SEHK:1727

Stock Analysis Report

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.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

1727

1.1%

HK Construction

0.6%

HK Market


1 Year Return

12.2%

1727

-26.1%

HK Construction

-5.7%

HK Market

Return vs Industry: 1727 exceeded the Hong Kong Construction industry which returned -26.1% over the past year.

Return vs Market: 1727 exceeded the Hong Kong Market which returned -5.7% over the past year.


Shareholder returns

1727IndustryMarket
7 Day-3.2%1.1%0.6%
30 Day-4.3%-2.7%-0.8%
90 Day-10.1%-2.4%4.1%
1 Year18.5%12.2%-22.6%-26.1%-2.2%-5.7%
3 Yearn/a-36.0%-42.8%13.8%2.3%
5 Yearn/a-26.3%-37.2%14.8%-4.2%

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?

9.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1727 (HK$4.89) is trading above our estimate of fair value (HK$4.33)

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


Price To Earnings Ratio

PE vs Industry: 1727 is poor value based on its PE Ratio (9.7x) compared to the Construction industry average (8.9x).

PE vs Market: 1727 is good value based on its PE Ratio (9.7x) compared to the Hong Kong market (10.2x).


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 is overvalued based on its PB Ratio (1.4x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

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

10.9%

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.


Next Steps

Past Performance

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

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1727 has high quality earnings.

Growing Profit Margin: 1727's current net profit margins (1.7%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: 1727's earnings have grown by 14.5% 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 (-42.2%) over the past year, making it difficult to compare to the Construction industry average (-5.4%).


Return on Equity

High ROE: 1727's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hebei Construction Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1727's short term assets (CN¥56.6B) exceed its short term liabilities (CN¥51.8B).

Long Term Liabilities: 1727's short term assets (CN¥56.6B) exceed its long term liabilities (CN¥2.0B).


Debt to Equity History and Analysis

Debt Level: 1727's debt to equity ratio (72%) is considered high.

Reducing Debt: Insufficient data to determine if 1727's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1727's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: 1727's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet

Inventory Level: 1727 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1727's debt is covered by short term assets (assets are 14x debt).


Next Steps

Dividend

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

6.80%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1727's dividend (6.8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1727's dividend (6.8%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1727's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1727's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.3%), 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?

5.6yrs

Average management tenure


CEO

Jinfeng Shang (42yo)

2.9yrs

Tenure

CN¥808,000

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 ($USD115.05K) is below average for companies of similar size in the Hong Kong market ($USD501.85K).

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 Board4.2yrsCN¥991.00kno data
Jinfeng Shang
President & Executive Director2.9yrsCN¥808.00kno data
Yongjian Liu
VP & Executive Director6.2yrsCN¥943.00kno data
Xiujian Feng
Vice Chief Accountant7.1yrsno datano data
Wensheng Zhao
Chief Accountant1yrsno datano data
Jingqiao Liu
Director of Party & Administration Office and Employee Supervisor2.9yrsno datano data
Jianming Yue
Head of Legal Affairs Department & Employee Supervisor2.9yrsno datano data
Feng Wang
Deputy Head of Enterprise Management Dept.2.9yrsno datano data
Qiuli Gao
VP & Chief Engineer18.6yrsCN¥518.00kno data
Wutie Li
Joint Company Secretary & Assistant to the President2.2yrsno datano data

5.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 1727's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Baozhong Li
Executive Chairman of the Board4.2yrsCN¥991.00kno data
Jinfeng Shang
President & Executive Director2.9yrsCN¥808.00kno data
Yongjian Liu
VP & Executive Director6.2yrsCN¥943.00kno data
Xiujian Feng
Vice Chief Accountant7.1yrsno datano data
Wensheng Zhao
Chief Accountant1yrsno datano data
Jingqiao Liu
Director of Party & Administration Office and Employee Supervisor2.9yrsno datano data
Jianming Yue
Head of Legal Affairs Department & Employee Supervisor2.9yrsno datano data
Feng Wang
Deputy Head of Enterprise Management Dept.2.9yrsno datano data
Baoyuan Li
Honorary Chairman 4.2yrsCN¥884.00kno data
Qingshe Cao
Vice Chairman of the Board2.9yrsCN¥817.00kno data

2.9yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1727's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 13.8%.


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$8.684b
  • Shares outstanding: 1.76b
  • Website: https://www.hebjs.com.cn

Number of Employees


Location

  • Hebei Construction Group Corporation Limited
  • 125 Lugang 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, Construction Contracting and Others. It undertakes construction contracting works of residential, public, industrial, and commercial buildings; and municipal and transportation infrastructure, including facilities for water supply and treatment, gas and heating, urban pipelines, roads, bridges, and airport runways, as well as specialized construction works, including electrical and mechanical installation, steel structure, and decoration and fireproofing projects. The company also develops and manages properties. Hebei Construction Group Corporation Limited was founded in 1952 and is headquartered in Baoding, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 13:12
End of Day Share Price2020/02/21 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.