SEHK:1130

Stock Analysis Report

China Environmental Resources Group

Executive Summary

China Environmental Resources Group Limited, an investment holding company, engages in the distribution and trading of motor vehicles and accessories in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has China Environmental Resources Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

1130

-19.6%

HK Trade Distributors

0.3%

HK Market


1 Year Return

-63.9%

1130

12.0%

HK Trade Distributors

-1.5%

HK Market

Return vs Industry: 1130 underperformed the Hong Kong Trade Distributors industry which returned 12% over the past year.

Return vs Market: 1130 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1130IndustryMarket
7 Day-1.3%-19.6%0.3%
30 Day1.4%-4.7%0.5%
90 Day-29.9%9.0%-4.4%
1 Year-63.9%-63.9%15.5%12.0%2.1%-1.5%
3 Year-73.7%-73.7%-6.8%-13.9%14.7%3.2%
5 Year-74.6%-74.6%-36.3%-49.2%21.5%1.2%

Price Volatility Vs. Market

How volatile is China Environmental Resources Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Environmental Resources Group undervalued compared to its fair value and its price relative to the market?

0.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1130's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1130's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1130 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 1130 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1130's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1130 is good value based on its PB Ratio (0.2x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is China Environmental Resources Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.1%

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 China Environmental Resources Group 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 China Environmental Resources Group performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1130 is unprofitable, and losses have increased over the past 5 years at a rate of -17.2% per year.

Accelerating Growth: Unable to compare 1130's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1130 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (1%).


Return on Equity

High ROE: 1130 has a negative Return on Equity (-18.75%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1130 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1130 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Environmental Resources Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1130's short term assets (HK$129.5M) exceeds its short term liabilities (HK$50.9M)

Long Term Liabilities: 1130's short term assets (129.5M) exceeds its long term liabilities (89.0M)


Debt to Equity History and Analysis

Debt Level: 1130's debt to equity ratio (3.4%) is considered satisfactory

Reducing Debt: 1130's debt to equity ratio has increased from 0.01% to 3.4% over the past 5 years.


Balance Sheet

Inventory Level: 1130 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1130's debt is covered by short term assets (assets are 5.887770x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1130 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1130 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -20% each year


Next Steps

Dividend

What is China Environmental Resources Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1130's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1130's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1130's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1130'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 1130'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 China Environmental Resources Group's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average board tenure


CEO

Chi Hang Yeung (40yo)

4.8yrs

Tenure

HK$1,682,000

Compensation

Mr. Chi Hang Yeung has been the Chairman of the Board and Chief Executive Officer of China Environmental Resources Group Limited (also known as Benefun International Holdings Ltd) since January 27, 2015. M ...


Board Age and Tenure

5.5yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1130's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: 1130 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellHK$947,96511 Oct 19
Xiaowu Li
EntityIndividual
Shares12,000,000
Max PriceHK$0.079
SellHK$936,00811 Oct 19
Xiaowu Li
EntityIndividual
Shares12,000,000
Max PriceHK$0.078
BuyHK$1,586,01827 Jun 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares13,000,000
Max PriceHK$0.12
SellHK$1,587,33827 Jun 19
Xiaowu Li
EntityIndividual
Shares13,000,000
Max PriceHK$0.12
BuyHK$665,01813 Jun 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000,000
Max PriceHK$0.13
BuyHK$2,235,55615 May 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares15,004,000
Max PriceHK$0.15
BuyHK$1,539,03209 May 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares9,500,000
Max PriceHK$0.16
SellHK$2,414,98009 May 19
Xiaowu Li
EntityIndividual
Shares15,000,000
Max PriceHK$0.16
BuyHK$2,843,94908 May 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares18,000,000
Max PriceHK$0.16
BuyHK$1,640,03707 May 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000,000
Max PriceHK$0.16
BuyHK$1,577,60707 May 19
Chi Hang Yeung
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,244,000
Max PriceHK$0.15
SellHK$1,914,06025 Mar 19
Xiaowu Li
EntityIndividual
Shares16,180,000
Max PriceHK$0.12
SellHK$1,789,47822 Mar 19
Xiaowu Li
EntityIndividual
Shares15,000,000
Max PriceHK$0.12
SellHK$1,188,02621 Mar 19
Xiaowu Li
EntityIndividual
Shares10,000,000
Max PriceHK$0.12

Ownership Breakdown


Management Team

  • Henry Chung (62yo)

    Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$1.16m
  • Po Keung Wong (48yo)

    Financial Controller & Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$1.06m
  • To Pan Chik (40yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$538.00k
  • James Leung (63yo)

    Executive Director

    • Tenure: 11yrs
    • Compensation: HK$329.00k
  • Tai On Lo

    Company Secretary

    • Tenure: 8.8yrs
  • Chi Hang Yeung (40yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: HK$1.68m

Board Members

  • Henry Chung (62yo)

    Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$1.16m
  • Kays Wong (67yo)

    Independent Non-Executive Director

    • Tenure: 10.6yrs
    • Compensation: HK$130.00k
  • Chi King Ong (46yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$130.00k
  • Po Keung Wong (48yo)

    Financial Controller & Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$1.06m
  • To Pan Chik (40yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$538.00k
  • James Leung (63yo)

    Executive Director

    • Tenure: 11yrs
    • Compensation: HK$329.00k
  • Eric Heung (51yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$130.00k
  • Chi Hang Yeung (40yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: HK$1.68m

Company Information

China Environmental Resources Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Environmental Resources Group Limited
  • Ticker: 1130
  • Exchange: SEHK
  • Founded: 1986
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$152.740m
  • Shares outstanding: 2.04b
  • Website: https://www.cergroup.com.hk

Number of Employees


Location

  • China Environmental Resources Group Limited
  • Shun Tak Centre
  • 28th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RS1SGX (Singapore Exchange)YesOrdinary SharesSGSGDJun 1997
1130SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1997

Biography

China Environmental Resources Group Limited, an investment holding company, engages in the distribution and trading of motor vehicles and accessories in the People’s Republic of China and internationally.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:37
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.