SEHK:819

Stock Analysis Report

Tianneng Power International

Executive Summary

Tianneng Power International Limited, an investment holding company, researches, develops, manufactures, and sells power batteries for electric vehicle market in the People’s Republic of China and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 819 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

20.7%

819

-5.1%

HK Auto Components

1.1%

HK Market


1 Year Return

-20.8%

819

-42.3%

HK Auto Components

-21.6%

HK Market

Return vs Industry: 819 exceeded the Hong Kong Auto Components industry which returned -42.3% over the past year.

Return vs Market: 819 matched the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

819IndustryMarket
7 Day20.7%-5.1%1.1%
30 Day-0.9%-22.6%-10.2%
90 Day-5.2%-28.6%-16.1%
1 Year-15.8%-20.8%-40.3%-42.3%-18.8%-21.6%
3 Year-7.0%-18.8%-42.9%-47.1%-3.1%-12.8%
5 Year118.2%80.5%-25.1%-33.1%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tianneng Power International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 819 (HK$5.83) is trading below our estimate of fair value (HK$15.8)

Significantly Below Fair Value: 819 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 819 is good value based on its PE Ratio (3.6x) compared to the Auto Components industry average (9.6x).

PE vs Market: 819 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 819 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 819 is overvalued based on its PB Ratio (0.9x) compared to the HK Auto Components industry average (0.9x).


Next Steps

Future Growth

How is Tianneng Power International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 819's forecast earnings growth (1.5% per year) is below the savings rate (1.6%).

Earnings vs Market: 819's earnings (1.5% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Earnings: 819's earnings are forecast to grow, but not significantly.

Revenue vs Market: 819's revenue (4.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 819's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 819's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Tianneng Power International performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 819 has high quality earnings.

Growing Profit Margin: 819's current net profit margins (4.1%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 819 has become profitable over the past 5 years, growing earnings by 36.3% per year.

Accelerating Growth: 819's earnings growth over the past year (34.3%) is below its 5-year average (36.3% per year).

Earnings vs Industry: 819 earnings growth over the past year (34.3%) exceeded the Auto Components industry -25.6%.


Return on Equity

High ROE: 819's Return on Equity (23.7%) is considered high.


Next Steps

Financial Health

How is Tianneng Power International's financial position?


Financial Position Analysis

Short Term Liabilities: 819's short term assets (CN¥12.8B) exceed its short term liabilities (CN¥11.1B).

Long Term Liabilities: 819's short term assets (CN¥12.8B) exceed its long term liabilities (CN¥771.5M).


Debt to Equity History and Analysis

Debt Level: 819's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: 819's debt to equity ratio has reduced from 129.7% to 26.2% over the past 5 years.

Debt Coverage: 819's debt is well covered by operating cash flow (90.5%).

Interest Coverage: 819's interest payments on its debt are well covered by EBIT (12.5x coverage).


Balance Sheet

Inventory Level: 819 has a high level of physical assets or inventory.

Debt Coverage by Assets: 819's debt is covered by short term assets (assets are 6.7x debt).


Next Steps

Dividend

What is Tianneng Power International's current dividend yield, its reliability and sustainability?

6.57%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 819's dividend (6.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 819's dividend (6.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 819's dividend payments have been volatile in the past 10 years.

Growing Dividend: 819's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.5%), 819's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 819's dividends in 3 years are forecast to be well covered by earnings (27.5% payout ratio).


Next Steps

Management

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

10.6yrs

Average management tenure


CEO

Tianren Zhang (56yo)

no data

Tenure

CN¥1,551,000

Compensation

Dr. Zhang Tianren is the Founder of Tianneng Power International Limited and serves as its Chairman, President and Chief Executive Officer. Dr. Zhang has been the Chairman and General Manager of Tianneng B ...


CEO Compensation Analysis

Compensation vs Market: Tianren's total compensation ($USD218.87K) is below average for companies of similar size in the Hong Kong market ($USD485.88K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tianren Zhang
Founderno dataCN¥1.55m36.42% CN¥2.4b
Kaihong Zhang
VP & Executive Directorno dataCN¥500.00k1.68% CN¥109.7m
Aogen Zhang
VP & Executive Directorno dataCN¥528.00k1.21% CN¥79.3m
Borong Shi
VP & Executive Directorno dataCN¥535.00k1.39% CN¥91.1m
Jianzhong Zhou
VP & Executive Director5.08yrsCN¥588.00k0.21% CN¥13.7m
Jing Wang
Financial Controller11.25yrsno datano data
Anfu Ren
Chief Engineer and Deputy Head of Research Institution12.25yrsno datano data
Wai Man Hui
Company Secretary10.58yrsno datano data
Cheng Wen Cheng
Business Consultant8.92yrsCN¥106.00kno data

10.6yrs

Average Tenure

56yo

Average Age

Experienced Management: 819's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tianren Zhang
Founderno dataCN¥1.55m36.42% CN¥2.4b
Kaihong Zhang
VP & Executive Directorno dataCN¥500.00k1.68% CN¥109.7m
Aogen Zhang
VP & Executive Directorno dataCN¥528.00k1.21% CN¥79.3m
Borong Shi
VP & Executive Directorno dataCN¥535.00k1.39% CN¥91.1m
Jianzhong Zhou
VP & Executive Director5.08yrsCN¥588.00k0.21% CN¥13.7m
Dongliang Huang
Independent Non Executive Director13.17yrsCN¥206.00k0.021% CN¥1.4m
Feng Wu
Independent Non-Executive Director4.83yrsCN¥200.00kno data
Yong Zhang
Independent Non-Executive Director1.67yrsCN¥82.00kno data

5.0yrs

Average Tenure

61yo

Average Age

Experienced Board: 819's board of directors are considered experienced (5 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

Tianneng Power International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tianneng Power International Limited
  • Ticker: 819
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$6.546b
  • Shares outstanding: 1.13b
  • Website: https://www.tianneng.com.hk

Number of Employees


Location

  • Tianneng Power International Limited
  • Central Plaza
  • 32nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
819SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2007
TPQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007
TIAN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2007
819SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2007
819SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2007

Biography

Tianneng Power International Limited, an investment holding company, researches, develops, manufactures, and sells power batteries for electric vehicle market in the People’s Republic of China and internationally. It offers lead-acid motive batteries for use in electric cars, bicycles, and tricycles; lithium batteries for new energy vehicles; start-and-stop batteries for vehicles; and wind power and solar power storage batteries, as well as recycled batteries and battery related accessories. The company also manufactures and sells electrode plates; sells metal materials; trades in new energy materials; and provides integrated power storage ancillary services. In addition, it engages in the construction of smart micro-grids in cities, as well as the building of green and smart industrial parks. Tianneng Power International Limited was founded in 1986 and is based in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 12:50
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.