SEHK:1727

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Hebei Construction Group

Executive Summary

Hebei Construction Group Corporation Limited engages in the construction contracting of buildings and infrastructure projects in the People's Republic of China. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1727 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 23% a week.

Volatility Over Time: 1727's weekly volatility has increased from 17% to 23% over the past year.


Market Performance


7 Day Return

-4.5%

1727

9.8%

HK Construction

3.7%

HK Market


1 Year Return

-24.5%

1727

-14.2%

HK Construction

9.1%

HK Market

Return vs Industry: 1727 underperformed the Hong Kong Construction industry which returned -14.2% over the past year.

Return vs Market: 1727 underperformed the Hong Kong Market which returned 9.1% over the past year.


Shareholder returns

1727IndustryMarket
7 Day-4.5%9.8%3.7%
30 Day-26.7%13.1%9.9%
90 Day-85.0%-0.4%16.7%
1 Year-23.2%-24.5%-10.0%-14.2%13.5%9.1%
3 Year-2.2%-9.0%-32.0%-40.0%-3.3%-13.4%
5 Yearn/a-5.8%-21.6%64.9%37.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hebei Construction 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

Below Fair Value: 1727 (HK$3.82) is trading below our estimate of fair value (HK$12.64)

Significantly Below Fair Value: 1727 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1727 is poor value based on its PE Ratio (13.2x) compared to the HK Construction industry average (8.1x).

PE vs Market: 1727 is poor value based on its PE Ratio (13.2x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1727's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1727's PB Ratio (1x) is in line with the HK Construction industry average.


Next Steps

Future Growth

How is Hebei Construction Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1727's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 1727's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1727's revenue (5.3% per year) is forecast to grow slower than the Hong Kong market (14.1% per year).

High Growth Revenue: 1727's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1727's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Hebei Construction Group performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1727 has high quality earnings.

Growing Profit Margin: 1727's current net profit margins (1.2%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 1727's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: 1727's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1727 had negative earnings growth (-58.9%) over the past year, making it difficult to compare to the Construction industry average (-9.8%).


Return on Equity

High ROE: 1727's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Hebei Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1727's short term assets (CN¥56.7B) exceed its short term liabilities (CN¥53.3B).

Long Term Liabilities: 1727's short term assets (CN¥56.7B) exceed its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 1727's debt to equity ratio (90.2%) is considered high.

Reducing Debt: 1727's debt to equity ratio has reduced from 248.8% to 90.2% over the past 5 years.

Debt Coverage: 1727's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: 1727's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1727's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1727's dividend (4.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).


Stability and Growth of Payments

Stable Dividend: 1727 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1727 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.6%), 1727's dividend payments are 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?

4.5yrs

Average management tenure


CEO

Jinfeng Shang (43 yo)

3.83yrs

Tenure

CN¥792,000

Compensation

Mr. Jinfeng Shang has been President and Executive Director of Hebei Construction Group Corporation Limited since March 31, 2017. Mr. Shang serves as the General Manager of Baoding Mancheng District Zhongb...


CEO Compensation Analysis

Compensation vs Market: Jinfeng's total compensation ($USD121.99K) is below average for companies of similar size in the Hong Kong market ($USD440.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Baozhong Li
Executive Chairman of the Board5.08yrsCN¥971.00kno data
Jinfeng Shang
President & Executive Director3.83yrsCN¥792.00kno data
Wensheng Zhao
Chief Accountant1.92yrsCN¥627.02kno data
Yongjian Liu
VP & Executive Director7.08yrsCN¥609.00kno data
Xiujian Feng
Vice Chief Accountant8yrsno datano data
Jingqiao Liu
Director of Party & Administration Office and Employee Supervisor3.83yrsno datano data
Jianming Yue
Head of Legal Affairs Department & Employee Supervisor3.83yrsno datano data
Feng Wang
Deputy Head of Enterprise Management Dept.3.83yrsno datano data
Qiuli Gao
VP & Chief Engineer19.5yrsCN¥518.00kno data
Wenzhong Zhang
VP & Chief Economic Officer2yrsno datano data
Wutie Li
Joint Company Secretary & Assistant to the President3.08yrsno datano data
Wai Ling Wong
Joint Company Secretary3.08yrsno datano data

4.5yrs

Average Tenure

45.5yo

Average Age

Experienced Management: 1727's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Baozhong Li
Executive Chairman of the Board5.08yrsCN¥971.00kno data
Jinfeng Shang
President & Executive Director3.83yrsCN¥792.00kno data
Wensheng Zhao
Chief Accountant1.92yrsCN¥627.02kno data
Yongjian Liu
VP & Executive Director7.08yrsCN¥609.00kno data
Xiujian Feng
Vice Chief Accountant8yrsno datano data
Jingqiao Liu
Director of Party & Administration Office and Employee Supervisor3.83yrsno datano data
Jianming Yue
Head of Legal Affairs Department & Employee Supervisor3.83yrsno datano data
Feng Wang
Deputy Head of Enterprise Management Dept.3.83yrsno datano data
Baoyuan Li
Honorary Chairman5.08yrsCN¥899.00kno data
Qingshe Cao
Vice Chairman of the Board3.83yrsCN¥792.00kno data
Lifeng Shen
Independent Non-Executive Director3.08yrsno datano data
Xin Chen
Independent Non-Executive Director3.08yrsno datano data

3.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 1727's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Hebei Construction Group Corporation Limited
  • Ticker: 1727
  • Exchange: SEHK
  • Founded: 1952
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$6.852b
  • Shares outstanding: 1.76b
  • Website: https://www.hebjs.com.cn

Number of Employees


Location

  • Hebei Construction Group Corporation Limited
  • 329 Wusi West Road
  • Jingxiu District
  • Baoding
  • Hebei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1727SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2017

Biography

Hebei Construction Group Corporation Limited engages in the construction contracting of buildings and infrastructure projects in the People's Republic of China. The company operates through two segments, C...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 10:15
End of Day Share Price2021/01/19 00:00
Earnings2020/06/30
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.