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 Analysis

Very undervalued with proven track record and pays a dividend.


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

Stable Share Price: 267 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

267

-4.0%

HK Industrials

-3.3%

HK Market


1 Year Return

-26.1%

267

-22.3%

HK Industrials

-9.6%

HK Market

Return vs Industry: 267 underperformed the Hong Kong Industrials industry which returned -22.5% over the past year.

Return vs Market: 267 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

267IndustryMarket
7 Day-5.6%-4.0%-3.3%
30 Day-7.8%-8.1%-3.8%
90 Day-11.8%-7.2%-0.2%
1 Year-22.9%-26.1%-18.8%-22.3%-6.3%-9.6%
3 Year-11.3%-20.2%-12.9%-21.9%11.2%-0.05%
5 Year-23.0%-33.9%-13.3%-41.2%12.7%-6.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 267 (HK$8.91) is trading below our estimate of fair value (HK$18.85)

Significantly Below Fair Value: 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 (4.9x) compared to the Industrials industry average (6.1x).

PE vs Market: 267 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 267 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 267 is good value based on its PB Ratio (0.4x) 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?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 267's forecast earnings growth (6.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 267's earnings (6.3% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 267's revenue (1.4% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 267's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 267's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has CITIC performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 267 has high quality earnings.

Growing Profit Margin: 267's current net profit margins (7.4%) are higher than last year (6.4%).


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 5.7%.


Return on Equity

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


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) exceed its short term liabilities (HK$3,898.7B).

Long Term Liabilities: 267's short term assets (HK$6,416.9B) exceed its long term liabilities (HK$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 4.8x debt).


Next Steps

Dividend

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

4.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 267's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 267's dividend (4.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

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 (24.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Jiong Wang (59yo)

5.4yrs

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 ($USD116.80K) is below average for companies of similar size in the Hong Kong market ($USD1.11M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jiong Wang
Vice Chairman & President5.4yrsHK$910.00kno data
Qingping Li
VP & Executive Director4.2yrsHK$830.00kno data
Guoqiang Cao
Chief Financial Officer0yrsno datano data
Lisa Yang
General Manager of Technical Services0yrsno datano data
Chen Holly
Director of Group Investor Relations & Corporate Communications0yrsno datano data
Wing Choy
Group General Counsel & Joint Company Secretary9.1yrsno datano data
Huayue Zhu
General Manager of Sales & Marketing0yrsno datano data
Huaxiang Cai
Executive Officer3.4yrsno datano data
Xiliang Cai
Vice President3.5yrsno datano data
Jun Cui
Member of Executive Committee0yrsno datano data

4.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 267's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jiong Wang
Vice Chairman & President5.4yrsHK$910.00kno data
Qingping Li
VP & Executive Director4.2yrsHK$830.00kno data
Gregory Curl
Independent Non-Executive Director0.9yrsHK$330.00kno data
Anthony Francis Neoh
Independent Non-Executive Director5.2yrsHK$630.00kno data
Zhenming Chang
Chairman of the Board10.8yrsHK$930.00kno data
Cui Ming Shi
Chairman of CITIC Telecom 1616 Limited0yrsno datano data
Yue Jiang Xin
Chairman of CITIC Telecom International Holdings Limited0yrsno datano data
Jinwu Xu
Independent Non-Executive Director7.2yrsHK$630.00kno data
Wai Keung Siu
Independent Non-Executive Director8.8yrsHK$760.00kno data
Zhongyuan Liu
Non-Executive Director5.4yrsno datano data

5.4yrs

Average Tenure

67yo

Average Age

Experienced Board: 267's board of directors are considered experienced (5.4 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

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$261.231b
  • 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 company offers banking products and services; investment banking, brokerage, securities trading and lending, margin fifnancing, and asset management services; trust products; and life, health, and accident insurance products, as well as reinsurance products. It also engages in the exploration, development, and production of oil; coal mining; import and export of commodities; aluminum smelting; bauxite mining; alumina refining; development of magnetite iron ore mine; production of copper, ferroniobium, and manganese; and operation of coal-fired power stations with a total installed capacity of 6,400MW. In addition, the company manufactures bars, plates, steel tubes, wires, forging steel, and casting billets; heavy equipment; and automobile aluminum wheels and castings. Further, it provides engineering contracting services for infrastructure, housing, industrial construction, municipal engineering, civil construction, building, environmental protection, and industrial projects. Additionally, the company develops, sells, and manages residential properties, commercial properties, and integrated property projects, as well as mixed-use properties; engages in the telecommunication, commercial aviation, publication, environmental, agriculture, and other businesses; distributes motor vehicles and related services, food and FMCG products, healthcare and electronics products; and provides logistics services. The company was formerly known as CITIC Pacific Limited and changed its name to CITIC Limited in August 2014. The company was founded in 1987 and is based in Central, Hong Kong, and is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange. CITIC Limited is a subsidiary of CITIC Group Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:37
End of Day Share Price2020/02/26 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.