SEHK:1148

Stock Analysis Report

Xinchen China Power Holdings

Executive Summary

Xinchen China Power Holdings Limited, through its subsidiaries, develops, manufactures, and sells automotive engines for passenger and light duty commercial vehicles in the People’s Republic of China.

Snowflake

Fundamentals

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Xinchen China Power Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1148 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.6%

1148

-3.1%

HK Auto Components

-4.2%

HK Market


1 Year Return

-42.5%

1148

-10.2%

HK Auto Components

-2.6%

HK Market

Return vs Industry: 1148 underperformed the Hong Kong Auto Components industry which returned -10.2% over the past year.

Return vs Market: 1148 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

1148IndustryMarket
7 Day-7.6%-3.1%-4.2%
30 Day-1.6%4.6%-0.9%
90 Day0%12.9%1.7%
1 Year-42.5%-42.5%-7.1%-10.2%0.9%-2.6%
3 Year-76.5%-76.5%-8.6%-15.0%19.6%7.6%
5 Year-91.9%-91.9%43.5%27.5%18.6%-1.0%

Price Volatility Vs. Market

How volatile is Xinchen China Power Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Xinchen China Power Holdings undervalued compared to its fair value and its price relative to the market?

0.12x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1148's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1148's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1148 is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: 1148 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1148's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1148 is good value based on its PB Ratio (0.1x) compared to the HK Auto Components industry average (0.9x).


Next Steps

Future Growth

How is Xinchen China Power Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

92.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1148 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: 1148 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1148's is expected to become profitable in the next 3 years.

Revenue vs Market: 1148's revenue (34.8% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1148's revenue (34.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1148's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Xinchen China Power Holdings performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1148 has large one-off items impacting its financial results.

Growing Profit Margin: 1148's current net profit margins (-0.6%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 1148 is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare 1148's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1148 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-0.7%).


Return on Equity

High ROE: 1148 has a negative Return on Equity (-0.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Xinchen China Power Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1148's short term assets (CN¥3.0B) exceeds its short term liabilities (CN¥2.4B)

Long Term Liabilities: 1148's short term assets (CN¥3.0B) exceeds its long term liabilities (985.8M)


Debt to Equity History and Analysis

Debt Level: 1148's debt to equity ratio (59.6%) is considered high.

Reducing Debt: 1148's debt to equity ratio has increased from 30% to 59.6% over the past 5 years.

Debt Coverage: 1148's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1148 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 1148 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1148's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Xinchen China Power Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage4.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1148's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1148'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 1148's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1148'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 1148's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Xinchen China Power Holdings's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average board tenure


CEO

Yunxian Wang (64yo)

0yrs

Tenure

CN¥2,654,000

Compensation

Mr. Yunxian Wang serves as the Chief Executive Officer of Xinchen China Power Holdings Limited at XCE Mianyang Xinchen Engine Co., Ltd. Mr. Wang is primarily responsible for the business operation of Xinch ...


CEO Compensation Analysis

Compensation vs Market: Yunxian's total compensation ($USD378.72K) is above average for companies of similar size in the Hong Kong market ($USD216.22K).

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


Board Age and Tenure

7.6yrs

Average Tenure

57yo

Average Age

Experienced Board: 1148's board of directors are considered experienced (7.6 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.


Recent Insider Transactions

SellCN¥1,262,46622 Feb 19
Franklin Resources, Inc.
EntityCompany
Shares2,921,000
Max PriceCN¥0.43
SellCN¥463,86225 Dec 18
Franklin Resources, Inc.
EntityCompany
Shares1,054,000
Max PriceCN¥0.44

Ownership Breakdown

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


Management Team

  • Xiao An Wu (57yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥3.33m
  • Yunxian Wang (64yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.65m
  • Ka Ngai (36yo)

    Company Secretary

    • Tenure: 4.7yrs
  • Fai Ng Yiu (44yo)

    Senior Vice President

    • Tenure: 0yrs
  • Wan Xing (44yo)

    Chief Financial Officer

    • Tenure: 1.4yrs

Board Members

  • Xiao An Wu (57yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥3.33m
  • Songlin Wang (67yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥212.00k
  • Yunxian Wang (64yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.65m
  • Guohua Chi (44yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: CN¥212.00k
  • Jun Wang (57yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥212.00k
  • Haibo Huang (64yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: CN¥212.00k
  • Tongfu Liu (54yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Ming Yang (51yo)

    Non-Executive Director

    • Tenure: 3yrs

Company Information

Xinchen China Power Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xinchen China Power Holdings Limited
  • Ticker: 1148
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$391.075m
  • Shares outstanding: 1.28b
  • Website: https://www.xinchenpower.com

Number of Employees


Location

  • Xinchen China Power Holdings Limited
  • Chater House
  • Suites 1602-05
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1148SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2013
4XIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2013

Biography

Xinchen China Power Holdings Limited, through its subsidiaries, develops, manufactures, and sells automotive engines for passenger and light duty commercial vehicles in the People’s Republic of China. It o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:56
End of Day Share Price2019/11/15 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.