SEHK:1133

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Risks

  • Harbin Electric is covered by less than 3 analysts.

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


Market Performance


7 Day Return

-3.3%

SEHK:1133

-1.3%

HK Electrical

1.5%

HK Market


1 Year Return

60.4%

SEHK:1133

-27.9%

HK Electrical

-4.7%

HK Market

1133 outperformed the Electrical industry which returned -27.9% over the past year.

1133 outperformed the Market in Hong Kong which returned -4.7% over the past year.


Share holder returns

1133IndustryMarket
7 Day-3.3%-1.3%1.5%
30 Day-7.7%-4.4%3.9%
90 Day-6.3%-19.5%-8.2%
1 Year60.4%60.4%-26.8%-27.9%-1.4%-4.7%
3 Year12.9%11.3%-30.8%-33.5%31.5%18.3%
5 Year-24.1%-26.2%-32.4%-36.2%24.3%3.4%

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 based on future cash flows and its price relative to the stock market?

80.64x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Harbin Electric to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Harbin Electric to establish if it is available at substantial discount.


Price Based on Earnings

Harbin Electric is overvalued based on earnings compared to the HK Electrical industry average.

Harbin Electric is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Harbin Electric is poor value based on expected growth next year.


Price Based on Value of Assets

Harbin Electric is good value based on assets compared to the HK Electrical industry average.


Next Steps

Future Growth

How is Harbin Electric expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Harbin Electric's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Harbin Electric's earnings are expected to grow significantly at over 20% yearly.

Harbin Electric's revenue growth is positive but not above the Hong Kong market average.

Harbin Electric's earnings growth is expected to exceed the Hong Kong market average.

Harbin Electric's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Harbin Electric is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Harbin Electric performed over the past 5 years?

-28.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Harbin Electric's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Harbin Electric's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Harbin Electric's 1-year earnings growth is negative, it can't be compared to the HK Electrical industry average.


Return on Equity

Harbin Electric has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

It is difficult to establish if Harbin Electric has efficiently used its assets last year compared to the HK Electrical industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

Harbin Electric has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Harbin Electric's financial position?


Financial Position Analysis

Harbin Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Harbin Electric's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Harbin Electric's level of debt (14.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (44.6% vs 14.6% today).

Operating cash flow is negative therefore debt is not well covered.

Harbin Electric earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 19.9x debt.


Next Steps

Dividend

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

0.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Harbin Electric's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Harbin Electric's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Harbin Electric has not reported any payouts.

Unable to verify if Harbin Electric's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Harbin Electric has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Harbin Electric's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Wei-Zhang Wu (57yo)

6.3yrs

Tenure

CN¥715,029

Compensation

Mr. Wei-Zhang Wu serves as Vice President at Harbin Electric Corporation. Mr. Wu has been General Manager of Harbin Electric Company Limited (alternative name Harbin Power Equipment Co. Ltd.) since Februar ...


CEO Compensation Analysis

Wei-Zhang's remuneration is lower than average for companies of similar size in Hong Kong.

Wei-Zhang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.7yrs

Average Tenure

56yo

Average Age

The tenure for the Harbin Electric management team is about average.


Board Age and Tenure

4.5yrs

Average Tenure

59yo

Average Age

The tenure for the Harbin Electric board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

BuyHK$11,396,00024 Jun 19
UBS Asset Management
EntityCompany
Shares2,818,000
Max PriceHK$4.04
BuyHK$5,583,82220 May 19
Value Partners Limited
EntityCompany
Shares1,358,000
Max PriceHK$4.11
BuyHK$6,984,86025 Apr 19
Value Partners Limited
EntityCompany
Shares1,704,000
Max PriceHK$4.10

Ownership Breakdown


Management Team

  • Hai-Quan Zhang (58yo)

    VP & Deputy GM

    • Tenure: 18.8yrs
    • Compensation: CN¥858.03k
  • Zhe Qu (57yo)

    VP & Deputy GM

    • Tenure: 9.1yrs
    • Compensation: CN¥858.03k
  • Zhi-qiang Lu (46yo)

    Senior Vice President

    • Tenure: 0.7yrs
    • Compensation: CN¥454.40k
  • Wei-jiang Xie (46yo)

    Senior Vice President

    • Tenure: 0.7yrs
    • Compensation: CN¥438.36k
  • De-Xing Wang (60yo)

    Vice President

    • Tenure: 2.8yrs
    • Compensation: CN¥936.20k
  • Li-Song Ai (49yo)

    Director of the Secretariat of the Board & Company Secretary

    • Tenure: 4.2yrs
    • Compensation: CN¥380.21k
  • Wei-Zhang Wu (57yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CN¥715.03k
  • Ying-Jian Zhang (55yo)

    Senior VP & Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥645.57k
  • Ze-Fu Si (61yo)

    Executive Chairman

  • Zhi-Quan Liu (51yo)

    Senior Vice President

    • Tenure: 4.7yrs
    • Compensation: CN¥650.45k

Board Members

  • Tian Min (63yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥50.00k
  • Hong-Jie Zhu (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥60.00k
  • Jian-Min Hu (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥60.00k
  • Wen-Xing Yu (66yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥60.00k
  • Wen-Ming Zhang (45yo)

    Supervisor

    • Tenure: 6.5yrs
    • Compensation: CN¥243.00k
  • Wei-Zhang Wu (57yo)

    President

    • Tenure: 18.8yrs
    • Compensation: CN¥715.03k
  • Yong-Qiang Feng (56yo)

    Chairman of Supervisory Committee

    • Tenure: 4.7yrs
    • Compensation: CN¥387.00k
  • Guang Chen (55yo)

    Supervisor

    • Tenure: 9.6yrs
    • Compensation: CN¥323.00k
  • Ying-Jian Zhang (55yo)

    Senior VP & Executive Director

    • Tenure: 6.5yrs
    • Compensation: CN¥645.57k
  • Ze-Fu Si (61yo)

    Executive Chairman

    • Tenure: 3.0yrs

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$6.655b
  • Shares outstanding: 1.71b
  • Website: Click here

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 12:42
End of Day Share Price2019/07/17 00:00
Earnings2018/12/31
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.