SEHK:217

Stock Analysis Report

China Chengtong Development Group

Executive Summary

China Chengtong Development Group Limited, an investment holding company, engages in the property development, property investment, finance leasing, bulk commodity trading, and hotel and marine travelling businesses in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

How has China Chengtong Development Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 217 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

217

-2.1%

HK Trade Distributors

-3.3%

HK Market


1 Year Return

-5.3%

217

-14.0%

HK Trade Distributors

-9.6%

HK Market

Return vs Industry: 217 exceeded the Hong Kong Trade Distributors industry which returned -16.1% over the past year.

Return vs Market: 217 exceeded the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

217IndustryMarket
7 Day-1.8%-2.1%-3.3%
30 Day-8.9%-0.8%-3.8%
90 Day13.2%-3.0%-0.2%
1 Year-5.3%-5.3%-11.1%-14.0%-6.3%-9.6%
3 Year-66.0%-66.0%-16.0%-23.4%11.2%-0.05%
5 Year-49.6%-49.6%-51.5%-59.7%12.7%-6.0%

Price Volatility Vs. Market

How volatile is China Chengtong Development Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Chengtong Development Group undervalued compared to its fair value and its price relative to the market?

26.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 217's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 217's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 217 is poor value based on its PE Ratio (26.1x) compared to the Trade Distributors industry average (10x).

PE vs Market: 217 is poor value based on its PE Ratio (26.1x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 217's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 217 is good value based on its PB Ratio (0.4x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is China Chengtong Development Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.3%

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 China Chengtong Development Group 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 China Chengtong Development Group performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 217 has high quality earnings.

Growing Profit Margin: 217's current net profit margins (4.3%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: 217 has become profitable over the past 5 years, growing earnings by 30.3% per year.

Accelerating Growth: 217's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 217 had negative earnings growth (-58.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (1.4%).


Return on Equity

High ROE: 217's Return on Equity (1.5%) is considered low.


Next Steps

Financial Health

How is China Chengtong Development Group's financial position?


Financial Position Analysis

Short Term Liabilities: 217's short term assets (HK$2.6B) exceed its short term liabilities (HK$636.0M).

Long Term Liabilities: 217's short term assets (HK$2.6B) exceed its long term liabilities (HK$50.4M).


Debt to Equity History and Analysis

Debt Level: 217's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: 217's debt to equity ratio has reduced from 39% to 9.5% over the past 5 years.

Debt Coverage: 217's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 217's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: 217 has a high level of physical assets or inventory.

Debt Coverage by Assets: 217's debt is covered by short term assets (assets are 9.3x debt).


Next Steps

Dividend

What is China Chengtong Development Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 217's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 217's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 217's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 217's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 217 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 217'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?

4.4yrs

Average board tenure


CEO

Tianzhou Yang (47yo)

0.3yrs

Tenure

Mr. Yang Tianzhou has been Managing Director and Executive Director of China Chengtong Development Group Limited since October 22, 2019. Mr. Yang obtained a bachelor’s degree in economics and a master’s de ...


Board Members

NamePositionTenureCompensationOwnership
Bin Zhang
Chairman1.2yrsHK$360.00k0.0052% HK$65.6k
Tianlin Wang
Executive Director10.4yrsHK$240.00k0.0069% HK$87.6k
Tianzhou Yang
MD & Executive Director0.3yrsno datano data
Shufang Li
Executive Director0.3yrsno data0.0034% HK$43.8k
Jia He
Independent Non-Executive Director4.4yrsHK$360.00kno data
Man Chun Lee
Independent Non-Executive Director6.3yrsHK$360.00kno data
Qing Chang
Independent Non-Executive Director7.1yrsHK$360.00kno data

4.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 217's board of directors are considered experienced (4.4 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

China Chengtong Development Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Chengtong Development Group Limited
  • Ticker: 217
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.272b
  • Shares outstanding: 5.81b
  • Website: https://www.hk217.com

Number of Employees


Location

  • China Chengtong Development Group Limited
  • Central Plaza
  • 64th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
217SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CCODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

China Chengtong Development Group Limited, an investment holding company, engages in the property development, property investment, finance leasing, bulk commodity trading, and hotel and marine travelling businesses in the People’s Republic of China. The company's Property Development segment holds land for property development projects. Its Property Investment segment provides rental services; and holds investment properties for appreciation. The company's Finance Leasing segment provides finance leasing services, including arranging sales and leaseback transaction. Its Bulk Commodity Trade segment engages in the trading of coal, steel, and non-ferrous metals. The company's Hotel and Marine Travelling Services Segment provides hotel and marine travelling services. The company is based in Wanchai, Hong Kong. China Chengtong Development Group Limited operates as a subsidiary of China Chengtong Holdings Group Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:44
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.