SEHK:267

Stock Analysis Report

Executive Summary

CITIC Limited operates in the financial services, resources and energy, manufacturing, engineering contracting, and real estate businesses in Hong Kong, Mainland China, Macau, and internationally.

Snowflake

Fundamentals

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

267

3.1%

HK Industrials

2.9%

HK Market


1 Year Return

-10.7%

267

-10.7%

HK Industrials

0.7%

HK Market

Return vs Industry: 267 exceeded the Hong Kong Industrials industry which returned -10.7% over the past year.

Return vs Market: 267 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

267IndustryMarket
7 Day1.9%3.1%2.9%
30 Day0.4%-2.0%-2.5%
90 Day-5.6%-6.6%-5.4%
1 Year-6.9%-10.7%-6.7%-10.7%4.4%0.7%
3 Year1.9%-8.3%-4.7%-14.5%17.0%5.2%
5 Year-12.1%-24.6%3.2%-28.8%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 267 (HK$10.14) is trading below our estimate of fair value (HK$17.36)

Significantly Undervalued: 267 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 267 is good value based on its PE Ratio (5.6x) compared to the Industrials industry average (5.6x).

PE vs Market: 267 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 267 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 267 is good value based on its PB Ratio (0.5x) compared to the HK Industrials industry average (0.6x).


Next Steps

Future Growth

How is CITIC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 267's forecast earnings growth (3.7% per year) is above the savings rate (2%).

Earnings vs Market: 267's earnings (3.7% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 267's earnings are forecast to grow, but not significantly.

Revenue vs Market: 267's revenue (0.9% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 267's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 267's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has CITIC performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 267's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: 267's earnings growth over the past year (25.4%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: 267 earnings growth over the past year (25.4%) exceeded the Industrials industry -0.02%.


Return on Equity

High ROE: 267's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: 267's Return on Assets is below or equal to the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: 267's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is CITIC's financial position?


Financial Position Analysis

Short Term Liabilities: 267's short term assets (HK$6,416.9B) exceeds its short term liabilities (HK$3,898.7B)

Long Term Liabilities: 267's short term assets (6,416.9B) exceeds its long term liabilities (3,268.9B)


Debt to Equity History and Analysis

Debt Level: 267's debt to equity ratio (159.6%) is considered high

Reducing Debt: 267's debt to equity ratio has increased from 114.4% to 159.6% over the past 5 years.

Debt Coverage: 267's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: 267's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: 267 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 267's debt is covered by short term assets (assets are 4.793180x debt).


Next Steps

Dividend

What is CITIC's current dividend yield, its reliability and sustainability?

4.34%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.2%markettop25%6.3%industryaverage4.1%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 267's dividend (4.34%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 267's dividend (4.34%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 267's dividend payments have been volatile in the past 10 years.

Growing Dividend: 267's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.1%), 267's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 267's dividends in 3 years are forecast to be well covered by earnings (24.5% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Jiong Wang (59yo)

5.1yrs

Tenure

HK$910,000

Compensation

Mr. Wang Jiong serves as Vice Chairman and President of CITIC Group Corporation and CITIC Corporation Limited. Mr. Jiong has been the Vice Chairman and President of CITIC Limited since September 26, 2014.  ...


CEO Compensation Analysis

Compensation vs. Market: Jiong's total compensation ($USD116.01K) is about average for companies of similar size in the Hong Kong market ($USD791.33K).

Compensation vs Earnings: Jiong's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 267's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

67yo

Average Age

Experienced Board: 267's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jiong Wang (59yo)

    Vice Chairman & President

    • Tenure: 5.1yrs
    • Compensation: HK$910.00k
  • Guoqiang Cao (55yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Chen Holly (52yo)

    Director of Group Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Huaxiang Cai (60yo)

    Executive Officer

    • Tenure: 3.1yrs
  • Ricky Choy (44yo)

    Group General Counsel & Joint Company Secretary

    • Tenure: 8.8yrs
  • Qingping Li (57yo)

    VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$830.00k
  • Huayue Zhu

    General Manager of Sales & Marketing

    • Tenure: 0yrs
  • Lisa Yang

    General Manager of Technical Services

    • Tenure: 0yrs
  • Xiliang Cai (52yo)

    Vice President

    • Tenure: 3.2yrs
  • Jun Cui (54yo)

    Member of Executive Committee

    • Tenure: 0yrs

Board Members

  • Greg Curl (70yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: HK$330.00k
  • Anthony Francis Neoh (73yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$630.00k
  • Zhenming Chang (63yo)

    Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: HK$930.00k
  • Cui Ming Shi (82yo)

    Chairman of CITIC Telecom 1616 Limited

    • Tenure: 0yrs
  • Jiong Wang (59yo)

    Vice Chairman & President

    • Tenure: 5.1yrs
    • Compensation: HK$910.00k
  • Yue Xin (71yo)

    Chairman of CITIC Telecom International Holdings Limited

    • Tenure: 0yrs
  • Jinwu Xu (69yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$630.00k
  • Francis Siu (65yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: HK$760.00k
  • Qingping Li (57yo)

    VP & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$830.00k
  • Zhongyuan Liu (49yo)

    Non-Executive Director

    • Tenure: 5.1yrs

Company Information

CITIC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CITIC Limited
  • Ticker: 267
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$296.721b
  • Shares outstanding: 29.09b
  • Website: https://www.citic.com

Number of Employees


Location

  • CITIC Limited
  • CITIC Tower
  • 32nd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTPC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
267SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CPFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
267SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
267SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
CTPC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2002

Biography

CITIC Limited operates in the financial services, resources and energy, manufacturing, engineering contracting, and real estate businesses in Hong Kong, Mainland China, Macau, and internationally. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:32
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.