Financials GEM Co., Ltd.

Equities

002340

CNE100000KT4

Environmental Services & Equipment

End-of-day quote Shenzhen S.E. Other stock markets 03:30:00 27/06/2024 am IST			5-day change	1st Jan Change
6.37 ^CNY	-2.90%		-2.30%	+16.67%

27/06	GEM Co., Ltd. Announces Final Cash Dividend (Tax Included) on A Shares for the Year 2023, Payable on July 4, 2024	CI
24/05	GEM Inks Cooperation Deal With Two Entities	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	20,209	33,437	49,509	38,157	28,040	32,564	-	-
Enterprise Value (EV) ¹	26,845	38,655	56,648	47,945	42,287	46,871	48,985	47,307
P/E ratio	27.1 x	77.7 x	54.5 x	28.6 x	30.3 x	23.1 x	17.9 x	13.2 x
Yield	0.62%	0.21%	0.28%	0.67%	1.47%	1.2%	1.41%	2.15%
Capitalization / Revenue	1.41 x	2.68 x	2.57 x	1.3 x	0.92 x	0.94 x	0.79 x	0.67 x
EV / Revenue	1.87 x	3.1 x	2.93 x	1.63 x	1.39 x	1.35 x	1.18 x	0.98 x
EV / EBITDA	17.4 x	28.5 x	27.3 x	18.1 x	15.2 x	13.3 x	11 x	7.68 x
EV / FCF	-43.6 x	-67.7 x	-23.3 x	-11.6 x	-13.2 x	6,249 x	-196 x	24.1 x
FCF Yield	-2.3%	-1.48%	-4.29%	-8.65%	-7.58%	0.02%	-0.51%	4.15%
Price to Book	1.93 x	2.51 x	3.48 x	2.06 x	1.49 x	1.59 x	1.43 x	1.34 x
Nbr of stocks (in thousands)	41,49,634	47,83,522	47,83,522	51,35,587	51,35,587	51,12,072	-	-
Reference price ²	4.870	6.990	10.35	7.430	5.460	6.370	6.370	6.370
Announcement Date	28/02/20	26/02/21	27/04/22	28/04/23	27/04/24	-	-	-

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	34,744	41,375	48,519
EBITDA ¹	1,547	1,358	2,075	2,643	2,775	3,519	4,448	6,158
EBIT ¹	858.9	541.4	1,151	1,552	1,356	2,266	3,071	4,063
Operating Margin	5.98%	4.34%	5.96%	5.28%	4.44%	6.52%	7.42%	8.37%
Earnings before Tax (EBT) ¹	866.8	534.9	1,153	1,547	1,361	1,885	2,654	3,747
Net income ¹	735.3	412.5	923.3	1,296	934.5	1,512	1,831	2,480
Net margin	5.12%	3.31%	4.78%	4.41%	3.06%	4.35%	4.43%	5.11%
EPS ²	0.1800	0.0900	0.1900	0.2600	0.1800	0.2752	0.3564	0.4832
Free Cash Flow ¹	-616.3	-571.1	-2,428	-4,150	-3,206	7.5	-250	1,962
FCF margin	-4.29%	-4.58%	-12.58%	-14.12%	-10.5%	0.02%	-0.6%	4.04%
FCF Conversion (EBITDA)	-	-	-	-	-	0.21%	-	31.86%
FCF Conversion (Net income)	-	-	-	-	-	0.5%	-	79.12%
Dividend per Share ²	0.0300	0.0150	0.0290	0.0500	0.0800	0.0766	0.0898	0.1368
Announcement Date	28/02/20	26/02/21	27/04/22	28/04/23	27/04/24	-	-	-

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	14,779	8,889	9,565	18,420	17,712	22,879
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT	-	-	472.6	-	-	872.3	-	-	679.3	-	-	643.3	-	-	712.2	-	-	954	-	-	1,007	950	1,088
Operating Margin	-	-	4.18%	-	-	6.26%	-	-	4.39%	-	-	4.97%	-	-	4.05%	-	-	6.45%	-	-	5.47%	5.36%	4.76%
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 ²	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	0.0500	0.1000	0.0400	0.0100	0.1100	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	26/08/20	27/04/22	27/04/22	27/04/22	24/08/22	24/08/22	21/10/22	28/04/23	28/04/23	28/04/23	29/08/23	29/08/23	27/10/23	27/04/24	27/04/24	26/04/24	-	-	-	-	-	-	-

¹CNY in Million²CNY

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	14,307	16,421	14,743
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	4.291 x	3.842 x	3.44 x	3.703 x	5.134 x	4.066 x	3.692 x	2.394 x
Free Cash Flow ¹	-616	-571	-2,428	-4,150	-3,206	7.5	-250	1,962
ROE (net income / shareholders' equity)	7.26%	3.38%	6.72%	8.18%	4.93%	7.67%	9.46%	12.3%
ROA (Net income/ Total Assets)	2.84%	1.46%	2.88%	3.3%	1.93%	3.37%	3.78%	4.25%
Assets ¹	25,899	28,273	32,058	39,256	48,381	44,923	48,476	58,347
Book Value Per Share ²	2.530	2.780	2.970	3.600	3.650	4.000	4.440	4.750
Cash Flow per Share ²	0.1800	0.1800	0.1600	-0	0.4200	0.8000	0.7700	0.4900
Capex ¹	1,353	1,425	3,169	4,132	5,370	2,550	2,917	2,463
Capex / Sales	9.43%	11.43%	16.42%	14.06%	17.59%	7.34%	7.05%	5.08%
Announcement Date	28/02/20	26/02/21	27/04/22	28/04/23	27/04/24	-	-	-

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

6.37 CNY

Average target price

6.545 CNY

Spread / Average Target

+2.75%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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