SEHK:1809

Stock Analysis Report

Prinx Chengshan (Cayman) Holding

Executive Summary

Prinx Chengshan (Cayman) Holding Limited, an investment holding company, designs, manufactures, trades in, and distributes tires in the People's Republic of China, the Americas, Asia, Africa, the Middle East, and internationally.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Prinx Chengshan (Cayman) Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1809 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

1809

-2.4%

HK Auto Components

-0.6%

HK Market


1 Year Return

24.3%

1809

-26.5%

HK Auto Components

-7.6%

HK Market

Return vs Industry: 1809 exceeded the Hong Kong Auto Components industry which returned -26.1% over the past year.

Return vs Market: 1809 exceeded the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1809IndustryMarket
7 Day0.1%-2.4%-0.6%
30 Day-5.6%-1.4%-1.2%
90 Day-9.6%-8.4%3.0%
1 Year28.3%24.3%-23.8%-26.5%-4.2%-7.6%
3 Yearn/a-19.6%-25.5%12.9%1.5%
5 Yearn/a28.0%13.8%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Prinx Chengshan (Cayman) Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prinx Chengshan (Cayman) Holding undervalued compared to its fair value and its price relative to the market?

8.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1809 (HK$7.92) is trading above our estimate of fair value (HK$2.98)

Significantly Below Fair Value: 1809 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1809 is good value based on its PE Ratio (8.7x) compared to the Auto Components industry average (10.3x).

PE vs Market: 1809 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1809's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1809 is overvalued based on its PB Ratio (1.4x) compared to the HK Auto Components industry average (1x).


Next Steps

Future Growth

How is Prinx Chengshan (Cayman) Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1809's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1809's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 1809's revenue (28.4% per year) is forecast to grow faster than the Hong Kong market (9.5% per year).

High Growth Revenue: 1809's revenue (28.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1809's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Prinx Chengshan (Cayman) Holding performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1809 has a high level of non-cash earnings.

Growing Profit Margin: 1809's current net profit margins (9.1%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 1809's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: 1809's earnings growth over the past year (47.6%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: 1809 earnings growth over the past year (47.6%) exceeded the Auto Components industry -0.7%.


Return on Equity

High ROE: 1809's Return on Equity (15.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Prinx Chengshan (Cayman) Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1809's short term assets (CN¥3.4B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 1809's short term assets (CN¥3.4B) exceed its long term liabilities (CN¥75.4M).


Debt to Equity History and Analysis

Debt Level: 1809's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1809's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1809's debt is well covered by operating cash flow (87.5%).

Interest Coverage: 1809 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1809 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1809's debt is covered by short term assets (assets are 9.7x debt).


Next Steps

Dividend

What is Prinx Chengshan (Cayman) Holding's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1809's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1809's dividend (2.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1809's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1809's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), 1809's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1809's dividends in 3 years are forecast to be well covered by earnings (22.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average board tenure


CEO

Baozhen Chen (36yo)

CN¥2,166,000

Compensation

Mr. Che Baozhen serves as an Executive Director at Prinx Chengshan (Cayman) Holding Limited since May 22, 2015. He has also been the General Manager of Prinx (Shandong) Tire since April 2017. Mr. Che joine ...


CEO Compensation Analysis

Compensation vs Market: Baozhen's total compensation ($USD308.17K) is below average for companies of similar size in the Hong Kong market ($USD494.06K).

Compensation vs Earnings: Baozhen's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Baozhen Chen
CEO & Executive Director0yrsCN¥2.17mno data
Futao Shi
CFO & Executive Director4.3yrsCN¥1.60m0.0047% CN¥237.4k
Xueyu Cao
Executive Director & Joint Company Secretary1.9yrsCN¥193.00kno data
Tze Kit Choi
Independent Non-executive Director1.4yrsCN¥52.00kno data
Yansheng Chen
Non-Executive Director4.3yrsno datano data
Hongzhi Che
Non-Executive Chairman0yrsCN¥253.00kno data
Lei Wang
Non Executive Director4.3yrsno datano data
Xuehuo Zhang
Independent Non Executive Director1.4yrsCN¥43.00kno data
Chuansheng Wang
Independent non-executive Director1.4yrsCN¥36.00kno data

3.1yrs

Average Tenure

49yo

Average Age

Experienced Board: 1809's board of directors are considered experienced (3.1 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 25.1%.


Top Shareholders

Company Information

Prinx Chengshan (Cayman) Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prinx Chengshan (Cayman) Holding Limited
  • Ticker: 1809
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: HK$5.029b
  • Shares outstanding: 635.00m
  • Website: https://www.prinxchengshan.com

Number of Employees


Location

  • Prinx Chengshan (Cayman) Holding Limited
  • Unit A-1, Tower A
  • 19th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1809SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2018

Biography

Prinx Chengshan (Cayman) Holding Limited, an investment holding company, designs, manufactures, trades in, and distributes tires in the People's Republic of China, the Americas, Asia, Africa, the Middle East, and internationally. The company offers all steel radial, semi-steel radial, and bias tires for trucks and buses, passenger, agricultural, and industrial sectors under the Prinx, ChengShan, Austone, and Fortune brand names. It also engages in the research and development of tire technology and equipment, as well as provision of related technical services; and trading of inflatable products and related products. The company was formerly known as Prinx (Cayman) Holdings Limited. The company was founded in 1976 and is based in Kowloon Bay, Hong Kong. Prinx Chengshan (Cayman) Holding Limited is a subsidiary of Chengshan Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:25
End of Day Share Price2020/02/21 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.