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

Fundamentals

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


Market Performance


7 Day Return

5.6%

3311

0.6%

HK Construction

0.3%

HK Market


1 Year Return

25.0%

3311

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: 3311 exceeded the Hong Kong Construction industry which returned -14.9% over the past year.

Return vs Market: 3311 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

3311IndustryMarket
7 Day5.6%0.6%0.3%
30 Day-4.1%-4.7%0.5%
90 Day-6.4%-10.5%-4.6%
1 Year29.5%25.0%-11.1%-14.9%4.9%1.3%
3 Year-27.3%-34.4%-25.3%-33.6%15.3%3.7%
5 Year-23.5%-34.9%0.004%-15.1%20.0%-0.006%

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?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3311 (HK$7.5) is trading below our estimate of fair value (HK$7.79)

Significantly Below Fair Value: 3311 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3311 is good value based on its PE Ratio (7.8x) compared to the Construction industry average (10.3x).

PE vs Market: 3311 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3311 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3311 is good value based on its PB Ratio (0.8x) compared to the HK Construction industry average (1.1x).


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 16 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3311's forecast earnings growth (14.2% per year) is above the savings rate (2%).

Earnings vs Market: 3311's earnings (14.2% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 3311's revenue (12.8% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 3311's revenue (12.8% 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 (14.3%).


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


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 (-12.4%).


Return on Equity

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


Return on Assets

ROA vs Industry: 3311's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 3311 has improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (HK$60.3B)

Long Term Liabilities: 3311's short term assets (67.3B) exceeds its long term liabilities (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?

3.73%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3311's dividend (3.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3311's dividend (3.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

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 (30.7% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Haipeng Zhang (43yo)

1.2yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 3311's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

11.6yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 3311's board of directors are seasoned and experienced ( 11.6 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.


Recent Insider Transactions

SellHK$6,264,00219 Jul 19
Shuchen Tian
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares800,000
Max PriceHK$7.83
SellHK$13,945,92019 Jul 19
Shuchen Tian
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares1,752,000
Max PriceHK$7.96
SellHK$7,498,68119 Jul 19
Shuchen Tian
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares948,000
Max PriceHK$7.91
SellHK$3,215,99919 Jul 19
Shuchen Tian
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares402,000
Max PriceHK$8.00
SellHK$776,16019 Jul 19
Shuchen Tian
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares98,000
Max PriceHK$7.92
BuyHK$7,130,00223 May 19
GIC Pte. Ltd.
EntityCompany
Shares946,000
Max PriceHK$7.54
BuyHK$5,780,50325 Oct 18
China Construction Engineering Corp.
EntityCompany
Shares1,000,000
Max PriceHK$5.78

Ownership Breakdown


Management Team

  • Cheung Hung (60yo)

    VP & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$5.96m
  • Eddy Ko (45yo)

    Company Secretary

    • Tenure: 0.2yrs
  • Shuchen Tian (53yo)

    VP & Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$4.64m
  • Hancheng Zhou (49yo)

    Financial Controller & Executive Director

    • Tenure: 15.5yrs
    • Compensation: HK$4.29m
  • Wai Hung Chan (61yo)

    Assistant General Manager of China State Construction Engineering (Hong Kong) Limited

    • Tenure: 0yrs
  • Haipeng Zhang (43yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$5.63m
  • Jacky Zhou

    General Manager of Corporate Finance

    • Tenure: 1yrs

Board Members

  • Adrian David Li (46yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$360.00k
  • Cheung Hung (60yo)

    VP & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$5.96m
  • Raymond Leung (64yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$250.00k
  • Shing Lee (77yo)

    Independent Non-Executive Director

    • Tenure: 14.1yrs
    • Compensation: HK$360.00k
  • Shuchen Tian (53yo)

    VP & Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$4.64m
  • Sun Jie

    Honorary Chairman

    • Tenure: 0yrs
  • Hancheng Zhou (49yo)

    Financial Controller & Executive Director

    • Tenure: 15.5yrs
    • Compensation: HK$4.29m
  • Jianguo Yan (52yo)

    Chairman

    • Tenure: 0.6yrs
  • Haipeng Zhang (43yo)

    CEO & Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$5.63m

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$36.960b
  • 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 p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:41
End of Day Share Price2019/10/23 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.