SEHK:1799

Stock Analysis Report

Executive Summary

Xinte Energy Co., Ltd. operates as a solar-grade polysilicon manufacturer and photovoltaic (PV) project developer in the People’s Republic of China and internationally.

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Profit margins (4.5%) are lower than last year (10.2%)

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Xinte Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1799 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

1799

-2.8%

HK Construction

-4.1%

HK Market


1 Year Return

-37.3%

1799

-19.7%

HK Construction

-0.5%

HK Market

Return vs Industry: 1799 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 1799 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1799IndustryMarket
7 Day2.0%-2.8%-4.1%
30 Day0%-1.3%0.05%
90 Day0%-0.5%4.3%
1 Year-35.6%-37.3%-15.8%-19.7%3.2%-0.5%
3 Year-20.7%-26.7%-29.4%-37.1%20.4%8.2%
5 Yearn/a-20.1%-32.0%19.0%-0.9%

Price Volatility Vs. Market

How volatile is Xinte Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Xinte Energy undervalued compared to its fair value and its price relative to the market?

10.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1799 (HK$5) is trading above our estimate of fair value (HK$2.06)

Significantly Below Fair Value: 1799 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1799 is poor value based on its PE Ratio (10.1x) compared to the Construction industry average (9.9x).

PE vs Market: 1799 is poor value based on its PE Ratio (10.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1799's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1799 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is Xinte Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Xinte Energy 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 Xinte Energy performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1799 has high quality earnings.

Growing Profit Margin: 1799's current net profit margins (4.5%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: 1799's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: 1799's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1799 had negative earnings growth (-59.4%) over the past year, making it difficult to compare to the Construction industry average (-12.3%).


Return on Equity

High ROE: 1799's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Xinte Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 1799's short term assets (CN¥15.5B) exceed its short term liabilities (CN¥12.7B).

Long Term Liabilities: 1799's short term assets (CN¥15.5B) exceed its long term liabilities (CN¥10.7B).


Debt to Equity History and Analysis

Debt Level: 1799's debt to equity ratio (95.2%) is considered high.

Reducing Debt: 1799's debt to equity ratio has reduced from 207.6% to 95.2% over the past 5 years.

Debt Coverage: 1799's debt is not well covered by operating cash flow (8.3%).

Interest Coverage: 1799's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: 1799 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1799's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Xinte Energy's current dividend yield, its reliability and sustainability?

3.29%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.2%markettop25%6.2%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1799's dividend (3.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1799's dividend (3.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 1799 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1799's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), 1799's dividend payments are well 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

What is the CEO of Xinte Energy's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Bo Yin (40yo)

3.8yrs

Tenure

CN¥437,000

Compensation

Mr. Bo Yin has been General Manager at Xinte Energy Co., Ltd. since March 3, 2016. Mr. Yin served as Deputy General Manager at Xinte Energy Co., Ltd. until March 3, 2016. He has been Executive Director at  ...


CEO Compensation Analysis

Compensation vs Market: Bo's total compensation ($USD63.43K) is below average for companies of similar size in the Hong Kong market ($USD470.54K).

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


Management Age and Tenure

4.6yrs

Average Tenure

42yo

Average Age

Experienced Management: 1799's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 1799's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

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 4.9%.


Management Team

  • Jianxin Zhang (45yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: CN¥1.17m
  • Juan Zhang (30yo)

    Joint Company Secretary

    • Tenure: 4.6yrs
  • Bo Yin (40yo)

    GM & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥437.00k
  • Xinye Gan (43yo)

    Deputy General Manager

    • Tenure: 7.1yrs
  • Yongjian He (52yo)

    Chief Mechanical Engineer

    • Tenure: 4.6yrs
  • Weijie Zheng (41yo)

    Chief Accountant

    • Tenure: 4.6yrs
  • Yueqiang Zhang (43yo)

    Deputy General Manager

    • Jinjing Xia (38yo)

      Deputy GM & Executive Director

      • Tenure: 1.6yrs
      • Compensation: CN¥1.83m
    • Long Yang (43yo)

      Deputy General Manager

      • Tenure: 1.6yrs
    • Xiliang Li (39yo)

      Deputy General Manager

      • Tenure: 1.6yrs

    Board Members

    • Xin Zhang (56yo)

      Non-Executive Director

      • Tenure: 11.9yrs
    • Junxiang Guo (47yo)

      Non-Executive Director

      • Tenure: 11.9yrs
    • Haiyan Qin (49yo)

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: CN¥120.00k
    • Jianxin Zhang (45yo)

      Chairman

      • Tenure: 7.6yrs
      • Compensation: CN¥1.17m
    • Bo Yin (40yo)

      GM & Executive Director

      • Tenure: 3.8yrs
      • Compensation: CN¥437.00k
    • Deren Yang (55yo)

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: CN¥120.00k
    • Marcellus Wong (65yo)

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: CN¥120.00k
    • Qijun Chen (48yo)

      Chairman of the Board of Supervisors

      • Jinjing Xia (38yo)

        Deputy GM & Executive Director

        • Tenure: 1.6yrs
        • Compensation: CN¥1.83m
      • Shi Wang (37yo)

        Non-Executive Director

        • Tenure: 0.6yrs

      Company Information

      Xinte Energy Co., Ltd.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Xinte Energy Co., Ltd.
      • Ticker: 1799
      • Exchange: SEHK
      • Founded: 2008
      • Industry: Construction and Engineering
      • Sector: Capital Goods
      • Market Cap: HK$6.120b
      • Shares outstanding: 1.20b
      • Website: https://www.xtnysolar.com

      Number of Employees


      Location

      • Xinte Energy Co., Ltd.
      • No. 2499, Mianguangdong Street
      • Ganquanpu Economic and Technological Development Zone (Indus
      • Urumqi
      • Xinjiang Uygur Province
      • China

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      1799SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2015

      Biography

      Xinte Energy Co., Ltd. operates as a solar-grade polysilicon manufacturer and photovoltaic (PV) project developer in the People’s Republic of China and internationally. The company operates through Polysilicon Production; Engineering and Construction Contracting (ECC); Build-Own-Operate (BOO); and Others segments. It generates electricity through coal, wind, solar, and PV power plants; and offers ECC services to solar and wind power plants and systems. In addition, the company manufactures inverters; and PV wafers and modules, as well as static var generator products. Further, it offers consulting, design, research and development, and logistics services. The company was founded in 2008 and is headquartered in Urumqi, the People’s Republic of China. Xinte Energy Co., Ltd. is a subsidiary of TBEA Co., Ltd. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 13:04
      End of Day Share Price2020/01/24 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.