SEHK:2302

Stock Analysis Report

Executive Summary

CNNC International Limited, an investment holding company, explores for and trades in mineral properties in Mongolia and the People’s Republic of China.

Snowflake

Fundamentals

Acceptable track record with moderate growth potential.

Share Price & News

How has CNNC International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

2302

-20.5%

HK Trade Distributors

0.3%

HK Market


1 Year Return

8.5%

2302

14.2%

HK Trade Distributors

1.3%

HK Market

Return vs Industry: 2302 underperformed the Hong Kong Trade Distributors industry which returned 14.2% over the past year.

Return vs Market: 2302 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

2302IndustryMarket
7 Day-1.7%-20.5%0.3%
30 Day1.4%-6.5%0.5%
90 Day1.7%8.0%-4.6%
1 Year8.5%8.5%17.7%14.2%4.9%1.3%
3 Year27.4%27.4%-7.1%-14.3%15.3%3.7%
5 Year0.7%0.7%-36.5%-49.2%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CNNC International undervalued compared to its fair value and its price relative to the market?

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2302 (HK$2.93) is trading below our estimate of fair value (HK$3.15)

Significantly Below Fair Value: 2302 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2302 is poor value based on its PE Ratio (69.4x) compared to the Trade Distributors industry average (9.3x).

PE vs Market: 2302 is poor value based on its PE Ratio (69.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2302's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2302 is overvalued based on its PB Ratio (2.4x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2302's forecast earnings growth (26.9% per year) is above the savings rate (2%).

Earnings vs Market: 2302's earnings (26.9% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: Insufficient data to determine if 2302's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 2302'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 2302's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CNNC International performed over the past 5 years?

63.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2302 has become profitable over the past 5 years, growing earnings by 63.1% per year.

Accelerating Growth: 2302's earnings growth over the past year (233.8%) exceeds its 5-year average (63.1% per year).

Earnings vs Industry: 2302 earnings growth over the past year (233.8%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: 2302's Return on Equity (3.5%) is considered low.


Return on Assets

ROA vs Industry: 2302's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 2302's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CNNC International's financial position?


Financial Position Analysis

Short Term Liabilities: 2302's short term assets (HK$401.7M) exceeds its short term liabilities (HK$215.7M)

Long Term Liabilities: 2302's short term assets (401.7M) exceeds its long term liabilities (288.4M)


Debt to Equity History and Analysis

Debt Level: 2302's debt to equity ratio (67.6%) is considered high

Reducing Debt: 2302's debt to equity ratio has increased from 0.3% to 67.6% over the past 5 years.

Debt Coverage: 2302's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: 2302's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 2302 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2302's debt is covered by short term assets (assets are 1.013130x debt).


Next Steps

Dividend

What is CNNC International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 2302's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2302'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 2302's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2302's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2302'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 CNNC International's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average board tenure


CEO

Lei Cheng (38yo)

0.3yrs

Tenure

0

Mr. Cheng Lei has been Executive Director and Chief Executive Officer of CNNC International Ltd. since June 1, 2019. Mr. Cheng joined CNNC Finance Company, Limited in 2005. Mr. Cheng was transferred to the ...


Board Age and Tenure

6.8yrs

Average Tenure

49yo

Average Age

Experienced Board: 2302's board of directors are considered experienced (6.8 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

  • Philip Li (60yo)

    Company Secretary & Financial Controller

    • Tenure: 0yrs
  • Lei Cheng (38yo)

    Executive Director & CEO

    • Tenure: 0.3yrs

Board Members

  • Henry Cheong (72yo)

    Independent Non-Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$250.00k
  • Liguo Cui (49yo)

    Independent Non-Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$250.00k
  • Lei Zhang (49yo)

    Independent Non Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$250.00k
  • Chaodong Yang (54yo)

    Chairman of the Board

    • Tenure: 2.6yrs
  • Zhihuang Li (46yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Lei Cheng (38yo)

    Executive Director & CEO

    • Tenure: 0.3yrs

Company Information

CNNC International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CNNC International Limited
  • Ticker: 2302
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.463b
  • Shares outstanding: 489.17m
  • Website: https://www.cnncintl.com

Number of Employees


Location

  • CNNC International Limited
  • No. 118 Connaught Road West
  • 30th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2302SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2003
U7MADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2003

Biography

CNNC International Limited, an investment holding company, explores for and trades in mineral properties in Mongolia and the People’s Republic of China. It operates through Trading of Mineral Property, Exp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:35
End of Day Share Price2019/10/23 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.