SEHK:1296

Stock Analysis Report

Guodian Technology & Environment Group

Executive Summary

Guodian Technology & Environment Group Corporation Limited provides environmental protection and energy conservation solutions, and renewable energy equipment manufacturing and solutions in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Guodian Technology & Environment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1296 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

1296

3.1%

HK Electrical

-0.6%

HK Market


1 Year Return

-24.2%

1296

-32.2%

HK Electrical

-7.6%

HK Market

Return vs Industry: 1296 exceeded the Hong Kong Electrical industry which returned -32.2% over the past year.

Return vs Market: 1296 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1296IndustryMarket
7 Day4.2%3.1%-0.6%
30 Day2.5%-0.1%-1.2%
90 Day9.2%4.0%3.0%
1 Year-24.2%-24.2%-31.0%-32.2%-4.2%-7.6%
3 Year-56.1%-56.1%-46.9%-49.0%12.9%1.5%
5 Year-76.0%-76.0%-51.3%-54.1%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Guodian Technology & Environment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guodian Technology & Environment Group undervalued compared to its fair value and its price relative to the market?

0.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1296 (HK$0.25) is trading above our estimate of fair value (HK$0.07)

Significantly Below Fair Value: 1296 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1296 is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: 1296 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 1296's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1296 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 Guodian Technology & Environment Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

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 Guodian Technology & Environment 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 Guodian Technology & Environment Group performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1296 is currently unprofitable.

Growing Profit Margin: 1296 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1296 is unprofitable, and losses have increased over the past 5 years at a rate of -37.4% per year.

Accelerating Growth: Unable to compare 1296's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1296 is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (6%).


Return on Equity

High ROE: 1296 has a negative Return on Equity (-3.67%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Guodian Technology & Environment Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1296's short term assets (CN¥21.7B) exceed its short term liabilities (CN¥20.5B).

Long Term Liabilities: 1296's short term assets (CN¥21.7B) exceed its long term liabilities (CN¥5.4B).


Debt to Equity History and Analysis

Debt Level: 1296's debt to equity ratio (151.5%) is considered high.

Reducing Debt: 1296's debt to equity ratio has reduced from 166.5% to 151.5% over the past 5 years.


Balance Sheet

Inventory Level: 1296 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1296's debt is covered by short term assets (assets are 1.9x 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: 1296 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 1296 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Guodian Technology & Environment Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1296's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1296's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1296's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1296's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1296 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 1296'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?

2.8yrs

Average management tenure


CEO

Jun Zhang (55yo)

2.8yrs

Tenure

CN¥1,020,000

Compensation

Mr. Jun Zhang has been President and Executive Director of Guodian Technology & Environment Group Corporation Limited since May 3, 2017 and August 8, 2017 respectively. Mr. Zhang serves as General Manager. ...


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD145.12K) is below average for companies of similar size in the Hong Kong market ($USD290.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dongqing Chen
Executive Chairman2.8yrsCN¥1.06mno data
Jun Zhang
GM, President & Executive Director2.8yrsCN¥1.02mno data
Chaoxiong Tang
Chief Accountant3.9yrsCN¥850.00kno data
Zhaowen Cai
VP, Deputy GM & Joint Company Secretary2.9yrsno datano data
Kwok Fai Lee
Joint Company Secretary1.5yrsno datano data
Wei Li
Director of the Audit Department & Employee Representative Supervisor0yrsCN¥586.00kno data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 1296's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dongqing Chen
Executive Chairman2.8yrsCN¥1.06mno data
Jun Zhang
GM, President & Executive Director2.8yrsCN¥1.02mno data
Chaoxiong Tang
Chief Accountant3.9yrsCN¥850.00kno data
Wei Li
Director of the Audit Department & Employee Representative Supervisor0yrsCN¥586.00kno data
Andrew Y. Yan
Non-Executive Director7.7yrsno datano data
Chi Tat Yeung
Independent Non-Executive Director2.5yrsno datano data
Baoxing Luan
Chairman of the Board of Supervisors0yrsno datano data
Zhongqu Wang
Non-Executive Director5.8yrsno datano data
Jiu Hui Qu
Independent Non-Executive Director5.8yrsCN¥150.00kno data
Qiuye Xie
Independent Non-Executive Director5.8yrsCN¥150.00kno data

4.8yrs

Average Tenure

54yo

Average Age

Experienced Board: 1296's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Guodian Technology & Environment Group Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guodian Technology & Environment Group Corporation Limited
  • Ticker: 1296
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$1.516b
  • Shares outstanding: 6.06b
  • Website: https://www.01296.hk

Number of Employees


Location

  • Guodian Technology & Environment Group Corporation Limited
  • Suite 1225
  • Building 1, Yard 16
  • Beijing
  • 100039
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1296SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2011
9GTDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2011

Biography

Guodian Technology & Environment Group Corporation Limited provides environmental protection and energy conservation solutions, and renewable energy equipment manufacturing and solutions in the People’s Republic of China. Its Environmental Protection segment offers sulphur oxide and nitrogen oxide control technologies, desulphurization and denitrification facilities rental, ash removal with filer bag, and water treatment related technologies and products. The company’s Energy Conservation Solutions segment offers energy saving products and services, including plasma and micro-oil ignition equipment; gas turbine improvement services; and energy-efficient power plants construction services. Its Wind Power Products and Services segment produces and sells wind turbine and its components; and offers system solutions and services to wind power operators. The company’s Solar Power Products and Services segment produces and sells solar cells, solar modules, and other solar products; and constructs solar power stations, as well as provides related system solutions and services to solar power operators. It also offers desulphurization and other environmental protection engineering services; produces and sells selective catalytic reduction catalyst; constructs and operates water treatment projects; designs and installs sewage treatment equipment; researches, develops, and sells wind turbine technology; and provides energy conservation engineering services. The company produces and sells steam turbines, igniters and other electric equipment, variablepitch control systems for wind turbine, electric power related products, and thermal energy equipment; and researches and develops technology. The company was formerly known as Guodian Technology & Environment Group Limited Liability Company and was changed to Guodian Technology & Environment Group Corporation Limited. The company was founded in 2001 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:16
End of Day Share Price2020/02/21 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.