his positions as the Chief Executive Officer of the company. Mr. Chit Nim (Colin) Sung, current director and Chair of the Audit Committee Board, was elected as the Chief Executive Officer of the Company. In connection with his appointment as the Company’s Chief Executive Officer, Mr. Chit Nim (Colin) Sung resigned from his positions as a member and chair of the Audit Committee and a member of each of the Compensation Committee and the Nominating Committee. 
