SEHK:1786

Stock Analysis Report

CRCC High-Tech Equipment

Executive Summary

CRCC High-Tech Equipment Corporation Limited researches, develops, manufactures, and sells large railway track maintenance machinery in Mainland China and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

How has CRCC High-Tech Equipment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1786 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

1786

-5.2%

HK Machinery

-4.2%

HK Market


1 Year Return

-24.1%

1786

21.1%

HK Machinery

-2.6%

HK Market

Return vs Industry: 1786 underperformed the Hong Kong Machinery industry which returned 21.1% over the past year.

Return vs Market: 1786 underperformed the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

1786IndustryMarket
7 Day-3.1%-5.2%-4.2%
30 Day-1.6%3.2%-1.4%
90 Day-8.7%10.7%3.5%
1 Year-21.6%-24.1%24.6%21.1%0.9%-2.6%
3 Year-60.2%-63.8%62.4%52.0%19.6%7.6%
5 Yearn/a40.2%28.4%18.6%-1.0%

Price Volatility Vs. Market

How volatile is CRCC High-Tech Equipment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CRCC High-Tech Equipment undervalued compared to its fair value and its price relative to the market?

10.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1786 (HK$1.26) is trading above our estimate of fair value (HK$0.9)

Significantly Below Fair Value: 1786 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1786 is good value based on its PE Ratio (10.2x) compared to the Machinery industry average (10.2x).

PE vs Market: 1786 is poor value based on its PE Ratio (10.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1786 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1786 is good value based on its PB Ratio (0.3x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is CRCC High-Tech Equipment forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1786's forecast earnings growth (18.8% per year) is above the savings rate (2%).

Earnings vs Market: 1786's earnings (18.8% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: 1786's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1786's revenue (18.3% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1786's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1786's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has CRCC High-Tech Equipment performed over the past 5 years?

-28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1786 has high quality earnings.

Growing Profit Margin: 1786's current net profit margins (7.1%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 1786's earnings have declined by -28.8% per year over the past 5 years.

Accelerating Growth: 1786's earnings growth over the past year (52.4%) exceeds its 5-year average (-28.8% per year).

Earnings vs Industry: 1786 earnings growth over the past year (52.4%) exceeded the Machinery industry 5.7%.


Return on Equity

High ROE: 1786's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CRCC High-Tech Equipment's financial position?


Financial Position Analysis

Short Term Liabilities: 1786's short term assets (CN¥5.6B) exceeds its short term liabilities (CN¥2.1B)

Long Term Liabilities: 1786's short term assets (5.6B) exceeds its long term liabilities (5.9M)


Debt to Equity History and Analysis

Debt Level: 1786 is debt free.

Reducing Debt: 1786 has no debt compared to 5 years ago when its debt to equity ratio was 14.5%.

Debt Coverage: 1786 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1786 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1786 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1786's debt is covered by short term assets.


Next Steps

Dividend

What is CRCC High-Tech Equipment's current dividend yield, its reliability and sustainability?

4.43%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.4%industryaverage3.0%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: 1786's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1786's dividend (4.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


Stability and Growth of Payments

Stable Dividend: 1786 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1786's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), 1786's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1786's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).


Next Steps

Management

What is the CEO of CRCC High-Tech Equipment's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Pujiang Tong (42yo)

2.3yrs

Tenure

CN¥776,000

Compensation

Mr. Pujiang Tong has been General Manager of CRCC High-Tech Equipment Corporation Limited since July 28, 2017 and served as its Vice General Manager from January 5, 2015 to July 28, 2017. He has been Direc ...


CEO Compensation Analysis

Compensation vs Market: Pujiang's total compensation ($USD110.73K) is below average for companies of similar size in the Hong Kong market ($USD289.95K).

Compensation vs Earnings: Pujiang's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: 1786's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1786's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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¥122,85022 Mar 19
GIC Pte. Ltd.
EntityCompany
Shares58,500
Max PriceCN¥2.10
SellCN¥618,56508 Jan 19
GIC Pte. Ltd.
EntityCompany
Shares389,500
Max PriceCN¥1.59

Ownership Breakdown

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


Management Team

  • Chun Biu Law (45yo)

    Joint Company Secretary

    • Tenure: 4yrs
  • Chaokai Yang (60yo)

    Vice GM & Union President

    • Tenure: 11yrs
    • Compensation: CN¥204.00k
  • Yongxiang Chen (53yo)

    Vice GM & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥623.00k
  • Pujiang Tong (42yo)

    GM & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥776.00k
  • Changhua Ma (46yo)

    Secretary of the Board

    • Tenure: 4.4yrs
  • Feixiang Liu (56yo)

    Chairman

    • Tenure: 2.2yrs
  • Xiang Tang (43yo)

    CFO & Chief Accountant

    • Tenure: 2.3yrs
  • Baosheng E (53yo)

    Deputy GM & Chief Economist

    • Tenure: 1.6yrs
  • Baoming Zhang (55yo)

    Deputy GM & Chief Engineer

    • Tenure: 1.6yrs

Board Members

  • Hin Wing Wong (57yo)

    Independent Non Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥98.00k
  • Zhixu Wu (50yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥78.00k
  • Linfu Sun (56yo)

    Independent Non Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥98.00k
  • Jiahe Yu (65yo)

    Independent Non Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥98.00k
  • Yongxiang Chen (53yo)

    Vice GM & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥623.00k
  • Pujiang Tong (42yo)

    GM & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥776.00k
  • Feixiang Liu (56yo)

    Chairman

    • Tenure: 2.2yrs
  • Hui Zhao (46yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Mingyuan Sha (57yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Qiuhua Yu (55yo)

    Chairman of Supervisory Committee

    • Tenure: 1.4yrs

Company Information

CRCC High-Tech Equipment Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CRCC High-Tech Equipment Corporation Limited
  • Ticker: 1786
  • Exchange: SEHK
  • Founded: 1954
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$1.915b
  • Shares outstanding: 1.52b
  • Website: https://www.crcce.com.cn

Number of Employees


Location

  • CRCC High-Tech Equipment Corporation Limited
  • No. 384, Yangfangwang
  • Guandu District
  • Kunming
  • Yunnan Province
  • 650215
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1786SEHK (The Stock Exchange of Hong Kong Ltd.)YesForiegn Shares-Foriegn ListedHKHKDDec 2015

Biography

CRCC High-Tech Equipment Corporation Limited researches, develops, manufactures, and sells large railway track maintenance machinery in Mainland China and internationally. Its railway track maintenance mac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:54
End of Day Share Price2019/11/15 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.