SEHK:2722

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Chongqing Machinery & Electric

Executive Summary

Chongqing Machinery & Electric Co., Ltd., together with its subsidiaries, designs, manufactures, and sells clean energy equipment and high-end smart manufacturing equipment.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Chongqing Machinery & Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2722 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.1%

2722

2.7%

HK Industrials

2.0%

HK Market


1 Year Return

-16.4%

2722

-22.3%

HK Industrials

6.0%

HK Market

Return vs Industry: 2722 exceeded the Hong Kong Industrials industry which returned -25.6% over the past year.

Return vs Market: 2722 underperformed the Hong Kong Market which returned 3.1% over the past year.


Shareholder returns

2722IndustryMarket
7 Day14.1%2.7%2.0%
30 Day18.3%-3.2%1.0%
90 Day2.1%-5.9%9.4%
1 Year-14.1%-16.4%-18.1%-22.3%10.4%6.0%
3 Year-45.8%-52.9%-33.5%-41.5%0.8%-10.1%
5 Year-54.7%-63.5%-37.8%-47.9%10.8%-7.8%

Price Volatility Vs. Market

How volatile is Chongqing Machinery & Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chongqing Machinery & Electric undervalued compared to its fair value and its price relative to the market?

8.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2722 (HK$0.49) is trading above our estimate of fair value (HK$0.15)

Significantly Below Fair Value: 2722 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2722 is poor value based on its PE Ratio (8.7x) compared to the HK Industrials industry average (5.2x).

PE vs Market: 2722 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2722's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2722 is good value based on its PB Ratio (0.2x) compared to the HK Industrials industry average (0.4x).


Next Steps

Future Growth

How is Chongqing Machinery & Electric forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Chongqing Machinery & Electric has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Chongqing Machinery & Electric performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2722 has a large one-off gain of CN¥360.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 2722's current net profit margins (3.4%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: 2722's earnings have declined by 9.5% per year over the past 5 years.

Accelerating Growth: 2722's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2722 had negative earnings growth (-58.4%) over the past year, making it difficult to compare to the Industrials industry average (1.3%).


Return on Equity

High ROE: 2722's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Chongqing Machinery & Electric's financial position?


Financial Position Analysis

Short Term Liabilities: 2722's short term assets (CN¥10.4B) exceed its short term liabilities (CN¥7.0B).

Long Term Liabilities: 2722's short term assets (CN¥10.4B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: 2722's debt to equity ratio (41.9%) is considered high.

Reducing Debt: 2722's debt to equity ratio has increased from 39.9% to 41.9% over the past 5 years.

Debt Coverage: 2722's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: Insufficient data to determine if 2722's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Chongqing Machinery & Electric current dividend yield, its reliability and sustainability?

2.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2722's dividend (2.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 2722's dividend (2.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


Stability and Growth of Payments

Stable Dividend: 2722's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2722's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), 2722's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Ping Chen (57 yo)

4.17yrs

Tenure

CN¥1,003,671

Compensation

Ms. Ping Chen serves as the General Manager and Executive Director of Chongqing Machinery & Electric Company Ltd. since June 28, 2016. Ms. Chen engages in merger and reorganization of enterprises, equity i ...


CEO Compensation Analysis

Compensation vs Market: Ping's total compensation ($USD143.78K) is below average for companies of similar size in the Hong Kong market ($USD280.14K).

Compensation vs Earnings: Ping's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ping Chen
GM & Executive Director4.17yrsCN¥1.00mno data
Quan Yang
Vice GM & Executive Director4.67yrsCN¥882.66kno data
Zhongtang Liu
CFO & Vice General Manager2yrsCN¥728.03kno data
Shu Zhang
Vice General Manager4.17yrsCN¥722.26kno data
Shaobo Qin
Vice General Manager2.17yrsCN¥242.84kno data
Hoi Shan Chiu
Company Secretary5.83yrsno datano data
Deng Rui
Secretary to the Board4.17yrsCN¥725.32kno data

4.2yrs

Average Tenure

51yo

Average Age

Experienced Management: 2722's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ping Chen
GM & Executive Director4.17yrsCN¥1.00mno data
Quan Yang
Vice GM & Executive Director4.67yrsCN¥882.66kno data
Wah Wai Lo
Independent Non-Executive Director12.58yrsCN¥136.00kno data
Wei Liu
Independent Non-Executive Director5.92yrsCN¥80.40kno data
Yong Huang
Non-Executive Director13.08yrsCN¥60.00kno data
Xiaochang Ren
Independent Non-Executive Director13.08yrsCN¥80.40kno data
Jingyu Jin
Independent Non-Executive Director8.17yrsCN¥80.40kno data
Pengcheng Wang
Non-Executive Director2.17yrsCN¥60.00kno data
Yi Wu
Independent Supervisor5.92yrsCN¥36.00kno data
Hua Xia
Employee Supervisor4.92yrsCN¥879.00kno data
Wenguang Sun
Chairman of the Supervisory Committee1.83yrsCN¥509.00kno data
Bo Dou
Non-Executive Director2.75yrsCN¥60.00kno data

5.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 2722'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

Chongqing Machinery & Electric Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chongqing Machinery & Electric Co., Ltd.
  • Ticker: 2722
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$1.805b
  • Shares outstanding: 3.68b
  • Website: https://www.chinacqme.com

Number of Employees


Location

  • Chongqing Machinery & Electric Co., Ltd.
  • No. 60, Middle Section
  • Huangshan Avenue
  • Chongqing
  • Chongqing Province
  • 401123
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2722SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2008
CE3DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2008

Biography

Chongqing Machinery & Electric Co., Ltd., together with its subsidiaries, designs, manufactures, and sells clean energy equipment and high-end smart manufacturing equipment. It manufactures and sells engin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:57
End of Day Share Price2020/08/04 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.