Zhuzhou Kibing GroupLtd (SHSE:601636) - Share price, News & Analysis

Q: What is the Fair Price of 601636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

601636 (CN¥12.22) is trading below our estimate of [[fair value]] (CN¥39.29)

601636 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	6/6
Financial Health	6/6
Dividends	5/6

601636 Stock Overview

Zhuzhou Kibing Group Co., Ltd manufactures and sells glass in China.

Rewards

Trading at 68.9% below our estimate of its fair value

Earnings are forecast to grow 18.97% per year

Earnings grew by 53% over the past year

Risk Analysis

Unstable dividend track record

Zhuzhou Kibing GroupLtd Competitors

Zhejiang Weixing New Building Materials

SZSE:002372

CN¥30.3b

Guangdong KinLong Hardware ProductsLtd

SZSE:002791

CN¥24.3b

Beijing New Building Materials

SZSE:000786

CN¥45.7b

Kunshan Kinglai Hygienic MaterialsLtd

SZSE:300260

CN¥18.7b

Price History & Performance

Summary of all time highs, changes and price drops for Zhuzhou Kibing GroupLtd
Historical stock prices
Current Share Price	CN¥12.22
52 Week High	CN¥28.93
52 Week Low	CN¥9.82
Beta	1.57
1 Month Change	8.91%
3 Month Change	13.15%
1 Year Change	-39.42%
3 Year Change	263.69%
5 Year Change	147.37%
Change since IPO	115.90%

Shareholder Returns

	601636	CN Building	CN Market
7D	6.4%	4.6%	3.3%
1Y	-39.4%	-19.5%	-11.4%

Return vs Industry: 601636 underperformed the CN Building industry which returned -19.5% over the past year.

Return vs Market: 601636 underperformed the CN Market which returned -11.4% over the past year.

Price Volatility

Is 601636's price volatile compared to industry and market?
601636 volatility
601636 Average Weekly Movement	7.3%
Building Industry Average Movement	6.2%
Market Average Movement	6.0%
10% most volatile stocks in CN Market	9.2%
10% least volatile stocks in CN Market	3.9%

Stable Share Price: 601636 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 601636's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	11,278	BaiZhong Zhang	https://www.kibing-glass.com

Zhuzhou Kibing Group Co., Ltd manufactures and sells glass in China. The company offers transparent float glass, ultra-clear glass, tinted float glass, glass for solar modules, reflective coated glass, sunlight control coated glass, ceramic frit glass, tempered glass, and laminated glass. Its products are used in steel, sandwich, hollow, furniture, coating, mirror, automotive, optical instruments, and other processing; building and glass processing, solar photovoltaic curtain wall areas, glass furniture, decorative glass, imitation crystal products, lamps glass, precision electronics industry, and special buildings; building doors and windows, art processing, and other fields; and glass drilling and summer indoor ecological environment.

Zhuzhou Kibing GroupLtd Fundamentals Summary

How do Zhuzhou Kibing GroupLtd's earnings and revenue compare to its market cap?
601636 fundamental statistics
Market Cap	CN¥32.60b
Earnings (TTM)	CN¥3.88b
Revenue (TTM)	CN¥14.71b

8.5x

P/E Ratio

2.2x

P/S Ratio

Is 601636 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
601636 income statement (TTM)
Revenue	CN¥14.71b
Cost of Revenue	CN¥7.99b
Gross Profit	CN¥6.72b
Other Expenses	CN¥2.84b
Earnings	CN¥3.88b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.44
Gross Margin	45.66%
Net Profit Margin	26.34%
Debt/Equity Ratio	24.3%

How did 601636 perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 601636 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601636?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 601636. This is calculated by dividing 601636's market cap by their current preferred multiple.
What is 601636's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥32.60b

601636 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	5.7x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

How does 601636's PE Ratio compare to its peers?

601636 PE Ratio vs Peers

The above table shows the PE ratio for 601636 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	38.9x
002372 Zhejiang Weixing New Building Materials	24.3x	17.4%	CN¥30.3b
002791 Guangdong KinLong Hardware ProductsLtd	31.5x	29.3%	CN¥24.3b
000786 Beijing New Building Materials	12.7x	15.2%	CN¥45.7b
300260 Kunshan Kinglai Hygienic MaterialsLtd	87.3x	31.6%	CN¥18.7b
601636 Zhuzhou Kibing GroupLtd	8.5x	19.0%	CN¥32.6b

Price-To-Earnings vs Peers: 601636 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (38.9x).

Price to Earnings Ratio vs Industry

How does 601636's PE Ratio compare vs other companies in the CN Building Industry?

Price-To-Earnings vs Industry: 601636 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the CN Building industry average (34.5x)

Price to Earnings Ratio vs Fair Ratio

What is 601636's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

601636 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.5x
Fair PE Ratio	26.5x

Price-To-Earnings vs Fair Ratio: 601636 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).

Share Price vs Fair Value

What is the Fair Price of 601636 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601636 (CN¥12.22) is trading below our estimate of fair value (CN¥39.29)

Significantly Below Fair Value: 601636 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Zhuzhou Kibing GroupLtd forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601636's forecast earnings growth (19% per year) is above the savings rate (3.2%).

Earnings vs Market: 601636's earnings (19% per year) are forecast to grow slower than the CN market (24.6% per year).

High Growth Earnings: 601636's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601636's revenue (23.1% per year) is forecast to grow faster than the CN market (17.8% per year).

High Growth Revenue: 601636's revenue (23.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 601636's Return on Equity is forecast to be high in 3 years time (24.3%)

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Past Performance

How has Zhuzhou Kibing GroupLtd performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601636 has high quality earnings.

Growing Profit Margin: 601636's current net profit margins (26.3%) are higher than last year (22.5%).

Past Earnings Growth Analysis

Earnings Trend: 601636's earnings have grown significantly by 30.7% per year over the past 5 years.

Accelerating Growth: 601636's earnings growth over the past year (53%) exceeds its 5-year average (30.7% per year).

Earnings vs Industry: 601636 earnings growth over the past year (53%) exceeded the Building industry -8.7%.

Return on Equity

High ROE: 601636's Return on Equity (27.3%) is considered high.

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Financial Health

How is Zhuzhou Kibing GroupLtd's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 601636's short term assets (CN¥9.0B) exceed its short term liabilities (CN¥3.9B).

Long Term Liabilities: 601636's short term assets (CN¥9.0B) exceed its long term liabilities (CN¥3.6B).

Debt to Equity History and Analysis

Debt Level: 601636 has more cash than its total debt.

Reducing Debt: 601636's debt to equity ratio has reduced from 62.5% to 24.3% over the past 5 years.

Debt Coverage: 601636's debt is well covered by operating cash flow (120.9%).

Interest Coverage: 601636's interest payments on its debt are well covered by EBIT (279.7x coverage).

Balance Sheet

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Dividend

What is Zhuzhou Kibing GroupLtd current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

6.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601636's dividend (6.55%) is higher than the bottom 25% of dividend payers in the CN market (0.46%).

High Dividend: 601636's dividend (6.55%) is in the top 25% of dividend payers in the CN market (1.91%)

Stability and Growth of Payments

Stable Dividend: 601636's dividend payments have been volatile in the past 10 years.

Growing Dividend: 601636's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.2%), 601636's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (81.4%), 601636's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure

CEO

BaiZhong Zhang (56 yo)

5.42yrs

Tenure

CN¥9,335,000

Compensation

Mr. BaiZhong Zhang is President of Zhuzhou Kibing Group Co.,Ltd since March 29, 2017 and serves as its Director since April 20, 2017.

Leadership Team

Experienced Management: 601636's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: 601636's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31