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China Machinery Engineering

SEHK:1829
Snowflake Description

Very undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1829
SEHK
HK$14B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

China Machinery Engineering Corporation, together with its subsidiaries, operates as an engineering contracting and services provider in Asia, South America, North America, Africa, and Europe. The last earnings update was 84 days ago. More info.


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1829 Share Price and Events
7 Day Returns
-1.4%
SEHK:1829
1.3%
HK Construction
0.6%
HK Market
1 Year Returns
-11.2%
SEHK:1829
-11.2%
HK Construction
-4.5%
HK Market
1829 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Machinery Engineering (1829) -1.4% -8.6% -12.3% -11.2% -32.6% -26.8%
HK Construction 1.3% -6.1% -13.2% -11.2% -20.8% -4.4%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • 1829 matched the Construction industry (-11.2%) over the past year.
  • 1829 underperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
1829
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for China Machinery Engineering's competitors could be found in our database.

1829 Value

 Is China Machinery Engineering undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Machinery Engineering to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Machinery Engineering.

SEHK:1829 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1829
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 25%) (7.85%))
1.065
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.065 * 5.96%)
8.35%

Discounted Cash Flow Calculation for SEHK:1829 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Machinery Engineering is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1829 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.35%)
2020 6,467.00 Analyst x1 5,968.54
2021 5,399.00 Analyst x1 4,598.79
2022 4,750.68 Est @ -12.01% 3,734.65
2023 4,379.90 Est @ -7.8% 3,177.78
2024 4,166.93 Est @ -4.86% 2,790.23
2025 4,050.13 Est @ -2.8% 2,502.99
2026 3,995.01 Est @ -1.36% 2,278.62
2027 3,980.95 Est @ -0.35% 2,095.59
2028 3,995.07 Est @ 0.35% 1,940.92
2029 4,028.99 Est @ 0.85% 1,806.53
Present value of next 10 years cash flows CN¥30,894.64
SEHK:1829 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥4,028.99 × (1 + 2%) ÷ (8.35% – 2%)
CN¥64,734.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥64,734.43 ÷ (1 + 8.35%)10
CN¥29,025.82
SEHK:1829 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥30,894.64 + CN¥29,025.82
CN¥59,920.45
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥59,920.45 / 4,125.70
CN¥14.52
SEHK:1829 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1829)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥14.52 x 1.135
HK$16.48
Value per share (HKD) From above. HK$16.48
Current discount Discount to share price of HK$3.41
= -1 x (HK$3.41 - HK$16.48) / HK$16.48
79.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Machinery Engineering is available for.
Intrinsic value
>50%
Share price is HK$3.41 vs Future cash flow value of HK$16.48
Current Discount Checks
For China Machinery Engineering to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Machinery Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Machinery Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Machinery Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Machinery Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1829 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.52
SEHK:1829 Share Price ** SEHK (2019-07-22) in HKD HK$3.41
SEHK:1829 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.01
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.2x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Machinery Engineering.

SEHK:1829 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1829 Share Price ÷ EPS (both in CNY)

= 3.01 ÷ 0.52

5.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Machinery Engineering is good value based on earnings compared to the HK Construction industry average.
  • China Machinery Engineering is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Machinery Engineering's expected growth come at a high price?
Raw Data
SEHK:1829 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
9.6%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1829 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.82x ÷ 9.6%

0.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Machinery Engineering is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Machinery Engineering's assets?
Raw Data
SEHK:1829 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥3.98
SEHK:1829 Share Price * SEHK (2019-07-22) in HKD HK$3.41
SEHK:1829 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.01
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:1829 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1829 Share Price ÷ Book Value per Share (both in CNY)

= 3.01 ÷ 3.98

0.75x

* Primary Listing of China Machinery Engineering.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Machinery Engineering is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess China Machinery Engineering's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. China Machinery Engineering has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1829 Future Performance

 How is China Machinery Engineering expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Machinery Engineering expected to grow at an attractive rate?
  • China Machinery Engineering's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Machinery Engineering's earnings growth is positive but not above the Hong Kong market average.
  • China Machinery Engineering's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1829 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1829 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 9.6%
SEHK:1829 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8.4%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1829 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1829 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 37,001 3,572 2,808 3
2020-12-31 34,777 3,740 2,422 5
2019-12-31 31,708 4,038 2,164 5
SEHK:1829 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 28,863 605 2,132
2018-09-30 28,569 598 2,075
2018-06-30 24,582 1,134 1,955
2018-03-31 24,132 914 1,833
2017-12-31 27,375 152 1,775
2017-09-30 25,574 861 1,865
2017-06-30 23,772 1,570 1,955
2017-03-31 22,395 1,873 2,031
2016-12-31 21,017 2,177 2,107
2016-09-30 21,666 1,894 2,087
2016-06-30 22,315 1,612 2,068
2016-03-31 23,185 2,563 2,136

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Machinery Engineering's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • China Machinery Engineering's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1829 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from China Machinery Engineering Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1829 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.68 0.77 0.60 3.00
2020-12-31 0.59 0.68 0.47 4.00
2019-12-31 0.53 0.56 0.46 4.00
SEHK:1829 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.52
2018-09-30 0.50
2018-06-30 0.47
2018-03-31 0.44
2017-12-31 0.43
2017-09-30 0.45
2017-06-30 0.47
2017-03-31 0.49
2016-12-31 0.51
2016-09-30 0.51
2016-06-30 0.50
2016-03-31 0.52

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Machinery Engineering is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Machinery Engineering's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Machinery Engineering has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1829 Past Performance

  How has China Machinery Engineering performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Machinery Engineering's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Machinery Engineering's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • China Machinery Engineering's 1-year earnings growth exceeds its 5-year average (20.1% vs -0.9%)
  • China Machinery Engineering's earnings growth has exceeded the HK Construction industry average in the past year (20.1% vs -13.1%).
Earnings and Revenue History
China Machinery Engineering's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Machinery Engineering Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1829 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 28,862.69 2,131.54 3,181.69
2018-09-30 28,568.76 2,075.22 2,762.94
2018-06-30 24,581.90 1,955.14 1,952.07
2018-03-31 24,132.04 1,833.17 1,910.23
2017-12-31 27,375.11 1,774.96 2,260.51
2017-09-30 25,573.69 1,864.77 2,139.63
2017-06-30 23,772.27 1,954.58 2,018.75
2017-03-31 22,394.75 2,030.55 1,930.12
2016-12-31 21,017.24 2,106.52 1,841.48
2016-09-30 21,665.96 2,087.29 1,855.19
2016-06-30 22,314.68 2,068.06 1,868.91
2016-03-31 23,185.47 2,136.42 1,875.08
2015-12-31 24,056.27 2,204.78 1,881.26
2015-09-30 23,424.03 2,086.85 1,742.58
2015-06-30 22,791.80 1,968.92 1,603.90
2015-03-31 23,269.20 2,044.20 1,654.71
2014-12-31 23,746.60 2,119.47 1,705.52
2014-09-30 22,917.69 2,082.82 1,745.95
2014-06-30 22,088.79 2,046.17 1,786.39
2014-03-31 21,757.53 2,002.71 1,757.29
2013-12-31 21,426.27 1,959.26 1,728.20
2013-09-30 21,397.80 1,948.45 1,681.03
2013-06-30 21,369.33 1,937.64 1,633.86
2013-03-31 21,332.70 1,932.66 1,606.44
2012-12-31 21,296.06 1,927.69 1,579.01
2012-09-30 21,164.61 1,875.58 1,557.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Machinery Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Machinery Engineering used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • China Machinery Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Machinery Engineering's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Machinery Engineering has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1829 Health

 How is China Machinery Engineering's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Machinery Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Machinery Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Machinery Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Machinery Engineering's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 44.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Machinery Engineering Company Filings, last reported 6 months ago.

SEHK:1829 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 16,513.25 984.76 26,397.48
2018-09-30 16,513.25 984.76 26,397.48
2018-06-30 15,342.98 1,195.34 26,692.48
2018-03-31 15,342.98 1,195.34 26,692.48
2017-12-31 17,380.75 916.37 28,263.63
2017-09-30 17,380.75 916.37 28,263.63
2017-06-30 15,144.66 985.87 24,915.86
2017-03-31 15,144.66 985.87 24,915.86
2016-12-31 15,375.55 1,046.42 25,483.87
2016-09-30 15,375.55 1,046.42 25,483.87
2016-06-30 13,990.70 643.99 24,118.63
2016-03-31 13,990.70 643.99 24,118.63
2015-12-31 14,546.44 940.23 25,067.99
2015-09-30 14,546.44 940.23 25,067.99
2015-06-30 13,052.90 501.24 23,939.28
2015-03-31 13,052.90 501.24 23,939.28
2014-12-31 13,162.53 565.53 22,156.50
2014-09-30 13,162.53 565.53 22,156.50
2014-06-30 12,049.77 298.83 18,108.99
2014-03-31 12,049.77 298.83 18,108.99
2013-12-31 11,756.06 313.94 18,172.50
2013-09-30 11,756.06 313.94 18,172.50
2013-06-30 10,695.66 244.12 18,634.29
2013-03-31 10,695.66 244.12 18,634.29
2012-12-31 9,917.42 288.54 18,561.47
2012-09-30 9,917.42 288.54 18,561.47
  • China Machinery Engineering's level of debt (6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.7% vs 6% today).
  • Debt is well covered by operating cash flow (61.4%, greater than 20% of total debt).
  • China Machinery Engineering earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess China Machinery Engineering's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Machinery Engineering has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1829 Dividends

 What is China Machinery Engineering's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.88%
Current annual income from China Machinery Engineering dividends. Estimated to be 8.16% next year.
If you bought HK$2,000 of China Machinery Engineering shares you are expected to receive HK$138 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Machinery Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • China Machinery Engineering's dividend is above the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1829 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1829 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.27 4.00
2020-12-31 0.25 6.00
2019-12-31 0.21 5.00
SEHK:1829 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-24 0.207 6.698
2018-06-25 0.166 4.997
2017-05-11 0.204 4.981
2016-07-04 0.199 4.517
2015-04-28 0.203 3.984
2015-03-30 0.203 2.624
2014-06-26 0.190 4.563
2013-06-17 0.164 4.064

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, China Machinery Engineering has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but China Machinery Engineering only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of China Machinery Engineering's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess China Machinery Engineering's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Machinery Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Machinery Engineering has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1829 Management

 What is the CEO of China Machinery Engineering's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xiaojun Han
COMPENSATION CN¥1,752,000
AGE 50
TENURE AS CEO 0.6 years
CEO Bio

Mr. Han Xiaojun has been President of China Machinery Engineering Corporation since December 21, 2018. Mr. Han was Vice Chairman of China Machinery Engineering Corporation since March 5, 2018 until December 21, 2018 and was its Acting President since December 12, 2018 until December 21, 2018. He is currently the deputy secretary of the Party Committee of the Company and executive Director. He has more than 20 years of management experience. From July 1990 to June 1995, he served as an officer at Beijing Silk Plant. From June 1995 to July 2002, he worked at Chinese Academy of Agricultural Mechanization Sciences as an engineer. Mr. HAN joined China National Machinery and Equipment (Group) Company), the predecessor of China National Machinery Industry Corporation(“SINOMACH”), in July 2002 and successively held the positions of an officer at the business coordination office of the operational management department, an officer (director-level) at the general management office of the general management department, chief of the cadres management office of the human resources department (cadres division of the Party Committee), deputy director of the human resources department (cadres division of the Party Committee), the director of the human resources department (organization division of the Party Committee), the director of the work department of the Party Committee, and from October 2008 to September 2011, he also concurrently served as the secretary of General Party Branch of the headquarters of SINOMACH. In April 2015, Mr. HAN was transferred to China National Automotive Industry International Cooperation*, which was subsequently renamed as China National Machinery Industry International Co., Ltd.* , to serve as the secretary of the Party Committee, a director and general manager until January 2018. From December 2017 to December 6, 2018, he has served as the secretary of the Party Committee of the Company, and from December 6, 2018, he served as the deputy secretary of the Party Committee of the Company. Since February 2010, Mr. HAN has also served as a member of the Party Committee of SINOMACH. From January 2009 to January 2011, Mr. HAN had served as a director of China National Machinery & Equipment Import & Export Corporation, the predecessor of the Company. From September 2010 to July 2013, he had served as the chairman of the supervisory board of China Foma (Group) Co., Ltd. In 1990, Mr. HAN graduated from Tianjin Polytechnic University with a bachelor’s degree in textile machinery of the department of mechanical engineering. He is a professorate senior engineer.

CEO Compensation
  • Insufficient data for Xiaojun to compare compensation growth.
  • Xiaojun's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Machinery Engineering management team in years:

2.4
Average Tenure
50.5
Average Age
  • The tenure for the China Machinery Engineering management team is about average.
Management Team

Chun Zhang

TITLE
Executive Chairman
COMPENSATION
CN¥2M
AGE
51

Xiaojun Han

TITLE
President & Executive Director
COMPENSATION
CN¥2M
AGE
50
TENURE
0.6 yrs

Weiling Wang

TITLE
CFO & Joint Company Secretary
AGE
53
TENURE
1.4 yrs

Jianguo Zhang

TITLE
Vice President
AGE
58
TENURE
13.2 yrs

Wei Ai

TITLE
Vice President
AGE
49
TENURE
4.7 yrs

Wei Zhang

TITLE
Vice President
AGE
56
TENURE
3.8 yrs

Yanshui Fang

TITLE
Vice President
AGE
48
TENURE
2.4 yrs

Zigang Tong

TITLE
Vice President
AGE
48
TENURE
2.4 yrs

Seaman Kwok

TITLE
Joint Company Secretary
AGE
60
TENURE
1.4 yrs

Ting Liu

TITLE
Deputy GM of the Audit Department & Supervisor
AGE
37
Board of Directors Tenure

Average tenure and age of the China Machinery Engineering board of directors in years:

5.4
Average Tenure
55
Average Age
  • The tenure for the China Machinery Engineering board of directors is about average.
Board of Directors

Chun Zhang

TITLE
Executive Chairman
COMPENSATION
CN¥2M
AGE
51
TENURE
1.5 yrs

Xiaojun Han

TITLE
President & Executive Director
COMPENSATION
CN¥2M
AGE
50
TENURE
1.3 yrs

Ting Liu

TITLE
Deputy GM of the Audit Department & Supervisor
AGE
37
TENURE
1.5 yrs

Li Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥229K
AGE
64
TENURE
8.5 yrs

Yongzhong Fang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥229K
AGE
68
TENURE
8 yrs

Huaqiang Quan

TITLE
Chairman of Supervisory Board
AGE
49

Benli Yu

TITLE
Non Executive Director
COMPENSATION
CN¥117K
AGE
65
TENURE
5.4 yrs

Hongyu Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥229K
AGE
56
TENURE
8.5 yrs

Fusheng Zhang

TITLE
Non Executive Director
COMPENSATION
CN¥118K
AGE
66
TENURE
5.4 yrs

Bernard Wu

TITLE
Independent Non Executive Director
COMPENSATION
CN¥229K
AGE
54
TENURE
5.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
01. May 19 Buy Cape Ann Asset Management Ltd Company 30. Apr 19 30. Apr 19 797,000 HK$3.80 HK$3,027,561
19. Feb 19 Buy Value Partners Hong Kong Limited Company 14. Feb 19 14. Feb 19 708,000 HK$4.04 HK$2,859,330
13. Feb 19 Buy Cape Ann Asset Management Ltd Company 12. Feb 19 12. Feb 19 3,978,000 HK$4.02 HK$15,979,642
30. Jan 19 Buy Value Partners Hong Kong Limited Company 25. Jan 19 25. Jan 19 1,089,000 HK$3.97 HK$4,322,244
24. Jan 19 Sell Grantham Mayo Van Otterloo & Co. LLC Company 21. Jan 19 21. Jan 19 -4,930,000 HK$3.85 HK$-18,980,516
24. Jan 19 Buy Value Partners Limited Company 21. Jan 19 21. Jan 19 5,139,000 HK$3.85 HK$19,782,063
24. Oct 18 Sell Value Partners Limited Company 19. Oct 18 19. Oct 18 -553,000 HK$3.38 HK$-1,868,090
29. Aug 18 Buy Wellington Management Group LLP Company 28. Aug 18 28. Aug 18 1,130,000 HK$3.83 HK$4,329,030
X
Management checks
We assess China Machinery Engineering's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Machinery Engineering has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1829 News

Simply Wall St News

Shareholders Should Look Hard At China Machinery Engineering Corporation’s (HKG:1829) 8.4% Return On Capital

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for China Machinery Engineering: 0.084 = CN¥1.5b ÷ (CN¥56b - CN¥38b) (Based on the trailing twelve months to December 2018.) Therefore, China Machinery Engineering has an ROCE of 8.4%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … China Machinery Engineering's current liabilities are fairly high, making its ROCE look better than otherwise.

Simply Wall St -

The China Machinery Engineering (HKG:1829) Share Price Is Down 25% So Some Shareholders Are Getting Worried

We regret to report that long term China Machinery Engineering Corporation (HKG:1829) shareholders have had that experience, with the share price dropping 25% in three years, versus a market return of about 31%. … During the three years that the share price fell, China Machinery Engineering's earnings per share (EPS) dropped by 1.1% each year. … We note that for China Machinery Engineering the TSR over the last 3 years was -13%, which is better than the share price return mentioned above.

Simply Wall St -

Why We Think China Machinery Engineering Corporation (HKG:1829) Could Be Worth Looking At

Very undervalued with excellent balance sheet and pays a dividend 1829's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … SEHK:1829 Price Estimation Relative to Market, June 5th 2019 1829's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments. … SEHK:1829 Historical Dividend Yield, June 5th 2019 Next Steps: For China Machinery Engineering, I've put together three key aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for 1829’s future growth?

Simply Wall St -

How Do Analysts See China Machinery Engineering Corporation (HKG:1829) Performing In The Next Couple Of Years?

China Machinery Engineering Corporation's (HKG:1829) latest earnings announcement in December 2018 indicated that the company gained from a strong tailwind, eventuating to a double-digit earnings growth of 20%. … Below is my commentary, albeit very simple and high-level, on how market analysts predict China Machinery Engineering's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for China Machinery Engineering Market analysts' prospects for the upcoming year seems rather muted, with earnings rising by a single digit 1.5%.

Simply Wall St -

Could China Machinery Engineering Corporation (HKG:1829) Have The Makings Of Another Dividend Aristocrat?

Today we'll take a closer look at China Machinery Engineering Corporation (HKG:1829) from a dividend investor's perspective. … With a six-year payment history and a 6.3% yield, many investors probably find China Machinery Engineering intriguing. … There are a few simple ways to reduce the risks of buying China Machinery Engineering for its dividend, and we'll go through these below.

Simply Wall St -

Where China Machinery Engineering Corporation (HKG:1829) Stands In Terms Of Earnings Growth Against Its Industry

Assessing China Machinery Engineering Corporation's (HKG:1829) past track record of performance is a valuable exercise for investors. … Today I will assess 1829's recent performance announced on 31 December 2018 and evaluate these figures to its longer term trend and industry movements. … 1829's trailing twelve-month earnings (from 31 December 2018) of CN¥2.1b has.

Simply Wall St -

What Do Analysts Think About China Machinery Engineering Corporation's (HKG:1829) Future?

As China Machinery Engineering Corporation (HKG:1829) released its earnings announcement on 31 December 2018, … as a 0.5% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of -1.1%.

Simply Wall St -

Is China Machinery Engineering Corporation's (HKG:1829) 13% ROE Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows China Machinery Engineering has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Introducing China Machinery Engineering, The Stock That Dropped 26% In The Last Three Years

We regret to report that long term China Machinery Engineering Corporation (HKG:1829) shareholders have had that experience, with the share price dropping 26% in three years, versus a market return of about 52%. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the three years that the share price fell, China Machinery Engineering's earnings per share (EPS) dropped by 2.7% each year.

Simply Wall St -

China Machinery Engineering Corporation (HKG:1829) Has Attractive Fundamentals

China Machinery Engineering Corporation (HKG:1829) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

1829 Company Info

Description

China Machinery Engineering Corporation, together with its subsidiaries, operates as an engineering contracting and services provider in Asia, South America, North America, Africa, and Europe. It operates through three segments: Construction Contracts, Trading Business, and Services Business. The Construction Contracts segment undertakes engineering, procurement, and construction contracts for various infrastructure-related construction, including hydropower, thermal power, and other engineering contracting projects, as well as transportation, telecommunication, water supply and treatment, building and construction, manufacturing and processing plant, and mining and resources exploitation projects. The Trading Business segment imports and exports various machinery, electrical, and instrumental products for domestic and overseas customers, such as mining equipment, ship components, automobile parts, medical instruments, household appliances, electricity meters, manufacturing machineries, and construction materials. The Services Business segment provides export-import agency, exhibition, design consulting, tendering agency, logistics, and other services. The company is also involved in the provision of trading and security investment, storage and property, property management and rental, construction and construction contracts tendering, transportation agency, construction research and design, and legal consultancy, as well as engineering design, contracting, and supervision services. The company was founded in 1978 and is headquartered in Beijing, the People’s Republic of China.

Details
Name: China Machinery Engineering Corporation
1829
Exchange: SEHK
Founded: 1978
HK$14,233,665,000
4,125,700,000
Website: http://www.cmec.com
Address: China Machinery Engineering Corporation
No. 178 Guang’anmenwai Street,
Xicheng District,
Beijing,
100055,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1829 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 21. Dec 2012
DB C3M Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 21. Dec 2012
SZSC 1829 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 21. Dec 2012
OTCPK CMYY.Y UNSPONSORD ADR Pink Sheets LLC US USD 03. Apr 2018
Number of employees
Current staff
Staff numbers
5,311
China Machinery Engineering employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 12:55
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/04/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.