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6037

Zhejiang Huayou Cobalt SHSE:603799 Stock Report

Last Price

CN¥84.80

Market Cap

CN¥134.6b

7D

0.5%

1Y

-15.9%

Updated

07 Aug, 2022

Data

Company Financials +
603799 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance4/6
Financial Health3/6
Dividends1/6

603799 Stock Overview

Zhejiang Huayou Cobalt Co., Ltd engages in the research, development, manufacture, and sale of lithium battery materials and cobalt materials in China and internationally.

Zhejiang Huayou Cobalt Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhejiang Huayou Cobalt
Historical stock prices
Current Share PriceCN¥84.80
52 Week HighCN¥113.12
52 Week LowCN¥52.32
Beta1.46
1 Month Change-7.00%
3 Month Change42.85%
1 Year Change-15.86%
3 Year Change312.11%
5 Year Change222.77%
Change since IPO2,820.48%

Recent News & Updates

Shareholder Returns

603799CN Metals and MiningCN Market
7D0.5%-1.5%-0.5%
1Y-15.9%-9.5%-10.4%

Return vs Industry: 603799 underperformed the CN Metals and Mining industry which returned -9.5% over the past year.

Return vs Market: 603799 underperformed the CN Market which returned -10.4% over the past year.

Price Volatility

Is 603799's price volatile compared to industry and market?
603799 volatility
603799 Average Weekly Movement7.5%
Metals and Mining Industry Average Movement6.3%
Market Average Movement6.1%
10% most volatile stocks in CN Market9.2%
10% least volatile stocks in CN Market3.9%

Stable Share Price: 603799 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 603799's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200214,643Hongliang Chenhttps://www.huayou.com

Zhejiang Huayou Cobalt Co., Ltd engages in the research, development, manufacture, and sale of lithium battery materials and cobalt materials in China and internationally. The company’s products include battery grade cobalt tetroxide and cobalt sulfate, and cobalt oxide; electrodeposited copper and copper oxide; cobalt trioxide, cobalt cathode, cobalt hydroxide battery grade, iron phosphate, and ferric phosphate; and Li carbonic acid and ternary precursors. Its products are used for Li-ion battery cathode material, high temperature alloy for aviation and aerospace, cemented carbide, colorant and glaze material, rubber adhesive, petrochemical catalysts, magnetic materials, glass, as well as used in the manufacture of dyes, paint, anti-wrinkle, and fireworks.

Zhejiang Huayou Cobalt Fundamentals Summary

How do Zhejiang Huayou Cobalt's earnings and revenue compare to its market cap?
603799 fundamental statistics
Market CapCN¥134.63b
Earnings (TTM)CN¥4.45b
Revenue (TTM)CN¥42.10b

30.3x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
603799 income statement (TTM)
RevenueCN¥42.10b
Cost of RevenueCN¥33.82b
Gross ProfitCN¥8.28b
Other ExpensesCN¥3.83b
EarningsCN¥4.45b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.80
Gross Margin19.67%
Net Profit Margin10.57%
Debt/Equity Ratio112.3%

How did 603799 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 603799 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 603799?

Other financial metrics that can be useful for relative valuation.

603799 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/Revenue3.6x
Enterprise Value/EBITDA22.6x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does 603799's PE Ratio compare to its peers?

603799 PE Ratio vs Peers
The above table shows the PE ratio for 603799 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.3x
600111 China Northern Rare Earth (Group) High-TechLtd
19.3x24.6%CN¥119.3b
002460 Ganfeng Lithium
22.1x4.4%CN¥171.6b
600549 Xiamen Tungsten
26.8x8.8%CN¥37.6b
002738 Sinomine Resource Group
33.1x46.4%CN¥41.4b
603799 Zhejiang Huayou Cobalt
30.3x36.5%CN¥134.6b

Price-To-Earnings vs Peers: 603799 is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does 603799's PE Ratio compare vs other companies in the CN Metals and Mining Industry?

Price-To-Earnings vs Industry: 603799 is good value based on its Price-To-Earnings Ratio (30.3x) compared to the CN Metals and Mining industry average (30.7x)


Price to Earnings Ratio vs Fair Ratio

What is 603799'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.

603799 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.3x
Fair PE Ratio35.9x

Price-To-Earnings vs Fair Ratio: 603799 is good value based on its Price-To-Earnings Ratio (30.3x) compared to the estimated Fair Price-To-Earnings Ratio (35.9x).


Share Price vs Fair Value

What is the Fair Price of 603799 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603799 (CN¥84.8) is trading above our estimate of fair value (CN¥19.51)

Significantly Below Fair Value: 603799 is trading above our estimate of fair value.


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 less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


36.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603799's forecast earnings growth (36.5% per year) is above the savings rate (3.2%).

Earnings vs Market: 603799's earnings (36.5% per year) are forecast to grow faster than the CN market (24.5% per year).

High Growth Earnings: 603799's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603799's revenue (20.2% per year) is forecast to grow faster than the CN market (17.8% per year).

High Growth Revenue: 603799's revenue (20.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 603799's Return on Equity is forecast to be high in 3 years time (26.2%)


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Past Performance

How has Zhejiang Huayou Cobalt performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603799 has a high level of non-cash earnings.

Growing Profit Margin: 603799's current net profit margins (10.6%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: 603799's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: 603799's earnings growth over the past year (172.1%) exceeds its 5-year average (20.2% per year).

Earnings vs Industry: 603799 earnings growth over the past year (172.1%) exceeded the Metals and Mining industry 21.9%.


Return on Equity

High ROE: 603799's Return on Equity (17.6%) is considered low.


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Financial Health

How is Zhejiang Huayou Cobalt's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 603799's short term assets (CN¥41.1B) exceed its short term liabilities (CN¥30.8B).

Long Term Liabilities: 603799's short term assets (CN¥41.1B) exceed its long term liabilities (CN¥18.5B).


Debt to Equity History and Analysis

Debt Level: 603799's net debt to equity ratio (40.3%) is considered high.

Reducing Debt: 603799's debt to equity ratio has increased from 108.4% to 112.3% over the past 5 years.

Debt Coverage: 603799's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 603799 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Zhejiang Huayou Cobalt current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.27%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 603799's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 603799's dividend (0.27%) is low compared to the top 25% of dividend payers in the CN market (1.93%).


Stability and Growth of Payments

Stable Dividend: 603799 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 603799's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.2%), 603799's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 603799 is paying a dividend but the company has no free cash flows.


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Management

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

5.8yrs

Average management tenure


CEO

Hongliang Chen (49 yo)

6.08yrs

Tenure

CN¥10,694,900

Compensation

Mr. Hongliang Chen has been General Manager and Managing Director of Zhejiang Huayou Cobalt Co. Ltd. since July 2016 and served as its Deputy General Manager until July 2016. Mr. Chen joined at Zhejiang Hu...


Leadership Team

Experienced Management: 603799's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: 603799's board of directors are considered experienced (3.3 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.


Top Shareholders

Company Information

Zhejiang Huayou Cobalt Co., Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Huayou Cobalt Co., Ltd
  • Ticker: 603799
  • Exchange: SHSE
  • Founded: 2002
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Implied Market Cap: CN¥134.632b
  • Shares outstanding: 1.59b
  • Website: https://www.huayou.com

Number of Employees


Location

  • Zhejiang Huayou Cobalt Co., Ltd
  • No.18, Wuzhen East Road
  • Economic Development Zone
  • Tongxiang
  • Zhejiang Province
  • 314500
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.