DB:DM7

Stock Analysis Report

Da Ming International Holdings

Executive Summary

Da Ming International Holdings Limited processes, distributes, and sells stainless steel and carbon steel products in the People’s Republic of China and internationally.

Rewards

PE ratio (14.7x) is below the German market (21.1x)

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (0.4%) are lower than last year (0.8%)



Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Da Ming International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DM7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.9%

DM7

-0.6%

DE Metals and Mining

2.0%

DE Market


1 Year Return

-13.2%

DM7

-14.0%

DE Metals and Mining

15.1%

DE Market

Return vs Industry: DM7 exceeded the German Metals and Mining industry which returned -13.5% over the past year.

Return vs Market: DM7 underperformed the German Market which returned 15% over the past year.


Shareholder returns

DM7IndustryMarket
7 Day2.9%-0.6%2.0%
30 Day-9.2%-6.4%1.0%
90 Day-2.7%-12.1%3.8%
1 Year-10.0%-13.2%-13.1%-14.0%18.6%15.1%
3 Year-56.1%-60.1%-43.7%-45.3%16.8%6.6%
5 Year-23.4%-30.7%-40.0%-43.1%23.7%6.7%

Price Volatility Vs. Market

How volatile is Da Ming International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Da Ming International Holdings undervalued compared to its fair value and its price relative to the market?

14.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DM7 (€0.2) is trading above our estimate of fair value (€0.06)

Significantly Below Fair Value: DM7 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DM7 is poor value based on its PE Ratio (14.7x) compared to the Metals and Mining industry average (9.8x).

PE vs Market: DM7 is good value based on its PE Ratio (14.7x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DM7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DM7 is good value based on its PB Ratio (0.7x) compared to the DE Metals and Mining industry average (4.2x).


Next Steps

Future Growth

How is Da Ming International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.6%

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 Da Ming International Holdings 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 Da Ming International Holdings performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DM7 has high quality earnings.

Growing Profit Margin: DM7's current net profit margins (0.4%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: DM7's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: DM7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DM7 had negative earnings growth (-50.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-13%).


Return on Equity

High ROE: DM7's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Da Ming International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DM7's short term assets (CN¥5.9B) do not cover its short term liabilities (CN¥6.9B).

Long Term Liabilities: DM7's short term assets (CN¥5.9B) exceed its long term liabilities (CN¥979.0M).


Debt to Equity History and Analysis

Debt Level: DM7's debt to equity ratio (160.7%) is considered high.

Reducing Debt: DM7's debt to equity ratio has increased from 84.2% to 160.7% over the past 5 years.

Debt Coverage: DM7's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: DM7's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: DM7 has a high level of physical assets or inventory.

Debt Coverage by Assets: DM7's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Da Ming International Holdings's current dividend yield, its reliability and sustainability?

3.72%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.3%markettop25%3.6%industryaverage6.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: DM7's dividend (3.73%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DM7's dividend (3.73%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: DM7 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: DM7's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.3%), DM7's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.3yrs

Average board tenure


CEO

Changhong Jiang (55yo)

1.8yrs

Tenure

CN¥1,220,000

Compensation

Mr. Changhong Jiang has been Executive Director of Da Ming International Holdings Limited since September 26, 2016 and serves as its Chief Executive Officer since April 18, 2018. Mr. Jiang served as Vice P ...


CEO Compensation Analysis

Compensation vs Market: Changhong's total compensation ($USD174.76K) is below average for companies of similar size in the German market ($USD634.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Zhou Keming
Co-Founder & Chairman0yrsCN¥1.23m0.0045% CN¥10.5k
Changhong Jiang
CEO & Executive Director1.8yrsCN¥1.22m0.031% CN¥72.2k
Xiao Ping Zou
Vice Chairman1.8yrsCN¥1.17m0.41% CN¥951.4k
Xia Xu
Co-Founder & Vice-Chairman1.8yrsCN¥1.17m0.0048% CN¥11.3k
Feng Zhang
Executive Director5.3yrsCN¥1.02m0.14% CN¥317.0k
Tsutomu Fukui
Executive Director5.3yrsCN¥1.40m0.11% CN¥256.5k
Jian Wang
Executive Director2.8yrsCN¥1.42m0.11% CN¥256.5k
Ping Lu
Executive Director1.8yrsCN¥1.20m0.0027% CN¥6.4k
Wa Pang Cheuk
Independent Non-Executive Director12.9yrsCN¥257.00kno data
Min Hua
Independent Non-Executive Director12.9yrsCN¥257.00kno data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: DM7's board of directors are considered experienced (5.3 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

Company Information

Da Ming International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Da Ming International Holdings Limited
  • Ticker: DM7
  • Exchange: DB
  • Founded: 2007
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$1.967b
  • Listing Market Cap: HK$234.136m
  • Shares outstanding: 1.25b
  • Website: https://www.dmssc.net

Number of Employees


Location

  • Da Ming International Holdings Limited
  • No. 1518, Tong Jiang Road
  • Wuxi
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1090SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2010
DM7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010

Biography

Da Ming International Holdings Limited processes, distributes, and sells stainless steel and carbon steel products in the People’s Republic of China and internationally. It offers high strength steel, wear-resistant steel, regular stainless steel, duel phase steel, heat-resistant steel, nickel based alloy, super austenitic-steel, and 6mo steel. The company is also involved in the purchase and sale of metal materials; and distribution and sale of fixed assets. It serves machineries, distributors, petrochemical, home hardware and appliances, automobile and transport, construction, renewable energy, and other industries. The company was incorporated in 2007 and is headquartered in Wuxi, the People’s Republic of China. Da Ming International Holdings Limited is a subsidiary of Ally Good Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 22:07
End of Day Share Price2020/02/18 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.