SEHK:317

Stock Analysis Report

CSSC Offshore & Marine Engineering (Group)

Executive Summary

CSSC Offshore & Marine Engineering (Group) Company Limited operates in the shipbuilding industry.

Snowflake

Excellent balance sheet with reasonable growth potential.

Share Price & News

How has CSSC Offshore & Marine Engineering (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 317's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.4%

317

-5.2%

HK Machinery

-4.2%

HK Market


1 Year Return

-2.7%

317

21.1%

HK Machinery

-2.6%

HK Market

Return vs Industry: 317 underperformed the Hong Kong Machinery industry which returned 21.1% over the past year.

Return vs Market: 317 matched the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

317IndustryMarket
7 Day-6.4%-5.2%-4.2%
30 Day-2.9%3.2%-1.4%
90 Day-17.5%10.7%3.5%
1 Year-2.7%-2.7%24.6%21.1%0.9%-2.6%
3 Year-51.1%-51.1%62.4%52.0%19.6%7.6%
5 Year-75.1%-75.2%40.2%28.4%18.6%-1.0%

Price Volatility Vs. Market

How volatile is CSSC Offshore & Marine Engineering (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CSSC Offshore & Marine Engineering (Group) undervalued compared to its fair value and its price relative to the market?

0.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 317 (HK$5.67) is trading above our estimate of fair value (HK$0.53)

Significantly Below Fair Value: 317 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 317 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: 317 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 317's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 317 is good value based on its PB Ratio (0.7x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is CSSC Offshore & Marine Engineering (Group) forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

127.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 317 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: 317 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 317's is expected to become profitable in the next 3 years.

Revenue vs Market: 317's revenue (14.8% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 317's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 317's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has CSSC Offshore & Marine Engineering (Group) performed over the past 5 years?

-62.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 317 has large one-off items impacting its financial results.

Growing Profit Margin: 317's current net profit margins (-6.3%) are lower than last year (-2.8%).


Past Earnings Growth Analysis

Earnings Trend: 317 is unprofitable, and losses have increased over the past 5 years at a rate of -62.4% per year.

Accelerating Growth: Unable to compare 317's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 317 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (5.7%).


Return on Equity

High ROE: 317 has a negative Return on Equity (-11.28%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CSSC Offshore & Marine Engineering (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 317's short term assets (CN¥27.2B) exceeds its short term liabilities (CN¥23.7B)

Long Term Liabilities: 317's short term assets (27.2B) exceeds its long term liabilities (7.4B)


Debt to Equity History and Analysis

Debt Level: 317's debt to equity ratio (85.9%) is considered high

Reducing Debt: 317's debt to equity ratio has reduced from 190.2% to 85.9% over the past 5 years.


Balance Sheet

Inventory Level: 317 has a high level of physical assets or inventory.

Debt Coverage by Assets: 317's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 317 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 317 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 14.5% each year


Next Steps

Dividend

What is CSSC Offshore & Marine Engineering (Group)'s current dividend yield, its reliability and sustainability?

1.07%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage3.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 317's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 317'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 317's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 317's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 317 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 317'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 CSSC Offshore & Marine Engineering (Group)'s salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Liping Chen (52yo)

0yrs

Tenure

CN¥832,505

Compensation

Mr. Liping Chen serves as Deputy Director of the Board of CSSC Guangzhou Longxue Shipbuilding Co., Ltd. He served as Chief Accountant at Guangzhou Shipyard International Co. Ltd. Mr. Chen previously serve ...


CEO Compensation Analysis

Compensation vs Market: Liping's total compensation ($USD118.80K) is below average for companies of similar size in the Hong Kong market ($USD488.74K).

Compensation vs Earnings: Liping's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 317's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 317's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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.


Management Team

  • Zhidong Li (53yo)

    Secretary of the Board & Company Secretary

    • Tenure: 3.1yrs
  • Liping Chen (52yo)

    GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥832.51k
  • Guangde Han (57yo)

    Chairman & MD

    • Tenure: 6.2yrs
    • Compensation: CN¥581.50k
  • Zengquan Hou (49yo)

    CFO & Deputy Chief Accountant

    • Tenure: 2yrs
  • Ji Chen (52yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥841.07k
  • Zhongqian Chen (56yo)

    Vice Chairman

    • Tenure: 4.3yrs
    • Compensation: CN¥777.85k
  • Huiming Xiang (53yo)

    Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥809.23k
  • Weihong Xie

    Head of Accounting Department

    • Tenure: 0yrs
  • Jigang Sheng (51yo)

    Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥531.55k

Board Members

  • Liping Chen (52yo)

    GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥832.51k
  • Guangde Han (57yo)

    Chairman & MD

    • Tenure: 6.2yrs
    • Compensation: CN¥581.50k
  • Ji Chen (52yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥841.07k
  • Zhongqian Chen (56yo)

    Vice Chairman

    • Tenure: 4.3yrs
    • Compensation: CN¥777.85k
  • Huiming Xiang (53yo)

    Executive Director

    • Tenure: 4.5yrs
    • Compensation: CN¥809.23k
  • Yichu Wang (60yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥200.00k
  • Weiguo Min (54yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥200.00k
  • Renhuai Liu (79yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥176.11k
  • Jun Shi (45yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Jigang Sheng (51yo)

    Executive Director

    • Tenure: 0.9yrs
    • Compensation: CN¥531.55k

Company Information

CSSC Offshore & Marine Engineering (Group) Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CSSC Offshore & Marine Engineering (Group) Company Limited
  • Ticker: 317
  • Exchange: SEHK
  • Founded: 1954
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$16.833b
  • Shares outstanding: 1.41b
  • Website: https://comec.cssc.net.cn

Number of Employees


Location

  • CSSC Offshore & Marine Engineering (Group) Company Limited
  • Marine Tower
  • 15th Floor
  • Guangzhou
  • Guangdong Province
  • 510250
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
317SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 1993
GSZDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 1993
317SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 1993
317SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDSep 1993
600685SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJun 1994
600685XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJun 1994

Biography

CSSC Offshore & Marine Engineering (Group) Company Limited operates in the shipbuilding industry. It designs, manufactures, and repairs ships, electrical and general machinery, and steel structures; manufa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 12:37
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.