China Hainan Rubber Industry Group (SHSE:601118) - Share price, News & Analysis

Q: What is the Fair Price of 601118 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

601118 (CN¥4.72) is trading above our estimate of [[fair value]] (CN¥0.12)

601118 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	0/6

601118 Stock Overview

China Hainan Rubber Industry Group Co., Ltd.

Risk Analysis

Large one-off items impacting financial results

China Hainan Rubber Industry Group Competitors

CNSIG Inner Mongolia Chemical Industry

SHSE:600328

CN¥21.6b

Henan Liliang Diamond

SZSE:301071

CN¥18.9b

Red Avenue New Materials Group

SHSE:603650

CN¥19.0b

Anhui HwasuLtd

SHSE:600935

CN¥18.8b

Price History & Performance

Summary of all time highs, changes and price drops for China Hainan Rubber Industry Group
Historical stock prices
Current Share Price	CN¥4.72
52 Week High	CN¥5.96
52 Week Low	CN¥4.18
Beta	-0.19
1 Month Change	2.39%
3 Month Change	-2.68%
1 Year Change	-7.27%
3 Year Change	-8.70%
5 Year Change	-17.91%
Change since IPO	-57.13%

Shareholder Returns

	601118	CN Chemicals	CN Market
7D	1.3%	3.2%	2.9%
1Y	-7.3%	7.3%	-8.8%

Return vs Industry: 601118 underperformed the CN Chemicals industry which returned 7.3% over the past year.

Return vs Market: 601118 exceeded the CN Market which returned -8.8% over the past year.

Price Volatility

Is 601118's price volatile compared to industry and market?
601118 volatility
601118 Average Weekly Movement	4.0%
Chemicals Industry Average Movement	7.4%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.1%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 601118 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 601118's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	16,214	Chao Li	https://www.hirub.cn

China Hainan Rubber Industry Group Co., Ltd. operates as a natural rubber manufacturer in China and internationally. The company offers latex threads, concentrated natural rubber latex, aviation tire standard rubber, meridian glues, light color glues; and standard rubber.

China Hainan Rubber Industry Group Fundamentals Summary

How do China Hainan Rubber Industry Group's earnings and revenue compare to its market cap?
601118 fundamental statistics
Market Cap	CN¥20.20b
Earnings (TTM)	CN¥157.56m
Revenue (TTM)	CN¥15.40b

128.2x

P/E Ratio

1.3x

P/S Ratio

Is 601118 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
601118 income statement (TTM)
Revenue	CN¥15.40b
Cost of Revenue	CN¥14.81b
Gross Profit	CN¥581.78m
Other Expenses	CN¥424.22m
Earnings	CN¥157.56m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.037
Gross Margin	3.78%
Net Profit Margin	1.02%
Debt/Equity Ratio	46.5%

How did 601118 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 601118 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601118?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 601118. This is calculated by dividing 601118's market cap by their current preferred multiple.
What is 601118's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥20.20b

601118 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	1.6x
Enterprise Value/EBITDA	76.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 601118's PE Ratio compare to its peers?

601118 PE Ratio vs Peers

The above table shows the PE ratio for 601118 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	43.4x
600328 CNSIG Inner Mongolia Chemical Industry	11.8x	11.2%	CN¥21.6b
301071 Henan Liliang Diamond	63.1x	37.0%	CN¥18.9b
603650 Red Avenue New Materials Group	75x	39.3%	CN¥19.0b
600935 Anhui HwasuLtd	23.9x	n/a	CN¥18.8b
601118 China Hainan Rubber Industry Group	128.2x	n/a	CN¥20.2b

Forward PE

Price-To-Earnings vs Peers: 601118 is expensive based on its Price-To-Earnings Ratio (128.2x) compared to the peer average (43.4x).

Price to Earnings Ratio vs Industry

How does 601118's PE Ratio compare vs other companies in the CN Chemicals Industry?

Price-To-Earnings vs Industry: 601118 is expensive based on its Price-To-Earnings Ratio (128.2x) compared to the CN Chemicals industry average (28.5x)

Price to Earnings Ratio vs Fair Ratio

What is 601118'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.

601118 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	128.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 601118's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 601118 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601118 (CN¥4.72) is trading above our estimate of fair value (CN¥0.12)

Significantly Below Fair Value: 601118 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 601118's PEG Ratio to determine if it is good value.

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Future Growth

How is China Hainan Rubber Industry Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

22.5%

Forecasted Materials 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 China Hainan Rubber Industry Group 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.

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Examine China Hainan Rubber Industry Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has China Hainan Rubber Industry Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

9.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601118 has a large one-off gain of CN¥265.0M impacting its March 31 2022 financial results.

Growing Profit Margin: 601118's current net profit margins (1%) are lower than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: 601118 has become profitable over the past 5 years, growing earnings by 9.9% per year.

Accelerating Growth: 601118's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 601118 had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Chemicals industry average (22.3%).

Return on Equity

High ROE: 601118's Return on Equity (1.4%) is considered low.

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Financial Health

How is China Hainan Rubber Industry Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: 601118's short term assets (CN¥6.0B) exceed its short term liabilities (CN¥4.3B).

Long Term Liabilities: 601118's short term assets (CN¥6.0B) exceed its long term liabilities (CN¥4.8B).

Debt to Equity History and Analysis

Debt Level: 601118's net debt to equity ratio (20.3%) is considered satisfactory.

Reducing Debt: 601118's debt to equity ratio has reduced from 51.5% to 46.5% over the past 5 years.

Debt Coverage: 601118's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: Insufficient data to determine if 601118's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is China Hainan Rubber Industry Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601118's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 601118's dividend (0.22%) is low compared to the top 25% of dividend payers in the CN market (1.93%).

Stability and Growth of Payments

Stable Dividend: 601118 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 601118 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 601118 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: 601118 is not paying a notable dividend for the CN market.

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Management

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

CEO

Chao Li (42 yo)

no data

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	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31