Tianneng Power International (SEHK:819) - Share price, News & Analysis

Q: What is the Fair Price of 819 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

819 (HK$9.11) is trading below our estimate of [[fair value]] (HK$36.85)

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

819 Stock Overview

Tianneng Power International Limited, an investment holding company, engages in the production of motive batteries in the People’s Republic of China and internationally.

Rewards

Trading at 75.3% below our estimate of its fair value

Earnings are forecast to grow 24.07% per year

Risk Analysis

Dividend of 4.19% is not well covered by earnings

Profit margins (1.5%) are lower than last year (4.6%)

Tianneng Power International Competitors

Zhejiang Shibao

SEHK:1057

HK$10.1b

Johnson Electric Holdings

SEHK:179

HK$9.4b

Intron Technology Holdings

SEHK:1760

HK$6.2b

Nexteer Automotive Group

SEHK:1316

HK$15.5b

Price History & Performance

Summary of all time highs, changes and price drops for Tianneng Power International
Historical stock prices
Current Share Price	HK$9.11
52 Week High	HK$16.42
52 Week Low	HK$5.50
Beta	1.12
1 Month Change	18.62%
3 Month Change	34.56%
1 Year Change	-31.19%
3 Year Change	37.20%
5 Year Change	43.01%
Change since IPO	362.44%

Recent News & Updates

May 20

Does Tianneng Power International (HKG:819) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Apr 12

Calculating The Fair Value Of Tianneng Power International Limited (HKG:819)

In this article we are going to estimate the intrinsic value of Tianneng Power International Limited ( HKG:819 ) by...

Shareholder Returns

	819	HK Auto Components	HK Market
7D	9.1%	13.8%	1.7%
1Y	-31.2%	-29.5%	-21.2%

Return vs Industry: 819 underperformed the Hong Kong Auto Components industry which returned -29.5% over the past year.

Return vs Market: 819 underperformed the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 819's price volatile compared to industry and market?
819 volatility
819 Average Weekly Movement	6.7%
Auto Components Industry Average Movement	7.6%
Market Average Movement	6.9%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.4%

Stable Share Price: 819 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 819's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	25,618	Tianren Zhang	https://www.tianneng.com.hk

Tianneng Power International Limited, an investment holding company, engages in the production of motive batteries in the People’s Republic of China and internationally. It operates in two segments, Sales of Batteries and Battery Related Accessories; and Trading of New Energy Materials. The company offers high-end eco-friendly batteries, such as two and three wheeled electric vehicle, start-stop, energy storage and backup, mini electric vehicle, and special electric vehicle batteries; new energy batteries, including lithium-ion and fuel cell batteries; and renewable new materials.

Tianneng Power International Fundamentals Summary

How do Tianneng Power International's earnings and revenue compare to its market cap?
819 fundamental statistics
Market Cap	CN¥8.41b
Earnings (TTM)	CN¥1.30b
Revenue (TTM)	CN¥85.62b

6.7x

P/E Ratio

0.1x

P/S Ratio

Is 819 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
819 income statement (TTM)
Revenue	CN¥85.62b
Cost of Revenue	CN¥81.00b
Gross Profit	CN¥4.62b
Other Expenses	CN¥3.32b
Earnings	CN¥1.30b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.15
Gross Margin	5.40%
Net Profit Margin	1.52%
Debt/Equity Ratio	27.9%

How did 819 perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

28%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 819 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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 819?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 819. This is calculated by dividing 819's market cap by their current preferred multiple.
What is 819's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥8.41b

819 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	0.04x
Enterprise Value/EBITDA	2.3x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 819's PE Ratio compare to its peers?

819 PE Ratio vs Peers

The above table shows the PE ratio for 819 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	60.5x
1057 Zhejiang Shibao	189x	n/a	HK$10.1b
179 Johnson Electric Holdings	8.2x	4.7%	HK$9.4b
1760 Intron Technology Holdings	27.9x	13.8%	HK$6.2b
1316 Nexteer Automotive Group	16.9x	27.8%	HK$15.5b
819 Tianneng Power International	6.7x	24.1%	HK$9.9b

Forward PE

Price-To-Earnings vs Peers: 819 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (60.5x).

Price to Earnings Ratio vs Industry

How does 819's PE Ratio compare vs other companies in the Asian Auto Components Industry?

Price-To-Earnings vs Industry: 819 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the Hong Kong Auto Components industry average (14.2x)

Price to Earnings Ratio vs Fair Ratio

What is 819'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.

819 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.7x
Fair PE Ratio	11.3x

Price-To-Earnings vs Fair Ratio: 819 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

Share Price vs Fair Value

What is the Fair Price of 819 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 819 (HK$9.11) is trading below our estimate of fair value (HK$36.85)

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

Price to Earnings Growth Ratio

PEG Ratio: 819 is good value based on its PEG Ratio (0.3x)

Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

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

24.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 819's forecast earnings growth (24.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 819's earnings (24.1% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: 819's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 819's revenue (6.9% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 819's revenue (6.9% 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 (13.1%).

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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

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

17.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 819 has high quality earnings.

Growing Profit Margin: 819's current net profit margins (1.5%) are lower than last year (4.6%).

Past Earnings Growth Analysis

Earnings Trend: 819's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: 819's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 819 had negative earnings growth (-47.5%) over the past year, making it difficult to compare to the Auto Components industry average (-29.7%).

Return on Equity

High ROE: 819's Return on Equity (10.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Tianneng Power International'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: 819's short term assets (CN¥23.1B) exceed its short term liabilities (CN¥15.3B).

Long Term Liabilities: 819's short term assets (CN¥23.1B) exceed its long term liabilities (CN¥2.1B).

Debt to Equity History and Analysis

Debt Level: 819 has more cash than its total debt.

Reducing Debt: 819's debt to equity ratio has reduced from 48.8% to 27.9% over the past 5 years.

Debt Coverage: 819's debt is well covered by operating cash flow (49.2%).

Interest Coverage: 819's interest payments on its debt are well covered by EBIT (40.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

4.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 819's dividend (4.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 819's dividend (4.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.78%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.2%), 819's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (464.9%), 819's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

12.8yrs

Average management tenure

CEO

Tianren Zhang (58 yo)

no data

Tenure

CN¥1,560,000

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 ($USD233.13K) is below average for companies of similar size in the Hong Kong market ($USD602.75K).

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

Leadership Team

Experienced Management: 819's management team is seasoned and experienced (12.8 years average tenure).

Board Members

Experienced Board: 819's board of directors are considered experienced (5.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31