SEHK:2302

Stock Analysis Report

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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. More Details

Risk Analysis

No risks detected for 2302 from our risk checks.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2302 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 2302's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

2302

-1.1%

HK Trade Distributors

0.4%

HK Market


1 Year Return

-40.7%

2302

-4.8%

HK Trade Distributors

10.1%

HK Market

Return vs Industry: 2302 underperformed the Hong Kong Trade Distributors industry which returned -4.8% over the past year.

Return vs Market: 2302 underperformed the Hong Kong Market which returned 10.1% over the past year.


Shareholder returns

2302IndustryMarket
7 Day0%-1.1%0.4%
30 Day-7.0%23.4%9.3%
90 Day-16.5%14.1%6.1%
1 Year-40.7%-40.7%-1.3%-4.8%14.6%10.1%
3 Year-54.9%-54.9%-43.3%-46.5%1.5%-9.1%
5 Year-44.5%-44.5%-52.5%-55.4%33.7%11.2%

Long-Term 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?

2.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 2302 (HK$1.72) is trading above our estimate of fair value (HK$1.27)

Significantly Below Fair Value: 2302 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2302 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 2302 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


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 (2.6x) compared to the HK Trade Distributors industry average (0.4x).


Next Steps

Future Growth

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

19.8%

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 CNNC International 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 CNNC International performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2302 is currently unprofitable.

Growing Profit Margin: 2302 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2302 is unprofitable, but has reduced losses over the past 5 years at a rate of 12.8% per year.

Accelerating Growth: Unable to compare 2302's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2302 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-7.7%).


Return on Equity

High ROE: 2302 has a negative Return on Equity (-70.7%), as it is currently unprofitable.


Next Steps

Financial Health

How is CNNC International's financial position?


Financial Position Analysis

Short Term Liabilities: 2302's short term assets (HK$403.8M) exceed its short term liabilities (HK$225.4M).

Long Term Liabilities: 2302's short term assets (HK$403.8M) exceed its long term liabilities (HK$266.2M).


Debt to Equity History and Analysis

Debt Level: 2302's debt to equity ratio (125.8%) is considered high.

Reducing Debt: 2302's debt to equity ratio has increased from 0.3% to 125.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2302 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2302 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 19.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average board tenure


CEO

Yi Zhang (37 yo)

0.58

Tenure

Mr. Yi Zhang serves as Executive Director and Chief Executive Officer at CNNC International Limited since May 4, 2020. Mr. Zhang joined CNUC in 2007 and his roles included external affairs, secretarial, pr...


Board Members

NamePositionTenureCompensationOwnership
Yi Zhang
CEO & Executive Director0.58yrno datano data
Yee Hoi Chan
Independent Non-Executive Director0.75yrno datano data
Liguo Cui
Independent Non-Executive Director12.08yrsHK$250.00kno data
Lei Zhang
Independent Non Executive Director12.08yrsHK$250.00kno data
Jie Zhong
Non-Executive Chairman0.58yrno datano data
Ge Wu
Non-Executive Director0.58yrno datano data

0.7yrs

Average Tenure

50yo

Average Age

Experienced Board: 2302's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


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

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$841.369m
  • 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 Analysis2020/12/02 10:22
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
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.