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

Fundamentals

Flawless balance sheet with acceptable track record.

Risks

  • China Chengtong Development Group is not covered by any analysts.

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


Market Performance


7 Day Return

-1.7%

SEHK:217

3.1%

HK Trade Distributors

-0.6%

HK Market


1 Year Return

5.9%

SEHK:217

14.5%

HK Trade Distributors

-6.7%

HK Market

217 underperformed the Trade Distributors industry which returned 14.5% over the past year.

217 outperformed the Market in Hong Kong which returned -6.7% over the past year.


Share holder returns

217IndustryMarket
7 Day-1.7%3.1%-0.6%
30 Day-1.3%14.3%3.0%
90 Day-4.5%17.7%-4.9%
1 Year5.9%5.9%18.1%14.5%-3.3%-6.7%
3 Year-65.9%-65.9%4.5%-5.0%15.5%3.7%
5 Year-42.7%-42.7%-31.1%-43.3%16.8%-2.7%

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 based on future cash flows and its price relative to the stock market?

11.55x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

China Chengtong Development Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

China Chengtong Development Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

China Chengtong Development Group is overvalued based on earnings compared to the HK Trade Distributors industry average.

China Chengtong Development Group is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Chengtong Development Group, we can't assess if its growth is good value.


Price Based on Value of Assets

China Chengtong Development Group is good value based on assets compared to the HK Trade Distributors industry average.


Next Steps

Future Growth

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

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if China Chengtong Development Group is high growth as no revenue estimate data is available.

China Chengtong Development Group's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare China Chengtong Development Group's revenue growth to the Hong Kong market average as no estimate data is available.

China Chengtong Development Group's earnings growth is expected to exceed the Hong Kong market average.

China Chengtong Development Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Chengtong Development Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

22.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Chengtong Development Group has delivered over 20% year on year earnings growth in the past 5 years.

China Chengtong Development Group's 1-year earnings growth exceeds its 5-year average (273.7% vs 22.7%)

China Chengtong Development Group's earnings growth has exceeded the HK Trade Distributors industry average in the past year (273.7% vs 0.6%).


Return on Equity

China Chengtong Development Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Chengtong Development Group used its assets less efficiently than the HK Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

China Chengtong Development Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Chengtong Development Group's financial position?


Financial Position Analysis

China Chengtong Development Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Chengtong Development Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Chengtong Development Group's level of debt (6.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (296.5% vs 6.7% today).

Debt is well covered by operating cash flow (25.6%, greater than 20% of total debt).

China Chengtong Development Group has not reported any interest payments on debt.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 14.1x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate China Chengtong Development Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Chengtong Development Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Chengtong Development Group has not reported any payouts.

Unable to verify if China Chengtong Development Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Chengtong Development Group has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of China Chengtong Development Group's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Bin Zhang (50yo)

2.3yrs

Tenure

HK$360,000

Compensation

Mr. Bin Zhang has been the Chairman of China Chengtong Development Group Ltd. since June 26, 2019 and served as its Acting Chairman since December 1, 2018 until June 26, 2019. Mr. Zhang has been Managing D ...


CEO Compensation Analysis

Bin's remuneration is lower than average for companies of similar size in Hong Kong.

Bin's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

The tenure for the China Chengtong Development Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$465,75318 Dec 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares2,500,000
Max PriceHK$0.19
BuyHK$110,82118 Dec 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares600,000
Max PriceHK$0.18
BuyHK$40,73917 Dec 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares210,000
Max PriceHK$0.19
BuyHK$23,52013 Dec 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares120,000
Max PriceHK$0.20
BuyHK$164,52511 Oct 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares856,000
Max PriceHK$0.19
BuyHK$251,89610 Oct 18
China Chengtong Holdings Group Ltd.
EntityCompany
Shares1,314,000
Max PriceHK$0.19

Ownership Breakdown


Management Team

  • Andy Chan (60yo)

    Financial Controller

    • Tenure: 0yrs
  • Wilkins Poon (53yo)

    Company Secretary

    • Tenure: 0.08yrs
  • Tianlin Wang (46yo)

    Executive Director

    • Tenure: 10yrs
    • Compensation: HK$240.00k
  • Bin Zhang (50yo)

    Chairman & MD

    • Tenure: 2.3yrs
    • Compensation: HK$360.00k

Board Members

  • Jia He (65yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: HK$360.00k
  • Tony Lee (65yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$360.00k
  • Tianlin Wang (46yo)

    Executive Director

    • Tenure: 10yrs
    • Compensation: HK$240.00k
  • Bin Zhang (50yo)

    Chairman & MD

    • Tenure: 2.3yrs
    • Compensation: HK$360.00k
  • Qing Chang (61yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$360.00k

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$1.365b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 12:37
End of Day Share Price2019/09/18 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.