SEHK:1205

Stock Analysis Report

CITIC Resources Holdings

Executive Summary

CITIC Resources Holdings Limited, an investment holding company, engages in the exploration, development, and production of oil and coal.

Snowflake

Fundamentals

Undervalued second-rate dividend payer.

Share Price & News

How has CITIC Resources Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

1205

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-23.4%

1205

11.6%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 1205 underperformed the Hong Kong Trade Distributors industry which returned 11.6% over the past year.

Return vs Market: 1205 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1205IndustryMarket
7 Day-1.0%7.5%0.9%
30 Day-2.0%-7.8%0.4%
90 Day-19.7%8.2%-5.5%
1 Year-19.0%-23.4%15.0%11.6%4.2%0.6%
3 Year-45.7%-51.0%-7.8%-16.2%15.5%3.9%
5 Year-53.9%-58.5%-38.4%-50.5%19.9%-0.1%

Price Volatility Vs. Market

How volatile is CITIC Resources Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CITIC Resources Holdings undervalued compared to its fair value and its price relative to the market?

50.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1205 (HK$0.49) is trading below our estimate of fair value (HK$0.98)

Significantly Undervalued: 1205 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1205 is good value based on its PE Ratio (5.2x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 1205 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1205's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1205 is good value based on its PB Ratio (0.6x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is CITIC Resources Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1205's earnings are forecast to decline over the next 3 years (-2.3% per year).

Earnings vs Market: 1205's earnings are forecast to decline over the next 3 years (-2.3% per year).

High Growth Earnings: 1205's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1205's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1205's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1205's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CITIC Resources Holdings performed over the past 5 years?

45.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1205 has become profitable over the past 5 years, growing earnings by 45.2% per year.

Accelerating Growth: 1205's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1205 had negative earnings growth (-14.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 1205's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: 1205 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 1205 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CITIC Resources Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1205's short term assets (HK$3.7B) exceeds its short term liabilities (HK$2.7B)

Long Term Liabilities: 1205's short term assets (3.7B) do not cover its long term liabilities (4.4B)


Debt to Equity History and Analysis

Debt Level: 1205's debt to equity ratio (90.3%) is considered high

Reducing Debt: 1205's debt to equity ratio has increased from 85.5% to 90.3% over the past 5 years.

Debt Coverage: 1205's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: Insufficient data to determine if 1205's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1205 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1205's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is CITIC Resources Holdings's current dividend yield, its reliability and sustainability?

7.14%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1205's dividend (7.14%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1205's dividend (7.14%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: Whilst dividend payments have been stable, 1205 has been paying a dividend for less than 10 years.

Growing Dividend: 1205's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.3%), 1205's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of CITIC Resources Holdings's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Zhengang Suo (57yo)

4yrs

Tenure

HK$13,086,000

Compensation

Mr. Zhengang Suo has been Vice Chairman and Chief Executive Officer of CITIC Resources Holdings Ltd. since December 4, 2015 and October 19, 2015, respectively. Mr. Suo has been the Managing Director of CIT ...


CEO Compensation Analysis

Compensation vs. Market: Zhengang's total compensation ($USD1.67M) is about average for companies of similar size in the Hong Kong market ($USD298.58K).

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


Management Age and Tenure

4.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1205's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

54yo

Average Age

Experienced Board: 1205'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


Management Team

  • Alan Chung (51yo)

    Chief Accountant & Assistant to CEO

    • Tenure: 22.8yrs
  • Miles Sun (54yo)

    Chairman of the Board

    • Tenure: 0.6yrs
  • Yang Sun (52yo)

    Vice Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: HK$13.72m
  • Wai Wong (50yo)

    CFO & Company Secretary

    • Tenure: 0.3yrs
  • Zhengang Suo (57yo)

    Vice Chairman & CEO

    • Tenure: 4yrs
    • Compensation: HK$13.09m
  • Yimin Wang (47yo)

    GM of Project Management Department & Assistant to CEO

    • Tenure: 0yrs

Board Members

  • Anthony Fan (59yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: HK$546.00k
  • Eugene Chan (53yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$280.00k
  • Andrew Look (54yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$479.00k
  • Pei Ji Gao (72yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: HK$516.00k
  • Miles Sun (54yo)

    Chairman of the Board

    • Tenure: 0.6yrs
  • Yang Sun (52yo)

    Vice Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: HK$13.72m
  • Zhengang Suo (57yo)

    Vice Chairman & CEO

    • Tenure: 4yrs
    • Compensation: HK$13.09m

Company Information

CITIC Resources Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CITIC Resources Holdings Limited
  • Ticker: 1205
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$3.850b
  • Shares outstanding: 7.86b
  • Website: https://resources.citic/eng/global/home.htm

Number of Employees


Location

  • CITIC Resources Holdings Limited
  • International Commerce Centre
  • 67th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1205SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1997
CZRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1997
CTJH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1997
1205SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1997
1205SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1997
CTJH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMar 2010

Biography

CITIC Resources Holdings Limited, an investment holding company, engages in the exploration, development, and production of oil and coal. It operates in four segments: Aluminum Smelting, Coal, Import and E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:35
End of Day Share Price2019/10/18 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.