SEHK:267

Stock Analysis Report

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Executive Summary

CITIC Limited operates in the financial services, resources and energy, manufacturing, engineering contracting, and real estate businesses in China and internationally. More Details


Snowflake Analysis

Undervalued established 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

Stable Share Price: 267's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

267

1.4%

HK Industrials

1.9%

HK Market


1 Year Return

-42.2%

267

-35.2%

HK Industrials

1.5%

HK Market

Return vs Industry: 267 underperformed the Hong Kong Industrials industry which returned -35.2% over the past year.

Return vs Market: 267 underperformed the Hong Kong Market which returned 1.5% over the past year.


Shareholder returns

267IndustryMarket
7 Day1.4%1.4%1.9%
30 Day-0.2%-0.5%3.6%
90 Day-18.9%-11.0%2.8%
1 Year-39.1%-42.2%-31.9%-35.2%5.8%1.5%
3 Year-41.1%-48.3%-43.7%-50.5%-5.0%-15.4%
5 Year-50.9%-59.2%-42.9%-52.5%17.1%-2.8%

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$5.92) is trading below our estimate of fair value (HK$49.05)

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 (3.6x) compared to the HK Industrials industry average (5.4x).

PE vs Market: 267 is good value based on its PE Ratio (3.6x) compared to the Hong Kong market (11.1x).


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's PB Ratio (0.3x) is in line with the HK Industrials industry average.


Next Steps

Future Growth

How is CITIC forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 267's forecast earnings growth (4.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 267's earnings (4.6% per year) are forecast to grow slower than the Hong Kong market (22.3% per year).

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

Revenue vs Market: 267's revenue (3.5% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 267's revenue (3.5% 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 (9.7%).


Next Steps

Past Performance

How has CITIC performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 267 has high quality earnings.

Growing Profit Margin: 267's current net profit margins (6.7%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 267's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: 267's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 267 had negative earnings growth (-10.7%) over the past year, making it difficult to compare to the Industrials industry average (-26.8%).


Return on Equity

High ROE: 267's Return on Equity (7.7%) 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$6,916.6B) exceed its short term liabilities (HK$4,242.6B).

Long Term Liabilities: 267's short term assets (HK$6,916.6B) exceed its long term liabilities (HK$3,340.1B).


Debt to Equity History and Analysis

Debt Level: 267's debt to equity ratio (146.9%) is considered high.

Reducing Debt: 267's debt to equity ratio has increased from 96.9% to 146.9% over the past 5 years.

Debt Coverage: 267's debt is not well covered by operating cash flow (16.9%).

Interest Coverage: 267's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

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

7.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 267's dividend (7.85%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 267's dividend (7.85%) is in the top 25% of dividend payers in the Hong Kong market (6.85%)


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 (23.6%), 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?

2.7yrs

Average management tenure


CEO

Guohua Xi (57 yo)

0.17

Tenure

Mr. Guohua Xi serves as Executive Director, Vice Chairman and President at CITIC Limited since August 25, 2020. He serves as Vice Chairman of the Board at CITIC Group Corporation since August, 2020. He ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Qingping Li
VP & Executive Director4.83yrsHK$910.00kno data
Hexin Zhu
Executive Chairman0.58yrno datano data
Guohua Xi
President & Vice Chairman0.17yrno datano data
Guoqiang Cao
Chief Financial Officerno datano datano data
Lisa Yang
General Manager of Technical Servicesno datano datano data
Chen Holly
Director of Group Investor Relations & Corporate Communicationsno datano datano data
Wing Choy
Group General Counsel & Joint Company Secretary9.75yrsno datano data
Huayue Zhu
General Manager of Sales & Marketingno datano datano data
Huaxiang Cai
Vice Chairman of the Executive Committee4.08yrsno datano data
Xiliang Cai
Vice President4.17yrsno datano data
Xu Zuo
Vice President1.33yrsno datano data
Jun Cui
Member of Executive Committeeno datano datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 267's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qingping Li
VP & Executive Director4.83yrsHK$910.00kno data
Hexin Zhu
Executive Chairman0.58yrno datano data
Guohua Xi
President & Vice Chairman0.17yrno datano data
Gregory Curl
Independent Non-Executive Director1.58yrsHK$330.00kno data
Anthony Francis Neoh
Independent Non-Executive Director5.83yrsHK$380.00kno data
Xiaoping Yang
Non-Executive Director5.17yrsHK$730.00kno data
Cui Ming Shi
Chairman of CITIC Telecom 1616 Limitedno datano datano data
Yue Jiang Xin
Chairman of CITIC Telecom International Holdings Limitedno datano datano data
Jinwu Xu
Independent Non-Executive Director7.83yrsHK$630.00kno data
Wai Keung Siu
Independent Non-Executive Director9.42yrsHK$630.00kno data
Zhongyuan Liu
Non-Executive Director6.08yrsno datano data
Kangle Song
Non-Executive Director4.58yrsno datano data

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: 267's board of directors are considered experienced (5 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$169.014b
  • Shares outstanding: 29.09b
  • Website: https://www.citic.com

Number of Employees


Location

  • CITIC Limited
  • CITIC Tower
  • No. 10 Guanghualu
  • Beijing
  • 100020
  • China

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 China and internationally. The company offers banking products ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 12:40
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.