Overview Of Revenue Forecast Reported By Jinqiao Export Company

The profile of the company:

Shanghai Jinqiao Export Processing Zone Development Co. Ltd. [600639:CH] is a Chinese based company that focuses mainly in different kinds of real estate operation businesses. The businesses of the company involves the development, operation and management of Jinqiao Technical Development Zone, including the investment and construction of industrial, office, science, residential and commercial auxiliary facilities, as well as the provision of related leasing, sales, management and value-added services. The company also involves in other business such as hotel apartment service related businesses. The company conducts its business activities within the Chinese domestic regions and no involvement in the oversea regions. The company was founded and incorporated as far back as November 1992 with its headquarter situation Shanghai, China. The executive head of the company is Guoping Huang with up to 5,876 other employees currently working for the company.

The stock performance of the company:

The report from the Chinese stock market reveals positive performances from the stock of Shanghai Jinqiao Export Processing Zone Development Co. Ltd. [600639:CH]. The report from the market highlighted that the company’s stock is performing positively better than some of the major contenders in the business. From the report gathered from the market, the company’s stock is currently trading at about 11.82 CNY per stock which implies that the price trends on a 24hours price magnitude by 0.91% as compared to the price of the stock as at same time on yesterday. The price of the company’s stock as at the same period during the Fy20 period reveals that the company’s current stock price has surged significantly by 9.83% YoY. The stock of the company trades with a 52-weeks high price of 15.57 CNY per stock while the 52-weeks low price amounts to about 10.93 CNY per stock. From the report from reuters, the market capitalization of the company significantly hits about CNY11.64 billion while the total revenue generated from business conducted within the Fy20 period amounted to about CNY3.59 billion. As a result of the above figures, the stock of the company trends on an annual price to sales ratio of about 3.24x.

Analysis:

Price Against volume and Accumulation/Distribution.

From the chart above, the index widely followed as a benchmark that reflects the movement of those Chinese stocks that trade in the Chinese stock market. You can see how it peaked at June 2021 at 13.65 per stock. The bearish movement and lowest price performance of the stock was recorded at January this year at 11.41 per stock. The heavy selling volume of the June this year as it took the trading volume above 300 million.

This week’s continued unloading found a new price increase by 0.22 percent before some buying came in and it managed to close at 11.82 CNY. Consider the extraordinary difference between the weakness of this index and the new all-time highs just seen in the S&P 500.

From the above chart, it is quite a significant fall when viewed on this time frame, isn’t it? From above 390 million volume on October last year all the way down to below 0 million at the middle September. Unlike the index that appeared on the March, 2020 pandemic low area with even greater selling volume than seen at that time.

However, let us take a look at the forecast report targeting the revenue generated from business for the next two annual reporting periods.

Three years revenue forecast:

The management of the company released an expectation report targeting the revenue that will be generated from business for the next three annual reporting periods. According to the expectation report, the revenue that will be generated from business in Fy21, Fy22 and Fy23 is expected to amount to CNY4.24 billion, CNY4.93 billion and CNY5.49 billion respectively. The company’s dividend is expected to amount to 0.45x, 0.56x and 0.58x respectively in Fy21, Fy22 and Fy23 periods.

References: https://markets.businessinsider.com/stocks/shanghai_jinqiao_export_processing_zone_development_2-stock, https://www.reuters.com/companies/600639.SS/charts and https://www.bloomberg.com/profile/company/600639:CH