SEHK:2355

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Baoye Group Company Limited, together with its subsidiaries, provides construction services in the People’s Republic of China.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Baoye Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2355's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

2355

4.9%

HK Construction

4.1%

HK Market


1 Year Return

16.7%

2355

-25.0%

HK Construction

-4.7%

HK Market

Return vs Industry: 2355 exceeded the Hong Kong Construction industry which returned -25% over the past year.

Return vs Market: 2355 exceeded the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

2355IndustryMarket
7 Day0.2%4.9%4.1%
30 Day-2.5%-0.4%4.2%
90 Day49.3%-3.9%11.7%
1 Year16.7%16.7%-21.5%-25.0%-1.2%-4.7%
3 Year10.5%10.5%-35.0%-42.8%7.7%-3.5%
5 Year29.0%26.0%-36.4%-46.8%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Baoye Group undervalued compared to its fair value and its price relative to the market?

3.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2355's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2355's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2355 is good value based on its PE Ratio (3.8x) compared to the Construction industry average (8.4x).

PE vs Market: 2355 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2355's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2355 is good value based on its PB Ratio (0.4x) compared to the HK Construction industry average (0.9x).


Next Steps

Future Growth

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

10.1%

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 Baoye Group 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 Baoye Group performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2355 has high quality earnings.

Growing Profit Margin: 2355's current net profit margins (3.5%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 2355's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: 2355's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2355 had negative earnings growth (-2%) over the past year, making it difficult to compare to the Construction industry average (-8.9%).


Return on Equity

High ROE: 2355's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Baoye Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2355's short term assets (CN¥28.9B) exceed its short term liabilities (CN¥23.1B).

Long Term Liabilities: 2355's short term assets (CN¥28.9B) exceed its long term liabilities (CN¥2.1B).


Debt to Equity History and Analysis

Debt Level: 2355's debt to equity ratio (58.7%) is considered high.

Reducing Debt: 2355's debt to equity ratio has increased from 20.5% to 58.7% over the past 5 years.

Debt Coverage: 2355's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: 2355 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Baoye Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2355's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2355'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 2355's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2355's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2355 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 2355'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?

9.1yrs

Average board tenure


CEO

Baogen Pang (63yo)

18.5yrs

Tenure

CN¥1,500,000

Compensation

Mr. Baogen Pang is the Founder of Baoye Group Company Limited and serves as its Executive Chairman and Chief Executive Officer. Mr. Pang is responsible for formulating the overall strategy and development  ...


CEO Compensation Analysis

Compensation vs Market: Baogen's total compensation ($USD212.27K) is below average for companies of similar size in the Hong Kong market ($USD341.22K).

Compensation vs Earnings: Baogen's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Baogen Pang
Founder18.5yrsCN¥1.50m34.43% CN¥1.2b
Lin Gao
Executive Director17.92yrsCN¥1.12m1.7% CN¥60.1m
Jun Gao
Executive Director9.08yrsCN¥912.00k1.03% CN¥36.5m
Jixiang Jin
Executive Director9.08yrsCN¥911.00k0.43% CN¥15.4m
Jiming Gao
Executive Director17.92yrsCN¥911.00k2.14% CN¥76.0m
Rongbiao Wang
Chairman & GM - Zhejiang Baoye Building Materials Industrialisation Co. Ltdno datano data0.47% CN¥16.6m
Ching Fung
Non-Executive Director9.08yrsCN¥216.00kno data
Yin Ming Chan
Independent Non-Executive Directorno dataCN¥216.00kno data
Xiangquan Kong
Chairman of Supervisory Committeeno dataCN¥584.00kno data
Wangrong Li
Independent Non-Executive Director5.92yrsCN¥50.00kno data

9.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 2355's board of directors are considered experienced (9.1 years average tenure).


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

Baoye Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Baoye Group Company Limited
  • Ticker: 2355
  • Exchange: SEHK
  • Founded: 1974
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$3.545b
  • Shares outstanding: 562.66m
  • Website: https://www.baoyegroup.com

Number of Employees


Location

  • Baoye Group Company Limited
  • No.1687 Guazhu East Road
  • Keqiao District
  • Shaoxing
  • Zhejiang Province
  • 312030
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2355SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2003
BKGDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2003

Biography

Baoye Group Company Limited, together with its subsidiaries, provides construction services in the People’s Republic of China. It operates through three segments: Construction, Property Development, and Building Materials. The Construction segment constructs government and public buildings, and urban facilities and infrastructure, as well as commercial, residential, and industrial buildings. This segment also engages in the installation of electrical and electronic products, fireproof facilities, and curtain walls. The Property Development segment develops and sells properties in Shaoxing, Wuhan, Shanghai, Bengbu, Sixian, Taihe, Mengcheng, Jieshou, Kaifeng, Lishui, Lu’an, and Zhengzhou. The Building Materials segment offers curtain walls, ready-mixed concrete, furnishings and interior decorations, wooden products and fireproof materials, PC assembly plates, and other products. The company also provides decoration and replenishment, architectural and interior design, and other services; manufactures and installs steel frameworks; produces and sells machinery and fittings, and concrete prefabricated parts; and constructs highways, bridges, and other municipal infrastructure. Baoye Group Company Limited was founded in 1974 and is headquartered in Shaoxing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:41
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
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.