Financials GEM Co., Ltd.

Equities

002340

CNE100000KT4

Environmental Services & Equipment

End-of-day quote Shenzhen S.E. Other stock markets 06:00:00 2024-04-28 pm EDT			5-day change	1st Jan Change
6.85 ^CNY	+9.95%		+13.22%	+25.46%

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	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	20,209	33,437	49,509	38,157	28,040	35,047	-	-
Enterprise Value (EV) ¹	26,845	38,655	56,648	47,945	42,287	50,126	52,166	51,800
P/E ratio	27.1 x	77.7 x	54.5 x	28.6 x	30.3 x	31.9 x	17.5 x	16.5 x
Yield	0.62%	0.21%	0.28%	0.67%	1.47%	0.82%	1.03%	0.88%
Capitalization / Revenue	1.41 x	2.68 x	2.57 x	1.3 x	0.92 x	1.04 x	0.88 x	0.72 x
EV / Revenue	1.87 x	3.1 x	2.93 x	1.63 x	1.39 x	1.49 x	1.31 x	1.07 x
EV / EBITDA	17.4 x	28.5 x	27.3 x	18.1 x	15.2 x	14.9 x	11 x	9.17 x
EV / FCF	-43.6 x	-67.7 x	-23.3 x	-11.6 x	-13.2 x	-22.7 x	68.1 x	-
FCF Yield	-2.3%	-1.48%	-4.29%	-8.65%	-7.58%	-4.4%	1.47%	-
Price to Book	1.93 x	2.51 x	3.48 x	2.06 x	1.49 x	1.67 x	1.53 x	1.5 x
Nbr of stocks (in thousands)	4,149,634	4,783,522	4,783,522	5,135,587	5,135,587	5,116,367	-	-
Reference price ²	4.870	6.990	10.35	7.430	5.460	6.850	6.850	6.850
Announcement Date	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	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	14,354	12,466	19,301	29,392	30,529	33,578	39,751	48,413
EBITDA ¹	1,547	1,358	2,075	2,643	2,775	3,371	4,743	5,652
EBIT ¹	858.9	541.4	1,151	1,552	1,356	2,559	3,385	3,719
Operating Margin	5.98%	4.34%	5.96%	5.28%	4.44%	7.62%	8.52%	7.68%
Earnings before Tax (EBT) ¹	866.8	534.9	1,153	1,547	1,361	2,176	2,845	4,883
Net income ¹	735.3	412.5	923.3	1,296	934.5	1,105	1,928	2,150
Net margin	5.12%	3.31%	4.78%	4.41%	3.06%	3.29%	4.85%	4.44%
EPS ²	0.1800	0.0900	0.1900	0.2600	0.1800	0.2150	0.3905	0.4150
Free Cash Flow ¹	-616.3	-571.1	-2,428	-4,150	-3,206	-2,208	765.5	-
FCF margin	-4.29%	-4.58%	-12.58%	-14.12%	-10.5%	-6.58%	1.93%	-
FCF Conversion (EBITDA)	-	-	-	-	-	-	16.14%	-
FCF Conversion (Net income)	-	-	-	-	-	-	39.71%	-
Dividend per Share ²	0.0300	0.0150	0.0290	0.0500	0.0800	0.0560	0.0703	0.0600
Announcement Date	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 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	2025 S2
Net sales ¹	5,614	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	8,354	8,301	15,737	8,889	9,565	17,856	17,691	22,850
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT	-	-	472.6	-	-	872.3	-	-	679.3	-	-	643.3	-	-	712.2	-	-	1,036	-	-	985.5	974.8	1,112
Operating Margin	-	-	4.18%	-	-	6.26%	-	-	4.39%	-	-	4.97%	-	-	4.05%	-	-	6.58%	-	-	5.52%	5.51%	4.87%
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	0.0400	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	0.0900	-	0.1100	-	-	0.1100	0.1000	0.1200
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	8/26/20	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	4/26/24	-	-	-	-	-	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	6,636	5,218	7,139	9,788	14,247	15,079	17,119	16,753
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	4.291 x	3.842 x	3.44 x	3.703 x	5.134 x	4.473 x	3.609 x	2.964 x
Free Cash Flow ¹	-616	-571	-2,428	-4,150	-3,206	-2,208	766	-
ROE (net income / shareholders' equity)	7.26%	3.38%	6.72%	8.18%	4.93%	5.56%	10.4%	14.5%
ROA (Net income/ Total Assets)	2.84%	1.46%	2.88%	3.3%	-	3.32%	4.14%	-
Assets ¹	25,899	28,273	32,058	39,256	-	33,325	46,607	-
Book Value Per Share ²	2.530	2.780	2.970	3.600	3.650	4.110	4.480	4.560
Cash Flow per Share ²	0.1800	0.1800	0.1600	-0	0.4200	0.3400	0.6100	0.4900
Capex ¹	1,353	1,425	3,169	4,132	5,370	1,599	2,662	3,304
Capex / Sales	9.43%	11.43%	16.42%	14.06%	17.59%	4.76%	6.7%	6.82%
Announcement Date	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

6.85 CNY

Average target price

5.943 CNY

Spread / Average Target

-13.24%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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