Reported Earnings • Apr 19
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: US$0.086 (up from US$0.069 in FY 2023). Revenue: US$652.6m (up 12% from FY 2023). Net income: US$93.0m (up 20% from FY 2023). Profit margin: 14% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 7.4%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 24
Consensus revenue estimates decrease by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from US$753.6m to US$654.3m. EPS estimate unchanged from US$0.08 per share at last update. Consumer Durables industry in Hong Kong expected to see average net income growth of 4.4% next year. Consensus price target of HK$5.79 unchanged from last update. Share price rose 2.3% to HK$5.32 over the past week. New Risk • Mar 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.1% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 are forecast to decline by an average of 3.1% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 18
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: US$0.086 (up from US$0.069 in FY 2023). Revenue: US$652.6m (up 12% from FY 2023). Net income: US$93.0m (up 20% from FY 2023). Profit margin: 14% (up from 13% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 7.4%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 9.9% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Mar 05
Vesync Co., Ltd to Report Fiscal Year 2024 Results on Mar 17, 2025 Vesync Co., Ltd announced that they will report fiscal year 2024 results on Mar 17, 2025 Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to HK$5.29, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.15 per share. Board Change • Dec 30
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. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Felix Fong was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$4.05, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.08 per share. Buy Or Sell Opportunity • Nov 26
Now 26% overvalued Over the last 90 days, the stock has fallen 2.5% to HK$3.89. The fair value is estimated to be HK$3.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 19%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 6.6% per annum over the same time period. Reported Earnings • Sep 29
First half 2024 earnings released: EPS: US$0.041 (vs US$0.029 in 1H 2023) First half 2024 results: EPS: US$0.041 (up from US$0.029 in 1H 2023). Revenue: US$296.2m (up 7.0% from 1H 2023). Net income: US$44.9m (up 38% from 1H 2023). Profit margin: 15% (up from 12% in 1H 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 10% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 25
Upcoming dividend of HK$0.089 per share Eligible shareholders must have bought the stock before 02 October 2024. Payment date: 22 October 2024. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 5.8%. Lower than top quartile of Hong Kong dividend payers (8.4%). In line with average of industry peers (5.5%). Recent Insider Transactions • Aug 31
CFO, VP & Executive Director recently bought HK$829k worth of stock On the 29th of August, Zhaojun Chen bought around 200k shares on-market at roughly HK$4.14 per share. This transaction amounted to 5.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Zhaojun has been a buyer over the last 12 months, purchasing a net total of HK$2.0m worth in shares. Declared Dividend • Aug 29
First half dividend of HK$0.089 announced Shareholders will receive a dividend of HK$0.089. Ex-date: 2nd October 2024 Payment date: 22nd October 2024 Dividend yield will be 5.9%, which is higher than the industry average of 4.7%. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 12% per year over the past 3 years. However, payments have been volatile during that time. EPS is expected to grow by 17% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 28
First half 2024 earnings released: EPS: US$0.041 (vs US$0.029 in 1H 2023) First half 2024 results: EPS: US$0.041 (up from US$0.029 in 1H 2023). Revenue: US$296.2m (up 7.0% from 1H 2023). Net income: US$44.9m (up 38% from 1H 2023). Profit margin: 15% (up from 12% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Announcement • Aug 27
Vesync Co., Ltd Proposes Interim (Semi-Annual) Dividend for the Six Months Ended June 30, 2024, Payable on 22 October 2024 Vesync Co. Ltd. proposed interim (Semi-annual) dividend of HKD 0.0888 per share for the six months ended June 30, 2024, payable on 22 October 2024. Record date is 8 October 2024. Ex-dividend date is 2 October 2024. New Risk • Aug 08
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: HK$5.1m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (HK$5.1m sold). Announcement • Aug 05
Vesync Co., Ltd to Report First Half, 2024 Results on Aug 26, 2024 Vesync Co., Ltd announced that they will report first half, 2024 results on Aug 26, 2024 Upcoming Dividend • Jun 21
Upcoming dividend of HK$0.16 per share Eligible shareholders must have bought the stock before 28 June 2024. Payment date: 26 July 2024. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 4.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). In line with average of industry peers (4.2%). Announcement • May 30
Vesync Co., Ltd Approves Final Ordinary Dividend for the Year Ended December 31, 2023 Vesync Co. Ltd. announced that at the AGM held on May 30, 2024, approved final ordinary dividend of HK 15.69 cents per share of the Company for the year ended December 31, 2023. Recent Insider Transactions • May 11
CFO, VP & Executive Director recently bought HK$588k worth of stock On the 8th of May, Zhaojun Chen bought around 120k shares on-market at roughly HK$4.90 per share. This transaction amounted to 5.7% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth HK$624k. Zhaojun has been a buyer over the last 12 months, purchasing a net total of HK$1.2m worth in shares. Valuation Update With 7 Day Price Move • May 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$5.45, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 9x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.72 per share. Buy Or Sell Opportunity • Apr 30
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to HK$4.45. The fair value is estimated to be HK$3.70, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 11% per annum over the same time period. Reported Earnings • Apr 24
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: US$0.069 (up from US$0.014 loss in FY 2022). Revenue: US$585.5m (up 19% from FY 2022). Net income: US$77.5m (up US$93.8m from FY 2022). Profit margin: 13% (up from net loss in FY 2022). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 31% per year, which means it has not declined as severely as earnings. Announcement • Apr 23
Vesync Co., Ltd, Annual General Meeting, May 30, 2024 Vesync Co., Ltd, Annual General Meeting, May 30, 2024, at 10:00 China Standard Time. Location: 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East Wan Chai Hong Kong Agenda: To receive, consider and adopt the audited consolidated financial statements of the Company and its subsidiaries and the reports of the Directors of the Company and auditor of the Company for the year ended December 31, 2023; to re-elect directors and to authorize the board of Directors to fix the remuneration of Directors; to declare a final ordinary dividend of HK15.69 cents per share of the Company for the year ended December 31, 2023; to re-appoint Ernst & Young as auditor of the Company and to authorize the board of Directors to fix its remuneration; to grant a general mandate to the Directors to issue new shares; to grant a general mandate to the Directors to repurchase shares; to extend the general mandate to issue new shares by adding the number of shares repurchased; and to consider and approve the proposed amendments to the second amended and restated articles of association and to adopt the third amended and restated articles of association. Recent Insider Transactions • Mar 28
CFO, VP & Executive Director recently bought HK$624k worth of stock On the 26th of March, Zhaojun Chen bought around 120k shares on-market at roughly HK$5.20 per share. This transaction amounted to 6.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Zhaojun's only on-market trade for the last 12 months. New Risk • Mar 27
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 6.2% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 26
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: US$0.069 (up from US$0.014 loss in FY 2022). Revenue: US$585.5m (up 19% from FY 2022). Net income: US$77.5m (up US$93.8m from FY 2022). Profit margin: 13% (up from net loss in FY 2022). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 16%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Durables industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Announcement • Mar 14
Vesync Co., Ltd to Report Fiscal Year 2023 Results on Mar 25, 2024 Vesync Co., Ltd announced that they will report fiscal year 2023 results on Mar 25, 2024 Announcement • Jan 30
Vesync Co., Ltd Announces Earnings Guidance for the Year Ended December 31, 2023 Vesync Co. Ltd. announced earnings guidance for the year ended December 31, 2023. The company expects to record a profit attributable to owners of the parent of approximately $60 million to $85 million for the relevant period, and the loss attributable to owners of the parent forthe year of 2022 was approximately $16.3 million. The expected profit attributable to owners of the parent for the Relevant Period was mainly attributable to the (i) increase in sales of the Group in both Amazon and non-Amazon channels; (ii) reductions in cost of sales of the Group due to lower international freight rates as compared to that of the year of 2022 and other cost savings; and (iii) enhancement in operational efficiency of the Group. Buying Opportunity • Nov 02
Now 23% undervalued Over the last 90 days, the stock is up 37%. The fair value is estimated to be HK$5.80, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 68%. For the next 3 years, revenue is forecast to grow by 15% per annum. Earnings is also forecast to grow by 34% per annum over the same time period. New Risk • Oct 13
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 Hong Kong stocks, typically moving 9.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Upcoming Dividend • Sep 26
Upcoming dividend of HK$0.054 per share at 3.3% yield Eligible shareholders must have bought the stock before 03 October 2023. Payment date: 20 October 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.3%. Lower than top quartile of Hong Kong dividend payers (8.0%). Lower than average of industry peers (3.9%). Announcement • Aug 22
Vesync Co., Ltd Announces Interim Dividend for the Six Months Ended June 30, 2023, Payable on 20 October 2023 Vesync Co. Ltd. announced interim dividend of HKD 0.0539 per share for the six months ended June 30, 2023, payable on 20 October 2023. Record date is 06 October 2023. Ex-dividend date is 03 October 2023. Reported Earnings • Aug 22
First half 2023 earnings released: EPS: US$0.029 (vs US$0.014 in 1H 2022) First half 2023 results: EPS: US$0.029 (up from US$0.014 in 1H 2022). Revenue: US$276.9m (up 24% from 1H 2022). Net income: US$32.6m (up 111% from 1H 2022). Profit margin: 12% (up from 6.9% in 1H 2022). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Consumer Durables industry in Hong Kong. New Risk • Aug 22
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 209% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.2% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Announcement • Aug 10
Vesync Co., Ltd to Report First Half, 2023 Results on Aug 21, 2023 Vesync Co., Ltd announced that they will report first half, 2023 results on Aug 21, 2023 Announcement • Jul 29
Vesync Co., Ltd Provides Earnings Guidance for the Six Months Ended June 30, 2023 Vesync Co. Ltd. provided earnings guidance for the six months ended June 30, 2023. For the period, the company expects to record an increase of approximately 70% to 120% in the profit attributable to owners of the parent. The expected increase in profit attributable to owners of the parent Company for the Relevant Period was mainly attributable to the (i) increase in sales of the Group in both Amazon and non-Amazon channels; (ii) cost reductions of the Group resulting from lower international freight rates and other cost savings as compared to that of the first half of 2022; and (iii) enhancement in operational efficiency of the Group. Recent Insider Transactions • Jul 25
Executive Chairperson & CEO recently bought HK$7.5m worth of stock On the 18th of July, Lin Yang bought around 3m shares on-market at roughly HK$2.94 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Lin's only on-market trade for the last 12 months. New Risk • Jul 19
New major risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Significant insider selling over the past 3 months (HK$6.1m sold). Reported Earnings • Mar 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: US$0.014 loss per share (down from US$0.037 profit in FY 2021). Revenue: US$490.4m (up 8.0% from FY 2021). Net loss: US$16.3m (down 139% from profit in FY 2021). Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Durables industry in Hong Kong. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improved over the past week After last week's 19% share price gain to HK$4.60, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 9x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 58% over the past year. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive Chairperson & CEO Lin Yang is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Director Felix Fong was the last independent director to join the board, commencing their role in 2020. 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. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improved over the past week After last week's 16% share price gain to HK$2.42, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 76% over the past year. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$2.75, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 73% over the past year. Valuation Update With 7 Day Price Move • Sep 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to HK$3.86, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 8x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 65% over the past year. Major Estimate Revision • Sep 05
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$560.4m to US$545.5m. EPS estimate rose from US$0.03 to US$0.04. Net income forecast to grow 128% next year vs 23% growth forecast for Consumer Durables industry in Hong Kong. Consensus price target down from HK$6.44 to HK$6.19. Share price fell 7.3% to HK$4.67 over the past week. Reported Earnings • Aug 31
First half 2022 earnings released: EPS: US$0.014 (vs US$0.028 in 1H 2021) First half 2022 results: EPS: US$0.014 (down from US$0.028 in 1H 2021). Revenue: US$223.3m (up 12% from 1H 2021). Net income: US$15.5m (down 52% from 1H 2021). Profit margin: 6.9% (down from 16% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 29%, compared to a 11% growth forecast for the Consumer Durables industry in Hong Kong. Announcement • Aug 18
Vesync Co., Ltd to Report First Half, 2022 Results on Aug 29, 2022 Vesync Co., Ltd announced that they will report first half, 2022 results on Aug 29, 2022 Major Estimate Revision • Aug 18
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$0.05 to US$0.03 per share. Revenue forecast steady at US$560.4m. Net income forecast to shrink 5.8% next year vs 13% growth forecast for Consumer Durables industry in Hong Kong . Consensus price target broadly unchanged at HK$6.44. Share price fell 2.9% to HK$5.05 over the past week. Announcement • Aug 16
Vesync Co., Ltd Provides Earnings Guidance for the Six Months Ended June 30, 2022 Vesync Co. Ltd. provided earnings guidance for the six months ended June 30, 2022. For the period, the Group expects to record a decrease of approximately 40% to 60% in the profit attributable to owners of the parent for the Relevant Period as compared to that for the six months ended June 30, 2021. The expected decrease in profit attributable to owners of the parent company for the Relevant Period was mainly due to (i) the significant increase in cost of sales as compared to the corresponding period in 2021, primarily attributable to the rise in freight costs of not less than approximately 70% as compared to the corresponding period in 2021, resulting in a drop in the overall gross profit margin; (ii) the increase in loss resulting from changes in foreign currency exchange rates arose from the depreciation of non-US dollars (such as Euro, British Pound and Japanese Yen, being the currencies of the countries (except the United States) to which the Group sold its products during the Relevant Period) against US dollar of not less than approximately USD 3,000,000, representing an increase of not less than approximately 320% as compared to the corresponding period in 2021; and (iii) the significant increase in staff costs of not less than approximately 70% as compared to the corresponding period in 2021 mainly due to the increase in number of employees of the Group as its business expands. The rise in international freight rate in 2021 had a significant impact on the Group's cost of sales during the second half of the 2021 and the Relevant Period, thereby reducing the Group's gross profit. The international freight rate has dropped in the Relevant Period in 2022, and it is expected that the impact on the Group's gross profit margin caused by the increase in freight rates in 2021 will be alleviated. The Group's gross profit margin rate for the Relevant Period in 2022 increased by approximately 4 to 6 percentage points as compared to the second half of 2021. Announcement • Jun 16
Vesync Co's Cosori Launches Their First-Ever Compact Smart Air Fryer, Cosori Lite Vesync Co's premier kitchen appliance company, COSORI is proud to announce the launch of its newest compact air fryer, the COSORI Lite 4.0-Quart Smart Air Fryer. In addition to COSORI's award-winning line of air fryers, this model is ideal for individuals or couples wanting to cook healthier and more nutritious meals in minutes. The COSORI Lite 4.0-Quart Smart Air Fryer features its trademarked CrispFit™ Technology that locks into place with a slitted vent design for even cooking and safe pouring. It has seven cooking functions with three customizable pre-sets, heats up to 450°F, and is dishwasher safe. The COSORI Lite air fryer also replaces the traditional "egg" shape and double basket design of most older generation air fryers to maximize capacity. It's space-saving size is ideal for small spaces while the 4.0-quart capacity can cook meals up to four people. Through its proprietary VeSync app, consumers are able to access over 150 original recipes, monitor meals, adjust temperature, customize settings, and more. The COSORI Lite is also compatible with Amazon Alexa and Google Assistant, providing additional convenience and accessibility. Combining smart controls with easy to access recipes, this new air fryer is the ideal kitchen assistant. The COSORI Lite is now available on COSORI.com for $99.99, and at Best Buy, Target, and Amazon in charcoal grey with two additional color ways launching in August. Upcoming Dividend • May 30
Upcoming dividend of HK$0.13 per share Eligible shareholders must have bought the stock before 06 June 2022. Payment date: 28 July 2022. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (4.1%). Reported Earnings • Apr 29
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: US$0.037 (down from US$0.068 in FY 2020). Revenue: US$454.3m (up 30% from FY 2020). Net income: US$41.6m (down 24% from FY 2020). Profit margin: 9.2% (down from 16% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 33%. Over the next year, revenue is forecast to grow 26%, compared to a 16% growth forecast for the industry in Hong Kong. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. 3 independent directors (4 non-independent directors). Executive Chairperson & CEO Lin Yang is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Director Felix Fong was the last independent director to join the board, commencing their role in 2020. 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. Recent Insider Transactions • Apr 12
Executive Chairperson & CEO recently bought HK$2.0m worth of stock On the 6th of April, Lin Yang bought around 410k shares on-market at roughly HK$4.93 per share. In the last 3 months, they made an even bigger purchase worth HK$21m. Lin has been a buyer over the last 12 months, purchasing a net total of HK$24m worth in shares. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 29% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from US$633.2m to US$570.2m. EPS estimate also fell from US$0.08 per share to US$0.05 per share. Net income forecast to grow 46% next year vs 15% growth forecast for Consumer Durables industry in Hong Kong. Consensus price target down from HK$13.17 to HK$7.53. Share price fell 9.0% to HK$4.88 over the past week. Announcement • Apr 01
Vesync Co., Ltd, Annual General Meeting, May 31, 2022 Vesync Co., Ltd, Annual General Meeting, May 31, 2022. Agenda: To recommend the final ordinary dividend. Reported Earnings • Apr 01
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: US$0.037 (down from US$0.068 in FY 2020). Revenue: US$454.3m (up 30% from FY 2020). Net income: US$41.6m (down 24% from FY 2020). Profit margin: 9.2% (down from 16% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) also missed analyst estimates by 33%. Over the next year, revenue is forecast to grow 39%, compared to a 18% growth forecast for the industry in Hong Kong. Announcement • Mar 23
Vesync Co., Ltd to Report Fiscal Year 2021 Results on Mar 31, 2022 Vesync Co., Ltd announced that they will report fiscal year 2021 results on Mar 31, 2022 Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 25% share price gain to HK$4.91, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 8x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 62% over the past year. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$4.61, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 7x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 64% over the past year. Buying Opportunity • Feb 15
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 48%. The fair value is estimated to be US$7.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 85% over the last year. Earnings per share has grown by 93% over the last year. Recent Insider Transactions • Feb 06
Executive Chairperson & CEO recently bought HK$21m worth of stock On the 28th of January, Lin Yang bought around 3m shares on-market at roughly HK$7.04 per share. This was the largest purchase by an insider in the last 3 months. This was Lin's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorated over the past week After last week's 20% share price decline to HK$6.75, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 8x in the Consumer Durables industry in Hong Kong. Total loss to shareholders of 49% over the past year. Simply Wall St's valuation model estimates the intrinsic value at HK$7.40 per share. Announcement • Dec 14
Vesync Will Showcase Their Smart Home Ecosystem At CES 2022 VeSync will be showcasing select products at the 2022 Consumer Electronics Show (CES), highlighting the brand's new focus of helping families across the globe build out their smart home ecosystems. All three VeSync brands - Levoit, the number one selling air purifier brand in the United States, Cosori, the number one selling air fryer brand and Etekcity, the number one smart fitness scale brand - are connected through the proprietary VeSync app, which unites its smart products across the brands to help users build more connected lifestyles. From January 5 through January 8, CES attendees can experience and learn more about VeSync's innovative products across all three brands. Located at Booth #52113, attendees will experience an interactive smart home setup where guests can test, connect and explore. At CES 2022, VeSync will launch and demo three new products, highlighting incorporation of smart home technologies across brands. The Cosori Dual Blaze Air Fryer, available for ($179.99) on Amazon, features 12 customizable functions in one air fryer. With the smart control technology, users are able to control the air fryer remotely, monitor cooking progress and activate voice control with Amazon through the VeSync app. The air fryer also has patented 360 ThermolQ Technology which allows the food to cook evenly without needing to shake or flip. The Levoit Core 600S Smart True HEPA Air Purifier, the newest model in the Core Series, will be available for ($299.99) at Levoit.com and Amazon. With a 3-stage filtration process, the purifier filters and traps 99.97% of airborne particles 0.3 microns in size, allowing it to purify up to 3,177 square feet in as little as one hour. The smart technology gives real-time air quality readings, allows users to control settings, create schedules, and access voice assistances such as Amazon Alexa to customize their indoor air quality. In auto mode, the purifier will utilize self-adjusting fans that adapt speeds according to the room's air quality. The Core 600S also features Eco Auto Mode which helps conserve energy, by turning off the purifier if the air quality levels are excellent. The mode also incorporates a new light sensor which automatically turns off the display when not in use. The Levoit EverestAir, is the newest air purifier by Levoit. Slated to launch in Spring of 2022, the Levoit Everest Air is not yet available to the public but will be exclusively demoed at CES 2022. The Everest Air will feature rotating vents that oscillate air flow, 3-stage filtration system with H13 true HEPA filter and HEPASmart™ Technology, and provide real-time AQI readings with AirSight Plus Technology. The CES demonstrations will allow guests the opportunity to test and learn about the Levoit Everest Air ahead of its official release. Reported Earnings • Sep 01
First half 2021 earnings released: EPS US$0.028 (vs US$0.027 in 1H 2020) The company reported a solid first half result with improved earnings and revenues, although profit margins were weaker. First half 2021 results: Revenue: US$199.3m (up 54% from 1H 2020). Net income: US$32.0m (up 42% from 1H 2020). Profit margin: 16% (down from 17% in 1H 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$11.38, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 11x in the Consumer Durables industry in Hong Kong. Simply Wall St's valuation model estimates the intrinsic value at HK$10.67 per share. Valuation Update With 7 Day Price Move • Jul 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$9.30, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 12x in the Consumer Durables industry in Hong Kong. Simply Wall St's valuation model estimates the intrinsic value at HK$10.46 per share. Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment improved over the past week After last week's 16% share price gain to US$11.00, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Consumer Durables industry in Hong Kong. Simply Wall St's valuation model estimates the intrinsic value at HK$10.20 per share. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment deteriorated over the past week After last week's 15% share price decline to US$10.08, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 16x in the Consumer Durables industry in Hong Kong. Simply Wall St's valuation model estimates the intrinsic value at HK$10.17 per share. Announcement • May 22
Vesync Co., Ltd Approves Final Dividend for the Year Ended 31 December 2020 Vesync Co. Ltd. approved final dividend of 12.74 Hong Kong cents per share for the year ended 31 December 2020. Valuation Update With 7 Day Price Move • May 10
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$10.22, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 17x in the Consumer Durables industry in Hong Kong. Simply Wall St's valuation model estimates the intrinsic value at HK$10.12 per share. Reported Earnings • Apr 24
Full year 2020 earnings released: EPS US$0.068 (vs US$0.008 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$348.9m (up 103% from FY 2019). Net income: US$54.7m (up US$48.4m from FY 2019). Profit margin: 16% (up from 3.7% in FY 2019). The increase in margin was driven by higher revenue. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS US$0.068 (vs US$0.008 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: US$348.9m (up 103% from FY 2019). Net income: US$54.7m (up US$48.4m from FY 2019). Profit margin: 16% (up from 3.7% in FY 2019). The increase in margin was driven by higher revenue. Announcement • Mar 18
Vesync Co., Ltd to Report Fiscal Year 2020 Results on Mar 29, 2021 Vesync Co., Ltd announced that they will report fiscal year 2020 results on Mar 29, 2021 Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 30% share price decline to US$14.00, the stock is trading at a trailing P/E ratio of 56.5x, down from the previous P/E ratio of 80.3x. This compares to an average P/E of 10x in the Consumer Durables industry in Hong Kong. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improved over the past week After last week's 21% share price gain to US$17.60, the stock is trading at a trailing P/E ratio of 71.1x, up from the previous P/E ratio of 58.9x. This compares to an average P/E of 10x in the Consumer Durables industry in Hong Kong.