New Risk • May 12
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 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Earnings have declined by 72% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (HK$117.0m market cap, or US$14.9m). New Risk • May 05
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 11% 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 Risks Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Earnings have declined by 72% per year over the past 5 years. Minor Risk Market cap is less than US$100m (HK$94.8m market cap, or US$12.1m). Reported Earnings • Apr 03
Full year 2025 earnings released: CN¥0.41 loss per share (vs CN¥0.35 loss in FY 2024) Full year 2025 results: CN¥0.41 loss per share (further deteriorated from CN¥0.35 loss in FY 2024). Revenue: CN¥7.35b (down 15% from FY 2024). Net loss: CN¥245.1m (loss widened 15% from FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Announcement • Apr 01
Sunfonda Group Holdings Limited, Annual General Meeting, Jun 09, 2026 Sunfonda Group Holdings Limited, Annual General Meeting, Jun 09, 2026. Announcement • Mar 19
Sunfonda Group Holdings Limited to Report Fiscal Year 2025 Results on Mar 31, 2026 Sunfonda Group Holdings Limited announced that they will report fiscal year 2025 results on Mar 31, 2026 Board Change • Mar 06
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. 4 non-independent directors. Independent Non-Executive Director Junfa Mou was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jan 02
Sunfonda Group Holdings Limited Announces Board and Board Committees Changes, Effective December 31, 2025 Sunfonda Group Holdings Limited announced that with effect from December 31, 2025, Dr. Liu Xiaofeng has resigned as an independent non-executive director of the Company, and a member of each of the audit committee, nomination committee and remuneration committee of the Company, as Dr. Liu would like to focus more on his other personal commitment. The Board further announced that Mr. Mou Junfa has been appointed as an independent non-executive director of the Company, and a member of each of the audit committee, nomination committee and remuneration committee of the Company, with effect from December 31, 2025. Mr. Mou Junfa, aged 60, is a senior expert in the fields of mining machinery and unmanned driving technology in China, with more than 40 years of experience and extensive professional knowledge. Mr. Mou served as a product design engineer and section head at the Research Institute of Shaanxi Heavy Duty Automobile Co. Ltd. from July 1987 to September 1996. Mr. Mou served as the director and chief engineer of Xi’an Sanming Auto Parts Co. Ltd. from October 1996 to September 2004. Mr. Mou is a co-founder of Shaanxi Tonly Heavy Industries Co. Ltd. and participated in the establishment of the company from February 2005 to May 2010, serving as a director and chief engineer. Subsequently, Mr. Mou held the following positions at Tonly Heavy Industries: from May 2010 to March 2015, served as a director and technology director; from March 2015 to May 2019, served as a non-staff representative supervisor; from May 2019 to May 2022, served as a director; and from May 2022 to December 2023, served as a non-staff representative supervisor. Mr. Mou has been serving as the executive director and general manager of Xi’an Main Function Intelligence Technology Co. Ltd. since its establishment in October 2018. Mr. Mou graduated from Wuhan University of Technology in June 1987, and obtained the title of senior engineer in November 2021. Board Change • Oct 20
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. 4 non-independent directors. Independent Non-Executive Director Qiming Liu was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Sep 30
First half 2025 earnings released: CN¥0.14 loss per share (vs CN¥0.16 loss in 1H 2024) First half 2025 results: CN¥0.14 loss per share (improved from CN¥0.16 loss in 1H 2024). Revenue: CN¥3.65b (down 19% from 1H 2024). Net loss: CN¥85.6m (loss narrowed 12% from 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. New Risk • Sep 24
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 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 61% per year over the past 5 years. Minor Risks High level of debt (56% net debt to equity). Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (HK$192.0m market cap, or US$24.7m). Reported Earnings • Sep 01
First half 2025 earnings released: CN¥0.14 loss per share (vs CN¥0.16 loss in 1H 2024) First half 2025 results: CN¥0.14 loss per share (improved from CN¥0.16 loss in 1H 2024). Revenue: CN¥3.65b (down 19% from 1H 2024). Net loss: CN¥85.6m (loss narrowed 12% from 1H 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 84 percentage points per year, which is a significant difference in performance. Announcement • Aug 19
Sunfonda Group Holdings Limited to Report First Half, 2025 Results on Aug 29, 2025 Sunfonda Group Holdings Limited announced that they will report first half, 2025 results on Aug 29, 2025 Board Change • Apr 24
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. 4 non-independent directors. Independent Non-Executive Director Qiming Liu was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Apr 09
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. 4 non-independent directors. Independent Non-Executive Director Qiming Liu was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 28
Full year 2024 earnings released: CN¥0.36 loss per share (vs CN¥0.02 profit in FY 2023) Full year 2024 results: CN¥0.36 loss per share (down from CN¥0.02 profit in FY 2023). Revenue: CN¥8.61b (down 22% from FY 2023). Net loss: CN¥213.0m (down CN¥224.9m from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Announcement • Mar 27
Sunfonda Group Holdings Limited, Annual General Meeting, May 28, 2025 Sunfonda Group Holdings Limited, Annual General Meeting, May 28, 2025. Announcement • Mar 14
Sunfonda Group Holdings Limited to Report Fiscal Year 2024 Results on Mar 26, 2025 Sunfonda Group Holdings Limited announced that they will report fiscal year 2024 results on Mar 26, 2025 Board Change • Jan 07
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. 4 non-independent directors. Independent Non-Executive Director Qiming Liu was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 22
Sunfonda Group Holdings Limited Announces Board Changes The board of directors of Sunfonda Group Holdings Limited announced that with effect from 22 November 2024, Mr. Song Tao resigned as an independent non-executive director of the Company, and the chairman of the remuneration committee, a member of each of the audit committee and nomination committee of the Company, as Mr. Song would like to focus more on his other personal commitment. The Board further announces that Mr. Liu Qiming has been appointed as an independent non-executive director of the Company, and the chairman of the remuneration committee, a member of each of the audit committee and nomination committee of the Company, with effect from 22 November 2024. Mr. Liu Qiming, aged 63, was appointed as an independent non-executive director of the Company on 22 November 2024. Mr. Liu graduated from Wuhan University of Technology in 1986 with a bachelor's degree in automobile engineering and is a professor-level senior engineer. From July 1986 to 1997, he served as a department head at Shanghai Automobile Technology Center. From 1997 to 2003, he worked at Shanghai General Motors Co. Ltd. currently known as SAIC GENERAL MOTORS Corp. Ltd. as the head of the product engineering department. Since 2003, he had worked in Pan Asia Technical Automotive Center Co. Ltd. and successively served as executive director of the project management department, deputy general manager, executive vice president and director of PATAC. He retired from PATAC in March 2021. From 2016 to 2021, he served as vice chairman of Shanghai Pudong New District Association for Science and Technology, vice president of Shanghai Society of Automotive Engineers, executive director of China Society of Automotive Engineers, director of the Council for China Automotive Industry Awards for Science and Technology, and other social positions. In 2007, he was awarded the title of "Winner of the 10th Shanghai Science and Technology Elite Nomination Award" by the Shanghai Association for Science and Technology. In 2011, the independent development project of Chevrolet's new Sail product he participated in and led won the first prize for scientific and technological progress in China's automobile industry. In 2014, he won the Special Contribution Award for Quality and Technology of China Association for Quality. In 2016, he was recognized as a manager trusted by Shanghai employees. In 2018, he was awarded the titles of "Outstanding Figure in China's Automobile Industry in the 40th Anniversary of Reform and Opening-up" and "Outstanding Scientific and Technological Talent in China's Automobile Industry". He has been an independent director of Shanghai Baolong Automotive Corporation since December 2022, an independent director of Shanghai Vico Precision Mold & Plastics Co. Ltd. since May 2021, an independent director of Shanghai Mobitech Technology Co. Ltd. since August 2021, and an independent director of Semiment Technology Co. Ltd. since December 2021. Reported Earnings • Oct 01
First half 2024 earnings released: CN¥0.16 loss per share (vs CN¥0.014 profit in 1H 2023) First half 2024 results: CN¥0.16 loss per share (down from CN¥0.014 profit in 1H 2023). Revenue: CN¥4.52b (down 14% from 1H 2023). Net loss: CN¥96.9m (down CN¥105.1m from profit in 1H 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. New Risk • Sep 05
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 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (16% operating cash flow to total debt). Earnings have declined by 27% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (HK$204.0m market cap, or US$26.2m). Announcement • Aug 20
Sunfonda Group Holdings Limited to Report First Half, 2024 Results on Aug 29, 2024 Sunfonda Group Holdings Limited announced that they will report first half, 2024 results on Aug 29, 2024 Reported Earnings • Apr 30
Full year 2023 earnings released: EPS: CN¥0.02 (vs CN¥0.14 in FY 2022) Full year 2023 results: EPS: CN¥0.02 (down from CN¥0.14 in FY 2022). Revenue: CN¥11.0b (flat on FY 2022). Net income: CN¥11.9m (down 85% from FY 2022). Profit margin: 0.1% (down from 0.7% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 34% per year, which means it has not declined as severely as earnings. Announcement • Mar 29
Sunfonda Group Holdings Limited, Annual General Meeting, May 30, 2024 Sunfonda Group Holdings Limited, Annual General Meeting, May 30, 2024. Reported Earnings • Mar 29
Full year 2023 earnings released: EPS: CN¥0.02 (vs CN¥0.14 in FY 2022) Full year 2023 results: EPS: CN¥0.02 (down from CN¥0.14 in FY 2022). Revenue: CN¥11.0b (flat on FY 2022). Net income: CN¥11.9m (down 85% from FY 2022). Profit margin: 0.1% (down from 0.7% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 62% 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 • Mar 19
Sunfonda Group Holdings Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 Sunfonda Group Holdings Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 New Risk • Feb 16
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 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.0x net interest cover). Earnings have declined by 4.8% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (HK$408.0m market cap, or US$52.2m). Reported Earnings • Aug 25
First half 2023 earnings released: EPS: CN¥0.014 (vs CN¥0.13 in 1H 2022) First half 2023 results: EPS: CN¥0.014 (down from CN¥0.13 in 1H 2022). Revenue: CN¥5.27b (up 2.2% from 1H 2022). Net income: CN¥8.21m (down 90% from 1H 2022). Profit margin: 0.2% (down from 1.5% in 1H 2022). Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. New Risk • Aug 24
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 122% The company is paying a dividend despite having no free cash flows. Dividend yield: 7.5% 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 122% Paying a dividend despite having no free cash flows. Earnings have declined by 4.8% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (HK$456.0m market cap, or US$58.2m). Announcement • Aug 12
Sunfonda Group Holdings Limited to Report First Half, 2023 Results on Aug 23, 2023 Sunfonda Group Holdings Limited announced that they will report first half, 2023 results on Aug 23, 2023 Board Change • Jun 20
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. 4 non-independent directors. Independent Non-Executive Director Qinchun Han was the last independent director to join the board, commencing their role in 2023. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jun 13
Sunfonda Group Holdings Limited Announces Resignation of Liu Jie as Independent Non-Executive Director, and Member of Each of the Audit Committee, Nomination Committee, Remuneration Committee and Finance and Investment Committee The board of directors (the "Board") of Sunfonda Group Holdings Limited announces that with effect from 12 June 2023, Mr. Liu Jie ("Mr. Liu") has resigned as an independent non-executive director of the Company, and a member of each of the audit committee, nomination committee, remuneration committee and finance and investment committee of the Company, as Mr. Liu would like to focus more time on his other personal commitment. Mr. Liu has expressed his sincere gratitude to the support of the directors, senior management and staff of the Group during his term of office with the Group. Mr. Liu confirmed that he has no disagreement with the Board and there are no other matters relating to his resignation that need to be brought to the attention of the shareholders and creditors of the Company or The Stock Exchange of Hong Kong Limited. Upcoming Dividend • May 16
Upcoming dividend of HK$0.02 per share at 5.6% yield Eligible shareholders must have bought the stock before 23 May 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 5.6%. Lower than top quartile of Hong Kong dividend payers (7.5%). Higher than average of industry peers (3.6%). Reported Earnings • Mar 27
Full year 2022 earnings released: EPS: CN¥0.14 (vs CN¥0.58 in FY 2021) Full year 2022 results: EPS: CN¥0.14 (down from CN¥0.58 in FY 2021). Revenue: CN¥10.9b (down 6.1% from FY 2021). Net income: CN¥81.3m (down 77% from FY 2021). Profit margin: 0.7% (down from 3.0% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$1.19, the stock trades at a trailing P/E ratio of 3.1x. Average trailing P/E is 10x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 41% over the past three years. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 3 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Xiaofeng Liu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 10
Sunfonda Group Holdings Limited Announces Change of Executive Director Sunfonda Group Holdings Limited announced that with effect from 9 November 2022 Mr. Deng Ning ("Mr. Deng") has been appointed as an executive director of the Company and Mr. Gou Xinfeng has resigned as an executive director of the Company as he wishes to put more focus on in-store operation management. Mr. Deng Ning, aged 44, has over 21 years of experience in automobile brand operation and management and extensive expertise and knowledge. Mr. Deng joined the Group in November 2011 and successively held the following management positions in the subsidiaries of the Company: sales manager of Shaanxi Sunfonda Automobile Co. Ltd. from November 2011 to June 2012; assistant to the general manager of Shaanxi Sunfonda Automobile Co. Ltd. from July 2012 to March 2015; general manager of Weinan Sunfonda Boao Automobile Sales Service Co. Ltd. from April 2015 to October 2017; and general manager of Weinan Zongshen Baotai Automobile Sales Service Co. Ltd. from November 2017 to September 2019. Since October 2019, he has been the general manager of Xi'an Sunfonda Haibao Automobile Sales and Service Co. Ltd. Mr. Deng graduated from Xi'an Institute of Technology (now known as Xi'an Technological University) with a bachelor's degree in Trade and Economics in July 2000. Valuation Update With 7 Day Price Move • Oct 11
Investor sentiment deteriorated over the past week After last week's 15% share price decline to HK$1.12, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 8x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 33% over the past three years. Upcoming Dividend • Sep 07
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 26 September 2022. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 11%. Within top quartile of Hong Kong dividend payers (8.2%). Higher than average of industry peers (4.1%). Reported Earnings • Sep 01
First half 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.37 in 1H 2021) First half 2022 results: EPS: CN¥0.13 (down from CN¥0.37 in 1H 2021). Revenue: CN¥5.16b (down 16% from 1H 2021). Net income: CN¥77.8m (down 65% from 1H 2021). Profit margin: 1.5% (down from 3.6% in 1H 2021). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Announcement • Aug 31
Sunfonda Group Holdings Limited Announces Interim Dividend for the Six Months Ended 30 June 2022, Payable on 26 September 2022 Sunfonda Group Holdings Limited announced Interim dividend of HKD 0.04 per share for the six months ended 30 June 2022. Ex-dividend date is 07 September 2022. Record date is 14 September 2022. Payment date is 26 September 2022. Announcement • Aug 19
Sunfonda Group Holdings Limited to Report First Half, 2022 Results on Aug 30, 2022 Sunfonda Group Holdings Limited announced that they will report first half, 2022 results on Aug 30, 2022 Announcement • Jun 22
Sunfonda Group Holdings Limited Approves Final Dividend for the Year Ended 31 December 2021 Sunfonda Group Holdings Limited at it annual General Meeting held on 21 June 2022 approved final dividend of HKD 0.08 per share for the year ended 31 December 2021. Upcoming Dividend • Jun 17
Upcoming dividend of HK$0.08 per share Eligible shareholders must have bought the stock before 24 June 2022. Payment date: 20 July 2022. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 8.5%. Within top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (3.4%). Buying Opportunity • May 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.5%. The fair value is estimated to be HK$2.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 26%. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 3 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Xiaofeng Liu was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Feb 24
Sunfonda Group Holdings Limited Provides Group Earnings Guidance for the Year Ended December 31, 2021 Sunfonda Group Holdings Limited provided group earnings guidance for the year ended December 31, 2021. The board of directors of the company hereby informs the shareholders of the company and potential investors that, based on a preliminary assessment of the consolidated management accounts of the Group and other information currently available to the Board, the Group is expected to record a profit attributable to owners of the parent of not less than RMB 341 million for the year ended 31 December 2021, representing an increase of not less than 135% as compared to the profit attributable to owners of the parent (being RMB 145.2 million) for the year ended 31 December 2020. The expected increase in the profit attributable to owners of the parent for the year ended 31 December 2021 was mainly due to the strong demand for luxury automobile brands. The Group utilized its regional and structural edges of automobile brands to seize market development opportunities, resulting in continuous enhancement of operational quality and efficiency; and the Group optimized its resources and recorded a one-off proceeds from the disposal of the minority interests in a company which was not engaged in main business. Valuation Update With 7 Day Price Move • Nov 24
Investor sentiment improved over the past week After last week's 16% share price gain to HK$2.43, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 10x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 187% over the past three years. Upcoming Dividend • Aug 26
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 02 September 2021. Payment date: 20 September 2021. Trailing yield: 3.6%. Lower than top quartile of Hong Kong dividend payers (6.6%). Higher than average of industry peers (2.0%). Reported Earnings • Aug 23
First half 2021 earnings released: EPS CN¥0.37 (vs CN¥0.077 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥6.12b (up 38% from 1H 2020). Net income: CN¥220.6m (up 375% from 1H 2020). Profit margin: 3.6% (up from 1.0% in 1H 2020). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 38% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 14
Sunfonda Group Holdings Limited Provides Consolidated Earnings Guidance for the Six Months Ended June 30, 2021 Sunfonda Group Holdings Limited provided consolidated earnings guidance for the six months ended June 30, 2021. For the six months, the Group is expected to record a profit attributable to owners of the parent of not less than RMB 218.6 million for the six months ended 30 June 2021, representing an increase of not less than 370% as compared to the profit attributable to owners of the parent for the six months ended 30 June 2020. The expected increase in the profit attributable to owners of the parent for the six months ended 30 June 2021 was mainly due to the facts that (i) in the first half of 2021, China's automobile consumption market remained active, especially the luxury car market demonstrated strong growth momentum; (ii) the Group's operational quality and efficiency was continuously enhanced, and the sales volume and sales revenue of new automobiles, gross profit margin and other indicators maintained good growth momentum; (iii) the Group continued to carry out its strategic arrangement, continuously broadened its business map across the country, strengthened regional advantages and optimized the structure of automobile brands, and further expanded its business scale; and (iv) the Group's resources were optimized and the proceeds from the disposal of the minority interests in a company which was not engaged in main business (please refer to the announcement dated 17 May 2021 of the Company for details) were used to facilitate the development of its main business, thus consolidating its core competitiveness. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥2.49, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 15x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 183% over the past three years. Announcement • May 26
Sunfonda Group Holdings Limited Declares Final Dividend for the Year Ended 31 December 2020 Sunfonda Group Holdings Limited approved to declare a final dividend of HKD 0.08 per share for the year ended 31 December 2020, at the AGM held on May 25, 2021. Upcoming Dividend • May 22
Upcoming dividend of HK$0.08 per share Eligible shareholders must have bought the stock before 28 May 2021. Payment date: 02 July 2021. Trailing yield: 3.5%. Lower than top quartile of Hong Kong dividend payers (6.0%). Higher than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥2.26, the stock trades at a trailing P/E ratio of 7.7x. Average trailing P/E is 16x in the Specialty Retail industry in Hong Kong. Total returns to shareholders of 97% over the past three years. Reported Earnings • Mar 31
Full year 2020 earnings released: EPS CN¥0.24 (vs CN¥0.20 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥10.6b (up 14% from FY 2019). Net income: CN¥145.2m (up 21% from FY 2019). Profit margin: 1.4% (up from 1.3% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Announcement • Mar 19
Sunfonda Group Holdings Limited to Report Fiscal Year 2020 Results on Mar 30, 2021 Sunfonda Group Holdings Limited announced that they will report fiscal year 2020 results on Mar 30, 2021 Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥1.73, the stock is trading at a trailing P/E ratio of 9.4x, up from the previous P/E ratio of 7.9x. This compares to an average P/E of 15x in the Specialty Retail industry in Hong Kong. Total returns to shareholders over the past three years are 65%. Is New 90 Day High Low • Feb 20
New 90-day high: HK$1.73 The company is up 28% from its price of HK$1.35 on 20 November 2020. The Hong Kong market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 2.0% over the same period. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥1.55, the stock is trading at a trailing P/E ratio of 8.5x, up from the previous P/E ratio of 7.3x. This compares to an average P/E of 14x in the Specialty Retail industry in Hong Kong. Total returns to shareholders over the past three years are 54%. Announcement • Jan 21
Sunfonda Group Holdings Limited (SEHK:1771) agreed to acquire Weinan Haizhong Car Sales Services Co., Ltd. for RMB 24.70 million. Sunfonda Group Holdings Limited (SEHK:1771) entered into an equity acquisition agreement with Mr. YAN Yaping and Ms. HUI Juan to acquire Weinan Haizhong Car Sales Services Co., Ltd. on January 19, 2021. As of the date of this announcement, Mr. YAN and Ms. HUI hold 60% and 40% equity interests in Weinan Haizhong respectively. Pursuant to the Equity Acquisition Agreement, Shaanxi Sunfonda agreed to acquire and Mr. YAN and Ms. HUI agreed to dispose of 100% equity interests in Weinan Haizhong, with the aggregate consideration of RMB 24.70 million. The consideration for the Acquisition was determined upon arm’s length negotiations between parties with reference to, among other things, (i) the net carrying amount of the assets of Weinan Haizhong as at the end of December 2020, and (ii) the geographical advantage of Weinan Haizhong. Completion of the Acquisition will take place on the date on which the transfer of 100% equity interest in Weinan Haizhong has been registered with the relevant administration for industry and commerce. Upon completion of the Acquisition, Weinan Haizhong will become an indirect wholly-owned subsidiary of the Company. As at the date of this announcement, the Board comprises four executive directors, namely, Mr. Wu Tak Lam, Ms. Chiu Man, Mr. Gou Xinfeng and Ms. Chen Wei; and three independent non-executive directors, namely, Mr. Liu Jie, Mr. Song Tao and Dr. Liu Xiaofeng. Is New 90 Day High Low • Dec 30
New 90-day high: HK$1.50 The company is up 55% from its price of HK$0.97 on 30 September 2020. The Hong Kong market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 2.0% over the same period. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥1.39, the stock is trading at a trailing P/E ratio of 7.7x, up from the previous P/E ratio of 6.6x. This compares to an average P/E of 15x in the Specialty Retail industry in Hong Kong. Total returns to shareholders over the past three years are 24%. Valuation Update With 7 Day Price Move • Nov 20
Market bids up stock over the past week After last week's 31% share price gain to CN¥1.35, the stock is trading at a trailing P/E ratio of 7.5x, up from the previous P/E ratio of 5.7x. This compares to an average P/E of 13x in the Specialty Retail industry in Hong Kong. Total returns to shareholders over the past three years are 5.9%. Is New 90 Day High Low • Nov 18
New 90-day high: HK$1.08 The company is up 17% from its price of HK$0.92 on 20 August 2020. The Hong Kong market is up 4.0% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Specialty Retail industry, which is also up 17% over the same period. Is New 90 Day High Low • Nov 02
New 90-day high: HK$1.03 The company is up 8.0% from its price of HK$0.95 on 04 August 2020. The Hong Kong market is down 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Specialty Retail industry, which is up 14% over the same period. Announcement • Aug 22
Sunfonda Group Holdings Limited to Report First Half, 2020 Results on Aug 28, 2020 Sunfonda Group Holdings Limited announced that they will report first half, 2020 results on Aug 28, 2020