TSX:HE

Stock Analysis Report

Hanwei Energy Services

Executive Summary

Hanwei Energy Services Corp., together with its subsidiaries, manufactures and sells high pressure fiberglass reinforced plastic pipes for the oil and gas, water transmission, and salt mining industries.

Snowflake

Fundamentals

Mediocre balance sheet with weak fundamentals.

Risks

  • Hanwei Energy Services has significant price volatility in the past 3 months.
  • Hanwei Energy Services is not covered by any analysts.

Similar Companies

Share Price & News

How has Hanwei Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-25.0%

HE

0.3%

CA Energy Services

1.2%

CA Market


1 Year Return

-57.1%

HE

-33.0%

CA Energy Services

-0.4%

CA Market

HE underperformed the Energy Services industry which returned -33% over the past year.

HE underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

HEIndustryMarket
7 Day-25.0%0.3%1.2%
30 Day50.0%3.3%3.3%
90 Day0%-11.4%0.8%
1 Year-57.1%-57.1%-31.1%-33.0%3.1%-0.4%
3 Year-66.7%-66.7%-28.5%-33.7%18.0%7.4%
5 Year-93.0%-93.0%-68.9%-72.3%22.0%4.5%

Price Volatility Vs. Market

How volatile is Hanwei Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hanwei Energy Services undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether Hanwei Energy Services is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Hanwei Energy Services has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of HE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Hanwei Energy Services regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Hanwei Energy Services expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.8%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hanwei Energy Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hanwei Energy Services performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hanwei Energy Services does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Hanwei Energy Services's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Hanwei Energy Services's 1-year growth to the CA Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Hanwei Energy Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Hanwei Energy Services has efficiently used its assets last year compared to the CA Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Hanwei Energy Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.


Next Steps

Financial Health

How is Hanwei Energy Services's financial position?


Financial Position Analysis

Hanwei Energy Services's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Hanwei Energy Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hanwei Energy Services has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Hanwei Energy Services's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Hanwei Energy Services has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Hanwei Energy Services has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Hanwei Energy Services has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -39.2% per year.


Next Steps

Dividend

What is Hanwei Energy Services's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Hanwei Energy Services's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Hanwei Energy Services's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Hanwei Energy Services has not reported any payouts.

Unable to verify if Hanwei Energy Services's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Hanwei Energy Services has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hanwei Energy Services's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average management tenure


CEO

Fulai Lang 0

12.8yrs

Tenure

CA$138,350

Compensation

Mr. Fulai Lang has been the Chairman of Hanwei Energy Services Corp., since June 18, 2007 and has been its Chief Executive Officer and President since December 7, 2006 and June 18, 2007 respectively. Mr. L ...


CEO Compensation Analysis

Fulai's remuneration is about average for companies of similar size in Canada.

Fulai's compensation has increased whilst company is loss making.


Management Age and Tenure

9.0yrs

Average Tenure

The average tenure for the Hanwei Energy Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.1yrs

Average Tenure

61yo

Average Age

The tenure for the Hanwei Energy Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCA$1,92630 Nov 18
S. Smallbone
EntityIndividual
Shares96,296
Max PriceCA$0.02

Ownership Breakdown


Management Team

  • Fulai Lang

    Chairman

    • Tenure: 12.8yrs
    • Compensation: CA$138.35k
  • Graham Kwan (55yo)

    Executive VP of Strategic Development & Corporate Affairs

    • Tenure: 9.1yrs
    • Compensation: CA$143.65k
  • Hui Hu

    Chief Operating Officer

    • Tenure: 0yrs
  • Irene Mai

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: CA$171.21k

Board Members

  • Malcolm Clay (78yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: CA$47.96k
  • Joanne Yan (61yo)

    Lead Director

    • Tenure: 9.1yrs
    • Compensation: CA$53.80k
  • William Paine

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: CA$42.96k
  • Fulai Lang

    Chairman

    • Tenure: 12.8yrs
    • Compensation: CA$138.35k
  • Graham Kwan (55yo)

    Executive VP of Strategic Development & Corporate Affairs

    • Tenure: 9.1yrs
    • Compensation: CA$143.65k

Company Information

Hanwei Energy Services Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hanwei Energy Services Corp.
  • Ticker: HE
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$2.913m
  • Shares outstanding: 194.20m
  • Website: https://www.hanweienergy.com

Number of Employees


Location

  • Hanwei Energy Services Corp.
  • 595 Howe Street
  • Suite 902
  • Vancouver
  • British Columbia
  • V6C 2T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HETSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2006
3HEDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2006

Biography

Hanwei Energy Services Corp., together with its subsidiaries, manufactures and sells high pressure fiberglass reinforced plastic pipes for the oil and gas, water transmission, and salt mining industries. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:39
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.