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

Imperfect balance sheet with weak fundamentals.


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

0%

HE

0.2%

CA Energy Services

-0.5%

CA Market


1 Year Return

-40.0%

HE

-37.0%

CA Energy Services

1.1%

CA Market

Return vs Industry: HE underperformed the Canadian Energy Services industry which returned -37% over the past year.

Return vs Market: HE underperformed the Canadian Market which returned 1.1% over the past year.


Share holder returns

HEIndustryMarket
7 Day0%0.2%-0.5%
30 Day-25.0%-10.8%-1.9%
90 Dayn/a-17.4%-1.6%
1 Year-40.0%-40.0%-35.2%-37.0%4.6%1.1%
3 Year-62.5%-62.5%-41.2%-45.5%15.8%5.5%
5 Year-88.5%-88.5%-68.9%-72.3%26.9%8.6%

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?

33.5%

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

Earnings Trend: HE is unprofitable, and losses have increased over the past 5 years at a rate of -11.1% per year.

Accelerating Growth: Unable to compare HE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HE is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (15.8%).


Return on Equity

High ROE: HE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: HE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hanwei Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: HE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: HE has a high level of physical assets or inventory.

Debt Coverage by Assets: HE 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.

Stable Cash Runway: Whilst unprofitable HE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage4.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate HE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HE's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


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?

9.1yrs

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

Compensation vs. Market: Fulai's total compensation ($USD105.03K) is about average for companies of similar size in the Canadian market ($USD121.47K).

Compensation vs Earnings: Fulai's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

9.1yrs

Average Tenure

Experienced Management: HE's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

61yo

Average Age

Experienced Board: HE's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 9.2yrs
    • 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: 9.2yrs
    • Compensation: CA$47.96k
  • Joanne Yan (61yo)

    Lead Director

    • Tenure: 9.2yrs
    • 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: 9.2yrs
    • 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
HNWE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 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 Analysis2019/10/13 00:46
End of Day Share Price2019/10/10 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.

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