The average target price of 002859.SZ is 20 and suggests 6% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 20.0. This translates into 6% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 20.0. This suggests 6% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Zhejiang Jiemei Electronic And Technology Co., Ltd. provides consumable materials of electronic components. Its principal products include un-punched paper tapes, pre-punched paper tapes, press pocket paper tapes, top and bottom tapes, embossed tapes and its covers, and release films. The company was founded in 2001 and is headquartered in Huzhou, China.

China

Zhejiang Jiemei Electronic And Technology Co., Ltd.

Basic Materials

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has been moderate and on par with its peers. On average, the company pays dividends annually. 

002859.SZ reported revenue of CNY 1 862mn in the last 12 months, up 3% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 9% from FY24 to CNY 0.43. Market expects EPS to reach CNY 0.55 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 9ppts and its growth decelerated by 0ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 14ppts and its growth decelerated by 1ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 18.0% in the last 12 months, a decline from 29.2% in FY23. 

Historically, 002859.SZ has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 9.8%, down from 16.4% in FY23. 

Zhejiang Jiemei Electronic And Technology Co., Ltd. reported a return on equity (RoE) of 6.1% in the last 12 months, down from 8.9% in FY23. The market consensus projects an RoE of 7.6% in FY24, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 3.9%, below the peers. The consensus estimate for FY24 for RoCE is 6.6%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to 3.2% in the last 12 months, a decrease from 5.1% in FY23. The market analysts predict that RoA will be 4.4% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.7 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

002859.SZ boasts high trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually very stable and remains extremely favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability and adequate interest coverage, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry.

In highly turbulent market conditions, 002859.SZ is not volatile. In other words, the stock will fall far less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be very low. 

In normal market circumstances, 002859.SZ is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to minimal. We would also like to highlight the minimal intraday volatility of the instrument. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBITD. 

Zhejiang Jiemei Electronic And Technology Co., Ltd.

CN¥ 18.22

4

Zhejiang Jiemei Electronic And Technology Co., Ltd.

CN¥ 18.22

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 18.22

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