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Metallurgical of China

SEHK:1618
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1618
SEHK
HK$68B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The last earnings update was 24 days ago. More info.


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1618 Share Price and Events
7 Day Returns
-1%
SEHK:1618
-0%
HK Construction
-1.6%
HK Market
1 Year Returns
-20.5%
SEHK:1618
-20.2%
HK Construction
-16.6%
HK Market
1618 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Metallurgical of China (1618) -1% -13.9% -10.8% -20.5% -5.7% 35.6%
HK Construction -0% -10% -10.9% -20.2% -13.2% 6.3%
HK Market -1.6% -9.5% -5.2% -16.6% 24.8% 7.3%
1 Year Return vs Industry and Market
  • 1618 underperformed the Market in Hong Kong which returned -16.6% over the past year.
Price Volatility
1618
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Metallurgical of China's competitors could be found in our database.

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Metallurgical of China to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Metallurgical of China.

SEHK:1618 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1618
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.983 (1 + (1- 25%) (154.63%))
1.753
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.75
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.753 * 5.96%)
12.45%

Discounted Cash Flow Calculation for SEHK:1618 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Metallurgical of China is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1618 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 12.45%)
2019 3,769.71 Est @ -53.33% 3,352.31
2020 2,384.98 Est @ -36.73% 1,886.06
2021 1,786.06 Est @ -25.11% 1,256.03
2022 1,482.82 Est @ -16.98% 927.32
2023 1,315.51 Est @ -11.28% 731.60
2024 1,219.51 Est @ -7.3% 603.11
2025 1,164.54 Est @ -4.51% 512.16
2026 1,134.80 Est @ -2.55% 443.82
2027 1,121.32 Est @ -1.19% 389.99
2028 1,118.74 Est @ -0.23% 346.01
Present value of next 10 years cash flows CN¥10,448.41
SEHK:1618 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,118.74 × (1 + 2%) ÷ (12.45% – 2%)
CN¥10,921.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥10,921.92 ÷ (1 + 12.45%)10
CN¥3,377.96
SEHK:1618 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥10,448.41 + CN¥3,377.96
CN¥13,826.37
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥13,826.37 / 20,723.62
CN¥0.67
SEHK:1618 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1618)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.67 x 1.137
HK$0.76
Value per share (HKD) From above. HK$0.76
Current discount Discount to share price of HK$1.98
= -1 x (HK$1.98 - HK$0.76) / HK$0.76
-160.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Metallurgical of China is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Metallurgical of China's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Metallurgical of China's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1618 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.27
SEHK:1618 Share Price ** SEHK (2019-05-22) in HKD HK$1.98
SEHK:1618 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥1.74
Hong Kong Construction Industry PE Ratio Median Figure of 107 Publicly-Listed Construction Companies 11.27x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 11.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Metallurgical of China.

SEHK:1618 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1618 Share Price ÷ EPS (both in CNY)

= 1.74 ÷ 0.27

6.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metallurgical of China is good value based on earnings compared to the HK Construction industry average.
  • Metallurgical of China is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Metallurgical of China's expected growth come at a high price?
Raw Data
SEHK:1618 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
15.3%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.49x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1618 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.39x ÷ 15.3%

0.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metallurgical of China is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Metallurgical of China's assets?
Raw Data
SEHK:1618 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥4.13
SEHK:1618 Share Price * SEHK (2019-05-22) in HKD HK$1.98
SEHK:1618 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥1.74
Hong Kong Construction Industry PB Ratio Median Figure of 133 Publicly-Listed Construction Companies 1.41x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.97x
SEHK:1618 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1618 Share Price ÷ Book Value per Share (both in CNY)

= 1.74 ÷ 4.13

0.42x

* Primary Listing of Metallurgical of China.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metallurgical of China is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess Metallurgical of China's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Metallurgical of China has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Metallurgical of China expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Metallurgical of China expected to grow at an attractive rate?
  • Metallurgical of China's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Metallurgical of China's earnings growth is expected to exceed the Hong Kong market average.
  • Metallurgical of China's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1618 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1618 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 15.3%
SEHK:1618 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 14.3%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1618 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1618 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 435,950 11,633 9,009 3
2020-12-31 392,094 10,630 8,638 6
2019-12-31 330,965 11,459 7,298 3
SEHK:1618 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 297,444 12,986 5,567
2018-12-31 289,535 14,050 5,461
2018-09-30 274,400 25,190 5,502
2018-06-30 269,027 24,511 5,518
2018-03-31 255,017 22,400 5,505
2017-12-31 244,000 18,418 5,285
2017-09-30 229,079 7,425 5,066
2017-06-30 224,818 7,208 5,133
2017-03-31 221,163 9,317 4,951
2016-12-31 219,558 18,559 4,874
2016-09-30 213,204 14,990 4,837
2016-06-30 212,457 16,562 4,875

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Metallurgical of China's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Metallurgical of China's revenue is expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1618 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Metallurgical of China Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1618 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.42 0.47 0.39 3.00
2019-12-31 0.35 0.39 0.32 3.00
SEHK:1618 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.27
2018-12-31 0.26
2018-09-30 0.28
2018-06-30 0.27
2018-03-31 0.27
2017-12-31 0.26
2017-09-30 0.25
2017-06-30 0.25
2017-03-31 0.26
2016-12-31 0.25
2016-09-30 0.24
2016-06-30 0.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Metallurgical of China is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Metallurgical of China's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Metallurgical of China has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Metallurgical of China performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Metallurgical of China's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Metallurgical of China's year on year earnings growth rate has been positive over the past 5 years.
  • Metallurgical of China's 1-year earnings growth is less than its 5-year average (1.1% vs 9.9%)
  • Metallurgical of China's earnings growth has exceeded the HK Construction industry average in the past year (1.1% vs -6.1%).
Earnings and Revenue History
Metallurgical of China's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Metallurgical of China Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1618 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 297,443.86 5,567.01 12,993.41 7,329.57
2018-12-31 289,534.52 5,461.02 12,325.36 7,182.67
2018-09-30 274,400.22 5,502.04 20,138.02 734.00
2018-06-30 269,026.95 5,517.92 19,129.46 292.17
2018-03-31 255,017.30 5,504.57 12,237.81 5,836.20
2017-12-31 243,999.86 5,285.40 12,410.02 5,336.05
2017-09-30 229,078.63 5,066.33 13,853.17 2,347.36
2017-06-30 224,818.41 5,133.24 14,526.89 1,155.70
2017-03-31 221,162.98 4,951.12 15,598.64
2016-12-31 219,557.58 4,874.49 15,309.55
2016-09-30 213,204.45 4,837.16 14,410.02
2016-06-30 212,457.08 4,875.21 14,184.34
2016-03-31 214,517.20 4,723.18 13,797.31
2015-12-31 217,323.97 4,631.55 13,762.19
2015-09-30 216,538.63 4,624.23 12,317.10
2015-06-30 220,310.77 4,327.87 11,892.57
2015-03-31 219,288.96 4,125.66 12,211.12
2014-12-31 215,785.77 3,964.94 12,151.72
2014-09-30 210,062.41 3,356.65 11,734.97
2014-06-30 207,703.58 3,309.79 11,883.20
2014-03-31 200,944.67 3,049.96 11,852.76
2013-12-31 202,690.24 2,980.86 11,934.91
2013-09-30 203,114.00 -5,492.58 19,688.33
2013-06-30 205,258.72 -5,280.85 19,737.22
2013-03-31 219,890.49 -6,763.08 19,835.02
2012-12-31 221,119.70 -6,943.36 19,890.57
2012-09-30 223,374.41 2,306.44 12,173.10
2012-06-30 231,042.63 2,092.30 12,490.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Metallurgical of China has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Metallurgical of China used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • Metallurgical of China has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Metallurgical of China's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Metallurgical of China has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Metallurgical of China's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Metallurgical of China's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Metallurgical of China is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Metallurgical of China's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Metallurgical of China's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Metallurgical of China Company Filings, last reported 1 month ago.

SEHK:1618 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 104,662.41 91,964.37 38,862.10
2018-12-31 102,669.44 94,513.17 45,601.45
2018-09-30 102,064.98 105,650.21 41,843.36
2018-06-30 101,603.39 105,961.70 48,281.77
2018-03-31 99,120.07 100,605.27 38,571.42
2017-12-31 97,320.48 88,305.36 43,745.07
2017-09-30 95,745.08 101,782.87 35,389.52
2017-06-30 91,283.58 105,161.67 40,434.41
2017-03-31 89,523.57 107,064.53 37,741.97
2016-12-31 83,107.70 95,485.57 44,864.43
2016-09-30 73,117.51 107,294.55 29,000.01
2016-06-30 72,288.99 109,530.53 34,518.28
2016-03-31 72,644.90 108,182.25 33,619.44
2015-12-31 71,155.02 100,430.21 35,140.72
2015-09-30 65,471.32 113,370.45 28,320.94
2015-06-30 64,492.49 110,395.35 28,599.78
2015-03-31 59,327.02 115,363.70 29,251.55
2014-12-31 58,024.51 111,462.82 33,410.04
2014-09-30 56,457.96 115,900.72 27,364.95
2014-06-30 55,683.26 119,649.19 28,075.10
2014-03-31 56,321.03 90,816.37 25,608.29
2013-12-31 55,065.22 116,667.05 33,586.17
2013-09-30 54,662.81 124,826.13 27,882.98
2013-06-30 53,986.36 128,629.85 33,195.95
2013-03-31 53,793.62 97,856.47 26,451.05
2012-12-31 52,834.59 131,510.96 37,719.42
2012-09-30 58,438.79 148,780.29 33,454.20
2012-06-30 57,778.26 144,107.31 45,994.74
  • Metallurgical of China's level of debt (87.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (161.8% vs 87.9% today).
  • Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess Metallurgical of China's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Metallurgical of China has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Metallurgical of China's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.02%
Current annual income from Metallurgical of China dividends. Estimated to be 5.11% next year.
If you bought HK$2,000 of Metallurgical of China shares you are expected to receive HK$80 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Metallurgical of China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Metallurgical of China's dividend is below the markets top 25% of dividend payers in Hong Kong (5.8%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1618 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1618 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.10 3.00
2019-12-31 0.08 3.00
SEHK:1618 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-11 0.070 3.796
2019-03-29 0.070 3.536
2018-07-06 0.068 3.727
2017-07-07 0.060 2.934
2016-04-27 0.055 2.423
2015-05-12 0.050 2.512
2014-05-12 0.061 3.621
2012-10-31 0.000 0.000
2012-08-30 0.000 0.000
2012-04-27 0.000 0.000
2012-03-29 0.000 0.000
2011-03-31 0.047 2.723

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Metallurgical of China has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Metallurgical of China only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Metallurgical of China's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Metallurgical of China's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Metallurgical of China afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Metallurgical of China has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mengxing Zhang
COMPENSATION CN¥0
AGE 55
TENURE AS CEO 2.6 years
CEO Bio

Mr. Mengxing Zhang has been the President at Metallurgical Corporation of China Ltd. since October 26, 2016. Mr. Zhang served as Vice President of Metallurgical Corporation of China Ltd. since May 12, 2015 until October 26, 2016 and served as its Chief Economist September 2014 until June 2015. Mr. Zhang served as the deputy manager, acting manager, manager of the No. 2 Company and the deputy manager of Tianjin Company of China MCC 20th Construction Corporation. From February 1999 to October 2006, Mr. Zhang served as the deputy general manager of China MCC 20th Construction Corporation and the deputy manager and manager of Tianjin MCC 20 Group Co., Ltd. From October 2006 to October 2012, he served as the general manager of China MCC 20th Construction Corporation (subsequently renamed as China MCC 20 Group Co., Ltd.). He serves as the chairman of MCC International Incorporation Ltd., since September 2014. From October 2012 to September 2014, Mr. Zhang served as the chairman and secretary to the Party Committee of China MCC 20 Group Co., Ltd. From October 2006 to October 2012, he served as a Director of China MCC 20th Construction Corporation. Mr. Zhang graduated from the Department of Architectural Engineering of Baotou Institute of Iron and Steel Technology and obtained a bachelor's degree in industrial and civil construction. Mr. Zhang is a professor-level senior engineer.

CEO Compensation
  • Insufficient data for Mengxing to compare compensation growth.
  • Mengxing's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Metallurgical of China management team in years:

1.1
Average Tenure
53.5
Average Age
  • The average tenure for the Metallurgical of China management team is less than 2 years, this suggests a new team.
Management Team

Wenqing Guo

TITLE
Executive Chairman of the Board
AGE
54
TENURE
0.2 yrs

Mengxing Zhang

TITLE
President
AGE
55
TENURE
2.6 yrs

Zhaoxiang Zhang

TITLE
Executive Vice Chairman of the Board
AGE
55

Hongying Zou

TITLE
VP & Chief Accountant
AGE
54
TENURE
4 yrs

Shilei Wang

TITLE
Vice President
AGE
51
TENURE
2.6 yrs

Yang Qu

TITLE
Vice President
AGE
48
TENURE
2.6 yrs

Aizhong Yan

TITLE
Vice President
AGE
51
TENURE
0.2 yrs

Zeng Jianzhong

TITLE
Vice President
AGE
53
TENURE
1.1 yrs

Ye Zhang

TITLE
Vice President
AGE
53
TENURE
0.9 yrs

Fuming Liu

TITLE
Vice President
AGE
55
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Metallurgical of China board of directors in years:

3.5
Average Tenure
57
Average Age
  • The tenure for the Metallurgical of China board of directors is about average.
Board of Directors

Zhaoxiang Zhang

TITLE
Executive Vice Chairman of the Board
AGE
55
TENURE
2.6 yrs

Hailong Yu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥172K
AGE
68
TENURE
4.5 yrs

Wenqing Guo

TITLE
Executive Chairman of the Board
AGE
54
TENURE
5.7 yrs

Xudong Ren

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥160K
AGE
65
TENURE
4.5 yrs

Peter Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥166K
AGE
67
TENURE
4.5 yrs

Xiuyun Cao

TITLE
Chairman of the Supervisory Board
AGE
57
TENURE
0.2 yrs

Jinzhen Lin

TITLE
Employee Representative Director
COMPENSATION
CN¥1M
AGE
57
TENURE
6.6 yrs

Jichang Zhou

TITLE
Independent Non-Executive Director
AGE
68
TENURE
0.2 yrs

Yandi Zhang

TITLE
Supervisor
AGE
39
TENURE
0.8 yrs

Zhiqi Chu

TITLE
Employee Representative Supervisor
AGE
48
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
09. Jun 18 Sell BlackRock, Inc. Company 06. Jun 18 06. Jun 18 -2,041,000 HK$2.41 HK$-4,913,702
13. Jun 18 Buy BlackRock, Inc. Company 08. Jun 18 08. Jun 18 3,951,000 HK$2.38 HK$9,418,783
07. Jun 18 Buy BlackRock, Inc. Company 04. Jun 18 04. Jun 18 20,201,000 HK$2.37 HK$47,935,014
05. Jun 18 Buy BlackRock, Inc. Company 31. May 18 31. May 18 70,669,134 HK$2.35 HK$166,072,432
X
Management checks
We assess Metallurgical of China's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Metallurgical of China has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Metallurgical Corporation of China Ltd. (HKG:1618) A Smart Choice For Dividend Investors?

(HKG:1618) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. In this case, Metallurgical of China likely looks attractive to dividend investors, given its 3.9% dividend yield and eight-year payment history. We'd agree the yield does look enticing. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Explore this interactive chart for our latest analysis on Metallurgical of China! SEHK:1618 Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. Metallurgical of China paid out 26% of its profit as dividends, over the trailing twelve month period. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Metallurgical of China paid out 116% of its free cash last year. Cash flows can be lumpy, but paying out this much cash is not ideal. Is Metallurgical of China's Balance Sheet Risky? As Metallurgical of China has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Metallurgical of China has been growing its dividend at a decent rate, and the payments have been stable despite the short payment history. … Companies that are growing earnings tend to be the best dividend stocks over the long term.

Simply Wall St -

What Should Investors Know About The Future Of Metallurgical Corporation of China Ltd.'s (HKG:1618)?

The latest earnings announcement Metallurgical Corporation of China Ltd. … (HKG:1618) released in December 2018a

Simply Wall St -

These Fundamentals Make Metallurgical Corporation of China Ltd. (HKG:1618) Truly Worth Looking At

(HKG:1618) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of 1618, it

Simply Wall St -

Metallurgical of China (HKG:1618) Shareholders Have Enjoyed A 68% Share Price Gain

To wit, the Metallurgical of China share price has climbed 68% in five years, easily topping the market return of 14% (ignoring dividends). … We can see that the Metallurgical of China share price is up 7.5% in the last three years. … It might be well worthwhile taking a look at our free report on Metallurgical of China's earnings, revenue and cash flow.

Simply Wall St -

Metallurgical Corporation of China Ltd. (HKG:1618): Time For A Financial Health Check

Metallurgical Corporation of China Ltd. … Let’s take a look at Metallurgical of China’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Is It Too Late To Consider Buying Metallurgical Corporation of China Ltd. (HKG:1618)?

Metallurgical Corporation of China Ltd. … received a lot of attention from a substantial price increase on the SEHK over the last few months. … Today I will analyse the most recent data on Metallurgical of China’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Shareholders Should Look Hard At Metallurgical Corporation of China Ltd.’s (HKG:1618) 7.6% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Metallurgical Corporation of China Ltd. (HKG:1618): Time For A Financial Health Check

Mid-caps stocks, like Metallurgical Corporation of China Ltd. … (HKG:1618) with a market capitalization of HK$68b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Read This Before You Buy Metallurgical Corporation of China Ltd. (HKG:1618) Because Of Its P/E Ratio

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 6.08 = CN¥1.69 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.28

Simply Wall St -

What Kind Of Shareholders Own Metallurgical Corporation of China Ltd. (HKG:1618)?

The big shareholder groups in Metallurgical Corporation of China Ltd. … Generally speaking, as a company grows, institutions will increase their ownership. … Metallurgical of China is a pretty big company.

Simply Wall St -

Company Info

Description

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing; and develops land. The company’s Equipment Manufacture segment engages in the development and production of metallurgical equipment, steel structures, and other metal products. Its Resource Development segment is involved in the development, mining, and processing of mineral resources; and the production of nonferrous metals and polysilicon. The company also engages in the mining and smelting of nickel cobalt ore, as well as provision of investigation, design, infrastructure contractor, finance, repair work, trading, finance lease, integrated pipe network technology development, etc services. The company was founded in 2008 and is based in Beijing, the People’s Republic of China. Metallurgical Corporation of China Ltd. is a subsidiary of China Metallurgical Group Corporation.

Details
Name: Metallurgical Corporation of China Ltd.
1618
Exchange: SEHK
Founded: 2008
HK$67,642,716,411
20,723,619,170
Website: http://www.mcc.com.cn
Address: Metallurgical Corporation of China Ltd.
MCC Tower,
No. 28 Shuguang Xili,
Beijing,
100028,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1618 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 24. Sep 2009
DB 6MT Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 24. Sep 2009
SHSC 1618 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 24. Sep 2009
SZSC 1618 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 24. Sep 2009
OTCPK MLLU.Y ADR Pink Sheets LLC US USD 07. Apr 2010
SHSE 601618 Domestic Shares Shanghai Stock Exchange CN CNY 25. Sep 2009
XSSC 601618 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 25. Sep 2009
Number of employees
Current staff
Staff numbers
96,646
Metallurgical of China employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 12:52
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/04/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.