Chanhigh Holdings (SEHK:2017) - Share price, News & Analysis

Q: What is the Fair Price of 2017 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2017 (HK$0.33) is trading below our estimate of [[fair value]] (HK$3.42)

2017 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	0/6

2017 Stock Overview

Chanhigh Holdings Limited, an investment holding company, provides landscape and municipal works construction, and maintenance services in the People’s Republic of China.

Rewards

Trading at 90.5% below our estimate of its fair value

Earnings grew by 36.4% over the past year

Risk Analysis

Earnings have declined by 33.6% per year over past 5 years

Does not have a meaningful market cap (HK$201M)

Chanhigh Holdings Competitors

Man King Holdings

SEHK:2193

HK$142.7m

Twintek Investment Holdings

SEHK:6182

HK$152.8m

SH Group (Holdings)

SEHK:1637

HK$164.0m

Boltek Holdings

SEHK:8601

HK$208.0m

Price History & Performance

Summary of all time highs, changes and price drops for Chanhigh Holdings
Historical stock prices
Current Share Price	HK$0.33
52 Week High	HK$0.43
52 Week Low	HK$0.25
Beta	1.24
1 Month Change	1.56%
3 Month Change	0%
1 Year Change	-29.35%
3 Year Change	-43.97%
5 Year Change	-79.03%
Change since IPO	-85.02%

Recent News & Updates

Jul 28

Chanhigh Holdings (HKG:2017) Will Be Hoping To Turn Its Returns On Capital Around

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

May 12

Is Chanhigh Holdings (HKG:2017) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	2017	HK Construction	HK Market
7D	3.2%	1.6%	-0.5%
1Y	-29.3%	-11.5%	-20.6%

Return vs Industry: 2017 underperformed the Hong Kong Construction industry which returned -11.5% over the past year.

Return vs Market: 2017 underperformed the Hong Kong Market which returned -20.6% over the past year.

Price Volatility

Is 2017's price volatile compared to industry and market?
2017 volatility
2017 Average Weekly Movement	9.0%
Construction Industry Average Movement	7.0%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 2017 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 2017's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	616	Yonghui Peng	https://www.chanhigh.com.hk

Chanhigh Holdings Limited, an investment holding company, provides landscape and municipal works construction, and maintenance services in the People’s Republic of China. It operates through four segments: Landscape Construction, Municipal Works Construction, Building Works, and Others. The Landscape Construction segment undertakes works of municipal and private landscaping projects, such as planting of trees, modifying the layout of land, foundation works for landscape construction, building and construction of parks, etc. The Municipal Works Construction segment primarily conducts municipal or local government works, such as municipal road construction, water and lighting works, etc. The Building Works segment constructs gas stations, auto repair shops, office buildings and temporary warehouses, etc. The Others segment provides maintenance and heritage restoration services, as well as undertakes renovation works and acts as an agent in the trading of construction materials.

Chanhigh Holdings Fundamentals Summary

How do Chanhigh Holdings's earnings and revenue compare to its market cap?
2017 fundamental statistics
Market Cap	HK$201.01m
Earnings (TTM)	HK$36.28m
Revenue (TTM)	HK$2.04b

5.5x

P/E Ratio

0.1x

P/S Ratio

Is 2017 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2017 income statement (TTM)
Revenue	CN¥1.77b
Cost of Revenue	CN¥1.61b
Gross Profit	CN¥155.00m
Other Expenses	CN¥123.59m
Earnings	CN¥31.41m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)	0.051
Gross Margin	8.76%
Net Profit Margin	1.78%
Debt/Equity Ratio	75.4%

How did 2017 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 2017 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
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2017?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2017. This is calculated by dividing 2017's market cap by their current preferred multiple.
What is 2017's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥174.01m

2017 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/Revenue	0.3x
Enterprise Value/EBITDA	7.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2017's PE Ratio compare to its peers?

2017 PE Ratio vs Peers

The above table shows the PE ratio for 2017 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.4x
2193 Man King Holdings	3.8x	n/a	HK$142.7m
6182 Twintek Investment Holdings	11.1x	n/a	HK$152.8m
1637 SH Group (Holdings)	14x	n/a	HK$164.0m
8601 Boltek Holdings	8.6x	n/a	HK$208.0m
2017 Chanhigh Holdings	5.5x	n/a	HK$201.0m

Price-To-Earnings vs Peers: 2017 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (9.4x).

Price to Earnings Ratio vs Industry

How does 2017's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Earnings vs Industry: 2017 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Hong Kong Construction industry average (11.6x)

Price to Earnings Ratio vs Fair Ratio

What is 2017'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.

2017 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2017's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 2017 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2017 (HK$0.33) is trading below our estimate of fair value (HK$3.42)

Significantly Below Fair Value: 2017 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.4%

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 Chanhigh Holdings 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.

Discover growth companies

Examine whether Chanhigh Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Chanhigh Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Chanhigh Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-33.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2017 has high quality earnings.

Growing Profit Margin: 2017's current net profit margins (1.8%) are higher than last year (1.4%).

Past Earnings Growth Analysis

Earnings Trend: 2017's earnings have declined by 33.6% per year over the past 5 years.

Accelerating Growth: 2017's earnings growth over the past year (36.4%) exceeds its 5-year average (-33.6% per year).

Earnings vs Industry: 2017 earnings growth over the past year (36.4%) exceeded the Construction industry -13.2%.

Return on Equity

High ROE: 2017's Return on Equity (3.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Chanhigh Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2017's short term assets (CN¥2.1B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 2017's short term assets (CN¥2.1B) exceed its long term liabilities (CN¥105.4M).

Debt to Equity History and Analysis

Debt Level: 2017's net debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: 2017's debt to equity ratio has reduced from 82.4% to 75.4% over the past 5 years.

Debt Coverage: 2017's debt is not well covered by operating cash flow (6.7%).

Interest Coverage: 2017's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Chanhigh Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2017's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2017's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2017's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2017's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2017 has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.9yrs

Average management tenure

CEO

Yonghui Peng (40 yo)

5.42yrs

Tenure

CN¥419,000

Compensation

Mr. Yonghui Peng serves as the Chief Executive Officer of Chanhigh Holdings Limited and has been its Executive Director since April 01, 2016. Mr. Peng joined Chanhigh Holdings Limited in April 2004. He is...

CEO Compensation Analysis

Compensation vs Market: Yonghui's total compensation ($USD61.73K) is below average for companies of similar size in the Hong Kong market ($USD245.35K).

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

Leadership Team

Experienced Management: 2017's management team is seasoned and experienced (5.9 years average tenure).

Board Members

Experienced Board: 2017's board of directors are considered experienced (6.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31