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2810

Shandong Head GroupLtd SZSE:002810 Stock Report

Last Price

CN¥38.76

Market Cap

CN¥13.3b

7D

9.2%

1Y

-25.7%

Updated

18 Aug, 2022

Data

Company Financials +
2810 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance2/6
Financial Health5/6
Dividends1/6

2810 Stock Overview

Shandong Head Group Co.,Ltd. engages in the scientific research, development, production, and sale of cellulose ether in the People’s Republic of China.

Shandong Head GroupLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shandong Head GroupLtd
Historical stock prices
Current Share PriceCN¥38.76
52 Week HighCN¥62.47
52 Week LowCN¥31.55
Beta1.1
1 Month Change19.45%
3 Month Change-22.94%
1 Year Change-25.69%
3 Year Change397.30%
5 Year Change335.05%
Change since IPO786.56%

Recent News & Updates

Shareholder Returns

2810CN ChemicalsCN Market
7D9.2%0.8%2.2%
1Y-25.7%-6.7%-7.7%

Return vs Industry: 002810 underperformed the CN Chemicals industry which returned -6.7% over the past year.

Return vs Market: 002810 underperformed the CN Market which returned -7.7% over the past year.

Price Volatility

Is 2810's price volatile compared to industry and market?
2810 volatility
2810 Average Weekly Movement7.8%
Chemicals Industry Average Movement6.2%
Market Average Movement6.0%
10% most volatile stocks in CN Market9.2%
10% least volatile stocks in CN Market3.8%

Stable Share Price: 002810 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 002810's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

FoundedEmployeesCEOWebsite
19921,449Yu Dong Bihttps://www.sdhead.com

Shandong Head Group Co.,Ltd. engages in the scientific research, development, production, and sale of cellulose ether in the People’s Republic of China. The company’s products include hydroxypropyl methyl cellulose, methyl cellulose, hydroxyethyl cellulose, methyl hydroxylethyl cellulose, ethyl cellulose, sodium carboxymethyl cellulose, and low substituted hydroxyl propyl cellulose.

Shandong Head GroupLtd Fundamentals Summary

How do Shandong Head GroupLtd's earnings and revenue compare to its market cap?
2810 fundamental statistics
Market CapCN¥13.28b
Earnings (TTM)CN¥369.07m
Revenue (TTM)CN¥1.72b

36.0x

P/E Ratio

7.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2810 income statement (TTM)
RevenueCN¥1.72b
Cost of RevenueCN¥1.10b
Gross ProfitCN¥617.08m
Other ExpensesCN¥248.01m
EarningsCN¥369.07m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.08
Gross Margin35.98%
Net Profit Margin21.52%
Debt/Equity Ratio31.7%

How did 2810 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2810 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

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2810?

Other financial metrics that can be useful for relative valuation.

2810 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/Revenue8x
Enterprise Value/EBITDA28.3x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 2810's PE Ratio compare to its peers?

2810 PE Ratio vs Peers
The above table shows the PE ratio for 2810 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x
002125 Xiangtan Electrochemical ScientificLtd
38.5xn/aCN¥13.6b
601678 Befar GroupLtd
8.1xn/aCN¥12.4b
002088 Luyang Energy-Saving Materials
23.4x19.2%CN¥12.5b
603938 Tangshan Sunfar Silicon IndustriesLtd
32.2x33.7%CN¥14.0b
002810 Shandong Head GroupLtd
36x33.2%CN¥13.5b

Price-To-Earnings vs Peers: 002810 is expensive based on its Price-To-Earnings Ratio (36x) compared to the peer average (25.6x).


Price to Earnings Ratio vs Industry

How does 2810's PE Ratio compare vs other companies in the CN Chemicals Industry?

Price-To-Earnings vs Industry: 002810 is expensive based on its Price-To-Earnings Ratio (36x) compared to the CN Chemicals industry average (30x)


Price to Earnings Ratio vs Fair Ratio

What is 2810'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.

2810 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36x
Fair PE Ratio26.6x

Price-To-Earnings vs Fair Ratio: 002810 is expensive based on its Price-To-Earnings Ratio (36x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).


Share Price vs Fair Value

What is the Fair Price of 2810 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002810 (CN¥38.76) is trading above our estimate of fair value (CN¥4.05)

Significantly Below Fair Value: 002810 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 more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Shandong Head GroupLtd forecast to perform in the next 1 to 3 years based on estimates from 4 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


33.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002810's forecast earnings growth (33.2% per year) is above the savings rate (3.2%).

Earnings vs Market: 002810's earnings (33.2% per year) are forecast to grow faster than the CN market (24.7% per year).

High Growth Earnings: 002810's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 002810's revenue (25.9% per year) is forecast to grow faster than the CN market (17.8% per year).

High Growth Revenue: 002810's revenue (25.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002810's Return on Equity is forecast to be high in 3 years time (27.6%)


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Past Performance

How has Shandong Head GroupLtd performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


41.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002810 has a high level of non-cash earnings.

Growing Profit Margin: 002810's current net profit margins (21.5%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: 002810's earnings have grown significantly by 41.6% per year over the past 5 years.

Accelerating Growth: 002810's earnings growth over the past year (16.5%) is below its 5-year average (41.6% per year).

Earnings vs Industry: 002810 earnings growth over the past year (16.5%) underperformed the Chemicals industry 21.9%.


Return on Equity

High ROE: 002810's Return on Equity (20.7%) is considered high.


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Financial Health

How is Shandong Head GroupLtd's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002810's short term assets (CN¥944.9M) do not cover its short term liabilities (CN¥946.9M).

Long Term Liabilities: 002810's short term assets (CN¥944.9M) exceed its long term liabilities (CN¥370.9M).


Debt to Equity History and Analysis

Debt Level: 002810's net debt to equity ratio (23.1%) is considered satisfactory.

Reducing Debt: 002810's debt to equity ratio has reduced from 45.9% to 31.7% over the past 5 years.

Debt Coverage: 002810's debt is well covered by operating cash flow (54.7%).

Interest Coverage: 002810 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Shandong Head GroupLtd 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


0.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002810's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 002810's dividend (0.26%) is low compared to the top 25% of dividend payers in the CN market (1.87%).


Stability and Growth of Payments

Stable Dividend: 002810 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 002810's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.2%), 002810's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 002810 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?

12.9yrs

Average management tenure


CEO

Yu Dong Bi (41 yo)

11.17yrs

Tenure

Mr. Yu Dong Bi has been General Manager at Shandong Head Group Co.,Ltd. (formerly known as Shandong Head Co.,Ltd.) since June 2011. Mr. Bi served as Foreign Trade Manager of Shandong Head Group Co.,Ltd.(f...


Leadership Team

Experienced Management: 002810's management team is seasoned and experienced (12.9 years average tenure).


Board Members

Experienced Board: 002810's board of directors are considered experienced (3.8 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

Shandong Head Group Co.,Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Head Group Co.,Ltd.
  • Ticker: 2810
  • Exchange: SZSE
  • Founded: 1992
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: CN¥13.278b
  • Shares outstanding: 342.58m
  • Website: https://www.sdhead.com

Number of Employees


Location

  • Shandong Head Group Co.,Ltd.
  • No. 999 Heda Road
  • Zibo
  • Shandong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/06/30
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.