SEHK:1366

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Jiangnan Group Limited, an investment holding company, manufactures and trades in wires and cables in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Jiangnan Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1366 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

1366

2.6%

HK Electrical

4.1%

HK Market


1 Year Return

-8.6%

1366

-23.3%

HK Electrical

-4.7%

HK Market

Return vs Industry: 1366 exceeded the Hong Kong Electrical industry which returned -23.3% over the past year.

Return vs Market: 1366 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

1366IndustryMarket
7 Day1.6%2.6%4.1%
30 Day0%3.9%5.3%
90 Day6.7%8.7%13.5%
1 Year-6.6%-8.6%-22.4%-23.3%-1.2%-4.7%
3 Year-43.4%-47.5%-48.1%-50.2%7.7%-3.5%
5 Year-81.9%-83.9%-60.5%-62.7%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jiangnan Group undervalued compared to its fair value and its price relative to the market?

3.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1366 (HK$0.32) is trading above our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 1366 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1366 is good value based on its PE Ratio (3.4x) compared to the Electrical industry average (9.7x).

PE vs Market: 1366 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1366's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1366 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 Jiangnan Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.8%

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 Jiangnan 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 Jiangnan Group performed over the past 5 years?

-28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1366 has high quality earnings.

Growing Profit Margin: 1366's current net profit margins (2.6%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 1366's earnings have declined by -28.6% per year over the past 5 years.

Accelerating Growth: 1366's earnings growth over the past year (110.1%) exceeds its 5-year average (-28.6% per year).

Earnings vs Industry: 1366 earnings growth over the past year (110.1%) exceeded the Electrical industry 12.8%.


Return on Equity

High ROE: 1366's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Jiangnan Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1366's short term assets (CN¥14.3B) exceed its short term liabilities (CN¥9.2B).

Long Term Liabilities: 1366's short term assets (CN¥14.3B) exceed its long term liabilities (CN¥47.8M).


Debt to Equity History and Analysis

Debt Level: 1366's debt to equity ratio (52.6%) is considered high.

Reducing Debt: 1366's debt to equity ratio has reduced from 90.6% to 52.6% over the past 5 years.

Debt Coverage: 1366's debt is well covered by operating cash flow (28.2%).

Interest Coverage: 1366's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Jiangnan Group current dividend yield, its reliability and sustainability?

1.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1366's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 1366's dividend (1.56%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: 1366 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1366 has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.2%), 1366's dividend payments are thoroughly 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

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

8.4yrs

Average management tenure


CEO

Hui Chu (48yo)

6yrs

Tenure

CN¥660,000

Compensation

Mr. Hui Chu serves as General Manager of Wuxi Jiangnan Cable Co., Ltd. Mr. Chu has been the Chief Executive Officer of Jiangnan Group Limited since July 7, 2014 and as its Chairman of the Board since May 3 ...


CEO Compensation Analysis

Compensation vs Market: Hui's total compensation ($USD93.40K) is below average for companies of similar size in the Hong Kong market ($USD273.83K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hui Chu
Chairman of the Board & CEO6yrsCN¥660.00k35.27% CN¥685.0m
Yongwei Jiang
VP & Executive Director8.25yrsCN¥410.00k0.025% CN¥480.0k
Yafang Xia
Executive VP & Executive Director9.5yrsCN¥470.00k0.052% CN¥1.0m
Man Kiu Chan
CFO & Company Secretaryno datano datano data
Yiping Rui
General Manager of Marketing & Sales8.42yrsCN¥320.00kno data
Shunkang Cao
Financial Controllerno datano datano data

8.4yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 1366's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hui Chu
Chairman of the Board & CEO6yrsCN¥660.00k35.27% CN¥685.0m
Yongwei Jiang
VP & Executive Director8.25yrsCN¥410.00k0.025% CN¥480.0k
Yafang Xia
Executive VP & Executive Director9.5yrsCN¥470.00k0.052% CN¥1.0m
Zhisong He
Independent Non-Executive Director8.42yrsCN¥88.00kno data
Rongkai Yang
Independent Non-Executive Director8.42yrsCN¥88.00kno data
Man Kan
Independent Non-Executive Director1.08yrsCN¥74.00kno data

8.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1366's board of directors are considered experienced (8.3 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 been substantially diluted in the past year, with total shares outstanding growing by 50.9%.


Top Shareholders

Company Information

Jiangnan Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jiangnan Group Limited
  • Ticker: 1366
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$1.942b
  • Shares outstanding: 6.07b
  • Website: https://www.jiangnangroup.com

Number of Employees


Location

  • Jiangnan Group Limited
  • Metropole Square
  • Unit 09
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1366SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2012
JGADB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2012

Biography

Jiangnan Group Limited, an investment holding company, manufactures and trades in wires and cables in the People’s Republic of China. It operates through Power Cables, Wires and Cables for Electrical Equipment, Bare Wires, and Special Cables segments. The company offers power cables primarily for the use in power transmission and distribution systems; and wires and cables for use in the supply and distribution of electricity for various applications, such as industrial machinery, instruments, meters, and household appliances, as well as wires in the buildings. It also provides bare wires, including aluminum reinforced wires, aluminum conductor steel reinforced wires, and aluminum alloy conductors that are used as overhead power lines for power transmission; and special cables and wires for the ship building, wind power generation, and mining industries, as well as rubber, fire proof, and other cables. In addition, the company is involved in the trading of copper conductors, and wires and cables; and engineering, procurement, and construction of electric power related projects. Its products are used in power and general industries, including metals and mining, oil and gas, transportation, shipbuilding, and construction industries. Jiangnan Group Limited also exports its products to approximately 100 countries. The company was founded in 1997 and is based in Shatin, Hong Kong. 


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.