SZSE:000876

Stock Analysis Report

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Executive Summary

New Hope Liuhe Co., Ltd., together with its subsidiaries, engages in feed, breeding, meat products, and financial investment businesses in China, Vietnam, the Philippines, Bangladesh, Indonesia, Sri Lanka, Kampuchea, Singapore, Egypt, and internationally. More Details


Snowflake Analysis

Exceptional growth potential, good value and pays a dividend.


Similar Companies

Share Price & News

How has New Hope Liuhe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 000876 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 000876's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

876

-8.1%

CN Food

-1.2%

CN Market


1 Year Return

15.5%

876

48.5%

CN Food

25.4%

CN Market

Return vs Industry: 000876 underperformed the CN Food industry which returned 48.5% over the past year.

Return vs Market: 000876 underperformed the CN Market which returned 25.4% over the past year.


Shareholder returns

876IndustryMarket
7 Day-2.4%-8.1%-1.2%
30 Day0.9%9.2%4.7%
90 Day-20.1%17.0%6.7%
1 Year16.1%15.5%51.1%48.5%27.5%25.4%
3 Year186.9%178.2%103.1%93.2%23.2%17.0%
5 Yearn/a155.3%134.8%38.9%29.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is New Hope Liuhe undervalued compared to its fair value and its price relative to the market?

13.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 000876 (CN¥22.98) is trading above our estimate of fair value (CN¥16.69)

Significantly Below Fair Value: 000876 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 000876 is good value based on its PE Ratio (13.5x) compared to the CN Food industry average (37.7x).

PE vs Market: 000876 is good value based on its PE Ratio (13.5x) compared to the CN market (35x).


Price to Earnings Growth Ratio

PEG Ratio: 000876 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 000876 is good value based on its PB Ratio (2.8x) compared to the CN Food industry average (3.2x).


Next Steps

Future Growth

How is New Hope Liuhe forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000876's forecast earnings growth (25.4% per year) is above the savings rate (3.3%).

Earnings vs Market: 000876's earnings (25.4% per year) are forecast to grow faster than the CN market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 000876's revenue (23.1% per year) is forecast to grow faster than the CN market (18.1% per year).

High Growth Revenue: 000876'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: 000876's Return on Equity is forecast to be high in 3 years time (31.3%)


Next Steps

Past Performance

How has New Hope Liuhe performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000876 has a high level of non-cash earnings.

Growing Profit Margin: 000876's current net profit margins (7.1%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: 000876's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: 000876's earnings growth over the past year (111%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: 000876 earnings growth over the past year (111%) exceeded the Food industry 19.6%.


Return on Equity

High ROE: 000876's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is New Hope Liuhe's financial position?


Financial Position Analysis

Short Term Liabilities: 000876's short term assets (CN¥32.8B) do not cover its short term liabilities (CN¥36.9B).

Long Term Liabilities: 000876's short term assets (CN¥32.8B) exceed its long term liabilities (CN¥24.1B).


Debt to Equity History and Analysis

Debt Level: 000876's debt to equity ratio (96.2%) is considered high.

Reducing Debt: 000876's debt to equity ratio has increased from 28.9% to 96.2% over the past 5 years.

Debt Coverage: 000876's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: 000876 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is New Hope Liuhe current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 000876's dividend (0.65%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 000876's dividend (0.65%) is low compared to the top 25% of dividend payers in the CN market (1.82%).


Stability and Growth of Payments

Stable Dividend: 000876's dividend payments have been volatile in the past 10 years.

Growing Dividend: 000876's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.8%), 000876's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 000876's dividends in 3 years are forecast to be well covered by earnings (17.6% payout ratio).


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Bing Li (49 yo)

6yrs

Tenure

CN¥793,000

Compensation

Mr. Bing Li has been President at New Hope Liuhe Co., Ltd. since January 8, 2015. Mr. Li served as Vice President of New Hope Liuhe Co., Ltd. Mr. Li serves as the President of Chengdu Regional Joint Confer...


Board Members

NamePositionTenureCompensationOwnership
Feng Deng
Independent Directorno datano datano data
Yonghao Liu
Directorno datano datano data
Hang Wang
Director7.67yrsno data0.0014%
CN¥ 1.4m
Liu Chang
Chairman7.67yrsCN¥3.75mno data
Cheng Deng
President & Non-Independent Director1.58yrsno datano data
Jian Xiong Li
Directorno datano datano data
Zhi Gang Xu
Chairman of Supervisory Boardno datano datano data
Fang Yang
Member of Supervisory Board1.58yrsno datano data
Huanchun Chen
Independent Director1.58yrsno datano data
Manli Cai
Independent Director1.58yrsno data0.00023%
CN¥ 231.3k

1.6yrs

Average Tenure

49yo

Average Age

Experienced Board: 000876's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

New Hope Liuhe Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Hope Liuhe Co., Ltd.
  • Ticker: 876
  • Exchange: SZSE
  • Founded: 1998
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CN¥100.559b
  • Shares outstanding: 4.43b
  • Website: https://www.newhopeagri.com

Number of Employees


Location

  • New Hope Liuhe Co., Ltd.
  • No. 376, Jinshi Road
  • Jinjiang Industrial Park
  • Chengdu
  • Sichuan Province
  • 610063
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
876SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYMar 1998
876XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYMar 1998

Biography

New Hope Liuhe Co., Ltd., together with its subsidiaries, engages in feed, breeding, meat products, and financial investment businesses in China, Vietnam, the Philippines, Bangladesh, Indonesia, Sri Lanka,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 09:17
End of Day Share Price2021/01/18 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.