Prinx Chengshan Holdings (SEHK:1809) - Share price, News & Analysis

1809 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

1809 Stock Overview

Rewards

Earnings are forecast to grow 50.2% per year

Risk Analysis

High level of non-cash earnings

Dividend of 2.74% is not well covered by earnings

Profit margins (3.7%) are lower than last year (9.6%)

Prinx Chengshan Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Prinx Chengshan Holdings
Historical stock prices
Current Share Price	HK$7.25
52 Week High	HK$8.70
52 Week Low	HK$6.02
Beta	0.52
1 Month Change	0.56%
3 Month Change	-1.89%
1 Year Change	-14.71%
3 Year Change	0.42%
5 Year Change	n/a
Change since IPO	65.53%

Shareholder Returns

	1809	HK Auto Components	HK Market
7D	0%	11.8%	2.1%
1Y	-14.7%	-30.9%	-23.3%

Return vs Industry: 1809 exceeded the Hong Kong Auto Components industry which returned -30.9% over the past year.

Return vs Market: 1809 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1809's price volatile compared to industry and market?
1809 volatility
1809 Average Weekly Movement	5.1%
Auto Components Industry Average Movement	7.4%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1809 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1809's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	6,450	Baozhen Chen	https://www.prinxchengshan.com

Prinx Chengshan Holdings Limited, an investment holding company, together with its subsidiaries, designs, manufactures, trades in, and distributes tires in the People's Republic of China, Thailand, rest of Asia, the Americas, Africa, the Middle East, and internationally. The company offers steel radial, semi-steel radial, and bias tires used in light and pick-up trucks, buses, mixed road or off-road vehicles, passenger vehicles, sport utility vehicles, and agricultural and industrial off-road vehicles 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; trading of inflatable and related products; and provides tire rentals.

Prinx Chengshan Holdings Fundamentals Summary

How do Prinx Chengshan Holdings's earnings and revenue compare to its market cap?
1809 fundamental statistics
Market Cap	CN¥3.93b
Earnings (TTM)	CN¥276.30m
Revenue (TTM)	CN¥7.54b

14.2x

P/E Ratio

0.5x

P/S Ratio

Is 1809 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1809 income statement (TTM)
Revenue	CN¥7.54b
Cost of Revenue	CN¥6.50b
Gross Profit	CN¥1.04b
Other Expenses	CN¥762.84m
Earnings	CN¥276.30m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.43
Gross Margin	13.79%
Net Profit Margin	3.67%
Debt/Equity Ratio	48.4%

How did 1809 perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1809 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1809?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1809. This is calculated by dividing 1809's market cap by their current preferred multiple.
What is 1809's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥3.93b

1809 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	9.9x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 1809's PE Ratio compare to its peers?

1809 PE Ratio vs Peers

The above table shows the PE ratio for 1809 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	74.3x

Forward PE

Price-To-Earnings vs Peers: 1809 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (74.3x).

Price to Earnings Ratio vs Industry

How does 1809's PE Ratio compare vs other companies in the Auto Components Industry?

Price-To-Earnings vs Industry: 1809 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the Hong Kong Auto Components industry average (14.3x)

Price to Earnings Ratio vs Fair Ratio

What is 1809's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1809 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.2x
Fair PE Ratio	12.4x

Price-To-Earnings vs Fair Ratio: 1809 is expensive based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).

Share Price vs Fair Value

What is the Fair Price of 1809 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1809 (HK$7.25) is trading above our estimate of fair value (HK$6.76)

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

Price to Earnings Growth Ratio

PEG Ratio: 1809 is good value based on its PEG Ratio (0.3x)

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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

50.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1809's forecast earnings growth (50.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1809's earnings (50.2% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 1809's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1809's revenue (17.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1809's revenue (17.3% per year) is forecast to grow slower 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 (21.8%)

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Past Performance

How has Prinx Chengshan Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.0%

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 (3.7%) are lower than last year (9.6%).

Past Earnings Growth Analysis

Earnings Trend: 1809's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: 1809's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1809 had negative earnings growth (-54.3%) over the past year, making it difficult to compare to the Auto Components industry average (-29.7%).

Return on Equity

High ROE: 1809's Return on Equity (7%) is considered low.

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Financial Health

How is Prinx Chengshan Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1809's short term assets (CN¥4.2B) exceed its short term liabilities (CN¥3.5B).

Long Term Liabilities: 1809's short term assets (CN¥4.2B) exceed its long term liabilities (CN¥1.7B).

Debt to Equity History and Analysis

Debt Level: 1809's net debt to equity ratio (27.1%) is considered satisfactory.

Reducing Debt: 1809's debt to equity ratio has reduced from 51.9% to 48.4% over the past 5 years.

Debt Coverage: 1809's debt is well covered by operating cash flow (20.1%).

Interest Coverage: 1809's interest payments on its debt are well covered by EBIT (30.6x coverage).

Balance Sheet

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Dividend

What is Prinx Chengshan Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1809's dividend (2.74%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1809's dividend (2.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1809 has been paying a dividend for less than 10 years.

Growing Dividend: 1809 has only been paying a dividend for 3 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.5%), 1809's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 1809 is paying a dividend but the company has no free cash flows.

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Management

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

2.0yrs

Average management tenure

CEO

Baozhen Chen (38 yo)

no data

Tenure

CN¥3,688,000

Compensation

Mr. Che Baozhen serves as an Executive Director at Prinx Chengshan Holdings Limited (formerly known as Prinx Chengshan (Cayman) Holding Limited) since May 22, 2015. He has also been the General Manager of...

CEO Compensation Analysis

Compensation vs Market: Baozhen's total compensation ($USD551.33K) is above average for companies of similar size in the Hong Kong market ($USD385.50K).

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

Leadership Team

Experienced Management: 1809's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: 1809's board of directors are considered experienced (4.3 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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31