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Eastern Communications: Stock Price Surges 13.22%YoY

by Nelson Oti 12 days ago in stocks

Reuters platform has reported that the price of the company's stock surged 13.22% Year-on-Year

A glance at the company’s profile:

Eastern Communications Co., Ltd. [900941:CH] is a Chinese based communication company that engages mainly in offering of communication networks to clients. The business of the company involves the manufacturing and marketing of different kinds of mobile communication terminal and system equipment. The company also engages in other businesses such as the designing of mobile communication networks, and the provision of related supporting services. The company conducts its business activities within the Chinese domestic regions and little involvement in the overseas. The company started its business and was issued a license in October 2005 while its headquarter is situated at Hangzhou, China. The executive leader of the company is Zhongguo Zhou with up to about 2,536 other employees currently working for the company.

The company’s performance in the stock market:

From the perspectives of the company’s performance in the Chinese stock market, the stock of the company is currently trading with a price tag of about CNY11.71 per stock. This price signifies that it has reduced by 1.18% as compared to the price of the stock as at 24 hours ago. The price also implies that it is on a price increment level of 13.22% YoY as compared to the price of the stock as at 12 months ago. The stock of the company trends on a 52-weeks high price of about CNY15.77 per stock and also on a 52-weeks low price of about CNY10.80 per stock. The annual price to sales ratio of the company’s stock amounts to about 4.13x which implies that the company’s market capitalization has summed up to CNY12.24 billion while the total revenue generated from business conducted in the Fy20 period amounted to about CNY2.96 billion. The total revenue generated in the Fy20 period significantly improved despite the outbreak of the corona virus which shutdown several businesses and companies. During that period, business activities were temporarily closed to reduce the spread of the contagious virus. However let us take a tour into the previous annual financial performances of the company.

Previous annual financial performances:

The financial performance reports of the company for the past five years have shown significant, steady and consistent growth. These steady growths are vastly attributed to the increase in the number of clients of the company. The financial performance report of the company for the Fy20 period shows significant improvement due to vastly increase in the sales of communication equipment. A glance at the financial data that was posted by reuters platform, some of the major financial indicators performed as follows;

Total revenue: The financial report of the company for the Fy20 period showcased that the total revenue generated from business during that period increased significantly to CNY2.96 billion which shows an increment by 9.45% year-on-year when compared and analyzed from the CNY2.68 billion that was reported in the previous year’s financial result.

Gross profit: The financial data that was posted by reuters also revealed that the gross profit during that period reduced significantly to CNY334.44 million which shows a decrease by 16.33% year-on-year when compared and analyzed from the CNY399.73 million that was reported in the previous year’s financial result. The poor performance recorded in the gross profit of the company was vastly caused by the increased expenses incurred during business activities. The expenses rate during that period amounted to more than CNY2.5 billion with significant magnitude.

Total debt: The financial report of the company for the period in quote also revealed that the total debt accumulated by the company increased significantly to CNY39.04 million which shows an increment by 35.29% year-on-year when compared and analyzed from the CNY25.26 million that was reported in the previous year’s financial result.

Sources:

https://www.reuters.com/companies/600776.SS/financials/income-statement-annual

https://www.bloomberg.com/profile/company/900941:CH

https://www.marketscreener.com/quote/stock/EASTERN-COMMUNICATIONS-CO-9950122/company/

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Nelson Oti

Nelson Oti is a Fintech and cryptocurrency enthusiast who has been involved in blockchain projects since 2010. He enjoys discussions that revolve around blockchain, fintech and its implications for the future of humanity.

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