SEHK:3311

Stock Analysis Report

China State Construction International Holdings

Executive Summary

China State Construction International Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Mainland China, Macau, and internationally.


Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3311 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.0%

3311

-1.2%

HK Construction

-3.3%

HK Market


1 Year Return

-22.9%

3311

-28.4%

HK Construction

-9.6%

HK Market

Return vs Industry: 3311 exceeded the Hong Kong Construction industry which returned -28.4% over the past year.

Return vs Market: 3311 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

3311IndustryMarket
7 Day-7.0%-1.2%-3.3%
30 Day-9.1%-3.7%-3.8%
90 Day3.7%-4.3%-0.2%
1 Year-20.1%-22.9%-24.9%-28.4%-6.3%-9.6%
3 Year-47.0%-52.2%-37.6%-44.3%11.2%-0.05%
5 Year-32.0%-42.1%-26.0%-36.9%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China State Construction International Holdings 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: 3311 (HK$6.4) is trading below our estimate of fair value (HK$23.81)

Significantly Below Fair Value: 3311 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3311 is good value based on its PE Ratio (6.7x) compared to the Construction industry average (8.6x).

PE vs Market: 3311 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 3311 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3311 is good value based on its PB Ratio (0.7x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is China State Construction International Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3311's forecast earnings growth (14.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 3311's earnings (14.5% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

High Growth Earnings: 3311's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3311's revenue (12.2% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 3311's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3311's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has China State Construction International Holdings performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3311 has high quality earnings.

Growing Profit Margin: 3311's current net profit margins (8.6%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: 3311's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: 3311's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3311 had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Construction industry average (-2.9%).


Return on Equity

High ROE: 3311's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China State Construction International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3311's short term assets (HK$67.3B) exceed its short term liabilities (HK$60.3B).

Long Term Liabilities: 3311's short term assets (HK$67.3B) exceed its long term liabilities (HK$40.8B).


Debt to Equity History and Analysis

Debt Level: 3311's debt to equity ratio (102.2%) is considered high.

Reducing Debt: 3311's debt to equity ratio has increased from 87.5% to 102.2% over the past 5 years.

Debt Coverage: 3311's debt is not well covered by operating cash flow (1.4%).

Interest Coverage: 3311's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: 3311 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3311's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is China State Construction International Holdings's current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.4%industryaverage4.5%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: 3311's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 3311's dividend (4.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.42%).


Stability and Growth of Payments

Stable Dividend: 3311's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3311's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 3311's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3311's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Haipeng Zhang (43yo)

1.5yrs

Tenure

HK$5,627,000

Compensation

Mr. Haipeng Zhang has been Non-Executive Chairman of China State Construction Development Holdings Limited since August 18, 2018. Mr. Zhang joined CSCGL in 2000 and was seconded to CSCIHL in 2002. Mr. Zhan ...


CEO Compensation Analysis

Compensation vs Market: Haipeng's total compensation ($USD721.98K) is about average for companies of similar size in the Hong Kong market ($USD557.38K).

Compensation vs Earnings: Haipeng's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Haipeng Zhang
CEO & Executive Director1.5yrsHK$5.63mno data
Hancheng Zhou
Financial Controller & Executive Director15.8yrsHK$4.29m0.058% HK$19.2m
Shuchen Tian
VP & Executive Director9.5yrsHK$4.64mno data
Cheung Hung
VP & Executive Director8.7yrsHK$5.96m0.012% HK$3.9m
Jacky Zhou
General Manager of Corporate Finance1.3yrsno datano data
Hiu Fung Ko
Company Secretary0.5yrsno datano data
Wai Hung Chan
Assistant General Manager of China State Construction Engineering (Hong Kong) Limited0yrsno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 3311's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Haipeng Zhang
CEO & Executive Director1.5yrsHK$5.63mno data
Hancheng Zhou
Financial Controller & Executive Director15.8yrsHK$4.29m0.058% HK$19.2m
Shuchen Tian
VP & Executive Director9.5yrsHK$4.64mno data
Cheung Hung
VP & Executive Director8.7yrsHK$5.96m0.012% HK$3.9m
Man-Kiu Li
Independent Non-Executive Director14.7yrsHK$360.00k0.020% HK$6.7m
Hai Leung
Independent Non-Executive Director14.7yrsHK$250.00k0.016% HK$5.3m
Shing Lee
Independent Non-Executive Director14.4yrsHK$360.00k0.020% HK$6.7m
Sun Jie
Honorary Chairman0yrsno datano data
Jianguo Yan
Chairman0.9yrsno datano data

12.0yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 3311's board of directors are seasoned and experienced ( 12 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

China State Construction International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China State Construction International Holdings Limited
  • Ticker: 3311
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$33.122b
  • Shares outstanding: 5.05b
  • Website: https://www.csci.com.hk

Number of Employees


Location

  • China State Construction International Holdings Limited
  • China Overseas Building
  • 28th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
C4S1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2005
3311SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2005
CCOH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2005
3311SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2005
3311SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2005
CCOH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2009

Biography

China State Construction International Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Mainland China, Macau, and internationally. It builds public and private housings; buildings for the government and other institutions; commercial and industrial buildings, and hotels; and other building projects. The company also operates as a contractor in civil engineering works comprising general roads and drainage works, site formation, port works/reclamation, water and sewage treatment plants, bridges construction, tunnels, waterworks, and other special-function civil projects for the government. In addition, it is involved in undertaking foundation projects for the housing authority and private property developers; electrical and mechanical works for the government and semi-government bodies; and other subcontracted works, as well as site investigation, concrete production, and pre-casting activities. Further, the company provides insurance brokerage, project and construction management, project consultancy, and logistic services; designs, manufactures, and installs curtain walls, aluminum windows, and other related products; sells and distributes construction materials; issues guaranteed notes, as well as leases plant and machinery; generates and supplies heat and electricity; and manufactures and sells precast structures. Additionally, it engages in the marine engineering works and property investment activities; and infrastructure operation and investment, thermoelectricity, toll road operation, and property development and facade contracting businesses. The company was founded in 1979 and is headquartered in Wanchai, Hong Kong. China State Construction International Holdings Limited is a subsidiary of China Overseas Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:45
End of Day Share Price2020/02/27 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.