SEHK:2357

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AviChina Industry & Technology

Executive Summary

AviChina Industry & Technology Company Limited engages in the research, development, manufacture, and sale of civil aviation products and related engineering services in the People’s Republic of China and internationally.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has AviChina Industry & Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2357's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.6%

2357

-1.8%

HK Aerospace & Defense

0.5%

HK Market


1 Year Return

31.8%

2357

44.8%

HK Aerospace & Defense

6.6%

HK Market

Return vs Industry: 2357 underperformed the Hong Kong Aerospace & Defense industry which returned 44.8% over the past year.

Return vs Market: 2357 exceeded the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

2357IndustryMarket
7 Day-0.6%-1.8%0.5%
30 Day14.5%15.3%-0.8%
90 Day69.6%43.7%9.4%
1 Year33.1%31.8%46.5%44.8%11.0%6.6%
3 Year15.1%12.2%18.6%15.8%3.2%-7.8%
5 Year-4.7%-7.9%0.9%-2.5%22.5%1.9%

Price Volatility Vs. Market

How volatile is AviChina Industry & Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AviChina Industry & Technology undervalued compared to its fair value and its price relative to the market?

20.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2357 (HK$5.14) is trading above our estimate of fair value (HK$1.06)

Significantly Below Fair Value: 2357 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2357 is good value based on its PE Ratio (20.9x) compared to the XA Aerospace & Defense industry average (42.8x).

PE vs Market: 2357 is poor value based on its PE Ratio (20.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2357 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 2357 is good value based on its PB Ratio (1.6x) compared to the XA Aerospace & Defense industry average (3.1x).


Next Steps

Future Growth

How is AviChina Industry & Technology forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2357's forecast earnings growth (12% per year) is above the savings rate (1.6%).

Earnings vs Market: 2357's earnings (12% per year) are forecast to grow slower than the Hong Kong market (18.7% per year).

High Growth Earnings: 2357's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2357's revenue (10.1% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Revenue: 2357's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2357's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has AviChina Industry & Technology performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2357 has high quality earnings.

Growing Profit Margin: 2357's current net profit margins (3.3%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 2357's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: 2357's earnings growth over the past year (7.1%) is below its 5-year average (8.3% per year).

Earnings vs Industry: 2357 earnings growth over the past year (7.1%) underperformed the Aerospace & Defense industry 11.9%.


Return on Equity

High ROE: 2357's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is AviChina Industry & Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 2357's short term assets (CN¥69.9B) exceed its short term liabilities (CN¥45.8B).

Long Term Liabilities: 2357's short term assets (CN¥69.9B) exceed its long term liabilities (CN¥6.3B).


Debt to Equity History and Analysis

Debt Level: 2357's debt to equity ratio (28.1%) is considered satisfactory.

Reducing Debt: 2357's debt to equity ratio has reduced from 31.9% to 28.1% over the past 5 years.

Debt Coverage: 2357's debt is well covered by operating cash flow (24.6%).

Interest Coverage: 2357's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is AviChina Industry & Technology current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2357's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 2357's dividend (0.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.76%).


Stability and Growth of Payments

Stable Dividend: 2357 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2357 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2357 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 2357'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?

2.5yrs

Average management tenure


CEO

Yuanxian Chen (60 yo)

2.42yrs

Tenure

Mr. Yuan Xian Chen has been the President at AviChina Industry & Technology Company Ltd since March 25, 2014 and its General Manager since March 2018, Chairman since March 20, 2019 and Executive Director s ...


CEO Compensation Analysis

Compensation vs Market: Yuanxian's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD526.37K).

Compensation vs Earnings: Insufficient data to compare Yuanxian's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yuanxian Chen
Chairman2.42yrsno data0.0041%
CN¥ 1.3m
Wang Xuejun
GM & Executive Director2.17yrsCN¥454.00kno data
Guofei Tao
Deputy GM & CFO2.33yrsno datano data
Shiming Shi
Head of Finance & Planning Department and Supervisor2.17yrsno data0.00058%
CN¥ 185.2k
Liwei Gan
Board Secretary5.42yrsno datano data
Bin Xu
Company Secretary4yrsno datano data

2.5yrs

Average Tenure

55yo

Average Age

Experienced Management: 2357's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yuanxian Chen
Chairman2.42yrsno data0.0041%
CN¥ 1.3m
Wang Xuejun
GM & Executive Director2.17yrsCN¥454.00kno data
Shiming Shi
Head of Finance & Planning Department and Supervisor2.17yrsno data0.00058%
CN¥ 185.2k
Lingxi Yan
Non-Executive Director1.25yrsCN¥363.00k0.0043%
CN¥ 1.4m
Qiang Zheng
Chairman of Supervisory Committee3.83yrsno data0.0050%
CN¥ 1.6m
Renhuai Liu
Independent Non-Executive Director6.17yrsCN¥190.00kno data
Weiwu Liu
Independent Non-Executive Director2.17yrsCN¥80.00kno data
Guangxin Guo
Supervisor2.17yrsno datano data
Wang Jianxin
Independent Non-Executive Director2.17yrsCN¥105.00kno data
Dawei Lian
Non-Executive Director1.25yrsCN¥1.26mno data
Gang Xu
Non-Executive Director1.25yrsno datano data

2.2yrs

Average Tenure

50yo

Average Age

Experienced Board: 2357's board of directors are not considered experienced ( 2.2 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

AviChina Industry & Technology Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AviChina Industry & Technology Company Limited
  • Ticker: 2357
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: HK$31.923b
  • Shares outstanding: 6.21b
  • Website: https://www.avichina.com

Number of Employees


Location

  • AviChina Industry & Technology Company Limited
  • No. 14 Xiaoguandongli
  • 6th Floor, Tower A
  • Beijing
  • Beijing Province
  • 100029
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2357SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2003
AVIJ.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2003
AVTDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2003
2357SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2003
2357SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2003

Biography

AviChina Industry & Technology Company Limited engages in the research, development, manufacture, and sale of civil aviation products and related engineering services in the People’s Republic of China and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 08:00
End of Day Share Price2020/08/13 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.