Yadea Group Holdings

SEHK:1585

Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

1585

SEHK

HK$8B

Market Cap

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Last updated 2019/04/18 13:04

Company description

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1585 Share Price and Events

7 Day Returns

2.6%

SEHK:1585

5.6%

HK Auto

-0.2%

HK Market

1 Year Returns

5.4%

SEHK:1585

-6.5%

HK Auto

-3.9%

HK Market

1585 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Yadea Group Holdings (1585)	2.6%	-4.2%	-5.9%	5.4%	-	-
HK Auto	5.6%	19.9%	34.4%	-6.5%	43%	18.5%
HK Market	-0.2%	1.9%	13%	-3.9%	28.2%	20.5%

1 Year Return vs Industry and Market

1585 outperformed the Auto industry which returned -6.5% over the past year.
1585 outperformed the Market in Hong Kong which returned -3.9% over the past year.

Price Volatility

1585

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for Yadea Group Holdings's competitors could be found in our database.

1585 Value

Is Yadea Group Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Yadea Group Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Yadea Group Holdings.

SEHK:1585 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Extrapolated from most recent financials.	See below
Discount Rate (Cost of Equity)	See below	6.8%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1585
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Auto Unlevered Beta	Simply Wall St/ S&P Global	0.57
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.575 (1 + (1- 25%) (0%))	0.715
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.8
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.8 * 5.96%)	6.77%

Discounted Cash Flow Calculation for SEHK:1585 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Yadea Group Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1585 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 6.77%)
2019	936.60	Est @ 5.81%	877.21
2020	980.34	Est @ 4.67%	859.94
2021	1,018.27	Est @ 3.87%	836.58
2022	1,051.98	Est @ 3.31%	809.45
2023	1,082.67	Est @ 2.92%	780.24
2024	1,111.29	Est @ 2.64%	750.08
2025	1,138.53	Est @ 2.45%	719.73
2026	1,164.90	Est @ 2.32%	689.71
2027	1,190.79	Est @ 2.22%	660.32
2028	1,216.48	Est @ 2.16%	631.79
Present value of next 10 years cash flows			CN¥7,615.05

SEHK:1585 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CN¥1,216.48 × (1 + 2%) ÷ (6.77% – 2%)	CN¥26,024.39
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥26,024.39 ÷ (1 + 6.77%)¹⁰	CN¥13,515.98

SEHK:1585 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥7,615.05 + CN¥13,515.98	CN¥21,131.02
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥21,131.02 / 3,000.00	CN¥7.04

SEHK:1585 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:1585)	1.173
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥7.04 x 1.173	HK$8.26
Value per share (HKD)	From above.	HK$8.26
Current discount	Discount to share price of HK$2.72 = -1 x (HK$2.72 - HK$8.26) / HK$8.26	67.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Yadea Group Holdings is available for.

^>50%

Share price is HK$2.72 vs Future cash flow value of HK$8.26

Current Discount Checks

For Yadea Group Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Yadea Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Yadea Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Yadea Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Yadea Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:1585 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥0.14
SEHK:1585 Share Price **	SEHK (2019-04-18) in HKD	HK$2.72
SEHK:1585 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.853	CN¥2.32
Hong Kong Auto Industry PE Ratio	Median Figure of 10 Publicly-Listed Auto Companies	10.9x
Hong Kong Market PE Ratio	Median Figure of 1,475 Publicly-Listed Companies	11.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Yadea Group Holdings.

SEHK:1585 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:1585 Share Price ÷ EPS (both in CNY) = 2.32 ÷ 0.14	16.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Yadea Group Holdings is overvalued based on earnings compared to the HK Auto industry average.
Yadea Group Holdings is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Yadea Group Holdings's expected growth come at a high price?

Raw Data

SEHK:1585 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	16.14x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	3.5%per year
Hong Kong Auto Industry PEG Ratio	Median Figure of 7 Publicly-Listed Auto Companies	1.21x
Hong Kong Market PEG Ratio	Median Figure of 463 Publicly-Listed Companies	0.87x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for Yadea Group Holdings, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Yadea Group Holdings's assets?

Raw Data

SEHK:1585 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥0.94
SEHK:1585 Share Price *	SEHK (2019-04-18) in HKD	HK$2.72
SEHK:1585 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.853	CN¥2.32
Hong Kong Auto Industry PB Ratio	Median Figure of 14 Publicly-Listed Auto Companies	1.12x
Hong Kong Market PB Ratio	Median Figure of 2,150 Publicly-Listed Companies	1.03x

SEHK:1585 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:1585 Share Price ÷ Book Value per Share (both in CNY) = 2.32 ÷ 0.94	2.47x

* Primary Listing of Yadea Group Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Yadea Group Holdings is overvalued based on assets compared to the HK Auto industry average.

Value checks

We assess Yadea Group Holdings's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

1585 Future Performance

How is Yadea Group Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

No analysts cover Yadea Group Holdings, future earnings growth has been estimated based on fundamentals.

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

3.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Yadea Group Holdings expected to grow at an attractive rate?

Yadea Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

Yadea Group Holdings's earnings growth is positive but not above the Hong Kong market average.
Unable to compare Yadea Group Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Annual Growth Rates Comparison

Raw Data

SEHK:1585 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:1585 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts	3.5%
Hong Kong Auto Industry Earnings Growth Rate	Market Cap Weighted Average	10.1%
Hong Kong Auto Industry Revenue Growth Rate	Market Cap Weighted Average	7.4%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.7%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	11.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:1585 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1585 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts

SEHK:1585 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	9,917		431
2018-09-30	9,548		429
2018-06-30	9,179	322	428
2018-03-31	8,515	713	416
2017-12-31	7,850	1,104	405
2017-09-30	7,415	958	414
2017-06-30	6,979	812	424
2017-03-31	6,821	782	427
2016-12-31	6,662	752	430
2016-09-30	6,638	705	420
2016-06-30	6,614	658	409
2016-03-31	6,522	726	392

*GAAP earnings excluding extraordinary items.

High Growth Checks

Yadea Group Holdings's earnings are expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Yadea Group Holdings is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:1585 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below

All data from Yadea Group Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1585 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts

SEHK:1585 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	0.14
2018-09-30	0.14
2018-06-30	0.14
2018-03-31	0.14
2017-12-31	0.13
2017-09-30	0.14
2017-06-30	0.14
2017-03-31	0.15
2016-12-31	0.16
2016-09-30	0.17
2016-06-30	0.19
2016-03-31	0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Unable to establish if Yadea Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Future performance checks

We assess Yadea Group Holdings's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Yadea Group Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1585 Past Performance

How has Yadea Group Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Yadea Group Holdings's growth in the last year to its industry (Auto).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Yadea Group Holdings's year on year earnings growth rate has been positive over the past 5 years.
Yadea Group Holdings's 1-year earnings growth is less than its 5-year average (6.5% vs 12.1%)
Yadea Group Holdings's earnings growth has exceeded the HK Auto industry average in the past year (6.5% vs 2.3%).

Earnings and Revenue History

Yadea Group Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Yadea Group Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1585 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses	R&D Expenses
2018-12-31	9,916.65	431.04	999.00	305.45
2018-09-30	9,547.73	429.48	946.41	243.02
2018-06-30	9,178.81	427.92	838.74	235.68
2018-03-31	8,514.62	416.31	763.40	209.14
2017-12-31	7,850.44	404.70	688.05	182.61
2017-09-30	7,414.67	414.46	663.70	172.94
2017-06-30	6,978.91	424.22	584.26	218.36
2017-03-31	6,820.52	427.17	650.07	190.81
2016-12-31	6,662.14	430.13	715.89	163.27
2016-09-30	6,638.06	419.63	806.59	81.63
2016-06-30	6,613.98	409.12	897.29
2016-03-31	6,521.59	392.30	854.68
2015-12-31	6,429.19	375.47	812.07
2014-12-31	5,824.14	223.46	744.01
2013-12-31	5,059.20	174.07	468.03

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Yadea Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Yadea Group Holdings used its assets more efficiently than the HK Auto industry average last year based on Return on Assets.
Yadea Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess Yadea Group Holdings's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Yadea Group Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1585 Health

How is Yadea Group Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Yadea Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Yadea Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Yadea Group Holdings has no long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Yadea Group Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

Low level of unsold assets.
Yadea Group Holdings has no debt, it does not need to be covered by short term assets.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Yadea Group Holdings Company Filings, last reported 3 months ago.

SEHK:1585 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	2,819.72	0.00	4,019.90
2018-09-30	2,819.72	0.00	4,019.90
2018-06-30	2,576.61	66.21	3,035.36
2018-03-31	2,576.61	66.21	3,035.36
2017-12-31	2,477.10	0.00	2,677.49
2017-09-30	2,477.10	0.00	2,677.49
2017-06-30	2,263.90	0.00	2,695.65
2017-03-31	2,263.90	0.00	2,695.65
2016-12-31	2,220.57	0.00	2,779.66
2016-09-30	2,220.57	0.00	2,779.66
2016-06-30	1,927.03	13.26	2,402.82
2016-03-31	1,927.03	13.26	2,402.82
2015-12-31	781.84	13.00	1,012.55
2014-12-31	516.57	0.00	997.52
2013-12-31	627.25	59.00	624.13

Yadea Group Holdings has no debt.
Yadea Group Holdings has no debt compared to 5 years ago when it was 9.4%.
Yadea Group Holdings has no debt, it does not need to be covered by operating cash flow.
Yadea Group Holdings has no debt, therefore coverage of interest payments is not a concern.

Show me more healthy companies in the Auto industry

Financial health checks

We assess Yadea Group Holdings's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

1585 Dividends

What is Yadea Group Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.47%

Current annual income from Yadea Group Holdings dividends.

If you bought HK$2,000 of Yadea Group Holdings shares you are expected to receive HK$29 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Yadea Group Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (1.95%).
Yadea Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.27%).

Upcoming dividend payment

Purchase Yadea Group Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:1585 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 0 Analyst Estimates (S&P Global)	See Below
Hong Kong Auto Industry Average Dividend Yield	Market Cap Weighted Average of 9 Stocks	2.7%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 965 Stocks	3.4%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.1%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	1.9%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1585 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts

SEHK:1585 Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2019-03-29	0.034	1.472
2018-04-27	0.032	1.443
2018-03-22	0.032	1.543
2017-06-06	0.032	1.723

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Whilst dividend payments have been stable, Yadea Group Holdings has been paying a dividend for less than 10 years.
Dividend payments have increased, but Yadea Group Holdings only paid a dividend in the past 2 years.

Current Payout to shareholders

What portion of Yadea Group Holdings's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (4.1x coverage).

Future Payout to shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.

Income/ dividend checks

We assess Yadea Group Holdings's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Yadea Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

1585 Management

What is the CEO of Yadea Group Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Yeming Liu

COMPENSATION	CN¥1,313,000
AGE	47

CEO Bio

Mr. Yeming Liu serves as President of Yadea Group Holdings Ltd. and has been its Executive Director since December 10, 2014. Mr. Liu is responsible for the overall strategic planning and general management, as well as the external affairs of Yadea Group Holdings. He served as Deputy General Manager of CPMC Holdings Limited. Mr. Liu is in charge of the steel barrel business, environmental protection and production safety. Mr. Liu joined CPMC Group in March 2008. He has over seven years of management experience in the steel barrel business. Since March 2008, he served as a Deputy General Manager of Hangzhou CPMC. Mr. Liu held various positions including Deputy General Manager of the oils and fats division of COFCO Group from January 2004 to March 2008, Deputy General Manager of East Ocean from June 2002 to January 2004, Deputy General Manager of Ceroilfood (New York), Inc. Co., Ltd. from May 2000 to June 2002 and Business Clerk of COFCO Trading Development Co., Ltd. and Business Clerk & Deputygeneral Manager of Jiali Trading Co., Ltd. from August 1992 to May 2000. He had held various positions in COFCO Corporation (formerly known as China Cereals, Oils and Foodstuffs Import and Export Corporation). He served as Deputy General Manager of COFCO (New York) Co., Ltd., and deputy general manager of the oil division of COFCO Corporation. Mr. Liu received an associate's degree in International Trade from Beijing University of Technology in 1992. Mr. Liu graduated from Jiangnan University with a doctoral degree in Food Commerce and Culture in December 2011.

CEO Compensation

Yeming's compensation has increased by more than 20% in the past year.
Yeming's remuneration is lower than average for companies of similar size in Hong Kong.

Management Team Tenure

Average tenure and age of the Yadea Group Holdings management team in years:

4.5

Average Tenure

Average Age

The tenure for the Yadea Group Holdings management team is about average.

4.5 yrs

Weijia Qian

TITLE

General Counsel

Bo Xue

TITLE

Chief Officer of Products

AGE

43

TENURE

6 yrs

Shifu We

TITLE

Deputy Chief Engineer

Yuk Ling Lam

TITLE

Joint Company Secretary

TENURE

0.7 yrs

Board of Directors Tenure

Average tenure and age of the Yadea Group Holdings board of directors in years:

4.3

Average Tenure

Average Age

The tenure for the Yadea Group Holdings board of directors is about average.

Board of Directors

Jinggui Dong

TITLE

Chairman of the Board

COMPENSATION

CN¥729K

AGE

48

Yeming Liu

TITLE

President & Executive Director

COMPENSATION

CN¥1M

AGE

47

TENURE

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (HK$)	Value (HK$)

Management checks

We assess Yadea Group Holdings's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1585 News

Simply Wall St News

Why Yadea Group Holdings Ltd. (HKG:1585) Looks Like A Quality Company

Yadea Group Holdings has a ROE of 15%, based on the last twelve months. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 2 weeks ago – Full article

If You Had Bought Yadea Group Holdings Shares A Year Ago You'd Have Made 12%

(HKG:1585) share price is 12% higher than it was a year ago, much better than the market return of around -5.6% (not including dividends) in the same period. … Yadea Group Holdings was able to grow EPS by 0.9% in the last twelve months. … Dive deeper into the earnings by checking this interactive graph of Yadea Group Holdings's earnings, revenue and cash flow.

Simply Wall St - 1 month ago – Full article

Should We Worry About Yadea Group Holdings Ltd.'s (HKG:1585) P/E Ratio?

Yadea Group Holdings has a price to earnings ratio of 18.37, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 18.37 = CN¥2.62 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.14

Simply Wall St - 2 months ago – Full article

Should Yadea Group Holdings Ltd. (HKG:1585) Be Part Of Your Income Portfolio?

Yadea Group Holdings Ltd. … Does Yadea Group Holdings tick all the boxes of a great dividend stock? … Check out our latest analysis for Yadea Group Holdings?

Simply Wall St - 3 months ago – Full article

What Percentage Of Yadea Group Holdings Ltd (HKG:1585) Shares Do Insiders Own?

Every investor in Yadea Group Holdings Ltd (HKG:1585) should be aware of the most powerful shareholder groups. … With a market capitalization of HK$8.0b, Yadea Group Holdings is a decent size, so it is probably on the radar of institutional investors. … See our latest analysis for Yadea Group Holdings

Simply Wall St - 4 months ago – Full article

Does Yadea Group Holdings Ltd (HKG:1585) Have A Particularly Volatile Share Price?

If you're interested in Yadea Group Holdings Ltd (HKG:1585), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St - 4 months ago – Full article

Yadea Group Holdings Ltd (HKG:1585): The Return Story

and want to begin learning the link between Yadea Group Holdings Ltd (HKG:1585)’s return fundamentals and stock market performance. … To understand Yadea Group Holdings’s capital returns we will look at a useful metric called return on capital employed. … Yadea Group Holdings's Return On Capital Employed

Simply Wall St - 5 months ago – Full article

Breaking Down Yadea Group Holdings Ltd's (HKG:1585) Ownership Structure

Today, I will be analyzing Yadea Group Holdings Ltd’s (HKG:1585) recent ownership structure, an important but not-so-popular subject among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St - 7 months ago – Full article

Investors Should Be Cautious Of Yadea Group Holdings Ltd's (HKG:1585) 1.35% Dividend

Yadea Group Holdings Ltd (HKG:1585) has returned an average dividend yield of 1.00% annually to shareholders. … Let's take a look at Yadea Group Holdings in more detail. … See our latest analysis for Yadea Group Holdings

Simply Wall St - 8 months ago – Full article

Yadea Group Holdings Ltd (HKG:1585): Race For Growth In The Auto Sector

is an automobile company operating in an industry. … New opportunities driving future growth in the auto sector is connected and intelligent cars, in particular, web networking, sensors and software, which is not the traditional focus for most automobile companies … Shortcomings of well-established auto companies provides an opportunity for technology firms such as Alphabet and Apple to create their own software underlying autonomous and communication capabilities of automobiles

Simply Wall St - 9 months ago – Full article

1585 Company Info

Description

Yadea Group Holdings Ltd., an investment holding company, develops, manufactures, distributes, and sells electric vehicles and related accessories in the People’s Republic of China. The company offers electric two-wheeled vehicles, including electric scooters and electric bicycles. It also provides batteries and chargers, as well as other electric two-wheeled vehicles parts; and manufactures industrial products. In addition, the company exports its products to customers in approximately 50 countries. Yadea Group Holdings Ltd. was founded in 2001 and is headquartered in Wuxi, the People’s Republic of China.

Details

Name:	Yadea Group Holdings Ltd.
Ticker:	1585
Exchange:	SEHK
Founded:	2001
Market Cap:	HK$8,190,000,000
Shares outstanding:	3,000,000,000
Website:	http://www.yadea.com.cn
Address:	Yadea Group Holdings Ltd. Xishan Road, Dacheng Industrial Zone, Wuxi, Jiangsu Province, China

Listings

Exchange Symbol	Ticker Symbol	Security	Exchange	Country	Currency	Listed on
SEHK	1585	Ordinary Shares	The Stock Exchange of Hong Kong Ltd.	HK	HKD	19. May 2016
SHSC	1585	Ordinary Shares	Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect	HK	HKD	19. May 2016
SZSC	1585	Ordinary Shares	The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect	HK	HKD	19. May 2016

Number of employees

Current staff

3,703

Yadea Group Holdings employees.

Industry

Industry:	Motorcycle Manufacturers
Sector:	Automobiles

Company Analysis and Financial Data Status

Area	Date (UTC time)
Company Analysis updated:	2019/04/18 13:04
End of day share price update:	2019/04/18 00:00
Last estimates confirmation:	2018/03/22
Last earnings filing:	2019/03/29
Last earnings reported:	2018/12/31
Last annual earnings reported:	2018/12/31

All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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