Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥11.64, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 19x in the Chemicals industry in China. Total loss to shareholders of 8.9% over the past three years. Tillkännagivande • Jun 30
Sobute New Materials Co., Ltd to Report First Half, 2026 Results on Aug 20, 2026 Sobute New Materials Co., Ltd announced that they will report first half, 2026 results on Aug 20, 2026 New Risk • Jun 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 Chinese stocks, typically moving 8.7% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.7% average weekly change). Declared Dividend • Jun 01
Dividend increased to CN¥0.12 Dividend of CN¥0.12 is 20% higher than last year. Ex-date: 3rd June 2026 Payment date: 3rd June 2026 Dividend yield will be 0.9%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 109% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥14.46, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 22x in the Chemicals industry in China. Total returns to shareholders of 4.5% over the past three years. Price Target Changed • Apr 18
Price target decreased by 12% to CN¥10.83 Down from CN¥12.31, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of CN¥10.61. Stock is up 47% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.29 last year. Reported Earnings • Apr 17
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.29 (up from CN¥0.23 in FY 2024). Revenue: CN¥3.56b (flat on FY 2024). Net income: CN¥121.0m (up 26% from FY 2024). Profit margin: 3.4% (up from 2.7% in FY 2024). Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Tillkännagivande • Apr 16
Sobute New Materials Co., Ltd, Annual General Meeting, May 12, 2026 Sobute New Materials Co., Ltd, Annual General Meeting, May 12, 2026, at 09:30 China Standard Time. Location: The Company's Meeting Room, Nanjing, Jiangsu China New Risk • Apr 16
New major risk - Revenue and earnings growth Earnings have declined by 38% 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 38% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.6% average weekly change). Tillkännagivande • Mar 30
Sobute New Materials Co., Ltd to Report Q1, 2026 Results on Apr 28, 2026 Sobute New Materials Co., Ltd announced that they will report Q1, 2026 results on Apr 28, 2026 New Risk • Feb 09
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 Chinese stocks, typically moving 7.6% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.6% average weekly change). Buy Or Sell Opportunity • Jan 30
Now 26% undervalued Over the last 90 days, the stock has risen 28% to CN¥13.20. The fair value is estimated to be CN¥17.75, 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 48%. Revenue is forecast to grow by 33% in 2 years. Earnings are forecast to grow by 130% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥12.48, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 28x in the Chemicals industry in China. Total loss to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.06 per share. Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥11.25, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 26x in the Chemicals industry in China. Total loss to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥16.84 per share. Tillkännagivande • Dec 26
Sobute New Materials Co., Ltd to Report Fiscal Year 2025 Results on Apr 16, 2026 Sobute New Materials Co., Ltd announced that they will report fiscal year 2025 results on Apr 16, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.07 (vs CN¥0.06 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.07 (up from CN¥0.06 in 3Q 2024). Revenue: CN¥904.0m (flat on 3Q 2024). Net income: CN¥30.9m (up 22% from 3Q 2024). Profit margin: 3.4% (up from 2.8% in 3Q 2024). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Board Change • Oct 11
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Qijun Yu was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Tillkännagivande • Sep 30
Sobute New Materials Co., Ltd to Report Q3, 2025 Results on Oct 29, 2025 Sobute New Materials Co., Ltd announced that they will report Q3, 2025 results on Oct 29, 2025 New Risk • Jul 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 Chinese stocks, typically moving 6.9% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (2.7% net profit margin). Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to CN¥11.56, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 23x in the Chemicals industry in China. Total loss to shareholders of 41% over the past three years. Tillkännagivande • Jun 30
Sobute New Materials Co., Ltd to Report First Half, 2025 Results on Aug 29, 2025 Sobute New Materials Co., Ltd announced that they will report first half, 2025 results on Aug 29, 2025 Declared Dividend • Jun 07
Dividend reduced to CN¥0.10 Dividend of CN¥0.10 is 33% lower than last year. Ex-date: 12th June 2025 Payment date: 12th June 2025 Dividend yield will be 1.1%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (42% earnings payout ratio) and cash flows (12% cash payout ratio). The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 146% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • May 05
Consensus EPS estimates fall by 15%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from CN¥3.63b to CN¥3.77b. EPS estimate fell from CN¥0.408 to CN¥0.347 per share. Net income forecast to grow 56% next year vs 42% growth forecast for Chemicals industry in China. Consensus price target of CN¥9.67 unchanged from last update. Share price rose 10.0% to CN¥8.16 over the past week. Reported Earnings • Apr 29
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥0.23 (down from CN¥0.38 in FY 2023). Revenue: CN¥3.56b (flat on FY 2023). Net income: CN¥95.9m (down 40% from FY 2023). Profit margin: 2.7% (down from 4.5% in FY 2023). Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to grow 7.2% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Tillkännagivande • Apr 29
Sobute New Materials Co., Ltd, Annual General Meeting, May 20, 2025 Sobute New Materials Co., Ltd, Annual General Meeting, May 20, 2025, at 09:30 China Standard Time. Tillkännagivande • Mar 28
Sobute New Materials Co., Ltd to Report Q1, 2025 Results on Apr 29, 2025 Sobute New Materials Co., Ltd announced that they will report Q1, 2025 results on Apr 29, 2025 Tillkännagivande • Dec 27
Sobute New Materials Co., Ltd to Report Fiscal Year 2024 Results on Apr 29, 2025 Sobute New Materials Co., Ltd announced that they will report fiscal year 2024 results on Apr 29, 2025 Reported Earnings • Oct 26
Third quarter 2024 earnings released: EPS: CN¥0.06 (vs CN¥0.11 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.06 (down from CN¥0.11 in 3Q 2023). Revenue: CN¥912.4m (flat on 3Q 2023). Net income: CN¥25.3m (down 43% from 3Q 2023). Profit margin: 2.8% (down from 4.9% in 3Q 2023). Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Tillkännagivande • Sep 30
Sobute New Materials Co., Ltd to Report Q3, 2024 Results on Oct 26, 2024 Sobute New Materials Co., Ltd announced that they will report Q3, 2024 results on Oct 26, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥7.57, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the Chemicals industry in China. Total loss to shareholders of 56% over the past three years. Price Target Changed • Sep 03
Price target decreased by 9.6% to CN¥8.91 Down from CN¥9.86, the current price target is an average from 4 analysts. New target price is 27% above last closing price of CN¥7.04. Stock is down 44% over the past year. The company is forecast to post earnings per share of CN¥0.36 for next year compared to CN¥0.38 last year. Major Estimate Revision • Sep 02
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥3.71b to CN¥3.54b. EPS estimate also fell from CN¥0.462 per share to CN¥0.392 per share. Net income forecast to grow 59% next year vs 48% growth forecast for Chemicals industry in China. Consensus price target down from CN¥9.86 to CN¥9.24. Share price rose 2.8% to CN¥7.36 over the past week. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.069 (vs CN¥0.13 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.069 (down from CN¥0.13 in 2Q 2023). Revenue: CN¥984.5m (down 1.0% from 2Q 2023). Net income: CN¥32.2m (down 43% from 2Q 2023). Profit margin: 3.3% (down from 5.7% in 2Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 30% per year, which means it has not declined as severely as earnings. Tillkännagivande • Jun 28
Sobute New Materials Co., Ltd to Report First Half, 2024 Results on Aug 27, 2024 Sobute New Materials Co., Ltd announced that they will report first half, 2024 results on Aug 27, 2024 Valuation Update With 7 Day Price Move • May 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥9.48, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 18x in the Chemicals industry in China. Total loss to shareholders of 56% over the past three years. Tillkännagivande • Apr 28
Sobute New Materials Co., Ltd, Annual General Meeting, May 28, 2024 Sobute New Materials Co., Ltd, Annual General Meeting, May 28, 2024, at 09:30 China Standard Time. Location: The Company's Meeting Room, Nanjing, Jiangsu China Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.05 (vs CN¥0.10 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.05 (down from CN¥0.10 in 1Q 2023). Revenue: CN¥578.6m (down 13% from 1Q 2023). Net income: CN¥21.1m (down 48% from 1Q 2023). Profit margin: 3.6% (down from 6.1% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 32% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥7.40, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 15x in the Chemicals industry in China. Total loss to shareholders of 68% over the past three years. Tillkännagivande • Mar 29
Sobute New Materials Co., Ltd to Report Q1, 2024 Results on Apr 26, 2024 Sobute New Materials Co., Ltd announced that they will report Q1, 2024 results on Apr 26, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥7.94, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 13x in the Chemicals industry in China. Total loss to shareholders of 62% over the past three years. New Risk • Jan 19
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (109% cash payout ratio). Profit margins are more than 30% lower than last year (5.4% net profit margin). Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Tillkännagivande • Dec 30
Sobute New Materials Co., Ltd to Report Fiscal Year 2023 Results on Apr 26, 2024 Sobute New Materials Co., Ltd announced that they will report fiscal year 2023 results on Apr 26, 2024 Major Estimate Revision • Nov 02
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥3.71b to CN¥3.58b. EPS estimate also fell from CN¥0.63 per share to CN¥0.562 per share. Net income forecast to grow 60% next year vs 66% growth forecast for Chemicals industry in China. Consensus price target down from CN¥16.58 to CN¥15.16. Share price rose 4.2% to CN¥11.75 over the past week. Price Target Changed • Oct 29
Price target decreased by 8.5% to CN¥15.16 Down from CN¥16.58, the current price target is an average from 5 analysts. New target price is 29% above last closing price of CN¥11.74. Stock is down 22% over the past year. The company is forecast to post earnings per share of CN¥0.56 for next year compared to CN¥0.69 last year. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.17 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.11 (down from CN¥0.17 in 3Q 2022). Revenue: CN¥915.6m (down 5.1% from 3Q 2022). Net income: CN¥44.5m (down 38% from 3Q 2022). Profit margin: 4.9% (down from 7.4% in 3Q 2022). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 26
Second quarter 2023 earnings released: EPS: CN¥0.13 (vs CN¥0.20 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.13 (down from CN¥0.20 in 2Q 2022). Revenue: CN¥994.9m (down 3.7% from 2Q 2022). Net income: CN¥56.6m (down 33% from 2Q 2022). Profit margin: 5.7% (down from 8.1% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 27
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.71b to CN¥4.23b. EPS estimate unchanged from CN¥1.14 per share at last update. Chemicals industry in China expected to see average net income growth of 43% next year. Consensus price target of CN¥20.10 unchanged from last update. Share price fell 6.0% to CN¥14.45 over the past week. Reported Earnings • Apr 23
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.69 (down from CN¥1.27 in FY 2021). Revenue: CN¥3.71b (down 18% from FY 2021). Net income: CN¥287.9m (down 46% from FY 2021). Profit margin: 7.8% (down from 12% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 9% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 21
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.71b to CN¥4.23b. EPS estimate unchanged from CN¥1.05 per share at last update. Chemicals industry in China expected to see average net income growth of 38% next year. Consensus price target of CN¥20.10 unchanged from last update. Share price fell 7.1% to CN¥15.02 over the past week. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥18.41, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Chemicals industry in China. Total returns to shareholders of 61% over the past three years. Board Change • Nov 16
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. 2 experienced directors. No highly experienced directors. 2 independent directors (3 non-independent directors). Employees Representative Member of the Supervisory Board Hua Li is the most experienced director on the board, commencing their role in 2021. Independent Director Lily Li was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Price Target Changed • Nov 05
Price target decreased to CN¥21.44 Down from CN¥24.74, the current price target is an average from 3 analysts. New target price is 36% above last closing price of CN¥15.78. Stock is down 7.6% over the past year. The company is forecast to post earnings per share of CN¥1.14 for next year compared to CN¥1.27 last year. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.17 (vs CN¥0.36 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.17 (down from CN¥0.36 in 3Q 2021). Revenue: CN¥965.3m (down 19% from 3Q 2021). Net income: CN¥71.4m (down 53% from 3Q 2021). Profit margin: 7.4% (down from 13% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Major Estimate Revision • Sep 02
Consensus revenue estimates fall by 10% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥5.28b to CN¥4.74b. EPS estimate fell from CN¥1.51 to CN¥1.36 per share. Net income forecast to grow 33% next year vs 39% growth forecast for Chemicals industry in China. Consensus price target down from CN¥28.95 to CN¥25.89. Share price fell 7.0% to CN¥18.57 over the past week. Price Target Changed • Aug 30
Price target decreased to CN¥25.89 Down from CN¥28.95, the current price target is an average from 5 analysts. New target price is 33% above last closing price of CN¥19.45. Stock is down 13% over the past year. The company is forecast to post earnings per share of CN¥1.41 for next year compared to CN¥1.27 last year. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.20 (vs CN¥0.33 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.20 (down from CN¥0.33 in 2Q 2021). Revenue: CN¥1.03b (down 19% from 2Q 2021). Net income: CN¥83.9m (down 39% from 2Q 2021). Profit margin: 8.1% (down from 11% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 38%, compared to a 40% growth forecast for the Chemicals industry in China. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • May 01
Price target decreased to CN¥28.95 Down from CN¥31.60, the current price target is an average from 6 analysts. New target price is 28% above last closing price of CN¥22.66. Stock is down 9.8% over the past year. The company is forecast to post earnings per share of CN¥1.53 for next year compared to CN¥1.27 last year. Reported Earnings • Apr 30
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: CN¥0.19 (up from CN¥0.18 in 1Q 2021). Revenue: CN¥716.2m (down 7.3% from 1Q 2021). Net income: CN¥80.2m (up 2.8% from 1Q 2021). Profit margin: 11% (up from 10% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.5%. Over the next year, revenue is forecast to grow 27%, compared to a 43% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • Apr 27
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥5.64b to CN¥5.37b. EPS estimate also fell from CN¥1.71 per share to CN¥1.53 per share. Net income forecast to grow 21% next year vs 41% growth forecast for Chemicals industry in China. Consensus price target down from CN¥31.60 to CN¥30.75. Share price fell 3.7% to CN¥21.26 over the past week. Reported Earnings • Apr 17
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: CN¥1.27 (up from CN¥1.16 in FY 2020). Revenue: CN¥4.52b (up 24% from FY 2020). Net income: CN¥532.8m (up 21% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.5%. Over the next year, revenue is forecast to grow 25%, compared to a 50% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 23% per year. Price Target Changed • Jan 06
Price target increased to CN¥31.60 Up from CN¥26.65, the current price target is an average from 5 analysts. New target price is 19% above last closing price of CN¥26.46. Stock is up 23% over the past year. The company is forecast to post earnings per share of CN¥1.32 for next year compared to CN¥1.16 last year. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥25.19, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 181% over the past three years. Price Target Changed • Dec 04
Price target decreased to CN¥24.31 Down from CN¥26.65, the current price target is an average from 5 analysts. New target price is 19% above last closing price of CN¥20.45. Stock is down 3.5% over the past year. The company is forecast to post earnings per share of CN¥1.32 for next year compared to CN¥1.16 last year. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment improved over the past week After last week's 26% share price gain to CN¥21.95, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 20x in the Chemicals industry in China. Total returns to shareholders of 136% over the past three years. Price Target Changed • Nov 01
Price target decreased to CN¥26.65 Down from CN¥29.61, the current price target is an average from 6 analysts. New target price is 54% above last closing price of CN¥17.32. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥1.35 for next year compared to CN¥1.16 last year. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.36 (vs CN¥0.36 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: CN¥1.19b (up 16% from 3Q 2020). Net income: CN¥151.0m (up 11% from 3Q 2020). Profit margin: 13% (in line with 3Q 2020). Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 20% per year. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS CN¥0.33 (vs CN¥0.32 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥1.27b (up 27% from 2Q 2020). Net income: CN¥137.8m (up 17% from 2Q 2020). Profit margin: 11% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 23% per year. Reported Earnings • Apr 26
First quarter 2021 earnings released: EPS CN¥0.22 (vs CN¥0.16 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: CN¥772.4m (up 82% from 1Q 2020). Net income: CN¥78.1m (up 58% from 1Q 2020). Profit margin: 10% (down from 12% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 28% per year. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS CN¥1.39 (vs CN¥1.14 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.65b (up 11% from FY 2019). Net income: CN¥440.8m (up 24% from FY 2019). Profit margin: 12% (up from 11% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 24% per year. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥30.84, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 23x in the Chemicals industry in China. Total returns to shareholders of 127% over the past three years. Tillkännagivande • Mar 04
Sobute New Materials Co., Ltd to Report Fiscal Year 2020 Results on Mar 26, 2021 Sobute New Materials Co., Ltd announced that they will report fiscal year 2020 results on Mar 26, 2021 Is New 90 Day High Low • Feb 10
New 90-day high: CN¥29.24 The company is up 4.0% from its price of CN¥28.25 on 12 November 2020. The Chinese market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥162 per share. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥27.30, the stock is trading at a trailing P/E ratio of 21x, up from the previous P/E ratio of 17.8x. This compares to an average P/E of 35x in the Chemicals industry in China. Total returns to shareholders over the past three years are 104%. Is New 90 Day High Low • Dec 17
New 90-day low: CN¥23.90 The company is down 26% from its price of CN¥32.12 on 18 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥161 per share. Reported Earnings • Oct 28
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥405.9m, up 37% from the prior year. Total revenue was CN¥3.46b over the last 12 months, up 14% from the prior year. Is New 90 Day High Low • Oct 24
New 90-day low: CN¥26.52 The company is down 3.0% from its price of CN¥27.45 on 24 July 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals 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 CN¥87.07 per share. Tillkännagivande • Jul 08
Sobute New Materials Co., Ltd to Report First Half, 2020 Results on Aug 18, 2020 Sobute New Materials Co., Ltd announced that they will report first half, 2020 results on Aug 18, 2020