SEHK:2112

Stock Analysis Report

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Executive Summary

CAA Resources Limited, an investment holding company, explores for, mines, crushes, and beneficiates iron ore in Malaysia, Singapore, South Korea, and the People’s Republic of China. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has CAA Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2112's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.7%

2112

-1.7%

HK Trade Distributors

1.5%

HK Market


1 Year Return

-79.3%

2112

-14.9%

HK Trade Distributors

0.7%

HK Market

Return vs Industry: 2112 underperformed the Hong Kong Trade Distributors industry which returned -14.1% over the past year.

Return vs Market: 2112 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2112IndustryMarket
7 Day-8.7%-1.7%1.5%
30 Day-10.4%6.2%-3.1%
90 Day-7.8%11.1%2.9%
1 Year-79.3%-79.3%-11.9%-14.9%4.8%0.7%
3 Year-94.3%-94.3%-41.6%-45.4%-5.6%-15.8%
5 Year-96.2%-96.2%-56.6%-60.0%24.5%3.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CAA Resources undervalued compared to its fair value and its price relative to the market?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2112's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2112's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2112 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 2112 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2112's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2112 is good value based on its PB Ratio (0.3x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

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

18.6%

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 CAA Resources 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 CAA Resources performed over the past 5 years?

-84.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2112 is currently unprofitable.

Growing Profit Margin: 2112 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2112 is unprofitable, and losses have increased over the past 5 years at a rate of 84.7% per year.

Accelerating Growth: Unable to compare 2112's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2112 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-13.7%).


Return on Equity

High ROE: 2112 has a negative Return on Equity (-144.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is CAA Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 2112's short term assets ($217.6M) exceed its short term liabilities ($183.6M).

Long Term Liabilities: 2112's short term assets ($217.6M) exceed its long term liabilities ($3.5M).


Debt to Equity History and Analysis

Debt Level: 2112's debt to equity ratio (255.9%) is considered high.

Reducing Debt: 2112's debt to equity ratio has increased from 8.9% to 255.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 2112 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 2112 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is CAA Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2112's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2112'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 2112's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2112's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2112 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2112's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Yang Li (33 yo)

7.42yrs

Tenure

US$373,000

Compensation

Mr. Yang Li has been the Chief Executive Officer, Chairman of the Board and Executive Director of CAA Resources Limited since April 12, 2013 and served as its Director since April 25, 2012 until April 12, ...


CEO Compensation Analysis

Compensation vs Market: Yang's total compensation ($USD373.00K) is above average for companies of similar size in the Hong Kong market ($USD230.06K).

Compensation vs Earnings: Yang's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Yang Li
Chairman & CEO7.42yrsUS$373.00k56.25%
$ 80.2m
Xiaolan Li
Deputy GM & Executive Director7.42yrsUS$137.00kno data
Er Wang
Production Supervisor & Executive Director7.42yrsUS$59.00kno data
Mijia Xu
Executive Director4yrsUS$78.00kno data

7.4yrs

Average Tenure

45yo

Average Age

Experienced Management: 2112's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yang Li
Chairman & CEO7.42yrsUS$373.00k56.25%
$ 80.2m
Xiaolan Li
Deputy GM & Executive Director7.42yrsUS$137.00kno data
Er Wang
Production Supervisor & Executive Director7.42yrsUS$59.00kno data
Mijia Xu
Executive Director4yrsUS$78.00kno data
Yiu Cho Leung
Independent Non-Executive Director3.08yrsUS$31.00kno data
Zhongquan Li
Independent Non-Executive Director7.42yrsUS$13.00kno data
Ling Wang
Independent Non-Executive Director7.42yrsUS$13.00kno data

7.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 2112's board of directors are considered experienced (7.4 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

CAA Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAA Resources Limited
  • Ticker: 2112
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$142.500m
  • Shares outstanding: 1.50b
  • Website: https://www.caa-resources.com

Number of Employees


Location

  • CAA Resources Limited
  • Zenith, Putra Square
  • Level 22, Menara
  • Kuantan
  • Pahang
  • 25200
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2112SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2013

Biography

CAA Resources Limited, an investment holding company, explores for, mines, crushes, and beneficiates iron ore in Malaysia, Singapore, South Korea, and the People’s Republic of China. It operates through th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 20:19
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.