SEHK:2789

Stock Analysis Report

Executive Summary

Yuanda China Holdings Limited, together with its subsidiaries, designs, procures, produces, assembles, sells, and installs curtain wall systems in the People’s Republic of China and internationally.


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Yuanda China Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2789's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.8%

2789

2.1%

HK Building

0.6%

HK Market


1 Year Return

-15.3%

2789

90.7%

HK Building

-5.7%

HK Market

Return vs Industry: 2789 underperformed the Hong Kong Building industry which returned 93.9% over the past year.

Return vs Market: 2789 underperformed the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

2789IndustryMarket
7 Day-8.8%2.1%0.6%
30 Day-3.5%6.2%-0.8%
90 Day-12.6%29.4%4.1%
1 Year-15.3%-15.3%97.5%90.7%-2.2%-5.7%
3 Year-55.4%-55.4%36.7%27.4%13.8%2.3%
5 Year-77.3%-80.2%99.0%78.4%14.8%-4.2%

Price Volatility Vs. Market

How volatile is Yuanda China Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yuanda China Holdings undervalued compared to its fair value and its price relative to the market?

47.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2789 (HK$0.08) is trading below our estimate of fair value (HK$0.16)

Significantly Below Fair Value: 2789 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2789 is good value based on its PE Ratio (5.1x) compared to the Building industry average (9x).

PE vs Market: 2789 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2789's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2789 is good value based on its PB Ratio (0.2x) compared to the HK Building industry average (1x).


Next Steps

Future Growth

How is Yuanda China Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

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 Yuanda China Holdings 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 Yuanda China Holdings performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2789 has a large one-off gain of CN¥137.5M impacting its June 30 2019 financial results.

Growing Profit Margin: 2789's current net profit margins (2.1%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: 2789's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: 2789's earnings growth over the past year (31.5%) exceeds its 5-year average (14% per year).

Earnings vs Industry: 2789 earnings growth over the past year (31.5%) exceeded the Building industry 14.9%.


Return on Equity

High ROE: 2789's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yuanda China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2789's short term assets (CN¥8.2B) exceed its short term liabilities (CN¥6.4B).

Long Term Liabilities: 2789's short term assets (CN¥8.2B) exceed its long term liabilities (CN¥349.6M).


Debt to Equity History and Analysis

Debt Level: 2789's debt to equity ratio (116.2%) is considered high.

Reducing Debt: 2789's debt to equity ratio has increased from 95.8% to 116.2% over the past 5 years.

Debt Coverage: 2789's debt is not well covered by operating cash flow (6%).

Interest Coverage: 2789's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

Inventory Level: 2789 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2789's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is Yuanda China Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2789's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2789's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2789's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2789's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2789 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 2789'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?

3.0yrs

Average management tenure


CEO

Hongren Li (52yo)

3yrs

Tenure

CN¥2,723,000

Compensation

Mr. Hongren Li has been the Chief Executive Officer and Executive Director of Yuanda China Holdings Limited since February 08, 2017. Mr. Li joined the Group in 1996 and has more than 17 years of experience ...


CEO Compensation Analysis

Compensation vs Market: Hongren's total compensation ($USD389.11K) is above average for companies of similar size in the Hong Kong market ($USD226.20K).

Compensation vs Earnings: Hongren's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Baohua Kang
Founder & Chairman0yrsCN¥225.00k58.53% CN¥308.9m
Hongren Li
CEO & Executive Director3yrsCN¥2.72m0.013% CN¥70.7k
Hao Wang
CFO & Executive Director3yrsCN¥474.00k0.0024% CN¥12.8k
Lei Zhang
Executive Director6.7yrsCN¥356.00k0.048% CN¥255.0k
Futao Liu
Executive Director3yrsCN¥2.45m0.058% CN¥306.3k
Minghui Ma
Executive Director3yrsCN¥1.66mno data
Zuobao Si
Managing Director of Eastern China Operations10.1yrsCN¥287.00kno data
Qingguo Wu
Managing Director of Northeastern China10.1yrsCN¥131.00kno data
Qi Li
Managing Director of Northern China operations12.1yrsno datano data
Haizhuang Xie
Chief Engineer of Shenyang Yuanda0yrsno datano data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 2789's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Baohua Kang
Founder & Chairman0yrsCN¥225.00k58.53% CN¥308.9m
Hongren Li
CEO & Executive Director3yrsCN¥2.72m0.013% CN¥70.7k
Hao Wang
CFO & Executive Director3yrsCN¥474.00k0.0024% CN¥12.8k
Lei Zhang
Executive Director6.7yrsCN¥356.00k0.048% CN¥255.0k
Futao Liu
Executive Director3yrsCN¥2.45m0.058% CN¥306.3k
Minghui Ma
Executive Director3yrsCN¥1.66mno data
Chiu Kwok Poon
Independent Non-Executive Director8.8yrsCN¥211.00kno data
Kar Tung Woo
Independent Non-Executive Director8.8yrsCN¥211.00kno data
Chung Fai Pang
Independent Non-Executive Director8.8yrsCN¥211.00kno data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 2789's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2789 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Yuanda China Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yuanda China Holdings Limited
  • Ticker: 2789
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: HK$527.742m
  • Shares outstanding: 6.21b
  • Website: https://www.yuandacn.com

Number of Employees


Location

  • Yuanda China Holdings Limited
  • 20, Street 13
  • Shenyang Economic & Technological Development Area
  • Shenyang
  • Liaoning Province
  • 110027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2789SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2011
0YCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2011

Biography

Yuanda China Holdings Limited, together with its subsidiaries, designs, procures, produces, assembles, sells, and installs curtain wall systems in the People’s Republic of China and internationally. The company offers double-skin, stick, unitized, semi unitized, point fixing, video, photovoltaic, membrane structure, ecologically friendly, and skylight curtain wall systems, as well as metal roof, shading, canopy, balustrade/breast board, and energy saving aluminum door and window systems. It is also involved in plating and coating metals. The company was founded in 1993 and is headquartered in Shenyang, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:10
End of Day Share Price2020/02/20 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.