SZSE:002324

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Shanghai Pret Composites

Executive Summary

Shanghai PRET Composites Co., Ltd. researches, develops, produces, and sells modified plastic materials primarily for automobiles in China. More Details


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Shanghai Pret Composites's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002324 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 002324's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

2324

2.6%

CN Chemicals

1.4%

CN Market


1 Year Return

93.3%

2324

48.9%

CN Chemicals

32.9%

CN Market

Return vs Industry: 002324 exceeded the CN Chemicals industry which returned 48.9% over the past year.

Return vs Market: 002324 exceeded the CN Market which returned 32.9% over the past year.


Shareholder returns

2324IndustryMarket
7 Day0.5%2.6%1.4%
30 Day4.4%10.2%3.8%
90 Day-0.4%5.8%-0.9%
1 Year94.2%93.3%51.7%48.9%35.2%32.9%
3 Year95.1%90.3%20.9%15.0%19.3%13.5%
5 Year63.8%58.6%10.2%4.0%11.0%3.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Shanghai Pret Composites undervalued compared to its fair value and its price relative to the market?

30.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 002324 (CN¥15.22) is trading above our estimate of fair value (CN¥1.52)

Significantly Below Fair Value: 002324 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002324 is good value based on its PE Ratio (30.4x) compared to the CN Chemicals industry average (39.7x).

PE vs Market: 002324 is good value based on its PE Ratio (30.4x) compared to the CN market (39.1x).


Price to Earnings Growth Ratio

PEG Ratio: 002324 is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: 002324 is overvalued based on its PB Ratio (4.8x) compared to the CN Chemicals industry average (2.8x).


Next Steps

Future Growth

How is Shanghai Pret Composites forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002324's forecast earnings growth (5.3% per year) is above the savings rate (3.3%).

Earnings vs Market: 002324's earnings (5.3% per year) are forecast to grow slower than the CN market (24.2% per year).

High Growth Earnings: 002324's earnings are forecast to grow, but not significantly.

Revenue vs Market: 002324's revenue (5.9% per year) is forecast to grow slower than the CN market (18% per year).

High Growth Revenue: 002324's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002324's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Shanghai Pret Composites performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002324 has high quality earnings.

Growing Profit Margin: 002324's current net profit margins (10.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 002324's earnings have declined by 5.9% per year over the past 5 years.

Accelerating Growth: 002324's earnings growth over the past year (368.5%) exceeds its 5-year average (-5.9% per year).

Earnings vs Industry: 002324 earnings growth over the past year (368.5%) exceeded the Chemicals industry 2.5%.


Return on Equity

High ROE: 002324's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Shanghai Pret Composites's financial position?


Financial Position Analysis

Short Term Liabilities: 002324's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 002324's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥36.8M).


Debt to Equity History and Analysis

Debt Level: 002324's debt to equity ratio (35.6%) is considered satisfactory.

Reducing Debt: 002324's debt to equity ratio has reduced from 39.5% to 35.6% over the past 5 years.

Debt Coverage: 002324's debt is well covered by operating cash flow (23.1%).

Interest Coverage: 002324's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Shanghai Pret Composites's current dividend yield, its reliability and sustainability?

0.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002324's dividend (0.41%) is higher than the bottom 25% of dividend payers in the CN market (0.36%).

High Dividend: 002324's dividend (0.41%) is low compared to the top 25% of dividend payers in the CN market (1.62%).


Stability and Growth of Payments

Stable Dividend: 002324's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002324's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.5%), 002324's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 002324's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

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

12.1yrs

Average management tenure


CEO

Wen Zhou

21.08yrs

Tenure

CN¥324,200

Compensation

Mr. Wen Zhou serves as the Chairman at Shanghai Pret Composites Co., Ltd. Mr. Zhou has been General Manager at Shanghai Pret Composites Co. since October 1999.


Leadership Team

NamePositionTenureCompensationOwnership
Wen Zhou
Chairman of the Board of Directors and General Manager21.08yrsCN¥324.20k49.08%
CN¥ 6.3b
Wu Zhou
Deputy General Manager and Directorno dataCN¥673.60k0.89%
CN¥ 113.9m
Hong Li
Deputy General Manager and Directorno dataCN¥253.10k0.15%
CN¥ 19.0m
Xiang Zhang
Deputy General Manager17.25yrsCN¥666.40kno data
Chu Hong
Chief Financial Officerno datano data0.00098%
CN¥ 126.0k

12.1yrs

Average Tenure

Experienced Management: 002324's management team is seasoned and experienced (12.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wen Zhou
Chairman of the Board of Directors and General Manager21.08yrsCN¥324.20k49.08%
CN¥ 6.3b
Wu Zhou
Deputy General Manager and Directorno dataCN¥673.60k0.89%
CN¥ 113.9m
Hong Li
Deputy General Manager and Directorno dataCN¥253.10k0.15%
CN¥ 19.0m
Jie Li
Member of the Supervisory Committee7yrsCN¥304.00kno data
Yu Shen
Member of the Supervisory Committee7yrsCN¥130.90kno data
Qiao Sheng Ding
Chairman of the Board of Supervisors 7yrsCN¥365.50kno data
Cai Qing
Non-Independent Director1.25yrsno datano data
Shang Zhiqiang
Independent Director1.25yrsno datano data
Wu Xingyu
Independent Director1.25yrsno datano data
Zhao Shijun
Independent Director1.25yrsno datano data
Zhang Ying
Supervisor1.25yrsno data0.19%
CN¥ 24.5m
Zhou Bing
Supervisor1.25yrsno datano data

1.3yrs

Average Tenure

Experienced Board: 002324's board of directors are not considered experienced ( 1.3 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

Shanghai Pret Composites Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Pret Composites Co., Ltd.
  • Ticker: 2324
  • Exchange: SZSE
  • Founded: 1993
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: CN¥12.862b
  • Shares outstanding: 845.05m
  • Website: https://www.pret.com.cn

Number of Employees


Location

  • Shanghai Pret Composites Co., Ltd.
  • QingpuIndustrial Zone
  • No. 558 Xinye Road
  • Shanghai
  • 201707
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2324SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYDec 2009
2324XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2009

Biography

Shanghai PRET Composites Co., Ltd. researches, develops, produces, and sells modified plastic materials primarily for automobiles in China. It offers toughened, reinforced, and filling modified polypropyle...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 15:13
End of Day Share Price2020/11/23 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.