SEHK:951

Stock Analysis Report

Chaowei Power Holdings

Executive Summary

Chaowei Power Holdings Limited, together with its subsidiaries, manufactures and sells lead-acid motive batteries and other related products for electric bikes and vehicles, special-purpose electric vehicles, etc.

Rewards

Trading at 92.2% below its fair value

Earnings are forecast to grow 9% per year

Earnings grew by 36% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 951's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

951

-5.1%

HK Auto Components

1.1%

HK Market


1 Year Return

-38.5%

951

-42.3%

HK Auto Components

-21.6%

HK Market

Return vs Industry: 951 exceeded the Hong Kong Auto Components industry which returned -39.4% over the past year.

Return vs Market: 951 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

951IndustryMarket
7 Day-1.0%-5.1%1.1%
30 Day-22.4%-22.6%-10.2%
90 Day-32.9%-28.6%-16.1%
1 Year-37.1%-38.5%-40.3%-42.3%-18.8%-21.6%
3 Year-62.6%-64.7%-42.9%-47.1%-3.1%-12.8%
5 Year-56.0%-59.4%-25.1%-33.1%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chaowei Power Holdings 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: 951 (HK$1.9) is trading below our estimate of fair value (HK$24.38)

Significantly Below Fair Value: 951 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 951 is good value based on its PE Ratio (3.4x) compared to the Auto Components industry average (11.2x).

PE vs Market: 951 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 951 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 951 is good value based on its PB Ratio (0.4x) compared to the HK Auto Components industry average (0.8x).


Next Steps

Future Growth

How is Chaowei Power Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 951's forecast earnings growth (9% per year) is above the savings rate (1.6%).

Earnings vs Market: 951's earnings (9% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

High Growth Earnings: 951's earnings are forecast to grow, but not significantly.

Revenue vs Market: 951's revenue (9.6% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 951's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 951's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has Chaowei Power Holdings performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 951 has a large one-off loss of CN¥232.4M impacting its December 31 2019 financial results.

Growing Profit Margin: 951's current net profit margins (2.1%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 951 has become profitable over the past 5 years, growing earnings by 23.6% per year.

Accelerating Growth: 951's earnings growth over the past year (36%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: 951 earnings growth over the past year (36%) exceeded the Auto Components industry -25.6%.


Return on Equity

High ROE: 951's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Chaowei Power Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 951's short term assets (CN¥10.3B) exceed its short term liabilities (CN¥10.2B).

Long Term Liabilities: 951's short term assets (CN¥10.3B) exceed its long term liabilities (CN¥1.8B).


Debt to Equity History and Analysis

Debt Level: 951's debt to equity ratio (95.2%) is considered high.

Reducing Debt: 951's debt to equity ratio has reduced from 137.6% to 95.2% over the past 5 years.

Debt Coverage: 951's debt is well covered by operating cash flow (66.7%).

Interest Coverage: 951's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: 951 has a high level of physical assets or inventory.

Debt Coverage by Assets: 951's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Chaowei Power Holdings's current dividend yield, its reliability and sustainability?

4.32%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 951's dividend (4.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 951's dividend (4.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 951 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 951 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), 951's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 951's dividends in 3 years are forecast to be thoroughly covered by earnings (14.8% payout ratio).


Next Steps

Management

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

8.7yrs

Average board tenure


CEO

Mingming Zhou (50yo)

no data

Tenure

CN¥1,550,000

Compensation

Mr. Mingming Zhou serves as the Chairman of the Board and Chief Executive Officer of Chaowei Power Holdings Limited. Mr. Zhou is the founder of Chaowei Power Holdings Limited. Mr. Zhou is mainly responsibl ...


CEO Compensation Analysis

Compensation vs Market: Mingming's total compensation ($USD218.86K) is about average for companies of similar size in the Hong Kong market ($USD301.13K).

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


Board Members

NamePositionTenureCompensationOwnership
Mingming Zhou
Chairman & CEOno dataCN¥1.55m27.39% CN¥574.7m
Yunfei Yang
Executive Directorno dataCN¥693.00k3.28% CN¥68.8m
Longrui Zhou
Executive Directorno dataCN¥693.00k2.91% CN¥61.1m
Xinxin Yang
Executive Director8.67yrsCN¥2.27m1.81% CN¥38.0m
Kong Wai Lee
Independent Non-Executive Directorno dataCN¥513.00kno data
Minggao Ouyang
Independent Non-Executive Directorno dataCN¥513.00kno data
Jiqiang Wang
Independent Non-Executive Directorno dataCN¥513.00kno data
Chi Kit Ng
Independent Non-Executive Director9.33yrsCN¥513.00kno data
Jianjun Fang
Non-Executive Director6.42yrsCN¥684.00k10.11% CN¥212.1m

8.7yrs

Average Tenure

61yo

Average Age

Experienced Board: 951's board of directors are considered experienced (8.7 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

Chaowei Power Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chaowei Power Holdings Limited
  • Ticker: 951
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$2.098b
  • Shares outstanding: 1.10b
  • Website: https://www.chaowei.com.hk

Number of Employees


Location

  • Chaowei Power Holdings Limited
  • No. 18, Chengnan Road
  • Huaxi Industrial Function Area
  • Changxing
  • Zhejiang Province
  • 313100
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
951SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2010
EWCBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2010

Biography

Chaowei Power Holdings Limited, together with its subsidiaries, manufactures and sells lead-acid motive batteries and other related products for electric bikes and vehicles, special-purpose electric vehicles, etc. in the People’s Republic of China. The company also manufactures and sells storage batteries and materials, and lithium-ion batteries, as well as other related products; and electrode plate dividing papers and plastic battery cases. In addition, it is involved in the technical service of new energy vehicles; and property investment activities. Further, the company engages in the research and development of solar energy generating systems, and durathon batteries; and recycling of lead-acid battery and lead production. As of December 31, 2018, the company sold its products under the CHILWEE and JINCHAOWEI brand names through a network of 2,558 independent distributors. Chaowei Power Holdings Limited was founded in 1998 and is headquartered in Changxing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:14
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.