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Shanghai Prime Machinery

SEHK:2345
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2345
SEHK
HK$2B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Shanghai Prime Machinery Company Limited, together with its subsidiaries, engages in the design, manufacture, and sale of turbine blades, bearings, fasteners, cutting tools and accessories, and other products in the People’s Republic of China and internationally. The last earnings update was 67 days ago. More info.


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2345 Share Price and Events
7 Day Returns
-2%
SEHK:2345
4.9%
HK Machinery
0.5%
HK Market
1 Year Returns
-23.1%
SEHK:2345
-6.1%
HK Machinery
-15.9%
HK Market
2345 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shanghai Prime Machinery (2345) -2% -4.8% -18.7% -23.1% -10.7% -7.4%
HK Machinery 4.9% 3% -1.6% -6.1% 63.4% 50.3%
HK Market 0.5% -2.7% -9.9% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 2345 underperformed the Machinery industry which returned -6.1% over the past year.
  • 2345 underperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
2345
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Shanghai Prime Machinery's competitors could be found in our database.

Value

 Is Shanghai Prime Machinery undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shanghai Prime Machinery to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shanghai Prime Machinery.

SEHK:2345 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 13.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2345
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 25%) (169.82%))
1.949
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.949 * 5.96%)
13.62%

Discounted Cash Flow Calculation for SEHK:2345 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shanghai Prime Machinery is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2345 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.62%)
2019 211.16 Est @ -12.71% 185.84
2020 193.64 Est @ -8.3% 150.00
2021 183.56 Est @ -5.21% 125.14
2022 177.98 Est @ -3.04% 106.79
2023 175.25 Est @ -1.53% 92.55
2024 174.43 Est @ -0.47% 81.07
2025 174.91 Est @ 0.27% 71.55
2026 176.29 Est @ 0.79% 63.47
2027 178.33 Est @ 1.15% 56.51
2028 180.84 Est @ 1.41% 50.43
Present value of next 10 years cash flows CN¥983.37
SEHK:2345 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥180.84 × (1 + 2%) ÷ (13.62% – 2%)
CN¥1,587.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,587.81 ÷ (1 + 13.62%)10
CN¥442.83
SEHK:2345 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥983.37 + CN¥442.83
CN¥1,426.20
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,426.20 / 1,725.92
CN¥0.83
SEHK:2345 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2345)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.83 x 1.13
HK$0.93
Value per share (HKD) From above. HK$0.93
Current discount Discount to share price of HK$1.00
= -1 x (HK$1.00 - HK$0.93) / HK$0.93
-7.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Shanghai Prime Machinery is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shanghai Prime Machinery's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shanghai Prime Machinery's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2345 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.20
SEHK:2345 Share Price ** SEHK (2019-06-14) in HKD HK$1
SEHK:2345 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥0.88
Hong Kong Machinery Industry PE Ratio Median Figure of 33 Publicly-Listed Machinery Companies 9.02x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shanghai Prime Machinery.

SEHK:2345 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2345 Share Price ÷ EPS (both in CNY)

= 0.88 ÷ 0.20

4.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Prime Machinery is good value based on earnings compared to the HK Machinery industry average.
  • Shanghai Prime Machinery is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Shanghai Prime Machinery's expected growth come at a high price?
Raw Data
SEHK:2345 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
11.2%per year
Hong Kong Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 0.76x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Shanghai Prime Machinery, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Shanghai Prime Machinery's assets?
Raw Data
SEHK:2345 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥2.38
SEHK:2345 Share Price * SEHK (2019-06-14) in HKD HK$1
SEHK:2345 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥0.88
Hong Kong Machinery Industry PB Ratio Median Figure of 47 Publicly-Listed Machinery Companies 0.9x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:2345 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2345 Share Price ÷ Book Value per Share (both in CNY)

= 0.88 ÷ 2.38

0.37x

* Primary Listing of Shanghai Prime Machinery.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Prime Machinery is good value based on assets compared to the HK Machinery industry average.
X
Value checks
We assess Shanghai Prime Machinery's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Shanghai Prime Machinery has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Shanghai Prime Machinery expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Shanghai Prime Machinery, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shanghai Prime Machinery expected to grow at an attractive rate?
  • Shanghai Prime Machinery's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Shanghai Prime Machinery's earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare Shanghai Prime Machinery's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:2345 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2345 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 11.2%
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 12.8%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.1%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2345 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2345 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 9,028 507 280
2018-09-30 8,966 536 281
2018-06-30 8,903 565 281
2018-03-31 8,691 581 267
2017-12-31 8,479 597 253
2017-09-30 8,283 573 251
2017-06-30 8,088 550 249
2017-03-31 7,866 569 226
2016-12-31 7,645 587 203
2016-09-30 7,504 542 201
2016-06-30 7,363 497 198
2016-03-31 7,245 424 193

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shanghai Prime Machinery's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Shanghai Prime Machinery is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2345 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Shanghai Prime Machinery Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2345 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.20
2018-09-30 0.16
2018-06-30 0.20
2018-03-31 0.19
2017-12-31 0.18
2017-09-30 0.17
2017-06-30 0.18
2017-03-31 0.16
2016-12-31 0.14
2016-09-30 0.14
2016-06-30 0.14
2016-03-31 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Shanghai Prime Machinery will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Shanghai Prime Machinery's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shanghai Prime Machinery has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Shanghai Prime Machinery performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shanghai Prime Machinery's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shanghai Prime Machinery has delivered over 20% year on year earnings growth in the past 5 years.
  • Shanghai Prime Machinery's 1-year earnings growth is less than its 5-year average (10.7% vs 26.1%)
  • Shanghai Prime Machinery's earnings growth has not exceeded the HK Machinery industry average in the past year (10.7% vs 17.4%).
Earnings and Revenue History
Shanghai Prime Machinery's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shanghai Prime Machinery Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2345 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 9,027.54 280.44 1,143.75 335.35
2018-09-30 8,965.52 280.64 1,122.44 333.86
2018-06-30 8,903.50 280.84 1,088.57 332.37
2018-03-31 8,691.20 267.13 1,061.82 327.20
2017-12-31 8,478.90 253.42 1,047.65 322.03
2017-09-30 8,283.44 251.41 1,022.19 315.37
2017-06-30 8,087.98 249.40 996.73 308.71
2017-03-31 7,866.46 226.40 996.03 300.77
2016-12-31 7,644.93 203.40 995.33 292.82
2016-09-30 7,503.97 200.53 982.88 283.76
2016-06-30 7,363.02 197.65 970.42 274.70
2016-03-31 7,244.89 193.14 951.82 269.83
2015-12-31 7,126.76 188.62 933.21 264.96
2015-09-30 6,897.51 168.92 933.33 231.69
2015-06-30 6,668.25 149.23 933.44 198.41
2015-03-31 5,666.46 121.14 821.84 154.99
2014-12-31 4,664.68 93.06 710.23 111.57
2014-09-30 3,989.26 80.05 583.37 79.31
2014-06-30 3,313.84 67.04 456.52 47.06
2014-03-31 3,356.08 67.01 461.05 23.53
2013-12-31 3,398.31 66.99 465.59
2013-09-30 3,441.53 68.52 475.01
2013-06-30 3,484.75 70.05 484.44
2013-03-31 3,606.63 84.72 482.18
2012-12-31 3,728.52 99.40 479.91
2012-09-30 3,588.13 127.54 460.10
2012-06-30 3,716.01 158.50 459.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Shanghai Prime Machinery has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shanghai Prime Machinery used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.
  • Shanghai Prime Machinery has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Shanghai Prime Machinery's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shanghai Prime Machinery has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Shanghai Prime Machinery's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shanghai Prime Machinery's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shanghai Prime Machinery is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shanghai Prime Machinery's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shanghai Prime Machinery's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shanghai Prime Machinery Company Filings, last reported 5 months ago.

SEHK:2345 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,156.88 2,593.41 1,635.46
2018-09-30 4,156.88 2,593.41 1,635.46
2018-06-30 3,813.68 2,762.31 846.35
2018-03-31 3,813.68 2,762.31 846.35
2017-12-31 3,563.03 2,765.47 814.58
2017-09-30 3,563.03 2,765.47 814.58
2017-06-30 3,468.91 3,062.70 1,102.28
2017-03-31 3,468.91 3,062.70 1,102.28
2016-12-31 3,346.49 3,049.70 1,131.76
2016-09-30 3,346.49 3,049.70 1,131.76
2016-06-30 3,254.60 3,072.57 938.78
2016-03-31 3,254.60 3,072.57 938.78
2015-12-31 3,197.83 3,031.82 918.42
2015-09-30 3,197.83 3,031.82 918.42
2015-06-30 3,154.02 3,101.73 948.56
2015-03-31 3,154.02 3,101.73 948.56
2014-12-31 3,248.25 3,183.59 1,037.70
2014-09-30 3,248.25 3,183.59 1,037.70
2014-06-30 3,358.69 601.42 746.54
2014-03-31 3,358.69 601.42 746.54
2013-12-31 3,257.08 652.96 893.14
2013-09-30 3,257.08 652.96 893.14
2013-06-30 3,237.00 937.20 1,107.35
2013-03-31 3,237.00 937.20 1,107.35
2012-12-31 3,311.65 903.62 1,288.40
2012-09-30 3,226.68 903.62 1,199.56
2012-06-30 3,183.60 677.23 820.42
  • Shanghai Prime Machinery's level of debt (62.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (20% vs 62.4% today).
  • Debt is not well covered by operating cash flow (19.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).
X
Financial health checks
We assess Shanghai Prime Machinery's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shanghai Prime Machinery has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Shanghai Prime Machinery's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.63%
Current annual income from Shanghai Prime Machinery dividends.
If you bought HK$2,000 of Shanghai Prime Machinery shares you are expected to receive HK$93 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Shanghai Prime Machinery's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Shanghai Prime Machinery's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Upcoming dividend payment

Purchase Shanghai Prime Machinery before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2345 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 4.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2345 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-15 0.041 4.293
2018-08-31 0.000 0.000
2018-08-17 0.000 0.000
2018-04-19 0.000 0.000
2018-03-16 0.000 0.000
2017-06-23 0.032 2.517
2017-04-06 0.035 2.663
2017-03-20 0.035 2.461
2016-05-30 0.032 2.735
2016-04-11 0.032 3.213
2016-03-21 0.032 3.308
2015-04-15 0.014 1.206
2015-03-23 0.014 1.038
2014-03-28 0.012 1.110
2014-03-07 0.012 1.137
2013-06-14 0.022 2.938
2012-03-16 0.038 4.384
2011-06-17 0.032 2.946
2010-03-19 0.028 1.991

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Prime Machinery has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Shanghai Prime Machinery only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Shanghai Prime Machinery's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Shanghai Prime Machinery's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shanghai Prime Machinery afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shanghai Prime Machinery has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Shanghai Prime Machinery's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jianhui Gou
AGE 55
TENURE AS CEO 0.8 years
CEO Bio

Mr. Gou Jianhui has been Chief Executive Officer and Executive Director at Shanghai Prime Machinery Company Limited since September 25, 2018 and June 14, 2019 respectively. Mr. Jianhui Gou serves as the President, Managing Director and Vice General Manager of Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd. He has extensive experience in managing and growing multi-national industrial enterprises that are leading suppliers of important parts and components for industries such as automotive, railway and energy. Mr. Gou has been the managing director of Knorr-Bremse in China from 2017. Mr. Gou served as an Executive Director of China High Speed Transmission Equipment Group Co., Ltd. since June 27, 2015 until January 16, 2018. He served as Vice General Manager of NGC at China High Speed Transmission Equipment Group Co., Ltd. until May 30, 2017. Mr. Gou joined the China High Speed Transmission Equipment Group in May 2013. He held various positions at Harbin Institute of Technology, including a Teacher of School of Mechatronics Engineering, the Person-in-charge of Germany FAG China Project, Person-in-change of FAG China Limited Company (FAG) as well as the Chief Representative of its Beijing Representative Office, the Managing Director of FAG China Limited Company and the General Manager of INA China Company (INA) the Managing Director and President of Industrial Division of Schaeffler Greater China. He has received the honorary title of one of Most Influential Leaders in automation, logistics, driver fields of China and awarded one of Asian Brand Management Luminaries. Mr. Gou obtained a bachelor’s and a master’s degree in mechanical engineering from the Harbin Institute of Technology in China in 1982 and 1986, respectively. He also obtained a doctoral degree in engineering from the Technische Universität Braunschweig in Germany in 1997.

CEO Compensation
  • Insufficient data for Jianhui to compare compensation growth.
  • Insufficient data for Jianhui to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Shanghai Prime Machinery management team in years:

2.8
Average Tenure
54
Average Age
  • The tenure for the Shanghai Prime Machinery management team is about average.
Management Team

Zhiyan Zhou

TITLE
Chairman
COMPENSATION
CN¥2M
AGE
54
TENURE
6.4 yrs

Yuman Xiao

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
46

Mingjie Zhang

TITLE
Executive Director
AGE
55

Jianhui Gou

TITLE
CEO & Executive Director
AGE
55
TENURE
0.8 yrs

Alexander Ng

TITLE
CFO & Company Secretary
AGE
40
TENURE
2.8 yrs

Wenpei Si

TITLE
Executive Director
AGE
54
Board of Directors Tenure

Average tenure and age of the Shanghai Prime Machinery board of directors in years:

3.1
Average Tenure
54.5
Average Age
  • The tenure for the Shanghai Prime Machinery board of directors is about average.
Board of Directors

Zhiyan Zhou

TITLE
Chairman
COMPENSATION
CN¥2M
AGE
54
TENURE
3.7 yrs

Yuman Xiao

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
46
TENURE
2.5 yrs

Mingjie Zhang

TITLE
Executive Director
AGE
55
TENURE
1 yrs

Jianhui Gou

TITLE
CEO & Executive Director
AGE
55

Wenpei Si

TITLE
Executive Director
AGE
54

Hong Ling

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
58
TENURE
9.1 yrs

Oi Fat Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥151K
AGE
40
TENURE
5 yrs

Yan Zhang

TITLE
Chairman of Supervisors
AGE
43

Yeshun Dong

TITLE
Non-Executive Director
COMPENSATION
CN¥150K
AGE
57
TENURE
3.1 yrs

Zechang Sun

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
65
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
05. Feb 19 Buy Shanghai Electric (Group) Corporation Company 10. Dec 18 10. Dec 18 139,165,600 HK$1.30 HK$180,915,246
27. Aug 18 Sell Hui Chen Individual 21. Aug 18 21. Aug 18 -9,129 HK$1.21 HK$-11,046
27. Aug 18 Sell Zhiyan Zhou Individual 21. Aug 18 21. Aug 18 -16,301 HK$1.21 HK$-19,724
27. Aug 18 Sell Hui Chen Individual 20. Aug 18 20. Aug 18 -12,922 HK$1.18 HK$-15,248
27. Aug 18 Sell Zhiyan Zhou Individual 20. Aug 18 20. Aug 18 -23,078 HK$1.18 HK$-27,232
27. Aug 18 Sell Hui Chen Individual 10. Jul 18 10. Jul 18 -4,468 HK$1.21 HK$-5,406
27. Aug 18 Sell Zhiyan Zhou Individual 10. Jul 18 10. Jul 18 -7,979 HK$1.21 HK$-9,655
27. Aug 18 Sell Hui Chen Individual 17. Jul 18 17. Jul 18 -25,826 HK$1.17 HK$-30,216
27. Aug 18 Sell Zhiyan Zhou Individual 17. Jul 18 17. Jul 18 -46,123 HK$1.17 HK$-53,964
27. Aug 18 Sell Hui Chen Individual 16. Jul 18 16. Jul 18 -42,448 HK$1.18 HK$-50,089
27. Aug 18 Sell Zhiyan Zhou Individual 16. Jul 18 16. Jul 18 -75,808 HK$1.18 HK$-89,453
27. Aug 18 Sell Hui Chen Individual 13. Jul 18 13. Jul 18 -15,281 HK$1.22 HK$-18,643
27. Aug 18 Sell Zhiyan Zhou Individual 13. Jul 18 13. Jul 18 -27,290 HK$1.22 HK$-33,294
27. Aug 18 Sell Hui Chen Individual 12. Jul 18 12. Jul 18 -11,707 HK$1.21 HK$-14,165
27. Aug 18 Sell Zhiyan Zhou Individual 12. Jul 18 12. Jul 18 -20,906 HK$1.21 HK$-25,296
27. Aug 18 Sell Hui Chen Individual 11. Jul 18 11. Jul 18 -9,919 HK$1.18 HK$-11,704
27. Aug 18 Sell Zhiyan Zhou Individual 11. Jul 18 11. Jul 18 -17,715 HK$1.18 HK$-20,904
X
Management checks
We assess Shanghai Prime Machinery's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shanghai Prime Machinery has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Shanghai Prime Machinery Company Limited (HKG:2345): What Are Investors Earning On Their Capital?

and want to begin learning the link between Shanghai Prime Machinery Company Limited (HKG:2345)’s return fundamentals and stock market performance. … Thus, to understand how your money can grow by investing in Shanghai Prime Machinery, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Check out our latest analysis for Shanghai Prime Machinery

Simply Wall St -

What You Must Know About Shanghai Prime Machinery Company Limited's (HKG:2345) Financial Strength

While small-cap stocks, such as Shanghai Prime Machinery Company Limited (HKG:2345) with its market cap of CN¥1.73b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Shanghai Prime Machinery Company Limited (HKG:2345): The Return Story

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Shanghai Prime Machinery is able to use capital to create earnings will help us understand your potential return. … Shanghai Prime Machinery's Return On Capital Employed

Simply Wall St -

What You Must Know About Shanghai Prime Machinery Company Limited's (HKG:2345) Financial Strength

Investors are always looking for growth in small-cap stocks like Shanghai Prime Machinery Company Limited (HKG:2345), with a market cap of HK$1.87b. … However, an important fact which most ignore is: how financially healthy is the business? … since poor capital management may bring about bankruptcies,

Simply Wall St -

With 24.59% Earnings Growth, Did Shanghai Prime Machinery Company Limited (HKG:2345) Outperform The Industry?

In this article, I will take a look at Shanghai Prime Machinery Company Limited's (SEHK:2345) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Let's take a look at if it is only a result of industry tailwinds, or if Shanghai Prime Machinery has experienced some company-specific growth. … This means in the recent industry expansion, Shanghai Prime Machinery is capable of amplifying this to its advantage.What does this mean?

Simply Wall St -

Is Shanghai Prime Machinery Company Limited (HKG:2345) A Financially Sound Company?

Moreover, 2345 has generated cash from operations of CN¥596.79M during the same period of time, leading to an operating cash to total debt ratio of 21.58%, indicating that 2345’s operating cash is sufficient to cover its debt. … For 2345, the ratio of 2.96x suggests that interest is not strongly covered, which means that debtors may be less inclined to loan the company more money, reducing its headroom for growth through debt.Next Steps: 2345’s debt and cash flow levels indicate room for improvement. … Its cash flow coverage of less than a quarter of debt means that operating efficiency could be an issue.

Simply Wall St -

Is It Time To Buy Shanghai Prime Machinery Company Limited (HKG:2345) Based Off Its PE Ratio?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 2345 Price per share = CN¥1.16 Earnings per share = CN¥0.18 ∴ Price-Earnings Ratio = CN¥1.16 ÷ CN¥0.18 = 6.4x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with 2345, then 2345’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Does Shanghai Prime Machinery Company Limited (HKG:2345) Fall With The Market?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Based on this beta value, 2345 appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … Depending on the composition of your portfolio, low-beta stocks such as 2345 is valuable to lower your risk of market exposure, in particular, during times of economic decline.

Simply Wall St -

Why Shanghai Prime Machinery Company Limited's (HKG:2345) Investor Composition Impacts Your Returns

In this analysis, my focus will be on developing a perspective on Shanghai Prime Machinery Company Limited’s (SEHK:2345) latest ownership structure, a less discussed, but important factor. … Private Company Ownership Another important group of owners for potential investors in 2345 are private companies that hold a stake of 51.62% in 2345. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: Institutional ownership level and composition in 2345 is not high nor active enough to significantly impact its investment thesis.

Simply Wall St -

Why Shanghai Prime Machinery Company Limited (HKG:2345) May Not Be As Efficient As Its Industry

See our latest analysis for Shanghai Prime Machinery Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Shanghai Prime Machinery’s cost of equity is 18.12%. … Since Shanghai Prime Machinery’s return does not cover its cost, with a difference of -10.72%, this means its current use of equity is not efficient and not sustainable.

Simply Wall St -

Company Info

Description

Shanghai Prime Machinery Company Limited, together with its subsidiaries, engages in the design, manufacture, and sale of turbine blades, bearings, fasteners, cutting tools and accessories, and other products in the People’s Republic of China and internationally. The company also manufactures and sells bolts, machines, and other ancillary appliances; trades in fasteners; and offers research and development, and quality testing services for fasteners and related equipment, as well as financing services. It serves automotive, aerospace, energy, and railway industries, as well as in various industrial application and service markets. The company was founded in 2005 and is headquartered in Shanghai, the People’s Republic of China. Shanghai Prime Machinery Company Limited is a subsidiary of Shanghai Electric Group Company Limited.

Details
Name: Shanghai Prime Machinery Company Limited
2345
Exchange: SEHK
Founded: 2005
HK$1,725,916,420
1,725,916,420
Website: http://www.pmcsh.com
Address: Shanghai Prime Machinery Company Limited
2747 Songhuajiang Road,
Hongkou District,
Shanghai,
200437,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2345 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 27. Apr 2006
DB R4P Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 27. Apr 2006
Number of employees
Current staff
Staff numbers
4,539
Shanghai Prime Machinery employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 12:45
End of day share price update: 2019/06/14 00:00
Last earnings filing: 2019/04/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.