Hebei Construction Group (SEHK:1727) - Share price, News & Analysis

1727 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

1727 Stock Overview

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

Risk Analysis

Earnings have declined by 22.9% per year over past 5 years

Hebei Construction Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hebei Construction Group
Historical stock prices
Current Share Price	HK$1.01
52 Week High	HK$2.72
52 Week Low	HK$0.85
Beta	0.11
1 Month Change	9.78%
3 Month Change	-15.13%
1 Year Change	-58.44%
3 Year Change	-82.79%
5 Year Change	n/a
Change since IPO	-77.35%

Recent News & Updates

May 31

Is Hebei Construction Group (HKG:1727) Weighed On By Its Debt Load?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	1727	HK Construction	HK Market
7D	7.4%	-0.5%	2.1%
1Y	-58.4%	1.9%	-23.3%

Return vs Industry: 1727 underperformed the Hong Kong Construction industry which returned 2% over the past year.

Return vs Market: 1727 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1727's price volatile compared to industry and market?
1727 volatility
1727 Average Weekly Movement	7.3%
Construction Industry Average Movement	7.0%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1727 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1727's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1952	9,064	Jinfeng Shang	https://www.hebjs.com.cn

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, Construction Contracting and Others. It provides construction contracting services for residential, public works, industrial, and commercial construction projects; and municipal and transportation infrastructure, including facilities for wedged and reclaimed water treatment, gas and heating, urban pipelines, landscaping, roads, bridges, and airport runways, as well as specialized and other construction works, including electrical and mechanical installation, and steel structure.

Hebei Construction Group Fundamentals Summary

How do Hebei Construction Group's earnings and revenue compare to its market cap?
1727 fundamental statistics
Market Cap	CN¥1.52b
Earnings (TTM)	-CN¥345.97m
Revenue (TTM)	CN¥47.83b

0.0x

P/S Ratio

-4.4x

P/E Ratio

Is 1727 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1727 income statement (TTM)
Revenue	CN¥47.83b
Cost of Revenue	CN¥45.34b
Gross Profit	CN¥2.49b
Other Expenses	CN¥2.83b
Earnings	-CN¥345.97m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.20
Gross Margin	5.20%
Net Profit Margin	-0.72%
Debt/Equity Ratio	93.3%

How did 1727 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1727 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1727?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1727. This is calculated by dividing 1727's market cap by their current preferred multiple.
What is 1727's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥1.52b

1727 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1727's PS Ratio compare to its peers?

1727 PS Ratio vs Peers

The above table shows the PS ratio for 1727 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.7x

Forward PS

Price-To-Sales vs Peers: 1727 is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.7x).

Price to Earnings Ratio vs Industry

How does 1727's PE Ratio compare vs other companies in the Hong Kong Construction Industry?

Price-To-Sales vs Industry: 1727 is good value based on its Price-To-Sales Ratio (0x) compared to the Hong Kong Construction industry average (0.5x)

Price to Sales Ratio vs Fair Ratio

What is 1727's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1727 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.03x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1727's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1727 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1727 (HK$1.01) is trading above our estimate of fair value (HK$0.46)

Significantly Below Fair Value: 1727 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.1%

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 Hebei Construction 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.

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Examine Hebei Construction Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Hebei Construction Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1727 is currently unprofitable.

Growing Profit Margin: 1727 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 1727 is unprofitable, and losses have increased over the past 5 years at a rate of 22.9% per year.

Accelerating Growth: Unable to compare 1727's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1727 is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (0.5%).

Return on Equity

High ROE: 1727 has a negative Return on Equity (-6.1%), as it is currently unprofitable.

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Financial Health

How is Hebei Construction Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1727's short term assets (CN¥60.8B) exceed its short term liabilities (CN¥59.3B).

Long Term Liabilities: 1727's short term assets (CN¥60.8B) exceed its long term liabilities (CN¥1.7B).

Debt to Equity History and Analysis

Debt Level: 1727 has more cash than its total debt.

Reducing Debt: 1727's debt to equity ratio has reduced from 125.1% to 93.3% over the past 5 years.

Debt Coverage: 1727's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: Insufficient data to determine if 1727's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1727's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1727's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1727's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1727's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1727 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1727 has not reported any payouts.

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Management

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

5.3yrs

Average management tenure

CEO

Jinfeng Shang (44 yo)

5.25yrs

Tenure

CN¥846,000

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 ($USD126.31K) is below average for companies of similar size in the Hong Kong market ($USD306.38K).

Compensation vs Earnings: Jinfeng's compensation has increased whilst the company is unprofitable.

Leadership Team

Experienced Management: 1727's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: 1727's board of directors are considered experienced (5.3 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31