SEHK:2727

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Shanghai Electric Group

Executive Summary

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy, new energy and environmental protection, and industrial equipment, and modern services in the People’s Republic of China. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Shanghai Electric Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2727 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2727's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

2727

-0.4%

HK Electrical

-1.0%

HK Market


1 Year Return

-5.9%

2727

5.1%

HK Electrical

9.0%

HK Market

Return vs Industry: 2727 underperformed the Hong Kong Electrical industry which returned 5.1% over the past year.

Return vs Market: 2727 underperformed the Hong Kong Market which returned 9% over the past year.


Shareholder returns

2727IndustryMarket
7 Day0.9%-0.4%-1.0%
30 Day1.8%4.6%5.9%
90 Day-0.4%5.4%7.5%
1 Year-5.9%-5.9%6.6%5.1%13.4%9.0%
3 Year-22.3%-27.4%-40.4%-43.1%2.4%-8.3%
5 Year-43.5%-47.2%-46.2%-49.4%36.9%13.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shanghai Electric Group 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: 2727 (HK$2.23) is trading below our estimate of fair value (HK$46.68)

Significantly Below Fair Value: 2727 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2727 is good value based on its PE Ratio (7.8x) compared to the HK Electrical industry average (10.1x).

PE vs Market: 2727 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2727 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 2727's PB Ratio (0.4x) is in line with the HK Electrical industry average.


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2727's forecast earnings growth (6.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 2727's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (21.3% per year).

High Growth Earnings: 2727's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2727's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 2727's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2727's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Shanghai Electric Group performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2727 has a large one-off gain of CN¥3.2B impacting its September 30 2020 financial results.

Growing Profit Margin: 2727's current net profit margins (2.7%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: 2727's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: 2727's earnings growth over the past year (18.6%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: 2727 earnings growth over the past year (18.6%) underperformed the Electrical industry 18.6%.


Return on Equity

High ROE: 2727's Return on Equity (5.4%) is considered low.


Next Steps

  • Explore strong past performing companies in the Capital Goods industry.

Financial Health

How is Shanghai Electric Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2727's short term assets (CN¥229.7B) exceed its short term liabilities (CN¥184.8B).

Long Term Liabilities: 2727's short term assets (CN¥229.7B) exceed its long term liabilities (CN¥26.9B).


Debt to Equity History and Analysis

Debt Level: 2727's debt to equity ratio (46.8%) is considered high.

Reducing Debt: 2727's debt to equity ratio has increased from 28.9% to 46.8% over the past 5 years.

Debt Coverage: 2727's debt is well covered by operating cash flow (28.8%).

Interest Coverage: 2727's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Shanghai Electric Group current dividend yield, its reliability and sustainability?

2.78%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2727's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2727's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2727's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2727's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2727 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2727's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Jianhua Zheng (60 yo)

3.25yrs

Tenure

CN¥1,176,000

Compensation

Mr. Jianhua Zheng has been Chairman and Chief Executive Officer of Shanghai Electric Group Company Limited since September 1, 2017. Mr. Zheng served as the President of Shanghai Electric Group Company Limi...


CEO Compensation Analysis

Compensation vs Market: Jianhua's total compensation ($USD180.08K) is below average for companies of similar size in the Hong Kong market ($USD842.36K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianhua Zheng
Chairman & CEO3.25yrsCN¥1.18mno data
Ou Huang
President & Executive Director2.25yrsCN¥1.37m0.0051%
CN¥ 4.2m
Kang Hu
Chief Financial Officerno dataCN¥1.11m0.0039%
CN¥ 3.3m
Mingjie Zhang
Chief Investment Officer2.33yrsCN¥876.50k0.0026%
CN¥ 2.2m
Liping Tong
Chief Legal Officer & Head of the Legal Affair Department9.5yrsCN¥1.60m0.0026%
CN¥ 2.2m
Bin Zhu
Executive Director2.25yrsCN¥1.05mno data
Jianhua Dong
Vice President2.33yrsCN¥1.53m0.0039%
CN¥ 3.3m
Ganjin Chen
Vice Presidentno dataCN¥1.30m0.0039%
CN¥ 3.3m
Zhaokai Zhu
Executive Director2.25yrsCN¥718.00kno data
Zhiqiang Gu
Vice President2.33yrsCN¥1.26m0.0039%
CN¥ 3.3m
Xiaolong Jin
Vice President2.33yrsCN¥1.07m0.0039%
CN¥ 3.3m
Rong Fu
Director of Secretariat Office & Secretary to the Board15.92yrsCN¥1.35m0.0026%
CN¥ 2.2m

2.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 2727's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianhua Zheng
Chairman & CEO3.25yrsCN¥1.18mno data
Ou Huang
President & Executive Director2.25yrsCN¥1.37m0.0051%
CN¥ 4.2m
Bin Zhu
Executive Director2.25yrsCN¥1.05mno data
Zhaokai Zhu
Executive Director2.25yrsCN¥718.00kno data
Minfang Yao
Non-Executive Director13.08yrsno datano data
Jianxin Xu
Independent Non-Executive Director1.08yrsCN¥42.00kno data
Yunhong Liu
Independent Non-Executive Director0.083yrno datano data
An Li
Non-Executive Director2.25yrsno datano data
Guoxiong Zhou
Chairman of Supervisory Committeeno datano datano data
Juntong Xi
Independent Non-Executive Director2.25yrsCN¥250.00kno data
Quanzhi Han
Supervisor2.25yrsno datano data
Shengzhou Yuan
Employee Representative Supervisor1.58yrsno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 2727's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

Shanghai Electric Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Electric Group Company Limited
  • Ticker: 2727
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$83.296b
  • Shares outstanding: 15.11b
  • Website: https://www.shanghai-electric.com

Number of Employees


Location

  • Shanghai Electric Group Company Limited
  • No. 110 Sichuan Middle Road
  • Huangpu District
  • Shanghai
  • 200002
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2727SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDApr 2005
USRDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURApr 2005
2727SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2005
2727SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDApr 2005
601727SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2008
601727XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2008
SIEL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2009

Biography

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy, new energy and environmental protection, and industrial equipment, and modern services in the People...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 10:06
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.