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

Excellent balance sheet with acceptable 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


Market Performance


7 Day Return

-4.5%

217

-0.4%

HK Trade Distributors

3.3%

HK Market


1 Year Return

23.5%

217

11.7%

HK Trade Distributors

1.6%

HK Market

Return vs Industry: 217 exceeded the Hong Kong Trade Distributors industry which returned 11.7% over the past year.

Return vs Market: 217 exceeded the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

217IndustryMarket
7 Day-4.5%-0.4%3.3%
30 Day-10.6%-9.1%-0.009%
90 Day-9.9%6.2%-5.1%
1 Year23.5%23.5%15.5%11.7%5.3%1.6%
3 Year-70.8%-70.8%-11.1%-19.2%16.1%4.4%
5 Year-56.7%-56.7%-42.8%-54.1%20.4%0.3%

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?

10.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 (10.3x) compared to the Trade Distributors industry average (9.4x).

PE vs Market: 217 is good value based on its PE Ratio (10.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low 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?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 217's forecast earnings growth (21.1% per year) is above the savings rate (2%).

Earnings vs Market: 217's earnings (21.1% 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 217's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 217's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 217's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: 217's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: 217's earnings growth over the past year (273.7%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: 217 earnings growth over the past year (273.7%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: 217's Return on Equity (3.8%) is considered low.


Return on Assets

ROA vs Industry: 217's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 217's Return on Capital Employed has declined over the past 3 years.


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$2.8B) exceeds its short term liabilities (HK$527.5M)

Long Term Liabilities: 217's short term assets (2.8B) exceeds its long term liabilities (45.3M)


Debt to Equity History and Analysis

Debt Level: 217's debt to equity ratio (6.7%) is considered satisfactory

Reducing Debt: 217's debt to equity ratio has reduced from 296.5% to 6.7% over the past 5 years.

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

Interest Coverage: 217 earns more interest than it pays, so coverage of interest payments is not a concern.


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 14.077380x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

5.9yrs

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

Compensation vs. Market: Bin's total compensation ($USD45.89K) is too low to compare against companies of similar size in the Hong Kong market ($USD286.41K).

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


Board Age and Tenure

5.9yrs

Average Tenure

61yo

Average Age

Experienced Board: 217's board of directors are considered experienced (5.9 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.


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

Ownership Breakdown


Management Team

  • Andy Chan (60yo)

    Financial Controller

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

    Company Secretary

    • Tenure: 0.2yrs
  • Tianlin Wang (46yo)

    Executive Director

    • Tenure: 10.1yrs
    • 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: 4.1yrs
    • Compensation: HK$360.00k
  • Tony Lee (65yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: HK$360.00k
  • Tianlin Wang (46yo)

    Executive Director

    • Tenure: 10.1yrs
    • Compensation: HK$240.00k
  • Bin Zhang (50yo)

    Chairman & MD

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

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • 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$1.220b
  • 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 Analysis2019/10/18 12:38
End of Day Share Price2019/10/18 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.