Time Publishing and Media Co., Ltd. publishes various books and periodicals in China. It is also involved in the print reproduction, media technology research and development, digital printing and publishing, and equity investment and other activities. The company is based in Hefei, China. Time Publishing and Media Co., Ltd. is a subsidiary of Anhui Publishing Group Co., Ltd.

China

Time Publishing and Media Co., Ltd.

Communication Services

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

600551.SS reported revenue of CNY 8 048mn in the last 12 months, down 3% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 7% from FY24 to CNY 0.58. Market expects EPS to reach CNY 0.57 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 8ppts and its growth decelerated by 8ppts in the past month. 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 weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 6.5% in the last 12 months, up from 5.9% in FY23. 

Historically, 600551.SS has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 4.9%, down from 6.4% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 6.7%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 4.5% in the last 12 months, a decrease from 6.6% in FY23. 

Time Publishing and Media Co., Ltd. reported a return on equity (RoE) of 6.9% in the last 12 months, down from 10.1% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.3 in the past several years. This ratio implies a average 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.

600551.SS has above average trading liquidity. The average private investor can sell his common position in the stock almost 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. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note low margin volatility, 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, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, 600551.SS is as volatile as an index. In other words, the stock will move with 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 limited. 

In normal market circumstances, 600551.SS is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. We would also like to highlight the mild intraday volatility of the instrument. 

Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

Time Publishing and Media Co., Ltd.

CN¥ 8.02

4

Time Publishing and Media Co., Ltd.

CN¥ 8.02

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 8.02

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