DB:CHE

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China Huarong Asset Management

Executive Summary

China Huarong Asset Management Co., Ltd., together with its subsidiaries, provides various financial asset management services.


Snowflake Analysis

Good value with reasonable growth potential.

Share Price & News

How has China Huarong Asset Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

30.5%

CHE

4.2%

DE Capital Markets

3.5%

DE Market


1 Year Return

-31.1%

CHE

30.5%

DE Capital Markets

3.0%

DE Market

Return vs Industry: CHE underperformed the German Capital Markets industry which returned 30.5% over the past year.

Return vs Market: CHE underperformed the German Market which returned 3% over the past year.


Shareholder returns

CHEIndustryMarket
7 Day30.5%4.2%3.5%
30 Day23.5%5.2%-0.08%
90 Day1.1%32.0%21.0%
1 Year-29.8%-31.1%32.1%30.5%5.2%3.0%
3 Year-69.1%-72.0%0.7%-3.5%4.5%-4.0%
5 Yearn/a-22.1%-32.8%11.5%-3.2%

Price Volatility Vs. Market

How volatile is China Huarong Asset Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Huarong Asset Management undervalued compared to its fair value and its price relative to the market?

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHE (€0.09) is trading below our estimate of fair value (€0.15)

Significantly Below Fair Value: CHE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHE is poor value based on its PE Ratio (24.3x) compared to the Capital Markets industry average (22.2x).

PE vs Market: CHE is poor value based on its PE Ratio (24.3x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: CHE is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CHE is good value based on its PB Ratio (0.2x) compared to the DE Capital Markets industry average (1.9x).


Next Steps

Future Growth

How is China Huarong Asset Management forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

33.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHE's forecast earnings growth (33.3% per year) is above the savings rate (0.2%).

Earnings vs Market: CHE's earnings (33.3% per year) are forecast to grow faster than the German market (22.4% per year).

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

Revenue vs Market: CHE's revenue (10.2% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: CHE's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHE's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has China Huarong Asset Management performed over the past 5 years?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHE has a large one-off loss of CN¥19.8B impacting its December 31 2019 financial results.

Growing Profit Margin: CHE's current net profit margins (3.2%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: CHE's earnings have declined by -20.9% per year over the past 5 years.

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

Earnings vs Industry: CHE had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Capital Markets industry average (18.3%).


Return on Equity

High ROE: CHE's Return on Equity (1.4%) is considered low.


Next Steps

Financial Health

How is China Huarong Asset Management's financial position?


Financial Position Analysis

Short Term Liabilities: CHE's short term assets (CN¥996.2B) exceed its short term liabilities (CN¥646.2B).

Long Term Liabilities: CHE's short term assets (CN¥996.2B) exceed its long term liabilities (CN¥895.4B).


Debt to Equity History and Analysis

Debt Level: CHE's debt to equity ratio (707.3%) is considered high.

Reducing Debt: CHE's debt to equity ratio has increased from 392.4% to 707.3% over the past 5 years.

Debt Coverage: CHE's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: Insufficient data to determine if CHE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is China Huarong Asset Management current dividend yield, its reliability and sustainability?

1.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHE's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: CHE's dividend (1.24%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

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

Growing Dividend: CHE has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.2%), CHE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHE's dividends in 3 years are forecast to be well covered by earnings (21.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Xin Li (60yo)

1.83yrs

Tenure

CN¥700,000

Compensation

Ms. Li Xin serves as President at China Huarong Asset Management Co., Ltd since September 27, 2018 and serves as its Executive Director since June 29, 2018. She has served as the deputy party committee sec ...


CEO Compensation Analysis

Compensation vs Market: Xin's total compensation ($USD99.76K) is below average for companies of similar size in the German market ($USD3.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhanfeng Wang
Executive Chairman of the Board1.83yrsCN¥701.00kno data
Xin Li
President & Executive Director1.83yrsCN¥700.00kno data
Yonghua Li
Head of the Financial Departmentno datano datano data
Wai Fung Ngai
Joint Company Secretary5.25yrsno datano data
Yongli Xu
VP, Secretary to the Board & Joint Company Secretary0.083yrno datano data

1.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CHE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhanfeng Wang
Executive Chairman of the Board1.83yrsCN¥701.00kno data
Xin Li
President & Executive Director1.83yrsCN¥700.00kno data
Hau Yin Tse
Independent Non-Executive Director5.33yrsCN¥250.00kno data
Junmin Liu
Independent Non-Executive Director5.08yrsCN¥250.00kno data
Jianzhong Hu
Chairman of the Board of Supervisors0.33yrno datano data
Ning Zhu
Independent Non-Executive Director1.33yrsCN¥208.00kno data
Langlang Zhou
Non-Executive Director3.25yrsno datano data
Jing Chun Shao
Independent Non-Executive Director3.67yrsCN¥250.00kno data
Jiangping Zhao
Non-Executive Director0.33yrno datano data
Jiangping Zheng
Non-Executive Director0.33yrno datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: CHE's board of directors are not considered experienced ( 2 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

China Huarong Asset Management Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Huarong Asset Management Co., Ltd.
  • Ticker: CHE
  • Exchange: DB
  • Founded: 1999
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: HK$38.289b
  • Listing Market Cap: HK$4.369b
  • Shares outstanding: 39.07b
  • Website: https://www.chamc.com.cn

Number of Employees


Location

  • China Huarong Asset Management Co., Ltd.
  • No. 8 Financial Street
  • Xicheng District
  • Beijing
  • Beijing Province
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2799SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2015
CHEDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2015
2799SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2015
2799SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2015

Biography

China Huarong Asset Management Co., Ltd., together with its subsidiaries, provides various financial asset management services. It operates through three segments: Distressed Asset Management, Financial Services, and Asset Management and Investment. The company manages, invests in, and disposes financial and non-financial institution distressed assets, including debt-to-equity swap assets. It is also involved in bankruptcy management, and investment and securities dealing activities; provision of financial bonds issuance, inter-bank borrowing and lending, and commercial financing for other financial institutions; asset securitization, financial institutions custody, and closing and liquidation of businesses; consulting and advisory business on finance, investment, legal, and risk management activities; and assets and project evaluation businesses. In addition, the company offers lending services to corporates and individuals, as well as clearing and settlement, financial leasing, securities and futures, fund management and asset management, trust, real estate and industrial investments, and other services, as well as accepts deposits from customers. Further, it provides leasing, futures broking, wealth management, and investment banking services, as well as personal consumption loan. The company operates 31 branches in 30 provinces, autonomous regions, and municipalities in Mainland China, and Hong Kong and Macau. China Huarong Asset Management Co., Ltd. was founded in 1999 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 21:16
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
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.