SEHK:1108

Stock Analysis Report

Executive Summary

Luoyang Glass Company Limited, together with its subsidiaries, engages in the manufacture and sale of float glass in China and internationally.

Rewards

Earnings grew by 18% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

How has Luoyang Glass's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1108's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

1108

3.0%

HK Building

-1.4%

HK Market


1 Year Return

25.2%

1108

88.9%

HK Building

3.5%

HK Market

Return vs Industry: 1108 underperformed the Hong Kong Building industry which returned 91.2% over the past year.

Return vs Market: 1108 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1108IndustryMarket
7 Day-4.6%3.0%-1.4%
30 Day19.6%11.5%1.8%
90 Day24.1%35.2%6.0%
1 Year25.2%25.2%95.8%88.9%7.3%3.5%
3 Year-48.6%-48.6%40.4%30.8%23.3%10.8%
5 Year-24.3%-24.3%76.0%58.3%19.2%-0.7%

Price Volatility Vs. Market

How volatile is Luoyang Glass's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Luoyang Glass undervalued compared to its fair value and its price relative to the market?

22.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1108's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1108's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1108 is poor value based on its PE Ratio (23.5x) compared to the Building industry average (9.4x).

PE vs Market: 1108 is poor value based on its PE Ratio (23.5x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1108's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1108 is overvalued based on its PB Ratio (1.1x) compared to the HK Building industry average (0.8x).


Next Steps

Future Growth

How is Luoyang Glass forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Capital Goods 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 Luoyang Glass 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 Luoyang Glass performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1108 has a large one-off gain of CN¥58.0M impacting its September 30 2019 financial results.

Growing Profit Margin: 1108's current net profit margins (3.5%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 1108 has become profitable over the past 5 years, growing earnings by 48.7% per year.

Accelerating Growth: 1108's earnings growth over the past year (18%) is below its 5-year average (48.7% per year).

Earnings vs Industry: 1108 earnings growth over the past year (18%) exceeded the Building industry 16.4%.


Return on Equity

High ROE: 1108's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Luoyang Glass's financial position?


Financial Position Analysis

Short Term Liabilities: 1108's short term assets (CN¥1.9B) do not cover its short term liabilities (CN¥3.1B).

Long Term Liabilities: 1108's short term assets (CN¥1.9B) exceed its long term liabilities (CN¥701.2M).


Debt to Equity History and Analysis

Debt Level: 1108's debt to equity ratio (141.5%) is considered high.

Reducing Debt: 1108 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 1108's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1108's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: 1108 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1108's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Luoyang Glass's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.1%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1108's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1108'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 1108's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1108's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1108's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Luoyang Glass's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Yan Ma (48yo)

1.2yrs

Tenure

CN¥570,455

Compensation

Mr. Yan Ma has been the Chief Financial Controller and General Manager at Luoyang Glass Company Limited since May 6, 2016 and November 21, 2018 respectively. Mr. Ma serves as Chief Financial Officer at Anh ...


CEO Compensation Analysis

Compensation vs Market: Yan's total compensation ($USD82.80K) is below average for companies of similar size in the Hong Kong market ($USD470.54K).

Compensation vs Earnings: Yan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

50yo

Average Age

Experienced Management: 1108's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: 1108's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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.


Management Team

  • Chong Zhang (56yo)

    Executive Chairman

    • Tenure: 4.1yrs
  • Guoqiang Wang (50yo)

    Deputy GM & Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥511.52k
  • Zhixin Wu (52yo)

    Secretary to the Board

    • Tenure: 5.7yrs
  • Yan Ma (48yo)

    CFO, Chief Accountant

    • Tenure: 1.2yrs
    • Compensation: CN¥570.46k
  • Peisen Ye (59yo)

    Company Secretary

    • Tenure: 11.4yrs
    • Compensation: CN¥100.80k
  • Yuquan Liu (50yo)

    Deputy General Manager

    • Tenure: 4.1yrs
  • Rong Zhang (45yo)

    Deputy GM & Executive Director

    • Tenure: 0.8yrs

Board Members

  • Jun Xie (53yo)

    Vice Chairman

    • Tenure: 4.1yrs
  • Zhenduo Ren (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 12.3yrs
    • Compensation: CN¥20.00k
  • Baofeng He (47yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥60.00k
  • Chong Zhang (56yo)

    Executive Chairman

    • Tenure: 4.1yrs
  • Guoqiang Wang (50yo)

    Deputy GM & Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥511.52k
  • Zhanping Jin (55yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
  • Yan Ma (48yo)

    CFO, Chief Accountant

    • Tenure: 1.2yrs
    • Compensation: CN¥570.46k
  • Shuhua Ye (57yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: CN¥60.00k
  • Ren Hongcan (55yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Rong Zhang (45yo)

    Deputy GM & Executive Director

    • Tenure: 0.8yrs

Company Information

Luoyang Glass Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luoyang Glass Company Limited
  • Ticker: 1108
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: HK$5.508b
  • Shares outstanding: 552.40m
  • Website: https://www.zhglb.com

Number of Employees


Location

  • Luoyang Glass Company Limited
  • No. 9, Tang Gong Zhong Lu
  • Xigong District
  • Luoyang
  • Henan Province
  • 471009
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1108SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 1994
1108SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 1994
1108SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDAug 1994
600876SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYNov 1995
600876XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYNov 1995

Biography

Luoyang Glass Company Limited, together with its subsidiaries, engages in the manufacture and sale of float glass in China and internationally. The company operates in two segments, Information Display Glass and New Energy Glass. The Information Display Glass segment offers ultra-thin electronic glass substrates to ITO conductive film glass, protective shield, and others manufacturers. The New Energy Glass segment produces photovoltaic original glass and its further processed products, such as glass for double-glass components, AR photovoltaic coating glass, and high transparent photovoltaic toughened and original glass. Luoyang Glass Company Limited was founded in 1994 and is headquartered in Luoyang, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 12:45
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
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.