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.

Rewards

Trading at 43.4% below its fair value

Earnings grew by 31.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (HK$584M)



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

2789

2.5%

HK Building

-3.1%

HK Market


1 Year Return

-9.5%

2789

86.6%

HK Building

2.3%

HK Market

Return vs Industry: 2789 underperformed the Hong Kong Building industry which returned 91.2% over the past year.

Return vs Market: 2789 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2789IndustryMarket
7 Day-5.5%2.5%-3.1%
30 Day-14.0%11.7%0.5%
90 Day-2.3%32.3%5.3%
1 Year-9.5%-9.5%93.4%86.6%6.1%2.3%
3 Year-48.5%-48.5%38.8%29.3%22.2%9.8%
5 Year-78.0%-80.9%76.2%58.3%18.0%-1.7%

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?

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2789 (HK$0.09) 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 (5.5x) compared to the Building industry average (9.4x).

PE vs Market: 2789 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (10.5x).


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 (0.8x).


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?

18.7%

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 16.4%.


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%2.2%markettop25%6.2%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

What is the CEO of Yuanda China Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Hongren Li (52yo)

2.9yrs

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 ($USD395.23K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Management Age and Tenure

2.9yrs

Average Tenure

51yo

Average Age

Experienced Management: 2789's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

50yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

BuyHK$9,68008 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares110,000
Max PriceHK$0.088
BuyHK$4,57607 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares52,000
Max PriceHK$0.088
BuyHK$3,87206 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares44,000
Max PriceHK$0.088
BuyHK$2,64005 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares30,000
Max PriceHK$0.088
BuyHK$21,29604 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares242,000
Max PriceHK$0.088
BuyHK$64,24101 Nov 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares730,000
Max PriceHK$0.088
BuyHK$49,27831 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares560,000
Max PriceHK$0.088
BuyHK$270,51030 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares3,074,000
Max PriceHK$0.088
BuyHK$140,44829 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,596,000
Max PriceHK$0.088
BuyHK$108,59225 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,234,000
Max PriceHK$0.088
BuyHK$4,57625 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares52,000
Max PriceHK$0.088
BuyHK$40,65822 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares462,000
Max PriceHK$0.088
BuyHK$76,38121 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares868,000
Max PriceHK$0.088
BuyHK$4,40018 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares50,000
Max PriceHK$0.088
BuyHK$45,75916 Oct 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares520,000
Max PriceHK$0.088
BuyHK$23,04030 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares256,000
Max PriceHK$0.09
BuyHK$10,80029 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares120,000
Max PriceHK$0.09
BuyHK$27,00127 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares300,000
Max PriceHK$0.09
BuyHK$11,70025 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares130,000
Max PriceHK$0.09
BuyHK$2,88019 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares32,000
Max PriceHK$0.09
BuyHK$1,98018 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares22,000
Max PriceHK$0.09
BuyHK$62,99918 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares700,000
Max PriceHK$0.09
BuyHK$18,00112 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares200,000
Max PriceHK$0.09
BuyHK$18,00011 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares200,000
Max PriceHK$0.09
BuyHK$64,26109 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares714,000
Max PriceHK$0.09
BuyHK$62,10009 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares690,000
Max PriceHK$0.09
BuyHK$52,92105 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares588,000
Max PriceHK$0.09
BuyHK$36,00005 Sep 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares400,000
Max PriceHK$0.09
BuyHK$5,88023 Jul 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares60,000
Max PriceHK$0.098
BuyHK$4,57601 Jul 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares44,000
Max PriceHK$0.10
BuyHK$87,77726 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares844,000
Max PriceHK$0.10
BuyHK$33,07318 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares318,000
Max PriceHK$0.10
BuyHK$171,89117 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,656,000
Max PriceHK$0.10
BuyHK$42,51613 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares410,000
Max PriceHK$0.10
BuyHK$32,03113 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares308,000
Max PriceHK$0.10
BuyHK$2,08012 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares20,000
Max PriceHK$0.10
BuyHK$14,56011 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares140,000
Max PriceHK$0.10
BuyHK$107,11710 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,030,000
Max PriceHK$0.10
BuyHK$175,54906 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,688,000
Max PriceHK$0.10
BuyHK$68,09105 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares656,000
Max PriceHK$0.10
BuyHK$85,07504 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares818,000
Max PriceHK$0.10
BuyHK$341,48003 Jun 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares3,338,000
Max PriceHK$0.10
BuyHK$74,46231 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares716,000
Max PriceHK$0.10
BuyHK$116,89830 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,124,000
Max PriceHK$0.10
BuyHK$31,20029 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares300,000
Max PriceHK$0.10
BuyHK$307,46328 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares2,962,000
Max PriceHK$0.10
BuyHK$19,96727 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares192,000
Max PriceHK$0.10
BuyHK$126,25824 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,214,000
Max PriceHK$0.10
BuyHK$16,64023 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares160,000
Max PriceHK$0.10
BuyHK$3,53622 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares34,000
Max PriceHK$0.10
BuyHK$120,22221 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,156,000
Max PriceHK$0.10
BuyHK$141,02620 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,356,000
Max PriceHK$0.10
BuyHK$28,28717 May 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares272,000
Max PriceHK$0.10
BuyHK$418,71419 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares4,026,000
Max PriceHK$0.10
BuyHK$414,15818 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares3,990,000
Max PriceHK$0.10
BuyHK$23,29517 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares224,000
Max PriceHK$0.10
BuyHK$5,00015 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares50,000
Max PriceHK$0.10
BuyHK$10,00009 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares100,000
Max PriceHK$0.10
BuyHK$171,99908 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,720,000
Max PriceHK$0.10
BuyHK$372,71504 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares3,742,000
Max PriceHK$0.10
BuyHK$430,76403 Apr 19
Baohua Kang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares4,338,000
Max PriceHK$0.099

Ownership Breakdown

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


Management Team

  • Baohua Kang (65yo)

    Founder & Chairman

    • Compensation: CN¥225.00k
  • Zuobao Si (51yo)

    Managing Director of Eastern China Operations

    • Tenure: 10yrs
    • Compensation: CN¥287.00k
  • Qingguo Wu (49yo)

    Managing Director of Northeastern China

    • Tenure: 10yrs
    • Compensation: CN¥131.00k
  • Qi Li (51yo)

    Managing Director of Northern China operations

    • Tenure: 12yrs
  • Haizhuang Xie (51yo)

    Chief Engineer of Shenyang Yuanda

    • Lei Zhang (46yo)

      Executive Director

      • Tenure: 6.6yrs
      • Compensation: CN¥356.00k
    • Futao Liu (54yo)

      Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥2.45m
    • Minghui Ma (38yo)

      Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥1.66m
    • Hao Wang (38yo)

      CFO & Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥474.00k
    • Hongren Li (52yo)

      CEO & Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥2.72m

    Board Members

    • Chiu Kwok Poon (57yo)

      Independent Non-Executive Director

      • Tenure: 8.8yrs
      • Compensation: CN¥211.00k
    • Raymond Woo (50yo)

      Independent Non-Executive Director

      • Tenure: 8.8yrs
      • Compensation: CN¥211.00k
    • Baohua Kang (65yo)

      Founder & Chairman

      • Compensation: CN¥225.00k
    • Benny Pang (46yo)

      Independent Non-Executive Director

      • Tenure: 8.8yrs
      • Compensation: CN¥211.00k
    • Lei Zhang (46yo)

      Executive Director

      • Tenure: 6.6yrs
      • Compensation: CN¥356.00k
    • Futao Liu (54yo)

      Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥2.45m
    • Minghui Ma (38yo)

      Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥1.66m
    • Hao Wang (38yo)

      CFO & Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥474.00k
    • Hongren Li (52yo)

      CEO & Executive Director

      • Tenure: 2.9yrs
      • Compensation: CN¥2.72m

    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$533.951m
    • 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 Analysis2020/01/22 12:59
    End of Day Share Price2020/01/22 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.