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1786

CRCC High-Tech Equipment SEHK:1786 Stock Report

Last Price

HK$0.74

Market Cap

HK$1.1b

7D

2.8%

1Y

-16.9%

Updated

30 Jun, 2022

Data

Company Financials +
1786 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends1/6

1786 Stock Overview

CRCC High-Tech Equipment Corporation Limited engages in the research, development, manufacture, and sale of large railway track maintenance machinery in Mainland China and internationally.

CRCC High-Tech Equipment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CRCC High-Tech Equipment
Historical stock prices
Current Share PriceHK$0.74
52 Week HighHK$0.97
52 Week LowHK$0.66
Beta0.69
1 Month Change8.82%
3 Month Change-3.90%
1 Year Change-16.85%
3 Year Change-55.42%
5 Year Change-78.36%
Change since IPO-84.32%

Recent News & Updates

Shareholder Returns

1786HK MachineryHK Market
7D2.8%2.7%3.1%
1Y-16.9%-26.4%-21.2%

Return vs Industry: 1786 exceeded the Hong Kong Machinery industry which returned -26.4% over the past year.

Return vs Market: 1786 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 1786's price volatile compared to industry and market?
1786 volatility
1786 Average Weekly Movement6.2%
Machinery Industry Average Movement7.0%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1786 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1786's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19542,040Pujiang Tonghttps://www.crcce.com.cn

CRCC High-Tech Equipment Corporation Limited engages in the research, development, manufacture, and sale of large railway track maintenance machinery in Mainland China and internationally. Its railway track maintenance machines include tamping machines; ballast cleaning machines; stabilization machines; ballast regulators; materials logistics machines; and rail processing machines; as well as other machines, such as catenary inspection and maintenance machines, catenary installation machines, and other large railway track maintenance machines. The company manufactures, purchases, and sells various parts and components comprising bogies, electrical control systems, working devices, wheelsets, transmissions, pumps, valves, motors, and drive shafts.

CRCC High-Tech Equipment Fundamentals Summary

How do CRCC High-Tech Equipment's earnings and revenue compare to its market cap?
1786 fundamental statistics
Market CapCN¥973.45m
Earnings (TTM)CN¥50.38m
Revenue (TTM)CN¥2.19b

19.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1786 income statement (TTM)
RevenueCN¥2.19b
Cost of RevenueCN¥1.64b
Gross ProfitCN¥543.26m
Other ExpensesCN¥492.88m
EarningsCN¥50.38m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.033
Gross Margin24.85%
Net Profit Margin2.30%
Debt/Equity Ratio0.0%

How did 1786 perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

30%

Payout Ratio

Does 1786 pay a reliable dividends?

See 1786 dividend history and benchmarks
When do you need to buy 1786 by to receive an upcoming dividend?
CRCC High-Tech Equipment dividend dates
Ex Dividend DateJul 05 2022
Dividend Pay DateAug 22 2022
Days until Ex dividend5 days
Days until Dividend pay date53 days

Does 1786 pay a reliable dividends?

See 1786 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 1786 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 1786?

Other financial metrics that can be useful for relative valuation.

1786 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does 1786's PE Ratio compare to its peers?

1786 PE Ratio vs Peers
The above table shows the PE ratio for 1786 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.2x
1301 D&G Technology Holding
52.3xn/aHK$652.2m
1596 Hebei Yichen Industrial Group
14xn/aHK$3.9b
3339 Lonking Holdings
5.4x-2.6%HK$8.2b
6163 Gemilang International
16.9xn/aHK$140.8m
1786 CRCC High-Tech Equipment
19.1x24.6%HK$1.1b

Price-To-Earnings vs Peers: 1786 is good value based on its Price-To-Earnings Ratio (19.1x) compared to the peer average (22.2x).


Price to Earnings Ratio vs Industry

How does 1786's PE Ratio compare vs other companies in the HK Machinery Industry?

Price-To-Earnings vs Industry: 1786 is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the Hong Kong Machinery industry average (11x)


Price to Earnings Ratio vs Fair Ratio

What is 1786's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1786 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.1x
Fair PE Ratio6.9x

Price-To-Earnings vs Fair Ratio: 1786 is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the estimated Fair Price-To-Earnings Ratio (6.9x).


Share Price vs Fair Value

What is the Fair Price of 1786 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1786 (HK$0.74) is trading below our estimate of fair value (HK$3.93)

Significantly Below Fair Value: 1786 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 1786 is good value based on its PEG Ratio (0.8x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


24.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1786's forecast earnings growth (24.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1786's earnings (24.6% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: 1786's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1786's revenue (6.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1786's revenue (6.1% 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 (2%).


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Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-42.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1786 has a large one-off loss of CN¥23.6M impacting its December 31 2021 financial results.

Growing Profit Margin: 1786's current net profit margins (2.3%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 1786's earnings have declined by 42.9% per year over the past 5 years.

Accelerating Growth: 1786's earnings growth over the past year (127.4%) exceeds its 5-year average (-42.9% per year).

Earnings vs Industry: 1786 earnings growth over the past year (127.4%) exceeded the Machinery industry 33.1%.


Return on Equity

High ROE: 1786's Return on Equity (0.9%) is considered low.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1786's short term assets (CN¥5.9B) exceed its short term liabilities (CN¥2.3B).

Long Term Liabilities: 1786's short term assets (CN¥5.9B) exceed its long term liabilities (CN¥43.9M).


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 1.9%.

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


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Dividend

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

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.58%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 30 2022Ex Dividend DateJul 05 2022Dividend Pay DateAug 22 202248 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1786's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 1786's dividend (1.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.74%).


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 has only been paying a dividend for 6 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.2%), 1786's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1786 is paying a dividend but the company has no free cash flows.


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Management

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

3.5yrs

Average management tenure


CEO

Pujiang Tong (44 yo)

4.92yrs

Tenure

CN¥1,039,660

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 ($USD155.15K) is below average for companies of similar size in the Hong Kong market ($USD232.99K).

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


Leadership Team

Experienced Management: 1786's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: 1786's board of directors are considered experienced (4.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

CRCC High-Tech Equipment Corporation Limited's 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
  • Implied Market Cap: HK$1.140b
  • Shares outstanding: 1.52b
  • Website: https://www.crcce.com.cn

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.