SEHK:2112

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

2112

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-85.2%

2112

12.8%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 2112 underperformed the Hong Kong Trade Distributors industry which returned 12.8% over the past year.

Return vs Market: 2112 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2112IndustryMarket
7 Day2.9%7.5%0.9%
30 Day-45.5%-5.7%0.5%
90 Day-82.5%8.1%-4.3%
1 Year-85.2%-85.2%16.3%12.8%4.2%0.6%
3 Year-86.1%-86.1%-5.7%-14.5%15.6%4.0%
5 Year-82.3%-82.3%-37.9%-50.4%20.0%-0.08%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2112 (HK$0.25) is trading below our estimate of fair value (HK$10.4)

Significantly Below Fair Value: 2112 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2112 is poor value based on its PE Ratio (17.6x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 2112 is poor value based on its PE Ratio (17.6x) compared to the Hong Kong market (10.3x).


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 (0.6x).


Next Steps

Future Growth

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

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2112's forecast earnings growth (27% per year) is above the savings rate (2%).

Earnings vs Market: 2112's earnings (27% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: Insufficient data to determine if 2112's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2112's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2112's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CAA Resources performed over the past 5 years?

-2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2112's earnings have declined by -2.9% per year over the past 5 years.

Accelerating Growth: 2112's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2112 had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 2112's Return on Equity (1.7%) is considered low.


Return on Assets

ROA vs Industry: 2112's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 2112 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CAA Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 2112's short term assets ($267.1M) exceeds its short term liabilities ($195.8M)

Long Term Liabilities: 2112's short term assets (267.1M) exceeds its long term liabilities (3.8M)


Debt to Equity History and Analysis

Debt Level: 2112's debt to equity ratio (86.1%) is considered high

Reducing Debt: 2112's debt to equity ratio has increased from 19.3% to 86.1% over the past 5 years.

Debt Coverage: 2112's debt is well covered by operating cash flow (29.4%).

Interest Coverage: 2112's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: 2112 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2112's debt is covered by short term assets (assets are 2.009280x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

6.5yrs

Average management tenure


CEO

Yang Li (32yo)

6.5yrs

Tenure

US$368,000

Compensation

Mr. Yang Li has been the Chief Executive Officer of CAA Resources Limited since April 12, 2013 and has also been its Chairman since April 12, 2013. Mr. Li has been appointed as the director of Capture Adva ...


CEO Compensation Analysis

Compensation vs. Market: Yang's total compensation ($USD368.00K) is above average for companies of similar size in the Hong Kong market ($USD214.48K).

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


Management Age and Tenure

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 2112's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

54yo

Average Age

Experienced Board: 2112's board of directors are considered experienced (6.5 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


Management Team

  • Barry Chu (48yo)

    Company Secretary & Financial Controller

    • Tenure: 6.5yrs
  • Yang Li (32yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: US$368.00k
  • Xiaolan Li (54yo)

    Deputy GM & Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$137.00k
  • Er Wang (62yo)

    Production Supervisor & Executive Director

    • Tenure: 6.5yrs
  • Jie Dong (64yo)

    Consultant

    • Tenure: 3.1yrs
    • Compensation: US$14.00k
  • Xiaodong Yan (60yo)

    Chief Engineer

    • Tenure: 6.5yrs
  • Mijia Xu (34yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: US$79.00k

Board Members

  • Yiu Cho Leung (39yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$11.00k
  • Yang Li (32yo)

    Chairman & CEO

    • Tenure: 6.5yrs
    • Compensation: US$368.00k
  • Xiaolan Li (54yo)

    Deputy GM & Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$137.00k
  • Er Wang (62yo)

    Production Supervisor & Executive Director

    • Tenure: 6.5yrs
  • Zhongquan Li (54yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$13.00k
  • Ling Wang (61yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$13.00k
  • Mijia Xu (34yo)

    Executive Director

    • Tenure: 3.1yrs
    • Compensation: US$79.00k

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: 2012
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$372.000m
  • Shares outstanding: 1.50b
  • Website: https://www.caa-resources.com

Number of Employees


Location

  • CAA Resources Limited
  • Suite 5602
  • 56/F, The Center
  • Central
  • Hong Kong

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, South Korea, Indonesia, and the People’s Republic of China. It operates through fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:54
End of Day Share Price2019/10/21 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.