Financials GEM Co., Ltd.

Equities

002340

CNE100000KT4

Environmental Services & Equipment

End-of-day quote Shenzhen S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
6.23 ^CNY	+4.53%		+0.48%	+14.10%

Apr. 26	GEM Co., Ltd. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI
Apr. 26	GEM Co., Ltd. Reports Earnings Results for the Full Year Ended December 31, 2023	CI

Valuation

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Capitalization ¹	15,944	20,209	33,437	49,509	38,157	31,995	31,995	-
Enterprise Value (EV) ¹	23,654	26,845	38,655	56,648	47,945	42,287	48,795	50,429
P/E ratio	20.2 x	27.1 x	77.7 x	54.5 x	28.6 x	30.3 x	20.3 x	15.7 x
Yield	0.78%	0.62%	0.21%	0.28%	0.67%	1.47%	0.88%	1.13%
Capitalization / Revenue	1.15 x	1.41 x	2.68 x	2.57 x	1.3 x	0.92 x	0.96 x	0.8 x
EV / Revenue	1.7 x	1.87 x	3.1 x	2.93 x	1.63 x	1.39 x	1.46 x	1.26 x
EV / EBITDA	15 x	17.4 x	28.5 x	27.3 x	18.1 x	15.2 x	13.1 x	10 x
EV / FCF	-34.9 x	-43.6 x	-67.7 x	-23.3 x	-11.6 x	-13.2 x	-22.1 x	65.9 x
FCF Yield	-2.86%	-2.3%	-1.48%	-4.29%	-8.65%	-7.58%	-4.53%	1.52%
Price to Book	1.61 x	1.93 x	2.51 x	3.48 x	2.06 x	1.49 x	1.5 x	1.37 x
Nbr of stocks (in thousands)	4,152,174	4,149,634	4,783,522	4,783,522	5,135,587	5,135,587	5,135,587	-
Reference price ²	3.840	4.870	6.990	10.35	7.430	6.230	6.230	6.230
Announcement Date	2/21/19	2/28/20	2/26/21	4/27/22	4/28/23	4/27/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net sales ¹	13,878	14,354	12,466	19,301	29,392	30,529	33,437	40,006
EBITDA ¹	1,582	1,547	1,358	2,075	2,643	2,775	3,738	5,030
EBIT ¹	907.3	858.9	541.4	1,151	1,552	1,356	2,958	4,054
Operating Margin	6.54%	5.98%	4.34%	5.96%	5.28%	4.44%	8.85%	10.13%
Earnings before Tax (EBT) ¹	906.9	866.8	534.9	1,153	1,547	1,361	2,547	3,389
Net income ¹	730.3	735.3	412.5	923.3	1,296	934.5	1,423	1,929
Net margin	5.26%	5.12%	3.31%	4.78%	4.41%	3.06%	4.26%	4.82%
EPS ²	0.1900	0.1800	0.0900	0.1900	0.2600	0.1800	0.3073	0.3956
Free Cash Flow ¹	-677.4	-616.3	-571.1	-2,428	-4,150	-3,206	-2,208	765.5
FCF margin	-4.88%	-4.29%	-4.58%	-12.58%	-14.12%	-10.5%	-6.6%	1.91%
FCF Conversion (EBITDA)	-	-	-	-	-	-	-	15.22%
FCF Conversion (Net income)	-	-	-	-	-	-	-	39.68%
Dividend per Share ²	0.0300	0.0300	0.0150	0.0290	0.0500	0.0800	0.0546	0.0703
Announcement Date	2/21/19	2/28/20	2/26/21	4/27/22	4/28/23	4/27/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2020 S1	2021 Q2	2021 Q3	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2	2025 S1
Net sales ¹	5,614	4,270	4,892	6,409	11,301	6,967	-	13,924	7,450	8,017	15,468	6,129	6,811	12,940	7,289	10,300	17,589	8,312	8,301	13,806	8,889	9,565	16,453	19,524
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT	-	-	-	-	472.6	-	-	872.3	-	-	679.3	-	-	643.3	-	-	712.2	-	-	-	-	-	-	-
Operating Margin	-	-	-	-	4.18%	-	-	6.26%	-	-	4.39%	-	-	4.97%	-	-	4.05%	-	-	-	-	-	-	-
Earnings before Tax (EBT)	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Net income	214	-	-	-	-	-	349.5	681.2	-	-	614.7	-	-	-	134.3	-	-	-	-	-	-	-	-	-
Net margin	3.81%	-	-	-	-	-	-	4.89%	-	-	3.97%	-	-	-	1.84%	-	-	-	-	-	-	-	-	-
EPS	0.0500	0.0500	0.0400	0.0400	0.0800	0.0700	0.0700	0.1400	0.0600	0.0500	0.1200	0.0300	0.0500	0.0800	0.0300	0.0700	0.1000	-	-	0.0500	-	-	0.0900	0.0700
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	8/26/20	8/25/21	10/29/21	4/27/22	4/27/22	4/27/22	8/24/22	8/24/22	10/21/22	4/28/23	4/28/23	4/28/23	8/29/23	8/29/23	10/27/23	4/27/24	4/27/24	-	-	-	-	-	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net Debt ¹	7,709	6,636	5,218	7,139	9,788	14,247	16,801	18,435
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	4.873 x	4.291 x	3.842 x	3.44 x	3.703 x	5.134 x	4.495 x	3.665 x
Free Cash Flow ¹	-677	-616	-571	-2,428	-4,150	-3,206	-2,208	766
ROE (net income / shareholders' equity)	8.75%	7.26%	3.38%	6.72%	8.18%	4.93%	10.2%	10.8%
ROA (Net income/ Total Assets)	3.09%	2.84%	1.46%	2.88%	3.3%	1.73%	3.32%	4.14%
Assets ¹	23,604	25,899	28,273	32,058	39,256	56,301	42,903	46,642
Book Value Per Share ²	2.380	2.530	2.780	2.970	3.600	3.650	4.150	4.540
Cash Flow per Share ²	0.2400	0.1800	0.1800	0.1600	-0	0.4200	0.3400	0.4500
Capex ¹	1,661	1,353	1,425	3,169	4,132	5,370	3,481	2,500
Capex / Sales	11.97%	9.43%	11.43%	16.42%	14.06%	17.59%	10.41%	6.25%
Announcement Date	2/21/19	2/28/20	2/26/21	4/27/22	4/28/23	4/27/24	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for GEM Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

B+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

6.23 CNY

Average target price

5.66 CNY

Spread / Average Target

-9.15%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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