SEHK:1417

Stock Analysis Report

Riverine China Holdings

Executive Summary

Riverine China Holdings Limited, an investment holding company, provides property management services in the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-13.9%

1417

0.8%

HK Construction

2.2%

HK Market


1 Year Return

12.8%

1417

-19.8%

HK Construction

-1.3%

HK Market

Return vs Industry: 1417 exceeded the Hong Kong Construction industry which returned -19.8% over the past year.

Return vs Market: 1417 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1417IndustryMarket
7 Day-13.9%0.8%2.2%
30 Day-14.9%-5.4%-2.9%
90 Day-11.0%-10.6%-5.8%
1 Year13.2%12.8%-16.6%-19.8%2.3%-1.3%
3 Yearn/a-24.1%-32.3%15.6%3.9%
5 Yearn/a0.3%-14.8%20.1%0.06%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Riverine China Holdings undervalued based on future cash flows and its price relative to the stock market?

35.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 1417 (HK$2.11) is trading above our estimate of fair value (HK$0.2)

Significantly Undervalued: 1417 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 1417 is poor value based on its PE Ratio (35.1x) compared to the Construction industry average (10.2x).

PE vs Market: 1417 is poor value based on its PE Ratio (35.1x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 1417's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 1417 is overvalued based on its PB Ratio (3.1x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is Riverine China Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1417's forecast earnings growth (7.5% per year) is above the savings rate (2%).

Earnings vs Market: 1417's earnings (7.5% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1417's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1417's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1417's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1417's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Riverine China Holdings performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1417's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: 1417's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1417 had negative earnings growth (-20.5%) over the past year, making it difficult to compare to the Construction industry average (-12.8%).


Return on Equity

High ROE: 1417's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: 1417's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1417's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Riverine China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1417's short term assets (CN¥347.8M) exceeds its short term liabilities (CN¥162.0M)

Long Term Liabilities: 1417 has no long term liabilities


Debt to Equity History and Analysis

Debt Level: 1417's debt to equity ratio (13.6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1417's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1417's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1417 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1417 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1417's debt is covered by short term assets (assets are 9.936000x debt).


Next Steps

Dividend

What is Riverine China Holdings's current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1417's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1417's dividend (0.76%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 1417 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1417 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1417 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1417's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Yuqiao Xiao (37yo)

3yrs

Tenure

CN¥670,000

Compensation


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Yuqiao's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.7yrs

Average Tenure

53yo

Average Age

Experienced Management: 1417's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

53yo

Average Age

Experienced Board: 1417's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

BuyCN¥14,929,61324 May 19
Partner Summit Holdings Limited
EntityCompany
Shares4,816,000
Max PriceCN¥3.10
BuyCN¥52,70029 Apr 19
Partner Summit Holdings Limited
EntityCompany
Shares17,000
Max PriceCN¥3.10
BuyCN¥520,80029 Apr 19
Partner Summit Holdings Limited
EntityCompany
Shares168,000
Max PriceCN¥3.10

Ownership Breakdown


Management Team

  • Shao Jun Jia (49yo)

    VP, Joint Company Secretary & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥660.00k
  • Xingtao Xiao (70yo)

    Chairman

    • Tenure: 3yrs
    • Compensation: CN¥929.00k
  • Qichang Fu (61yo)

    Vice-Chairman

    • Tenure: 3yrs
    • Compensation: CN¥734.00k
  • Yuqiao Xiao (37yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥670.00k
  • Helen Cheung (57yo)

    Joint Company Secretary

    • Tenure: 0.4yrs
  • Yufei Cai (34yo)

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • Laurence Shu (46yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥104.00k
  • Shao Jun Jia (49yo)

    VP, Joint Company Secretary & Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥660.00k
  • Xingtao Xiao (70yo)

    Chairman

    • Tenure: 3yrs
    • Compensation: CN¥929.00k
  • Qichang Fu (61yo)

    Vice-Chairman

    • Tenure: 3yrs
    • Compensation: CN¥734.00k
  • Yuqiao Xiao (37yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥670.00k
  • Dong Cheng (57yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥104.00k
  • Guoqiang Weng (59yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥104.00k
  • Yongjun Zhang (43yo)

    Non-executive Director

    • Tenure: 1.4yrs

Company Information

Riverine China Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Riverine China Holdings Limited
  • Ticker: 1417
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$854.550m
  • Shares outstanding: 405.00m
  • Website: https://www.riverinepm.com

Number of Employees


Location

  • Riverine China Holdings Limited
  • Jiushi Tower
  • 14th Floor
  • Shanghai
  • 200010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1417SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017

Biography

Riverine China Holdings Limited, an investment holding company, provides property management services in the People’s Republic of China. The company offers standard property management services, such as en ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:16
End of Day Share Price2019/10/11 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.

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