DB:2XI

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Xiwang Special Steel

Executive Summary

Xiwang Special Steel Company Limited, together with its subsidiaries, manufactures and sells electric arc furnace-based special steel products in China.


Snowflake Analysis

Imperfect balance sheet with questionable track record.

Share Price & News

How has Xiwang Special Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2XI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

2XI

8.5%

DE Metals and Mining

4.4%

DE Market


1 Year Return

-73.2%

2XI

-28.0%

DE Metals and Mining

4.4%

DE Market

Return vs Industry: 2XI underperformed the German Metals and Mining industry which returned -28% over the past year.

Return vs Market: 2XI underperformed the German Market which returned 4.4% over the past year.


Shareholder returns

2XIIndustryMarket
7 Day-1.3%8.5%4.4%
30 Day-14.6%19.2%12.1%
90 Day-46.5%2.5%5.4%
1 Year-69.9%-73.2%-27.5%-28.0%6.1%4.4%
3 Year-57.3%-65.5%-58.7%-60.0%-0.6%-8.2%
5 Year-66.7%-73.1%-57.0%-59.2%10.4%-3.8%

Price Volatility Vs. Market

How volatile is Xiwang Special Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Xiwang Special Steel undervalued compared to its fair value and its price relative to the market?

49.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2XI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2XI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2XI is poor value based on its PE Ratio (50x) compared to the Metals and Mining industry average (9.3x).

PE vs Market: 2XI is poor value based on its PE Ratio (50x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2XI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2XI is good value based on its PB Ratio (0.1x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

How is Xiwang Special Steel forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Materials 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 Xiwang Special Steel 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

Past Performance

How has Xiwang Special Steel performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2XI has high quality earnings.

Growing Profit Margin: 2XI's current net profit margins (0.2%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: 2XI's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: 2XI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2XI had negative earnings growth (-98.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (-0.7%).


Return on Equity

High ROE: 2XI's Return on Equity (0.3%) is considered low.


Next Steps

Financial Health

How is Xiwang Special Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 2XI's short term assets (CN¥3.0B) do not cover its short term liabilities (CN¥6.8B).

Long Term Liabilities: 2XI's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥613.6M).


Debt to Equity History and Analysis

Debt Level: 2XI's debt to equity ratio (62.2%) is considered high.

Reducing Debt: 2XI's debt to equity ratio has reduced from 64.9% to 62.2% over the past 5 years.

Debt Coverage: 2XI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2XI's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Xiwang Special Steel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2XI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2XI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2XI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2XI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2XI is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2XI'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?

4.8yrs

Average management tenure


CEO

Jian Zhang (37yo)

4.67yrs

Tenure

CN¥448,000

Compensation

Mr. Jian Zhang has been the Chief Executive Officer and Executive Director at Xiwang Special Steel Company Limited since October 14, 2015. Mr. Zhang joined the production department of Shandong Xiwang Suga ...


CEO Compensation Analysis

Compensation vs Market: Jian's total compensation ($USD63.01K) is below average for companies of similar size in the German market ($USD417.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jian Zhang
CEO & Executive Director4.67yrsCN¥448.00kno data
Xinhu Sun
Vice GM & Executive Director9yrsCN¥294.00k0.068% CN¥77.6k
Hai Li
Deputy Finance GM of Shandong Xiwang Special Steel & Executive Director4.67yrsCN¥275.00kno data
Jianxiang Wang
Investor Relations director3.42yrsno datano data
Zhe Hu
Deputy General Manager of Sales Department6.92yrsno datano data
Chi Kit Yu
Company Secretary0.58yrno datano data

4.8yrs

Average Tenure

37yo

Average Age

Experienced Management: 2XI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jian Zhang
CEO & Executive Director4.67yrsCN¥448.00kno data
Xinhu Sun
Vice GM & Executive Director9yrsCN¥294.00k0.068% CN¥77.6k
Hai Li
Deputy Finance GM of Shandong Xiwang Special Steel & Executive Director4.67yrsCN¥275.00kno data
Shu Sun Leung
Independent Non-Executive Director8.33yrsCN¥128.00kno data
Di Wang
Chairman5.67yrsCN¥117.00k0.39% CN¥451.8k
Kou Yu
Independent Non-Executive Director8.33yrsCN¥50.00kno data
Bangguang Li
Independent Non-Executive Director4.25yrsCN¥50.00kno data

5.7yrs

Average Tenure

44yo

Average Age

Experienced Board: 2XI's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

Xiwang Special Steel Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xiwang Special Steel Company Limited
  • Ticker: 2XI
  • Exchange: DB
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$1.007b
  • Listing Market Cap: HK$114.691m
  • Shares outstanding: 2.37b
  • Website: https://www.xiwangsteel.com

Number of Employees


Location

  • Xiwang Special Steel Company Limited
  • Xiwang Industrial Area
  • Zouping County
  • Binzhou
  • Shandong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1266SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2012
2XIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2012

Biography

Xiwang Special Steel Company Limited, together with its subsidiaries, manufactures and sells electric arc furnace-based special steel products in China. The company operates through four segments: Ordinary Steel, Special Steel, Trading of Commodities, and By-Products. It produces ordinary steel products, such as rebars primarily for use in building construction and infrastructure projects; and ribbed and plain wire rods for use in making of coil, spring, electronic, and precise machinery parts. The company offers carbon structural steel products, including steel billets, bars, and wires primarily for buildings and infrastructures; alloy structural steel products for machineries; bearing steel wires and bars for manufacturing rollers or ball bearings for the automobile industry; and steel ingot. It trades in commodities, including iron ore dust, pellets, steel billets, and coke; and sells by-products, such as steel slag, steel scrap, steam, and electricity. The company was founded in 2003 and is headquartered in Binzhou, China. Xiwang Special Steel Company Limited is a subsidiary of Xiwang Investment Limited Company. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 23:21
End of Day Share Price2020/06/05 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.