SEHK:2357

Stock Analysis Report

AviChina Industry & Technology

Executive Summary

AviChina Industry & Technology Company Limited, through its subsidiaries, 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

Fundamentals

Adequate balance sheet with moderate growth potential.

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


Market Performance


7 Day Return

0.5%

SEHK:2357

-3.6%

HK Aerospace & Defense

0.6%

HK Market


1 Year Return

-7.4%

SEHK:2357

-13.8%

HK Aerospace & Defense

-5.9%

HK Market

2357 underperformed the Aerospace & Defense industry which returned 3.3% over the past year.

2357 underperformed the Market in Hong Kong which returned -5.9% over the past year.


Share holder returns

2357IndustryMarket
7 Day0.5%-3.6%0.6%
30 Day0%-1.5%3.7%
90 Day-7.6%-10.8%-8.2%
1 Year-6.7%-7.4%-13.3%-13.8%-2.6%-5.9%
3 Year-19.8%-21.4%-42.9%-43.6%30.0%17.2%
5 Year1.6%-1.1%-36.2%-37.2%25.9%4.8%

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 based on future cash flows and its price relative to the stock market?

17.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

AviChina Industry & Technology's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

AviChina Industry & Technology's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

AviChina Industry & Technology is overvalued based on earnings compared to the Asia Aerospace & Defense industry average.

AviChina Industry & Technology is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

AviChina Industry & Technology is poor value based on expected growth next year.


Price Based on Value of Assets

AviChina Industry & Technology is good value based on assets compared to the Asia Aerospace & Defense industry average.


Next Steps

Future Growth

How is AviChina Industry & Technology expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AviChina Industry & Technology's revenue is expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

AviChina Industry & Technology's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).

AviChina Industry & Technology's revenue growth is expected to exceed the Hong Kong market average.

AviChina Industry & Technology's earnings growth is expected to exceed the Hong Kong market average.

AviChina Industry & Technology's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

AviChina Industry & Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AviChina Industry & Technology's year on year earnings growth rate has been positive over the past 5 years.

AviChina Industry & Technology's 1-year earnings growth is less than its 5-year average (5.4% vs 12.4%)

AviChina Industry & Technology's earnings growth has not exceeded the Asia Aerospace & Defense industry average in the past year (5.4% vs 17.9%).


Return on Equity

AviChina Industry & Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AviChina Industry & Technology used its assets less efficiently than the Asia Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

AviChina Industry & Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AviChina Industry & Technology's financial position?


Financial Position Analysis

AviChina Industry & Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AviChina Industry & Technology's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AviChina Industry & Technology's level of debt (39.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (28.1% vs 39.4% today).

Debt is not well covered by operating cash flow (3.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.7x debt.


Next Steps

Dividend

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

1.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AviChina Industry & Technology's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

AviChina Industry & Technology's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).

AviChina Industry & Technology is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

AviChina Industry & Technology is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of AviChina Industry & Technology's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

No need to calculate the sustainability of AviChina Industry & Technology's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


Next Steps

Management

What is the CEO of AviChina Industry & Technology's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Yuanxian Chen (59yo)

1.3yrs

Tenure

CN¥658,000

Compensation

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

Yuanxian's remuneration is lower than average for companies of similar size in Hong Kong.

Yuanxian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

54yo

Average Age

The average tenure for the AviChina Industry & Technology management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.1yrs

Average Tenure

52yo

Average Age

The average tenure for the AviChina Industry & Technology board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Yuanxian Chen (59yo)

    Chairman

    • Tenure: 1.3yrs
    • Compensation: CN¥658.00k
  • Guofei Tao (55yo)

    Deputy GM & CFO

    • Tenure: 1.3yrs
  • Liwei Gan (54yo)

    Board Secretary

    • Tenure: 4.3yrs
  • Bin Xu

    Company Secretary

    • Tenure: 2.9yrs
  • Shiming Shi (39yo)

    Head of Finance & Planning Department and Supervisor

    • Tenure: 1.5yrs
  • Wang Xuejun (46yo)

    GM & Executive Director

    • Tenure: 0.3yrs

Board Members

  • Renhuai Liu (78yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥190.00k
  • Lingxi Yan (49yo)

    Non-Executive Director

    • Tenure: 0.2yrs
  • Wang Jianxin (45yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥105.00k
  • Weiwu Liu (55yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥80.00k
  • Gang Xu (47yo)

    Non-Executive Director

    • Tenure: 0.2yrs
  • Wang Xuejun (46yo)

    GM & Executive Director

    • Tenure: 1.1yrs
  • Dawei Lian (56yo)

    Non-Executive Director

    • Tenure: 0.2yrs
  • Shiming Shi (39yo)

    Head of Finance & Planning Department and Supervisor

    • Tenure: 1.1yrs
  • Qiang Zheng (55yo)

    Chairman of Supervisory Committee

    • Tenure: 2.8yrs
  • Yuanxian Chen (59yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: CN¥658.00k

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$26.854b
  • Shares outstanding: 6.25b
  • Website: Click here

Number of Employees


Location

  • AviChina Industry & Technology Company Limited
  • Tower 2
  • 8th Floor
  • Beijing
  • 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, through its subsidiaries, engages in the research, development, manufacture, and sale of civil aviation products and related engineering services in the Peop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/16 12:35
End of Day Share Price2019/07/16 00:00
Earnings2018/12/31
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.