SEHK:1596

Stock Analysis Report

Hebei Yichen Industrial Group

Executive Summary

Hebei Yichen Industrial Group Corporation Limited provides rail fastening systems to the railway industry in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.6%

1596

5.7%

HK Machinery

2.4%

HK Market


1 Year Return

-36.9%

1596

17.4%

HK Machinery

0.4%

HK Market

Return vs Industry: 1596 underperformed the Hong Kong Machinery industry which returned 17.4% over the past year.

Return vs Market: 1596 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1596IndustryMarket
7 Day12.6%5.7%2.4%
30 Day26.7%-2.1%-2.6%
90 Day23.5%-3.9%-5.6%
1 Year-35.1%-36.9%20.8%17.4%4.0%0.4%
3 Yearn/a52.8%43.5%15.1%3.5%
5 Yearn/a72.0%54.1%20.3%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hebei Yichen Industrial Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1596 (HK$3.84) is trading below our estimate of fair value (HK$25.13)

Significantly Undervalued: 1596 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1596 is poor value based on its PE Ratio (20.2x) compared to the Machinery industry average (9.6x).

PE vs Market: 1596 is poor value based on its PE Ratio (20.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1596's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1596 is overvalued based on its PB Ratio (1.6x) compared to the HK Machinery industry average (0.8x).


Next Steps

Future Growth

How is Hebei Yichen Industrial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1596's forecast earnings growth (6.9% per year) is above the savings rate (2%).

Earnings vs Market: 1596's earnings (6.9% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1596's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1596's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1596'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 1596's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hebei Yichen Industrial Group performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1596's earnings have declined by -11.4% per year over the past 5 years.

Accelerating Growth: 1596's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1596 had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Machinery industry average (7.4%).


Return on Equity

High ROE: 1596's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: 1596 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 1596's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hebei Yichen Industrial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1596's short term assets (CN¥1.8B) exceeds its short term liabilities (CN¥549.4M)

Long Term Liabilities: 1596's short term assets (1.8B) exceeds its long term liabilities (76.4M)


Debt to Equity History and Analysis

Debt Level: 1596's debt to equity ratio (7.6%) is considered satisfactory

Reducing Debt: 1596's debt to equity ratio has reduced from 50.6% to 7.6% over the past 5 years.

Debt Coverage: 1596's debt is well covered by operating cash flow (175%).

Interest Coverage: 1596's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet

Inventory Level: 1596 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1596's debt is covered by short term assets (assets are 12.045960x debt).


Next Steps

Dividend

What is Hebei Yichen Industrial Group's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1596's dividend (2.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1596's dividend (2.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

Stable Dividend: 1596 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1596 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.6%), 1596'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 Hebei Yichen Industrial Group's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Ligang Zhang (47yo)

0yrs

Tenure

CN¥246,000

Compensation

Mr. Ligang Zhang serves as Chief Executive Officer and General Manager of Hebei Yichen Industrial Group Co., Ltd., and has been its Executive Director since January 1, 2012. Mr. Zhang is responsible for th ...


Management Age and Tenure

7.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1596's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 1596'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

SellCN¥9,900,00415 Mar 19
Zhong Yan Guo
EntityIndividual
Shares3,000,000
Max PriceCN¥3.30
SellCN¥14,151,67628 Feb 19
Sino Wealthy Limited, Asset Management Arm
EntityCompany
Shares6,300,000
Max PriceCN¥2.25
SellCN¥8,056,00028 Feb 19
Zhong Yan Guo
EntityIndividual
Shares3,040,000
Max PriceCN¥2.65
SellCN¥4,289,99828 Feb 19
Zhong Yan Guo
EntityIndividual
Shares1,500,000
Max PriceCN¥2.86
SellCN¥4,341,98104 Feb 19
Zhong Yan Guo
EntityIndividual
Shares1,202,000
Max PriceCN¥3.61
SellCN¥13,844,32817 Jan 19
Zhong Yan Guo
EntityIndividual
Shares2,632,000
Max PriceCN¥5.26

Ownership Breakdown


Management Team

  • Susan Lo (61yo)

    Joint Company Secretary

    • Tenure: 3.8yrs
  • Haijun Zhang (67yo)

    Chairman of the Board

    • Tenure: 18.5yrs
    • Compensation: CN¥360.00k
  • Ligang Zhang (47yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥246.00k
  • Jinyu Wu (50yo)

    CFO & Executive Director

    • Tenure: 18.5yrs
    • Compensation: CN¥247.00k
  • Chao Zhang (34yo)

    Joint Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥184.00k
  • Lihuan Zhang (37yo)

    Manager of Welding Business Division & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥186.00k
  • Xiulan Fan (66yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥170.00k
  • Jinxiang He (59yo)

    Chief Engineer

    • Tenure: 9.8yrs
  • Yanfeng Zhang

    Deputy Head of Finance Department

    • Tenure: 0yrs

Board Members

  • Terence Jip (49yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥151.00k
  • Haijun Zhang (67yo)

    Chairman of the Board

    • Tenure: 18.5yrs
    • Compensation: CN¥360.00k
  • Ligang Zhang (47yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥246.00k
  • Jinyu Wu (50yo)

    CFO & Executive Director

    • Tenure: 18.5yrs
    • Compensation: CN¥247.00k
  • Chao Zhang (34yo)

    Joint Company Secretary & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥184.00k
  • Lihuan Zhang (37yo)

    Manager of Welding Business Division & Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥186.00k
  • Xiulan Fan (66yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥170.00k
  • Qi Wang (46yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥40.00k
  • Liguo Zhang (61yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥40.00k
  • Hebin Hu (42yo)

    • Tenure: 0.9yrs

Company Information

Hebei Yichen Industrial Group Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hebei Yichen Industrial Group Corporation Limited
  • Ticker: 1596
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$3.376b
  • Shares outstanding: 897.84m
  • Website: https://www.hbyc.com.cn

Number of Employees


Location

  • Hebei Yichen Industrial Group Corporation Limited
  • No. 1 Yichen North Street
  • Gaocheng District
  • Shijiazhuang
  • Hebei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1596SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2016

Biography

Hebei Yichen Industrial Group Corporation Limited provides rail fastening systems to the railway industry in the People’s Republic of China. The company offers high speed rail fastening system, metro serie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:55
End of Day Share Price2019/10/15 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.