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1072

Dongfang Electric SEHK:1072 Stock Report

Last Price

HK$9.45

Market Cap

HK$56.6b

7D

1.7%

1Y

25.8%

Updated

09 Aug, 2022

Data

Company Financials +
1072 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends2/6

1072 Stock Overview

Dongfang Electric Corporation Limited engages in the design, develop, manufacture, and sale of power generation equipment in China and internationally.

Dongfang Electric Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dongfang Electric
Historical stock prices
Current Share PriceHK$9.45
52 Week HighHK$14.82
52 Week LowHK$7.14
Beta0.68
1 Month Change0%
3 Month Change19.17%
1 Year Change25.83%
3 Year Change126.62%
5 Year Change13.58%
Change since IPO477.10%

Recent News & Updates

Jul 07
Dongfang Electric's (HKG:1072) Upcoming Dividend Will Be Larger Than Last Year's

Dongfang Electric's (HKG:1072) Upcoming Dividend Will Be Larger Than Last Year's

Dongfang Electric Corporation Limited ( HKG:1072 ) has announced that it will be increasing its dividend on the 28th of...

Jun 21
Here's Why Dongfang Electric (HKG:1072) Can Manage Its Debt Responsibly

Here's Why Dongfang Electric (HKG:1072) Can Manage Its Debt Responsibly

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

Shareholder Returns

1072HK ElectricalHK Market
7D1.7%3.5%0.2%
1Y25.8%-9.4%-21.9%

Return vs Industry: 1072 exceeded the Hong Kong Electrical industry which returned -9.4% over the past year.

Return vs Market: 1072 exceeded the Hong Kong Market which returned -21.9% over the past year.

Price Volatility

Is 1072's price volatile compared to industry and market?
1072 volatility
1072 Average Weekly Movement6.6%
Electrical Industry Average Movement7.2%
Market Average Movement6.6%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1072 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: 1072's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199316,969Peng Xuhttps://www.dec-ltd.cn

Dongfang Electric Corporation Limited engages in the design, develop, manufacture, and sale of power generation equipment in China and internationally. It operates through five segments: Renewable Energy Equipment, Clean and Efficient Energy Equipment, Engineering and Trade, Modern Manufacturing Services Industry, and Emerging Growth Industry. The company generates electricity through wind power, solar power, hydropower, nuclear power, gas power, and thermal power.

Dongfang Electric Fundamentals Summary

How do Dongfang Electric's earnings and revenue compare to its market cap?
1072 fundamental statistics
Market CapCN¥48.70b
Earnings (TTM)CN¥2.58b
Revenue (TTM)CN¥49.96b

9.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1072 income statement (TTM)
RevenueCN¥49.96b
Cost of RevenueCN¥42.16b
Gross ProfitCN¥7.80b
Other ExpensesCN¥5.22b
EarningsCN¥2.58b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.83
Gross Margin15.61%
Net Profit Margin5.17%
Debt/Equity Ratio4.7%

How did 1072 perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1072 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

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1072?

Other financial metrics that can be useful for relative valuation.

1072 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/Revenue0.7x
Enterprise Value/EBITDA18.3x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does 1072's PE Ratio compare to its peers?

1072 PE Ratio vs Peers
The above table shows the PE ratio for 1072 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.3x
658 China High Speed Transmission Equipment Group
5.5xn/aHK$8.4b
1608 VPower Group International Holdings
56.6xn/aHK$2.6b
3898 Zhuzhou CRRC Times Electric
17.9x15.0%HK$66.1b
1597 China Nature Energy Technology Holdings
25.1xn/aHK$615.0m
1072 Dongfang Electric
9.8x10.1%HK$56.6b

Price-To-Earnings vs Peers: 1072 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (26.3x).


Price to Earnings Ratio vs Industry

How does 1072's PE Ratio compare vs other companies in the HK Electrical Industry?

Price-To-Earnings vs Industry: 1072 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the Hong Kong Electrical industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is 1072'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.

1072 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.8x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: 1072 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).


Share Price vs Fair Value

What is the Fair Price of 1072 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1072 (HK$9.45) is trading above our estimate of fair value (HK$4.42)

Significantly Below Fair Value: 1072 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Dongfang Electric forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1072's forecast earnings growth (10.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1072's earnings (10.1% per year) are forecast to grow slower than the Hong Kong market (16.7% per year).

High Growth Earnings: 1072's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1072's revenue (12.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1072's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1072's Return on Equity is forecast to be low in 3 years time (8.1%).


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Past Performance

How has Dongfang Electric 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


38.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1072 has a high level of non-cash earnings.

Growing Profit Margin: 1072's current net profit margins (5.2%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 1072 has become profitable over the past 5 years, growing earnings by 38.6% per year.

Accelerating Growth: 1072's earnings growth over the past year (23%) is below its 5-year average (38.6% per year).

Earnings vs Industry: 1072 earnings growth over the past year (23%) exceeded the Electrical industry -19.4%.


Return on Equity

High ROE: 1072's Return on Equity (7.5%) is considered low.


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Financial Health

How is Dongfang Electric's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1072's short term assets (CN¥69.9B) exceed its short term liabilities (CN¥57.1B).

Long Term Liabilities: 1072's short term assets (CN¥69.9B) exceed its long term liabilities (CN¥10.1B).


Debt to Equity History and Analysis

Debt Level: 1072 has more cash than its total debt.

Reducing Debt: 1072's debt to equity ratio has reduced from 5.5% to 4.7% over the past 5 years.

Debt Coverage: 1072's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1072 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Dongfang Electric current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1072's dividend (2.83%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 1072's dividend (2.83%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.38%).


Stability and Growth of Payments

Stable Dividend: 1072's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1072's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.8%), 1072's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1072 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?

1.1yrs

Average management tenure


CEO

Peng Xu (57 yo)

0.92

Tenure

Mr. Peng Xu has been President of Dongfang Electric Corporation Limited since September 27, 2021 and serves as its Director since December 2017. He served as Senior Vice President of Dongfang Electric Corp...


Leadership Team

Experienced Management: 1072's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1072's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Dongfang Electric Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Dongfang Electric Corporation Limited
  • Ticker: 1072
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Implied Market Cap: HK$56.622b
  • Shares outstanding: 3.12b
  • Website: https://www.dec-ltd.cn

Number of Employees


Location

  • Dongfang Electric Corporation Limited
  • Western High-tech District
  • No. 18, Xixin Avenue
  • Chengdu
  • Sichuan Province
  • 611731
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.