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2056

Hengdian Group DMEGC Magnetics Ltd SZSE:002056 Stock Report

Last Price

CN¥21.36

Market Cap

CN¥34.5b

7D

9.1%

1Y

55.5%

Updated

25 Sep, 2022

Data

Company Financials +
2056 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends3/6

2056 Stock Overview

Hengdian Group DMEGC Magnetics Co., Ltd manufactures and sells hard ferrite magnets and ferrite cores in China, the European Union, the United States, Japan, South America, Southeast Asia, and internationally.

Hengdian Group DMEGC Magnetics Ltd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hengdian Group DMEGC Magnetics Ltd
Historical stock prices
Current Share PriceCN¥21.36
52 Week HighCN¥28.00
52 Week LowCN¥12.51
Beta-0.0090
1 Month Change-3.35%
3 Month Change-13.17%
1 Year Change55.46%
3 Year Change207.34%
5 Year Change96.32%
Change since IPO957.43%

Recent News & Updates

Shareholder Returns

2056CN ElectronicCN Market
7D9.1%-3.3%-1.9%
1Y55.5%-25.7%-18.6%

Return vs Industry: 002056 exceeded the CN Electronic industry which returned -25.7% over the past year.

Return vs Market: 002056 exceeded the CN Market which returned -18.6% over the past year.

Price Volatility

Is 2056's price volatile compared to industry and market?
2056 volatility
2056 Average Weekly Movement9.3%
Electronic Industry Average Movement6.6%
Market Average Movement5.8%
10% most volatile stocks in CN Market9.3%
10% least volatile stocks in CN Market3.7%

Stable Share Price: 002056 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 002056's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

FoundedEmployeesCEOWebsite
198015,269Hailiang Renhttps://www.chinadmegc.com

Hengdian Group DMEGC Magnetics Co., Ltd manufactures and sells hard ferrite magnets and ferrite cores in China, the European Union, the United States, Japan, South America, Southeast Asia, and internationally. It offers ferrite magnet products, including ring, segment, microwave oven, square, and isotropic magnets; ferrite cores comprising Mn-Zn ferrite power, Ni-Zn ferrite, Mn-Zn high permeability ferrite, iron powder, and magnetic powder cores; and NdFeB magnets, such as bonded square, segment, and ring magnets. The company also provides motor housing and assembly products consisting of seamless steel tube cutting, rolling steel, and deep drawn motor housings; sintered powder for hard ferrite magnet and bonded powder for hard ferrite; solar cells and modules; and alkaline Zn-Mn dry batteries.

Hengdian Group DMEGC Magnetics Ltd Fundamentals Summary

How do Hengdian Group DMEGC Magnetics Ltd's earnings and revenue compare to its market cap?
2056 fundamental statistics
Market CapCN¥34.51b
Earnings (TTM)CN¥1.37b
Revenue (TTM)CN¥16.29b

25.2x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2056 income statement (TTM)
RevenueCN¥16.29b
Cost of RevenueCN¥13.58b
Gross ProfitCN¥2.71b
Other ExpensesCN¥1.33b
EarningsCN¥1.37b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.85
Gross Margin16.61%
Net Profit Margin8.42%
Debt/Equity Ratio31.8%

How did 2056 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

29%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2056 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 2056?

Other financial metrics that can be useful for relative valuation.

2056 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/Revenue2x
Enterprise Value/EBITDA19.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 2056's PE Ratio compare to its peers?

2056 PE Ratio vs Peers
The above table shows the PE ratio for 2056 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.9x
603267 Beijing Yuanliu Hongyuan Electronic Technology
34.9x27.8%CN¥29.9b
600563 Xiamen Faratronic
42x20.3%CN¥37.8b
300408 Chaozhou Three-Circle (Group)Ltd
25.6x28.5%CN¥47.9b
600183 Shengyi TechnologyLtd
13.3x18.9%CN¥31.2b
002056 Hengdian Group DMEGC Magnetics Ltd
25.2xn/aCN¥34.5b

Price-To-Earnings vs Peers: 002056 is good value based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (28.9x).


Price to Earnings Ratio vs Industry

How does 2056's PE Ratio compare vs other companies in the CN Electronic Industry?

Price-To-Earnings vs Industry: 002056 is good value based on its Price-To-Earnings Ratio (25.2x) compared to the CN Electronic industry average (31.6x)


Price to Earnings Ratio vs Fair Ratio

What is 2056'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.

2056 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 002056's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2056 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002056 (CN¥21.36) is trading above our estimate of fair value (CN¥4.15)

Significantly Below Fair Value: 002056 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: Insufficient data to show price forecast.


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Future Growth

How is Hengdian Group DMEGC Magnetics Ltd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 002056's forecast earnings growth is above the savings rate (3.2%).

Earnings vs Market: Insufficient data to determine if 002056's earnings are forecast to grow faster than the CN market

High Growth Earnings: Insufficient data to determine if 002056's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 002056's revenue (24.7% per year) is forecast to grow faster than the CN market (18.2% per year).

High Growth Revenue: 002056's revenue (24.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002056's Return on Equity is forecast to be high in 3 years time (21.2%)


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Past Performance

How has Hengdian Group DMEGC Magnetics Ltd 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


18.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002056 has a high level of non-cash earnings.

Growing Profit Margin: 002056's current net profit margins (8.4%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 002056's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: 002056's earnings growth over the past year (12.8%) is below its 5-year average (18.9% per year).

Earnings vs Industry: 002056 earnings growth over the past year (12.8%) exceeded the Electronic industry 2.2%.


Return on Equity

High ROE: 002056's Return on Equity (19.6%) is considered low.


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Financial Health

How is Hengdian Group DMEGC Magnetics Ltd'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: 002056's short term assets (CN¥10.8B) exceed its short term liabilities (CN¥8.6B).

Long Term Liabilities: 002056's short term assets (CN¥10.8B) exceed its long term liabilities (CN¥202.6M).


Debt to Equity History and Analysis

Debt Level: 002056 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 002056's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 002056's debt is well covered by operating cash flow (80.1%).

Interest Coverage: 002056 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Hengdian Group DMEGC Magnetics Ltd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.13%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002056's dividend (1.13%) is higher than the bottom 25% of dividend payers in the CN market (0.52%).

High Dividend: 002056's dividend (1.13%) is low compared to the top 25% of dividend payers in the CN market (2.1%).


Stability and Growth of Payments

Stable Dividend: 002056's dividend payments have been volatile in the past 10 years.

Growing Dividend: 002056's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.8%), 002056's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (104.4%), 002056's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

5.4yrs

Average board tenure


CEO

Hailiang Ren (46 yo)

no data

Tenure

CN¥1,492,100

Compensation

Mr. Hailiang Ren serves as Non-Independent Director at Hengdian Group DMEGC Magnetics Co.,Ltd since April 2, 2020 and serves as its General Manager. Mr. Ren served as Vice General Manager of Import & Expor...


Board Members

Experienced Board: 002056's board of directors are considered experienced (5.4 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

Top 25 shareholders own 59.98% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
50.94%
Hengdian Association of economic enterprises
823,000,000CN¥17.6b0%no data
1.72%
Shijin He
27,846,265CN¥594.8m0%no data
1.43%
Hengdian Group Dmegc Magnetics Co.,Ltd, ESOP
23,027,527CN¥491.9m-2.53%no data
1.24%
Central Huijin Asset Management Ltd.
19,956,800CN¥426.3m0%0.14%
1.21%
Wen Gan Zheng
19,584,070CN¥418.3m-15.04%no data
0.7%
Invesco Great Wall Fund Management Co. Ltd
11,321,567CN¥241.8m0%0.17%
0.57%
Qinhuangdao Hongxing Iron & Steel Co., Ltd.
9,254,100CN¥197.7m0.51%no data
0.52%
National Council for Social Security Fund
8,350,547CN¥178.4m0%0.03%
0.45%
Fullgoal Fund Management Co., Ltd.
7,348,100CN¥157.0m0%0.07%
0.26%
E Fund Management Co., Ltd.
4,241,187CN¥90.6m-46.36%0.02%
0.25%
Harvest Fund Management Co., Ltd.
4,050,842CN¥86.5m0%0.04%
0.13%
Hailiang Ren
2,090,000CN¥44.6m4.5%no data
0.098%
China Asset Management Co., Ltd.
1,588,800CN¥33.9m0%0.01%
0.067%
Dimensional Fund Advisors LP
1,086,064CN¥23.2m-13.36%no data
0.056%
Hua An Fund Management Co., Ltd.
911,100CN¥19.5m0%0.01%
0.051%
First State Cinda Fund Management Co. Ltd.
816,535CN¥17.4m0%0.04%
0.045%
CCB Principal Asset Management Co., Ltd.
734,078CN¥15.7m0%0.04%
0.042%
Yinhua Fund Management Co. Ltd.
686,000CN¥14.7m0%0.01%
0.036%
Mirae Asset Global Investments Co., Ltd
577,800CN¥12.3m0%no data
0.032%
Peng Yang Fund Management Co., Ltd.
519,200CN¥11.1m0%0.07%
0.03%
China Merchants Fund Management Co.,Ltd.
479,595CN¥10.2m0%0.01%
0.027%
China Universal Asset Management Company Ltd.
437,200CN¥9.3m0%no data
0.023%
Morgan Stanley Huaxin Fund Management Co. Ltd.
374,700CN¥8.0m0%0.13%
0.023%
Manulife Teda Fund Management Co., Ltd.
369,500CN¥7.9m0%0.06%
0.021%
HFT Investment Management Co., Ltd.
335,200CN¥7.2m0%0.02%

Company Information

Hengdian Group DMEGC Magnetics Co. ,Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Hengdian Group DMEGC Magnetics Co. ,Ltd
  • Ticker: 2056
  • Exchange: SZSE
  • Founded: 1980
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: CN¥34.509b
  • Shares outstanding: 1.62b
  • Website: https://www.chinadmegc.com

Number of Employees


Location

  • Hengdian Group DMEGC Magnetics Co. ,Ltd
  • Hengdian Industrial Zone
  • Dongyang
  • Zhejiang Province
  • 322118
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2056SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYAug 2006
2056XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 2006

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 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.