SZSE:002035

Stock Analysis Report

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Executive Summary

Vatti Corporation Limited produces and sells household appliances in the People’s Republic of China. More Details


Snowflake Analysis

Established dividend payer and good value.

Share Price & News

How has Vatti's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002035 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 002035's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.8%

2035

1.4%

CN Consumer Durables

-1.3%

CN Market


1 Year Return

-37.1%

2035

36.0%

CN Consumer Durables

25.5%

CN Market

Return vs Industry: 002035 underperformed the CN Consumer Durables industry which returned 36% over the past year.

Return vs Market: 002035 underperformed the CN Market which returned 25.5% over the past year.


Shareholder returns

2035IndustryMarket
7 Day-4.8%1.4%-1.3%
30 Day-15.3%10.7%5.4%
90 Day-17.6%20.1%5.8%
1 Year-35.3%-37.1%39.1%36.0%27.6%25.5%
3 Year-58.7%-61.4%44.5%36.1%23.6%17.5%
5 Year50.5%36.9%143.5%122.3%39.6%30.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Vatti undervalued compared to its fair value and its price relative to the market?

14.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 002035 (CN¥8.16) is trading above our estimate of fair value (CN¥3.28)

Significantly Below Fair Value: 002035 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002035 is good value based on its PE Ratio (14.2x) compared to the CN Consumer Durables industry average (30.6x).

PE vs Market: 002035 is good value based on its PE Ratio (14.2x) compared to the CN market (35x).


Price to Earnings Growth Ratio

PEG Ratio: 002035 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 002035 is good value based on its PB Ratio (2.3x) compared to the CN Consumer Durables industry average (3x).


Next Steps

Future Growth

How is Vatti forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002035's forecast earnings growth (19% per year) is above the savings rate (3.3%).

Earnings vs Market: 002035's earnings (19% per year) are forecast to grow slower than the CN market (24.2% per year).

High Growth Earnings: 002035's earnings are forecast to grow, but not significantly.

Revenue vs Market: 002035's revenue (16.2% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 002035's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002035's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Vatti performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002035 has a high level of non-cash earnings.

Growing Profit Margin: 002035's current net profit margins (11.3%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: 002035's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: 002035's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 002035 had negative earnings growth (-33%) over the past year, making it difficult to compare to the Consumer Durables industry average (6.7%).


Return on Equity

High ROE: 002035's Return on Equity (16.5%) is considered low.


Next Steps

Financial Health

How is Vatti's financial position?


Financial Position Analysis

Short Term Liabilities: 002035's short term assets (CN¥3.9B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 002035's short term assets (CN¥3.9B) exceed its long term liabilities (CN¥61.4M).


Debt to Equity History and Analysis

Debt Level: 002035's debt to equity ratio (4.8%) is considered satisfactory.

Reducing Debt: 002035's debt to equity ratio has increased from 2% to 4.8% over the past 5 years.

Debt Coverage: 002035's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 002035 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Vatti current dividend yield, its reliability and sustainability?

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002035's dividend (3.68%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 002035's dividend (3.68%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 002035's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002035's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.3%), 002035's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 002035's dividends in 3 years are forecast to be well covered by earnings (38.9% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Yuanzhi Pan (58 yo)

no data

Tenure

CN¥700,000

Compensation

Mr. Yuanzhi Pan has been Non Independent Director since May 07, 2013 and President of Vatti Corporation Limited. Mr. Pan serves as Chairman of the board of directors and General Manager of Zhongshan Baide ...


Leadership Team

NamePositionTenureCompensationOwnership
Yuanzhi Pan
President & Non Independent Directorno dataCN¥700.00k0.24%
CN¥ 16.5m
Gang Wu
Executive VP & Secretary of the Board16.17yrsCN¥560.00k0.29%
CN¥ 20.3m
Shu Xian He
Chief Financial Officer2.58yrsno data0.030%
CN¥ 2.1m
Wei Han
Senior Vice President3.83yrsno data0.065%
CN¥ 4.5m
Shao Chun Fu
Vice Presidentno dataCN¥280.00kno data

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 002035's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuanzhi Pan
President & Non Independent Directorno dataCN¥700.00k0.24%
CN¥ 16.5m
Jianhui Yang
Non Independent Director4.75yrsno data2.66%
CN¥ 184.2m
Ye Jiang Pan
Chairman of the Boardno dataCN¥467.00k10.25%
CN¥ 709.3m
Haobiao Pan
Non Independent Director7.67yrsCN¥80.00kno data
Huifen Chen
Shareholder Representative Supervisorno datano datano data
Yu Mei Huang
Chairman of Supervisory Boardno datano datano data
Yunlong Ding
Independent Directorno datano datano data
Fanmin Kong
Independent Directorno datano datano data
Yi Zhou
Independent Directorno datano data0.000020%
CN¥ 1.4k
Pinghua Liang
Shareholder Representative Supervisorno datano datano data
Li Zhen Huang
Supervisor4.75yrsno datano data

6.2yrs

Average Tenure

52yo

Average Age

Experienced Board: 002035's board of directors are considered experienced (6.2 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.


Top Shareholders

Company Information

Vatti Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vatti Corporation Limited
  • Ticker: 2035
  • Exchange: SZSE
  • Founded: 1992
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: CN¥6.917b
  • Shares outstanding: 847.65m
  • Website: https://www.vatti.com.cn/

Number of Employees


Location

  • Vatti Corporation Limited
  • Industry Avenue
  • No.1, Nanhuayuan Road
  • Zhongshan
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2035SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYJan 2005
2035XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYJan 2005

Biography

Vatti Corporation Limited produces and sells household appliances in the People’s Republic of China. The company offers fitted kitchens, gas appliances, kitchen appliances, sanitary products, household ele...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 09:37
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.