SEHK:1157

Stock Analysis Report

Zoomlion Heavy Industry Science and Technology

Executive Summary

Zoomlion Heavy Industry Science and Technology Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of construction and agricultural machinery in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Zoomlion Heavy Industry Science and Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

1157

-0.2%

HK Machinery

0.3%

HK Market


1 Year Return

119.1%

1157

17.7%

HK Machinery

1.3%

HK Market

Return vs Industry: 1157 exceeded the Hong Kong Machinery industry which returned 17.7% over the past year.

Return vs Market: 1157 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1157IndustryMarket
7 Day-0.2%-0.2%0.3%
30 Day6.1%2.3%0.5%
90 Day1.2%-3.3%-4.6%
1 Year131.5%119.1%21.1%17.7%4.9%1.3%
3 Year133.1%95.2%52.3%42.8%15.3%3.7%
5 Year103.1%56.8%73.2%55.0%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Zoomlion Heavy Industry Science and Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Zoomlion Heavy Industry Science and Technology undervalued compared to its fair value and its price relative to the market?

29.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1157 (HK$5.74) is trading below our estimate of fair value (HK$8.08)

Significantly Below Fair Value: 1157 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1157 is poor value based on its PE Ratio (12.3x) compared to the Machinery industry average (9.1x).

PE vs Market: 1157 is poor value based on its PE Ratio (12.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1157 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 1157 is overvalued based on its PB Ratio (1.3x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

How is Zoomlion Heavy Industry Science and Technology forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1157's forecast earnings growth (10.4% per year) is above the savings rate (2%).

Earnings vs Market: 1157's earnings (10.4% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1157's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1157's revenue (10.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1157's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1157's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Zoomlion Heavy Industry Science and Technology performed over the past 5 years?

40.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1157's earnings have grown significantly by 40.4% per year over the past 5 years.

Accelerating Growth: 1157's earnings growth over the past year (250.6%) exceeds its 5-year average (40.4% per year).

Earnings vs Industry: 1157 earnings growth over the past year (250.6%) exceeded the Machinery industry 8.4%.


Return on Equity

High ROE: 1157's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: 1157's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 1157 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zoomlion Heavy Industry Science and Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 1157's short term assets (CN¥76.9B) exceeds its short term liabilities (CN¥50.3B)

Long Term Liabilities: 1157's short term assets (76.9B) exceeds its long term liabilities (13.6B)


Debt to Equity History and Analysis

Debt Level: 1157's debt to equity ratio (96.2%) is considered high

Reducing Debt: 1157's debt to equity ratio has increased from 61.8% to 96.2% over the past 5 years.

Debt Coverage: 1157's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: 1157's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: 1157 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1157's debt is covered by short term assets (assets are 2.127350x debt).


Next Steps

Dividend

What is Zoomlion Heavy Industry Science and Technology's current dividend yield, its reliability and sustainability?

4.21%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.3%markettop25%6.2%industryaverage3.1%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1157's dividend (4.21%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1157's dividend (4.21%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 1157's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1157's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.9%), 1157's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1157's dividends in 3 years are forecast to be covered by earnings (58.2% payout ratio).


Next Steps

Management

What is the CEO of Zoomlion Heavy Industry Science and Technology's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Chunxin Zhan (64yo)

2.8yrs

Tenure

CN¥7,115,000

Compensation

Dr. Chunxin Zhan has been the Chairman of Zoomlion Heavy Industry Science and Technology Co., Ltd. (alternate name: Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd) (Zoomlion) sin ...


CEO Compensation Analysis

Compensation vs. Market: Chunxin's total compensation ($USD1.01M) is about average for companies of similar size in the Hong Kong market ($USD582.48K).

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


Management Age and Tenure

4.3yrs

Average Tenure

56yo

Average Age

Experienced Management: 1157's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 1157's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Chunxin Zhan (64yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CN¥7.12m
  • Yanming Xiong (55yo)

    Vice President

    • Tenure: 13.2yrs
  • Changjun Sun (57yo)

    Vice President

    • Tenure: 0yrs
  • Xuehong Guo (57yo)

    Vice President

    • Tenure: 13.2yrs
  • Yigang Du (44yo)

    Vice President

    • Tenure: 0yrs
  • Ling Fu (52yo)

    Vice President

    • Tenure: 4.3yrs
  • Duzhi Yang

    Company Secretary

    • Tenure: 0.6yrs

Board Members

  • Kin Lai (69yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥120.00k
  • John Huan Zhao (56yo)

    Non-Executive Director

    • Tenure: 4.3yrs
  • Chunxin Zhan (64yo)

    Chairman & CEO

    • Tenure: 2.8yrs
    • Compensation: CN¥7.12m
  • Jianming He (56yo)

    Supervisor

    • Tenure: 0yrs
  • Changbo Yang (65yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥120.00k
  • Guiliang Liu (56yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥120.00k
  • Songzheng Zhao (58yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥120.00k

Company Information

Zoomlion Heavy Industry Science and Technology Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zoomlion Heavy Industry Science and Technology Co., Ltd.
  • Ticker: 1157
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: CN¥43.361b
  • Listing Market Cap: CN¥48.052b
  • Shares outstanding: 7.48b
  • Website: https://www.zoomlion.com

Number of Employees


Location

  • Zoomlion Heavy Industry Science and Technology Co., Ltd.
  • Zoomlion Science Park
  • No. 361 Yinpen South Road
  • Changsha
  • Hunan Province
  • 410013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
157SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYOct 2000
157XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYOct 2000
1157SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2010
ZLIO.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2010
8CZDB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2010
1157SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2010
ZLIO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2012

Biography

Zoomlion Heavy Industry Science and Technology Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of construction and agricultural machinery in the Peopl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:46
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.