SEHK:1133

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Harbin Electric Company Limited, together with its subsidiaries, manufactures and sells power plant equipment in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Harbin Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1133's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

1133

2.6%

HK Electrical

4.1%

HK Market


1 Year Return

-19.2%

1133

-23.3%

HK Electrical

-4.7%

HK Market

Return vs Industry: 1133 exceeded the Hong Kong Electrical industry which returned -23.3% over the past year.

Return vs Market: 1133 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

1133IndustryMarket
7 Day0.3%2.6%4.1%
30 Day37.6%-1.0%4.2%
90 Day59.5%9.7%11.7%
1 Year-19.2%-19.2%-22.4%-23.3%-1.2%-4.7%
3 Year-19.7%-20.3%-48.1%-50.2%7.7%-3.5%
5 Year-38.8%-40.1%-60.5%-62.7%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Harbin Electric undervalued compared to its fair value and its price relative to the market?

45.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1133's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1133's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1133 is poor value based on its PE Ratio (45.7x) compared to the Electrical industry average (9.7x).

PE vs Market: 1133 is poor value based on its PE Ratio (45.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1133 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 1133 is good value based on its PB Ratio (0.3x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Harbin Electric forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

42.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1133's forecast earnings growth (42.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1133's earnings (42.6% per year) are forecast to grow faster than the Hong Kong market (17.7% per year).

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

Revenue vs Market: Insufficient data to determine if 1133's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1133's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1133's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has Harbin Electric performed over the past 5 years?

-34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1133 has a high level of non-cash earnings.

Growing Profit Margin: 1133's current net profit margins (0.5%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: 1133's earnings have declined by -34.8% per year over the past 5 years.

Accelerating Growth: 1133's earnings growth over the past year (48.5%) exceeds its 5-year average (-34.8% per year).

Earnings vs Industry: 1133 earnings growth over the past year (48.5%) exceeded the Electrical industry 12.8%.


Return on Equity

High ROE: 1133's Return on Equity (0.7%) is considered low.


Next Steps

Financial Health

How is Harbin Electric's financial position?


Financial Position Analysis

Short Term Liabilities: 1133's short term assets (CN¥45.7B) exceed its short term liabilities (CN¥36.9B).

Long Term Liabilities: 1133's short term assets (CN¥45.7B) exceed its long term liabilities (CN¥2.3B).


Debt to Equity History and Analysis

Debt Level: 1133's debt to equity ratio (39.1%) is considered satisfactory.

Reducing Debt: 1133's debt to equity ratio has reduced from 42.7% to 39.1% over the past 5 years.

Debt Coverage: 1133's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1133's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1133's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1133's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1133's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1133's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1133 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1133's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Wei-Zhang Wu (58yo)

7.33yrs

Tenure

CN¥749,597

Compensation

Mr. Wei-Zhang Wu serves as the President of Harbin Turbine Company Limited. Mr. Wu serves as Vice President at Harbin Electric Corporation. Mr. Wu has been General Manager of Harbin Electric Company Limite ...


CEO Compensation Analysis

Compensation vs Market: Wei-Zhang's total compensation ($USD106.08K) is below average for companies of similar size in the Hong Kong market ($USD513.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ze-Fu Si
Executive Chairman4yrsno datano data
Wei-Zhang Wu
President7.33yrsCN¥749.60kno data
Li-Song Ai
Company Secretary & GM of Legal Complianceno dataCN¥469.76kno data
Hai-Quan Zhang
VP & Deputy GM19.75yrsCN¥856.42kno data
Zhi-Quan Liu
Senior Vice President5.67yrsCN¥670.53kno data
Zhe Qu
VP & Deputy GM10.08yrsCN¥856.42kno data
Ying-Jian Zhang
Senior VP & Executive Director7.5yrsCN¥674.10kno data
Wei-Jiang Xie
Senior Vice President1.67yrsCN¥301.66kno data
Zhi-qiang Lu
Senior Vice President1.67yrsCN¥554.38kno data
Tat Chiu Tung
Joint Company Secretary8.5yrsno datano data

7.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1133's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ze-Fu Si
Executive Chairman4yrsno datano data
Wei-Zhang Wu
President7.33yrsCN¥749.60kno data
Ying-Jian Zhang
Senior VP & Executive Director7.5yrsCN¥674.10kno data
Yong-Qiang Feng
Chairman of Supervisory Committee5.67yrsCN¥387.00kno data
Hong-Jie Zhu
Independent Non-Executive Director3.33yrsCN¥60.00kno data
Guang Chen
Supervisor10.58yrsCN¥323.00kno data
Wen-Ming Zhang
Supervisor7.5yrsCN¥243.00kno data
Wen-Xing Yu
Independent Non-Executive Director5.33yrsCN¥60.00kno data
Jian-Min Hu
Independent Non-Executive Director3.33yrsCN¥60.00kno data
Tian Min
Independent Non-Executive Director2.33yrsCN¥60.00kno data

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 1133'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.


Top Shareholders

Company Information

Harbin Electric Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harbin Electric Company Limited
  • Ticker: 1133
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$5.307b
  • Shares outstanding: 1.71b
  • Website: https://www.hpec.com

Number of Employees


Location

  • Harbin Electric Company Limited
  • 1399 Chuangxinyi Road
  • Songbei District
  • Harbin
  • Heilongjiang Province
  • 150028
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1133SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 1994
HP6HDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 1994

Biography

Harbin Electric Company Limited, together with its subsidiaries, manufactures and sells power plant equipment in the People’s Republic of China. It provides thermal power main equipment, including boilers, steam turbines, and steam turbine generators; hydropower main equipment, such as hydropower generators units; nuclear power main equipment comprising nuclear island and conventional island equipment; and a set of steam power equipment, including 9F/9H class gas turbine, and combined gas and steam cycle sets. The company also engages in the research and development, and production of clean energy products comprising solar energy, hydropower, and desalination products; and ancillary equipment for power stations, industrial boilers, industrial steam turbines, control devices, and AC/DC motors, as well as valves for power stations, pressure vessels, and axial compressors, etc. In addition, it is involved in the construction of power station projects; servicing of thermal and hydropower equipment; import and export of equipment for power stations; the provision of after sales service for power station equipment products; research and development of engineering technology for power equipment and its ancillary products; and provision of environmental protection engineering services, such as desulfurization, denitrification, and dust removal. The company was founded in 1994 and is based in Harbin, the People’s Republic of China. Harbin Electric Company Limited is a subsidiary of Harbin Electric Corporation Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:40
End of Day Share Price2020/07/03 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.