SZSE:000703

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Hengyi Petrochemical

Executive Summary

Hengyi Petrochemical Co., Ltd. produces and sells petrochemical products in China and internationally. More Details


Snowflake Analysis

Solid track record, good value and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 000703 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 000703's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-4.9%

703

-1.7%

CN Chemicals

-0.1%

CN Market


1 Year Return

57.6%

703

40.8%

CN Chemicals

19.1%

CN Market

Return vs Industry: 000703 exceeded the CN Chemicals industry which returned 40.8% over the past year.

Return vs Market: 000703 exceeded the CN Market which returned 19.1% over the past year.


Shareholder returns

703IndustryMarket
7 Day-4.9%-1.7%-0.1%
30 Day18.1%-3.0%-1.8%
90 Day34.1%10.2%0.7%
1 Year62.9%57.6%42.9%40.8%21.0%19.1%
3 Yearn/a27.6%22.4%24.1%18.0%
5 Year201.1%180.0%59.1%50.1%46.7%36.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

15.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 000703 (CN¥17.09) is trading above our estimate of fair value (CN¥7.38)

Significantly Below Fair Value: 000703 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 000703 is good value based on its PE Ratio (15.5x) compared to the CN Chemicals industry average (36.3x).

PE vs Market: 000703 is good value based on its PE Ratio (15.5x) compared to the CN market (34.7x).


Price to Earnings Growth Ratio

PEG Ratio: 000703 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 000703 is good value based on its PB Ratio (2.5x) compared to the CN Chemicals industry average (2.8x).


Next Steps

Future Growth

How is Hengyi Petrochemical forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000703's forecast earnings growth (19.8% per year) is above the savings rate (3.3%).

Earnings vs Market: 000703's earnings (19.8% per year) are forecast to grow slower than the CN market (24.8% per year).

High Growth Earnings: 000703's earnings are forecast to grow, but not significantly.

Revenue vs Market: 000703's revenue (12.5% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 000703's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 000703's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Hengyi Petrochemical performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 000703 has high quality earnings.

Growing Profit Margin: 000703's current net profit margins (5.1%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 000703 has become profitable over the past 5 years, growing earnings by 41.1% per year.

Accelerating Growth: 000703's earnings growth over the past year (143.2%) exceeds its 5-year average (41.1% per year).

Earnings vs Industry: 000703 earnings growth over the past year (143.2%) exceeded the Chemicals industry 5.2%.


Return on Equity

High ROE: 000703's Return on Equity (15.9%) is considered low.


Next Steps

Financial Health

How is Hengyi Petrochemical's financial position?


Financial Position Analysis

Short Term Liabilities: 000703's short term assets (CN¥31.2B) do not cover its short term liabilities (CN¥46.8B).

Long Term Liabilities: 000703's short term assets (CN¥31.2B) exceed its long term liabilities (CN¥19.6B).


Debt to Equity History and Analysis

Debt Level: 000703's debt to equity ratio (166.7%) is considered high.

Reducing Debt: 000703's debt to equity ratio has increased from 159.3% to 166.7% over the past 5 years.

Debt Coverage: 000703's debt is not well covered by operating cash flow (1.1%).

Interest Coverage: 000703's interest payments on its debt are well covered by EBIT (21.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Hengyi Petrochemical current dividend yield, its reliability and sustainability?

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 000703's dividend (1.8%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 000703's dividend (1.8%) is in the top 25% of dividend payers in the CN market (1.76%)


Stability and Growth of Payments

Stable Dividend: 000703 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 000703's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28%), 000703's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 000703's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average board tenure


CEO

Xiang Lou (41 yo)

no data

Tenure

CN¥1,394,200

Compensation

Mr. Xiang Lou serves as President of Hengyi Petrochemical Co., Ltd. Mr. Lou served as Non-Independent Director at Hengyi Petrochemical Co., Ltd. since August 25, 2017 until September 14, 2020. He served as...


Board Members

NamePositionTenureCompensationOwnership
Ying Mao
VP, CFO & Director0.50yrCN¥788.40kno data
Jianchang Lou
VP & Non-Independent Director0.50yrCN¥1.44mno data
Zhong Wu
VP & Non-Independent Director0.50yrno datano data
Yugang Li
Shareholder Supervisor0.50yrno datano data
Defeng Ni
Non-Independent Director3.58yrsno datano data
Xianshui Fang
Non-Independent Vice Chairman of the Board9.83yrsCN¥1.43mno data
Baizhang Yang
Independent Director3.58yrsCN¥100.00kno data
Liuyong Yang
Independent Director3.58yrsCN¥100.00kno data
Sanlian Chen
Independent Director3.58yrsCN¥100.00kno data
Danwen Jin
Shareholder Supervisor0.50yrno datano data

2.0yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 000703's board of directors are not considered experienced ( 2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hengyi Petrochemical Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hengyi Petrochemical Co., Ltd.
  • Ticker: 703
  • Exchange: SZSE
  • Founded: 1989
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CN¥62.919b
  • Shares outstanding: 3.68b
  • Website: https://www.hengyishihua.com

Number of Employees


Location

  • Hengyi Petrochemical Co., Ltd.
  • Building 3, Hengyi Nan'an Mingzhu
  • No. 260, Shixin North Road
  • Hangzhou
  • Zhejiang Province
  • 311215
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
703SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYApr 2011
703XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYApr 2011

Biography

Hengyi Petrochemical Co., Ltd. produces and sells petrochemical products in China and internationally. Its products include gasoline, diesel oil, kerosene, etc.; and petrochemicals, such as paraxylene, ben...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 09:07
End of Day Share Price2021/03/05 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.