MUN:WNZ7

Stock Analysis Report

China Ocean Industry Group

Executive Summary

China Ocean Industry Group Limited, an investment holding company, engages in shipbuilding business in the People’s Republic of China, Germany, Hong Kong, and Northern Europe.


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has China Ocean Industry Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WNZ7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

WNZ7

0.8%

DE Machinery

2.0%

DE Market


1 Year Return

-26.7%

WNZ7

-9.3%

DE Machinery

15.1%

DE Market

Return vs Industry: WNZ7 underperformed the German Machinery industry which returned -2.6% over the past year.

Return vs Market: WNZ7 underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

WNZ7IndustryMarket
7 Day0%0.8%2.0%
30 Day0%-1.8%1.0%
90 Day0%-0.03%3.8%
1 Year-26.7%-26.7%-6.4%-9.3%18.6%15.1%
3 Year-91.2%-91.2%-17.1%-23.1%16.8%6.6%
5 Year-92.7%-92.7%1.5%-10.0%23.7%6.7%

Price Volatility Vs. Market

How volatile is China Ocean Industry 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 Ocean Industry Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether China Ocean Industry Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as China Ocean Industry Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of WNZ7’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through China Ocean Industry Group regulatory filings.
  • Explore potentially undervalued companies in the Capital Goods industry.

Future Growth

How is China Ocean Industry Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Ocean Industry Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of WNZ7’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • China Ocean Industry Group competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Capital Goods industry.

Past Performance

How has China Ocean Industry Group performed over the past 5 years?

-22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WNZ7 is currently unprofitable.

Growing Profit Margin: WNZ7 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WNZ7 is unprofitable, and losses have increased over the past 5 years at a rate of -22.9% per year.

Accelerating Growth: Unable to compare WNZ7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WNZ7 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-13.7%).


Return on Equity

High ROE: WNZ7's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Ocean Industry Group's financial position?


Financial Position Analysis

Short Term Liabilities: WNZ7 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: WNZ7 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: WNZ7 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: WNZ7's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: WNZ7 has a high level of physical assets or inventory.

Debt Coverage by Assets: WNZ7 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WNZ7 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: WNZ7 has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.4% each year.


Next Steps

Dividend

What is China Ocean Industry Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WNZ7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WNZ7's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WNZ7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WNZ7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WNZ7's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

10.3yrs

Average board tenure


CEO

Shi Hong Zhang (50yo)

4.2yrs

Tenure

HK$1,200,000

Compensation

Mr. Shi Hong Zhang serves as the Chief Executive Officer of China Ocean Industry Group Limited since September 22, 2015. Mr. Zhang serves as General Manager of Sirius China at Sirius Machinery AB. Mr. Zhan ...


CEO Compensation Analysis

Compensation vs Market: Shi Hong's total compensation ($USD153.36K) is below average for companies of similar size in the German market ($USD425.50K).

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


Board Members

NamePositionTenureCompensationOwnership
Ming Li
Chairman4.4yrsHK$1.45m13.13% HK$420.3k
Shi Hong Zhang
CEO & Executive Director4.2yrsHK$1.20m0.36% HK$11.5k
Weibing Zhang
Executive Director2yrsHK$1.20m0.22% HK$7.0k
On Ta Chau
Honorary Chairman4.4yrsHK$1.43mno data
Bai He Hu
Independent & Non-Executive Director11.5yrsHK$100.00kno data
Siying Xiang
Independent Non-Executive Director11.5yrsHK$100.00kno data
Ying Xiang
Independent Non-Executive Director10.3yrsHK$100.00kno data

10.3yrs

Average Tenure

56yo

Average Age

Experienced Board: WNZ7's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WNZ7 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Ocean Industry Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Ocean Industry Group Limited
  • Ticker: WNZ7
  • Exchange: MUN
  • Founded:
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$27.615m
  • Listing Market Cap: HK$3.200m
  • Shares outstanding: 340.92m
  • Website: https://null

Number of Employees


Location

  • China Ocean Industry Group Limited
  • West Tower
  • Unit 2107, 21st Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
651SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1998
WNZ7MUN (Boerse Muenchen)YesOrdinary SharesDEEURJul 1998
2957SEHK (The Stock Exchange of Hong Kong Ltd.)Hkd0.04 (parallel 02/12/19)HKHKDOct 2019

Biography

China Ocean Industry Group Limited, an investment holding company, engages in shipbuilding business in the People’s Republic of China, Germany, Hong Kong, and Northern Europe. It operates through Shipbuilding Business, Trading Business, Finance Leasing Business, Intelligent Car Parking and Automotive Device Business, and Steel Structure Engineering and Installation segments. The company provides shipbuilding services; designs, manufactures, installs, and sells car parking equipment; invests in, operates, and manages car parks; and designs and manufactures electronic automotive devices. It is also involved in the trading of electronic appliances; and manufactures and sells steel structures and fittings for ship, marine equipment, mining equipment, ro-ro equipment, ship, bridge, and building steel structures. In addition, it manufactures and sells metal vessels and vessel ancillary products, as well as reparation of vessels; manufactures metal structures and components; imports and exports electronic devices; and acts as a sale agent for shipbuilding. Further, the company offers financial leasing services; acquisition and sale, and leaseback of fixed assets; and advisory and business factoring services, as well as develops new energy technologies and energy conservation facilities. Additionally, it operates Internet of vehicles; and provides software and information technology, and consulting and advisory services; and provision of pretreatment and painting services of steel plates. The company was formerly known as China Ocean Shipbuilding Industry Group Limited and changed its name to China Ocean Industry Group Limited in March 2016. China Ocean Industry Group Limited is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/24 20:55
End of Day Share Price2019/08/27 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.