SEHK:3663

Stock Analysis Report

Xiezhong International Holdings

Executive Summary

Xiezhong International Holdings Limited, together with its subsidiaries, engages in the development, production, and sale of automotive heating, ventilation, and cooling (HVAC) systems for sport utility vehicles, pickup trucks, sedans, and heavy trucks in Mainland China, the Kingdom of Morocco, France, and Spain.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3663's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.3%

3663

2.8%

HK Auto Components

5.3%

HK Market


1 Year Return

-28.6%

3663

-39.4%

HK Auto Components

-20.4%

HK Market

Return vs Industry: 3663 exceeded the Hong Kong Auto Components industry which returned -38.8% over the past year.

Return vs Market: 3663 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

3663IndustryMarket
7 Day-6.3%2.8%5.3%
30 Day-7.7%-19.9%-8.5%
90 Day-36.8%-25.8%-14.7%
1 Year-28.6%-28.6%-37.3%-39.4%-17.6%-20.4%
3 Year-41.5%-41.5%-42.0%-46.3%-2.5%-12.3%
5 Year16.0%12.2%-14.0%-23.4%-5.7%-20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 3663's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 3663's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3663 is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: 3663 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 3663's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3663 is overvalued based on its PB Ratio (1.3x) compared to the HK Auto Components industry average (0.8x).


Next Steps

Future Growth

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

8.7%

Forecasted Automobiles 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 Xiezhong 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 Xiezhong International Holdings performed over the past 5 years?

-64.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3663 is currently unprofitable.

Growing Profit Margin: 3663 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3663 is unprofitable, and losses have increased over the past 5 years at a rate of -64.1% per year.

Accelerating Growth: Unable to compare 3663's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3663 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-22.1%).


Return on Equity

High ROE: 3663 has a negative Return on Equity (-15.99%), as it is currently unprofitable.


Next Steps

Financial Health

How is Xiezhong International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3663's short term assets (CN¥1.1B) do not cover its short term liabilities (CN¥1.7B).

Long Term Liabilities: 3663's short term assets (CN¥1.1B) exceed its long term liabilities (CN¥491.2M).


Debt to Equity History and Analysis

Debt Level: 3663's debt to equity ratio (117.8%) is considered high.

Reducing Debt: 3663's debt to equity ratio has increased from 26.2% to 117.8% over the past 5 years.


Balance Sheet

Inventory Level: 3663 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3663's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 3663 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 3663 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3663's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3663'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 3663's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3663's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3663 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3663's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

6.7yrs

Average board tenure


CEO

Cunyou Chen (56yo)

no data

Tenure

CN¥495,000

Compensation

Mr. Cunyou Chen serves as the Chairman and Chief Executive Officer of Xiezhong International Holdings Limited. Mr. Chen is a Member of the People's Congress of the PRC of Nanjing. Mr. Chen founded Xiezhong ...


CEO Compensation Analysis

Compensation vs Market: Cunyou's total compensation ($USD69.73K) is below average for companies of similar size in the Hong Kong market ($USD232.34K).

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


Board Members

NamePositionTenureCompensationOwnership
Cunyou Chen
Chairman of the Board & CEOno dataCN¥495.00kno data
Hongbing Ge
Executive Deputy GM & Executive Director8.25yrsCN¥482.00k0.75% CN¥7.2m
Xiaoting Chen
Executive Director2yrsCN¥559.20kno data
Jun Shen
Executive Director1.42yrsCN¥525.39kno data
Ying Kit Lau
Independent Non-Executive Director7.83yrsCN¥154.00kno data
Lei Lin
Independent Non-Executive Director5.58yrsCN¥154.00kno data
Shulin Zhang
Independent Non-Executive Director7.83yrsCN¥154.00kno data
Man Sang Cheung
Independent Non-Executive Director7.83yrsCN¥154.00kno data
Yugang Huang
Non-Executive Director5.58yrsCN¥416.00k0.19% CN¥1.8m

6.7yrs

Average Tenure

52yo

Average Age

Experienced Board: 3663's board of directors are considered experienced (6.7 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.


Top Shareholders

Company Information

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


Key Information

  • Name: Xiezhong International Holdings Limited
  • Ticker: 3663
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$960.000m
  • Shares outstanding: 800.00m
  • Website: https://www.xiezhonginternational.hk

Number of Employees


Location

  • Xiezhong International Holdings Limited
  • 389 Kening Road
  • Science Park
  • Nanjing
  • Jiangsu Province
  • 211100
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3663SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2012

Biography

Xiezhong International Holdings Limited, together with its subsidiaries, engages in the development, production, and sale of automotive heating, ventilation, and cooling (HVAC) systems for sport utility vehicles, pickup trucks, sedans, and heavy trucks in Mainland China, the Kingdom of Morocco, France, and Spain. The company operates in two segments, HVAC Business and 4S Dealership Business. The company offers HVAC components, including evaporators, condensers, heater cores, radiators, intercoolers, oil coolers, and HVAC hoses and housings, as well as technical testing and related services. It also supplies HVAC systems and HVAC components for new energy vehicles and construction machinery, as well as other vehicles, such as light trucks and buses. In addition, the company engages in the sales of automobiles, and spare parts and accessories, as well as provision of after-sales services, such as repair and maintenance services. Xiezhong International Holdings Limited was incorporated in 2011 and is headquartered in Nanjing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 14:22
End of Day Share Price2020/03/30 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.