The average target price of 300073.SZ is 44 and suggests 13% 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 50.0. This translates into 27% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 32.0. This is equivalent to 19% downside potential in the worst case. 

Beijing Easpring Material Technology CO.,LTD. engages in the production and sale of energy lithium battery in China. The company offers lithium battery cathode and lithium cobalt oxide materials, which are used in automotive, energy storage, and small lithium batteries; and die cutting equipment. The company was founded in 2001 and is headquartered in Beijing, China.

China

Beijing Easpring Material Technology CO.,LTD.

Industrials

The company pays dividends most of the time. It has paid dividends in almost every one of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been moderate and on par with its peers. On average, the company pays dividends annually. 

300073.SZ reported revenue of CNY 7 967mn in the last 12 months, up 5% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 0% from FY24 to CNY 0.94. Market expects EPS to reach CNY 1.15 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. When measured against its worldwide peers from the same industry (as shown above), the stock has been weaker, underperforming by 20ppts. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 8.0% in the last 12 months, a decline from 15.6% in FY23. 

Historically, 300073.SZ has reported good net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 5.9%, down from 12.7% in FY23. 

Beijing Easpring Material Technology CO.,LTD. reported a return on equity (RoE) of 3.6% in the last 12 months, down from 15.7% in FY23. The market consensus projects an RoE of 4.2% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 2.7% in the last 12 months, a decrease from 9.9% in FY23. The market analysts predict that RoA will be 3.1% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 3.3%, below the peers. The consensus estimate for FY24 for RoCE is 4.3%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.8 in the past several years. This ratio implies a good 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.

300073.SZ boasts high trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors and we point to weak positions in its industry, negligible return on capital.

In highly turbulent market conditions, 300073.SZ is not overly volatile. In other words, the stock will fall 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 low. 

In normal market circumstances, 300073.SZ is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to notable. We would also like to highlight the notable intraday volatility of the instrument. 

Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITDA, trading at neutral levels on P/FCF. 

Beijing Easpring Material Technology CO.,LTD.

CN¥ 42.31

4

Beijing Easpring Material Technology CO.,LTD.

CN¥ 42.31

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 42.31

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