Loading...

Shanghai Electric Group

SEHK:2727
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2727
SEHK
HK$82B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy equipment, new energy and environmental protection equipment, industrial equipment, and modern services in the People’s Republic of China. The last earnings update was 78 days ago. More info.


Add to Portfolio Compare Print
2727 Share Price and Events
7 Day Returns
-0.7%
SEHK:2727
-1.7%
HK Electrical
0.6%
HK Market
1 Year Returns
6.2%
SEHK:2727
-29.4%
HK Electrical
-5.9%
HK Market
2727 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shanghai Electric Group (2727) -0.7% -1.1% -13.9% 6.2% -16% -16.8%
HK Electrical -1.7% -4.5% -19.1% -29.4% -34.7% -35%
HK Market 0.6% 3.7% -8.2% -5.9% 17.2% 4.8%
1 Year Return vs Industry and Market
  • 2727 outperformed the Electrical industry which returned -29.4% over the past year.
  • 2727 outperformed the Market in Hong Kong which returned -5.9% over the past year.
Price Volatility
2727
Industry
5yr Volatility vs Market

2727 Value

 Is Shanghai Electric Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shanghai Electric Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shanghai Electric Group.

SEHK:2727 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2727
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.187 (1 + (1- 25%) (56.27%))
1.461
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.461 * 5.96%)
10.71%

Discounted Cash Flow Calculation for SEHK:2727 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shanghai Electric Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:2727 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 10.71%)
2020 7,148.49 Analyst x1 6,456.97
2021 7,455.00 Analyst x1 6,082.43
2022 7,719.01 Est @ 3.54% 5,688.60
2023 7,956.74 Est @ 3.08% 5,296.56
2024 8,176.09 Est @ 2.76% 4,916.08
2025 8,383.00 Est @ 2.53% 4,552.89
2026 8,581.87 Est @ 2.37% 4,210.02
2027 8,775.95 Est @ 2.26% 3,888.76
2028 8,967.62 Est @ 2.18% 3,589.29
2029 9,158.60 Est @ 2.13% 3,311.12
Present value of next 10 years cash flows CN¥47,992.70
SEHK:2727 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥9,158.60 × (1 + 2%) ÷ (10.71% – 2%)
CN¥107,298.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥107,298.10 ÷ (1 + 10.71%)10
CN¥38,791.63
SEHK:2727 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥47,992.70 + CN¥38,791.63
CN¥86,784.33
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥86,784.33 / 15,152.40
CN¥5.73
SEHK:2727 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2727)
1.138
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥5.73 x 1.138
HK$6.52
Value per share (HKD) From above. HK$6.52
Current discount Discount to share price of HK$2.73
= -1 x (HK$2.73 - HK$6.52) / HK$6.52
58.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Shanghai Electric Group is available for.
Intrinsic value
>50%
Share price is HK$2.73 vs Future cash flow value of HK$6.52
Current Discount Checks
For Shanghai Electric Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Shanghai Electric Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Shanghai Electric Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shanghai Electric Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shanghai Electric Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2727 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.21
SEHK:2727 Share Price ** SEHK (2019-07-16) in HKD HK$2.73
SEHK:2727 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥2.4
Hong Kong Electrical Industry PE Ratio Median Figure of 23 Publicly-Listed Electrical Companies 10.75x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shanghai Electric Group.

SEHK:2727 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2727 Share Price ÷ EPS (both in CNY)

= 2.4 ÷ 0.21

11.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Electric Group is overvalued based on earnings compared to the HK Electrical industry average.
  • Shanghai Electric Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Shanghai Electric Group's expected growth come at a high price?
Raw Data
SEHK:2727 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-0.2%per year
Hong Kong Electrical Industry PEG Ratio Median Figure of 9 Publicly-Listed Electrical Companies 1.11x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:2727 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.31x ÷ -0.2%

-59.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Electric Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Shanghai Electric Group's assets?
Raw Data
SEHK:2727 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥3.94
SEHK:2727 Share Price * SEHK (2019-07-16) in HKD HK$2.73
SEHK:2727 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥2.4
Hong Kong Electrical Industry PB Ratio Median Figure of 34 Publicly-Listed Electrical Companies 0.65x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:2727 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2727 Share Price ÷ Book Value per Share (both in CNY)

= 2.4 ÷ 3.94

0.61x

* Primary Listing of Shanghai Electric Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shanghai Electric Group is good value based on assets compared to the HK Electrical industry average.
X
Value checks
We assess Shanghai Electric Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Shanghai Electric Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2727 Future Performance

 How is Shanghai Electric Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shanghai Electric Group expected to grow at an attractive rate?
  • Shanghai Electric Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Shanghai Electric Group's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Shanghai Electric Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2727 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2727 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -0.2%
SEHK:2727 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.4%
Hong Kong Electrical Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
Hong Kong Electrical Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2727 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2727 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 112,654 7,336 2,988 4
2020-12-31 104,355 7,400 2,832 5
2019-12-31 100,835 6,556 2,810 3
SEHK:2727 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 103,252 1,248 3,121
2018-12-31 101,158 949 3,017
2018-09-30 90,802 -13,950 2,951
2018-06-30 89,553 -14,734 2,863
2018-03-31 82,619 -11,750 2,781
2017-12-31 79,544 -7,525 2,660
2017-09-30 84,501 -527 2,230
2017-06-30 87,972 4,068 2,632
2017-03-31 87,613 7,417 2,428
2016-12-31 87,725 10,716 2,397
2016-09-30 86,171 9,821 2,288
2016-06-30 83,354 10,031 2,051

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shanghai Electric Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Shanghai Electric Group's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2727 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Shanghai Electric Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2727 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.22 0.28 0.19 6.00
2020-12-31 0.20 0.26 0.15 8.00
2019-12-31 0.20 0.22 0.19 3.00
SEHK:2727 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.21
2018-12-31 0.20
2018-09-30 0.20
2018-06-30 0.19
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.16
2017-06-30 0.19
2017-03-31 0.17
2016-12-31 0.17
2016-09-30 0.17
2016-06-30 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Shanghai Electric Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Shanghai Electric Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shanghai Electric Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2727 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shanghai Electric Group's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shanghai Electric Group's year on year earnings growth rate has been positive over the past 5 years.
  • Shanghai Electric Group's 1-year earnings growth exceeds its 5-year average (12.3% vs 4.9%)
  • Shanghai Electric Group's earnings growth has exceeded the HK Electrical industry average in the past year (12.3% vs -3.4%).
Earnings and Revenue History
Shanghai Electric Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shanghai Electric Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2727 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 103,251.86 3,121.40 9,675.09 3,783.13
2018-12-31 101,157.53 3,016.53 9,622.21 3,720.43
2018-09-30 90,801.64 2,951.24 10,806.53 3,898.53
2018-06-30 89,552.75 2,863.09 10,793.55 3,833.91
2018-03-31 82,618.91 2,780.54 10,329.04 3,505.91
2017-12-31 79,543.79 2,659.58 10,731.88 3,004.29
2017-09-30 84,500.69 2,230.43 11,433.90 1,764.55
2017-06-30 87,971.89 2,631.52 12,202.56 1,132.52
2017-03-31 87,613.20 2,428.43 13,450.92
2016-12-31 87,725.12 2,396.85 12,846.10
2016-09-30 86,170.73 2,287.98 12,547.27
2016-06-30 83,353.87 2,051.14 11,724.18
2016-03-31 78,808.93 1,996.29 11,475.91
2015-12-31 79,460.61 2,142.62 11,824.98
2015-09-30 77,482.91 2,664.18 10,400.95
2015-06-30 77,822.43 2,677.88 10,647.60
2015-03-31 77,168.25 2,535.91 10,437.19
2014-12-31 76,784.52 2,554.49 10,458.79
2014-09-30 77,182.80 2,161.68 10,426.93
2014-06-30 76,736.91 2,299.11 10,446.58
2014-03-31 77,959.46 2,467.86 10,328.23
2013-12-31 79,214.93 2,462.79 10,267.32
2013-09-30 76,858.40 1,895.91 9,608.25
2013-06-30 76,961.10 2,306.63 9,295.05
2013-03-31 77,053.26 2,470.98 9,656.01
2012-12-31 77,076.74 2,720.71 9,448.97
2012-09-30 74,480.35 3,356.55 10,092.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Shanghai Electric Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shanghai Electric Group used its assets less efficiently than the HK Electrical industry average last year based on Return on Assets.
  • Shanghai Electric Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Shanghai Electric Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shanghai Electric Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2727 Health

 How is Shanghai Electric Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shanghai Electric Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shanghai Electric Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shanghai Electric Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shanghai Electric Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shanghai Electric Group Company Filings, last reported 3 months ago.

SEHK:2727 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 77,826.53 39,809.86 42,064.89
2018-12-31 73,636.62 33,740.37 52,682.99
2018-09-30 72,530.30 26,643.99 36,346.36
2018-06-30 71,449.43 26,002.06 38,920.03
2018-03-31 72,058.59 18,621.92 31,336.18
2017-12-31 70,721.59 19,059.75 46,611.08
2017-09-30 67,226.41 16,433.98 33,180.00
2017-06-30 58,676.70 15,142.97 40,367.19
2017-03-31 58,495.21 13,051.01 38,261.97
2016-12-31 62,418.83 17,601.33 49,103.25
2016-09-30 57,762.59 13,349.88 39,043.62
2016-06-30 53,372.12 14,119.53 35,023.85
2016-03-31 50,439.66 12,384.71 34,867.32
2015-12-31 51,988.05 13,905.05 44,805.87
2015-09-30 48,530.51 14,070.62 38,137.83
2015-06-30 47,622.52 15,380.55 35,057.50
2015-03-31 48,036.80 12,007.67 32,423.12
2014-12-31 45,425.07 8,140.86 34,172.38
2014-09-30 43,927.08 4,943.97 26,217.55
2014-06-30 42,957.45 5,957.34 29,883.21
2014-03-31 43,691.51 6,489.04 23,889.85
2013-12-31 42,708.57 6,138.06 29,700.26
2013-09-30 41,926.39 5,820.20 24,822.59
2013-06-30 40,452.19 6,113.12 28,912.21
2013-03-31 41,332.57 5,804.91 22,199.86
2012-12-31 40,682.26 5,605.71 28,452.07
2012-09-30 40,043.89 2,483.90 18,034.37
  • Shanghai Electric Group's level of debt (51.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.8% vs 51.2% today).
  • Debt is not well covered by operating cash flow (3.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.9x coverage).
X
Financial health checks
We assess Shanghai Electric Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shanghai Electric Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2727 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.56%
Current annual income from Shanghai Electric Group dividends. Estimated to be 2.75% next year.
If you bought HK$2,000 of Shanghai Electric Group shares you are expected to receive HK$51 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Shanghai Electric Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Shanghai Electric Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2727 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Hong Kong Electrical Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2727 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.07 6.00
2020-12-31 0.06 8.00
2019-12-31 0.07 4.00
SEHK:2727 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.061 2.469
2018-03-29 0.092 3.976
2016-10-28 0.000 0.000
2016-08-26 0.000 0.000
2016-03-30 0.000 0.000
2015-03-17 0.059 1.533
2014-08-14 0.075 2.288
2013-06-25 0.064 2.856
2012-05-29 0.076 3.071
2011-10-21 0.000 0.000
2011-08-22 0.000 0.000
2011-05-25 0.130 4.020
2010-10-27 0.118 2.962
2010-04-12 0.059 1.810
2009-05-08 0.061 1.900

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Shanghai Electric Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess Shanghai Electric Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shanghai Electric Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shanghai Electric Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2727 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jianhua Zheng
COMPENSATION CN¥1,241,000
AGE 59
TENURE AS CEO 1.8 years
CEO Bio

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 Limited since July 31, 2013 until September 1, 2017. Mr. Zheng serves as the President of Shanghai Electric Power Generation Group. Mr. Zheng is a Senior Economist. Mr. Zheng has over 30 years of experience in equipment manufacturing business. Mr. Zheng served as the President of Shanghai Turbine Generators Co., Ltd., Factory Director of Shanghai Electric Group Shanghai Electric Machinery Co., Ltd. and the Vice President of Shanghai Electric (Group) Corporation. He serves as Chairman of Shanghai Electric Power Generation Equipment Co., Ltd. He has been an Executive Director of Shanghai Electric Group Company Limited since September 30, 2013. Mr. Zheng has obtained a Master Degree of Business Administration from China Europe International Business School.

CEO Compensation
  • Jianhua's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Jianhua's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Shanghai Electric Group management team in years:

1.8
Average Tenure
56
Average Age
  • The average tenure for the Shanghai Electric Group management team is less than 2 years, this suggests a new team.
Management Team

Jianhua Zheng

TITLE
Chairman & CEO
COMPENSATION
CN¥1M
AGE
59
TENURE
1.8 yrs

Ou Huang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
48
TENURE
0.9 yrs

Kang Hu

TITLE
CFO & Finance Director
AGE
56

Mingjie Zhang

TITLE
Chief Investment Officer
AGE
56
TENURE
0.9 yrs

Andrew Li

TITLE
Head of the Investor Relations Department & Company Secretary
AGE
59

Liping Tong

TITLE
Chief Legal Officer & Head of the Legal Affair Department
AGE
47
TENURE
8.1 yrs

Bin Zhu

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
58

Zhaokai Zhu

TITLE
Executive Director
COMPENSATION
CN¥661K
AGE
50

Rong Fu

TITLE
Director of Secretariat Office & Secretary to the Board
AGE
36
TENURE
14.5 yrs
Board of Directors Tenure

Average tenure and age of the Shanghai Electric Group board of directors in years:

1.3
Average Tenure
58
Average Age
  • The average tenure for the Shanghai Electric Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ou Huang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
48
TENURE
0.8 yrs

Bin Zhu

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
58
TENURE
0.8 yrs

Zhaokai Zhu

TITLE
Executive Director
COMPENSATION
CN¥661K
AGE
50
TENURE
0.8 yrs

Shun Ming Kan

TITLE
Independent Non-Executive Director
AGE
62
TENURE
5.4 yrs

Jianhua Zheng

TITLE
Chairman & CEO
COMPENSATION
CN¥1M
AGE
59
TENURE
1.8 yrs

Junhao Chu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥250K
AGE
74
TENURE
5 yrs

Guoxiong Zhou

TITLE
Chairman of Supervisory Committee
AGE
62

Xingsheng Hua

TITLE
Vice Chairman of Supervisory Committee
AGE
58

Minfang Yao

TITLE
Non-Executive Director
AGE
51
TENURE
11.7 yrs

An Li

TITLE
Non-Executive Director
AGE
58
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. Jan 19 Buy BlackRock, Inc. Company 03. Jan 19 03. Jan 19 74,853 HK$2.48 HK$185,568
X
Management checks
We assess Shanghai Electric Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shanghai Electric Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2727 News

Simply Wall St News

Does Shanghai Electric Group (HKG:2727) Deserve A Spot On Your Watchlist?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Shanghai Electric Group (HKG:2727). … How Quickly Is Shanghai Electric Group Increasing Earnings Per Share. … The good news is that Shanghai Electric Group is growing revenues, and EBIT margins improved by 2.2 percentage points to 5.4%, over the last year.

Simply Wall St -

What Should We Expect From Shanghai Electric Group Company Limited's (HKG:2727) Earnings In The Years Ahead?

Shanghai Electric Group Company Limited's (HKG:2727) latest earnings announcement in December 2018a … company

Simply Wall St -

What Should Investors Know About The Future Of Shanghai Electric Group Company Limited's (HKG:2727)?

After Shanghai Electric Group Company Limited's (HKG:2727) earnings announcement on 31 December 2018, … with profits predicted to drop by -10% next year

Simply Wall St -

What Kind Of Shareholder Appears On The Shanghai Electric Group Company Limited's (HKG:2727) Shareholder Register?

If you want to know who really controls Shanghai Electric Group Company Limited (HKG:2727), then you'll have to look at the makeup of its share registry. … Shanghai Electric Group has a market capitalization of HK$95b, so it's too big to fly under the radar. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

A Spotlight On Shanghai Electric Group Company Limited's (HKG:2727) Fundamentals

Shanghai Electric Group Company Limited (HKG:2727) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Why Shanghai Electric Group Company Limited (HKG:2727) Could Be Worth Watching

Today we're going to take a look at the well-established Shanghai Electric Group Company Limited (HKG:2727). … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price

Simply Wall St -

Imagine Owning Shanghai Electric Group And Wondering If The 13% Share Price Slide Is Justified

Unfortunately, that's been the case for longer term Shanghai Electric Group Company Limited (HKG:2727) shareholders, since the share price is down 13% in the last three years, falling well short of the market return of around 52%. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During the three years that the share price fell, Shanghai Electric Group's earnings per share (EPS) dropped by 0.4% each year.

Simply Wall St -

Do You Know What Shanghai Electric Group Company Limited's (HKG:2727) P/E Ratio Means?

Shanghai Electric Group has a price to earnings ratio of 12.41, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 12.41 = CN¥2.44 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.20

Simply Wall St -

Should Shanghai Electric Group Company Limited (HKG:2727) Be Part Of Your Portfolio?

Historically, Shanghai Electric Group Company Limited (HKG:2727) has paid a dividend to shareholders. … Let's dig deeper into whether Shanghai Electric Group should have a place in your portfolio. … See our latest analysis for Shanghai Electric Group?

Simply Wall St -

Here’s why Shanghai Electric Group Company Limited’s (HKG:2727) Returns On Capital Matters So Much

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

2727 Company Info

Description

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy equipment, new energy and environmental protection equipment, industrial equipment, and modern services in the People’s Republic of China. The company designs, manufactures, and sells nuclear island equipment, wind power equipment, and heavy machinery, including large forging components; and provides solution package for utilization of solid waste, sewage treatment, power generation environment protection, and distributed energy systems. It also offers thermal power equipment and corollary equipment; and power transmission and distribution equipment. In addition, the company provides elevators, automation equipment, electrical motors, machine tools, components, and other electromechanical equipment. Further, it offers integrated engineering services for power station projects and other industries; financial products and services; and international trading, financial lease and related consulting, and insurance brokerage services. Additionally, the company manufactures turbine generators and spare parts; desulphurization, civil nuclear bearing, and electrical and mechanical equipment; power generation equipment and auxiliary products; printing and packing machinery, artificial boards, air-conditioners, welding materials, and engineering machinery; electrical switchgears; oil immersed power transformers; equipment for aircraft assembly lines; wires and cables; industrial blades, precision bearings, and fasteners; and escalators, electronic ramps, and building automation management and safety systems. It also sells power station boilers and equipment, and industry boilers; provides technical consulting, and after-sales service; and import and export of products. The company was founded in 2004 and is based in Shanghai, the People’s Republic of China. Shanghai Electric Group Company Limited is a subsidiary of Shanghai Electric (Group) Corporation.

Details
Name: Shanghai Electric Group Company Limited
2727
Exchange: SEHK
Founded: 2004
HK$81,548,446,112
15,152,397,653
Website: http://www.shanghai-electric.com
Address: Shanghai Electric Group Company Limited
No. 212, Qinjiang Road,
Shanghai,
200233,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2727 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 28. Apr 2005
OTCPK SIEL.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 28. Apr 2005
DB USR Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 28. Apr 2005
SHSC 2727 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 28. Apr 2005
SZSC 2727 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 28. Apr 2005
OTCPK SIEL.Y UNSPONSORED ADR Pink Sheets LLC US USD 14. Jan 2009
SHSE 601727 Domestic Shares Shanghai Stock Exchange CN CNY 05. Dec 2008
XSSC 601727 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 05. Dec 2008
Number of employees
Current staff
Staff numbers
29,552
Shanghai Electric Group employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 12:44
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.