DB:BGR

Stock Analysis Report

China High Speed Transmission Equipment Group

Executive Summary

China High Speed Transmission Equipment Group Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and distribution of a range of mechanical transmission equipment in the People’s Republic of China.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

How has China High Speed Transmission Equipment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.5%

BGR

-1.8%

DE Electrical

2.4%

DE Market


1 Year Return

-35.7%

BGR

35.7%

DE Electrical

2.3%

DE Market

Return vs Industry: BGR underperformed the German Electrical industry which returned 35.7% over the past year.

Return vs Market: BGR underperformed the German Market which returned 2.3% over the past year.


Shareholder returns

BGRIndustryMarket
7 Day-9.5%-1.8%2.4%
30 Day-6.6%2.6%-0.2%
90 Day-8.7%10.5%0.6%
1 Year-34.7%-35.7%37.6%35.7%5.5%2.3%
3 Year-37.3%-41.0%-29.2%-32.6%18.9%8.6%
5 Year1.3%-8.4%19.4%9.9%44.8%25.1%

Price Volatility Vs. Market

How volatile is China High Speed Transmission Equipment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China High Speed Transmission Equipment Group undervalued compared to its fair value and its price relative to the market?

23.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BGR (€0.53) is trading above our estimate of fair value (€0.13)

Significantly Undervalued: BGR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BGR is good value based on its PE Ratio (23.1x) compared to the Electrical industry average (58x).

PE vs Market: BGR is poor value based on its PE Ratio (23.1x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BGR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: BGR is good value based on its PB Ratio (0.6x) compared to the DE Electrical industry average (2x).


Next Steps

Future Growth

How is China High Speed Transmission Equipment Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BGR's forecast earnings growth (38.7% per year) is above the savings rate (0.2%).

Earnings vs Market: BGR's earnings (38.7% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: BGR's revenue (11.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: BGR's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BGR's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has China High Speed Transmission Equipment Group performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGR's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: BGR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BGR had negative earnings growth (-53.2%) over the past year, making it difficult to compare to the Electrical industry average (-10.5%).


Return on Equity

High ROE: BGR's Return on Equity (2.7%) is considered low.


Return on Assets

ROA vs Industry: BGR's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: BGR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China High Speed Transmission Equipment Group's financial position?


Financial Position Analysis

Short Term Liabilities: BGR's short term assets (CN¥16.6B) exceeds its short term liabilities (CN¥12.7B)

Long Term Liabilities: BGR's short term assets (16.6B) exceeds its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: BGR's debt to equity ratio (54.5%) is considered high

Reducing Debt: BGR's debt to equity ratio has reduced from 124.1% to 54.5% over the past 5 years.

Debt Coverage: BGR's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: BGR's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: BGR has a high level of physical assets or inventory.

Debt Coverage by Assets: BGR's debt is covered by short term assets (assets are 2.789780x debt).


Next Steps

Dividend

What is China High Speed Transmission Equipment Group's current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.9%industryaverage2.6%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BGR's dividend (1.63%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: BGR's dividend (1.63%) is low compared to the top 25% of dividend payers in the German market (3.86%).

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

Growing Dividend: BGR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), BGR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BGR's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

What is the CEO of China High Speed Transmission Equipment Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jichun Hu (40yo)

2.8yrs

Tenure

CN¥2,450,000

Compensation

Mr. Jichun Hu has been the Chief Executive Officer of China High Speed Transmission Equipment Group Co., Ltd. since December 5, 2016 and serves as Chairman since May 24, 2019. Mr. Hu has served as the Vic ...


CEO Compensation Analysis

Compensation vs. Market: Jichun's total compensation ($USD346.75K) is about average for companies of similar size in the German market ($USD1.16M).

Compensation vs Earnings: Jichun's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: BGR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

Experienced Board: BGR's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Edward Lui (56yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Zhengbing Wang (48yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.75m
  • Yongdao Chen (56yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: CN¥3.15m
  • Yueming Hu (70yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: CN¥1.00m
  • Zhijin Zhou (47yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.75m
  • Jichun Hu (40yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CN¥2.45m
  • Qing Zheng (52yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥203.00k
  • Xiaobin Gu (50yo)

    Executive Director

    • Tenure: 0.4yrs

Board Members

  • Bob Chan (56yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥203.00k
  • Zhengbing Wang (48yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.75m
  • Yongdao Chen (56yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: CN¥3.15m
  • Yueming Hu (70yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: CN¥1.00m
  • Xihe Jiang (61yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥203.00k
  • Zhijin Zhou (47yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥2.75m
  • Jianhua Jiang (54yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥203.00k
  • Jichun Hu (40yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CN¥2.45m
  • Qing Zheng (52yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥203.00k
  • Xiaobin Gu (50yo)

    Executive Director

    • Tenure: 0.4yrs

Company Information

China High Speed Transmission Equipment Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China High Speed Transmission Equipment Group Co., Ltd.
  • Ticker: BGR
  • Exchange: DB
  • Founded: 1969
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$7.604b
  • Listing Market Cap: HK$879.566m
  • Shares outstanding: 1.64b
  • Website: https://www.chste.com

Number of Employees


Location

  • China High Speed Transmission Equipment Group Co., Ltd.
  • COFCO Tower
  • 13th Floor
  • Causeway bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
658SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
CHST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
BGRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
658SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
658SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
CHST.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

China High Speed Transmission Equipment Group Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and distribution of a range of mechanical transmission eq ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 21:13
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.