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

Good value 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

-2.5%

3311

-1.1%

HK Construction

-2.7%

HK Market


1 Year Return

-6.3%

3311

-20.0%

HK Construction

-9.4%

HK Market

3311 outperformed the Construction industry which returned -20% over the past year.

3311 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

3311IndustryMarket
7 Day-2.5%-1.1%-2.7%
30 Day12.6%3.9%1.8%
90 Day-7.2%-13.4%-5.6%
1 Year-2.9%-6.3%-16.6%-20.0%-6.2%-9.4%
3 Year-18.1%-26.1%-21.9%-29.9%14.3%2.7%
5 Year-23.6%-35.0%1.6%-13.9%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China State Construction International Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

China State Construction International Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

China State Construction International Holdings is good value based on earnings compared to the HK Construction industry average.

China State Construction International Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China State Construction International Holdings is good value based on expected growth next year.


Price Based on Value of Assets

China State Construction International Holdings is good value based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

How is China State Construction International Holdings expected 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 Estimates


Future Annual Growth Analysis

China State Construction International Holdings's revenue is expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).

China State Construction International Holdings's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).

China State Construction International Holdings's revenue growth is expected to exceed the Hong Kong market average.

China State Construction International Holdings's earnings growth is expected to exceed the Hong Kong market average.

China State Construction International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China State Construction International Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

China State Construction International Holdings's year on year earnings growth rate has been positive over the past 5 years.

China State Construction International Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

China State Construction International Holdings's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.


Return on Equity

China State Construction International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China State Construction International Holdings used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

China State Construction International Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

China State Construction International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China State Construction International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China State Construction International Holdings's level of debt (102.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (87.5% vs 102.2% today).

Debt is not well covered by operating cash flow (1.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).


Balance Sheet

Low level of unsold assets.

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?

4.95%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China State Construction International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

China State Construction International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


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?

0.9yrs

Average management tenure


CEO

Haipeng Zhang (43yo)

1.1yrs

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

Haipeng's remuneration is about average for companies of similar size in Hong Kong.

Haipeng's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

0.9yrs

Average Tenure

51yo

Average Age

The average tenure for the China State Construction International Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

11.5yrs

Average Tenure

52.5yo

Average Age

The average tenure for the China State Construction International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

China State Construction International Holdings individual insiders have only sold shares 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
BuyHK$5,959,00124 Oct 18
China Construction Engineering Corp.
EntityCompany
Shares1,000,000
Max PriceHK$5.96
BuyHK$7,417,12823 Oct 18
China Construction Engineering Corp.
EntityCompany
Shares1,180,000
Max PriceHK$6.29

Ownership Breakdown


Management Team

  • Cheung Hung (60yo)

    VP & Executive Director

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

    Company Secretary

    • Tenure: 0.08yrs
  • Shuchen Tian (53yo)

    VP & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$4.64m
  • Hancheng Zhou (49yo)

    Financial Controller & Executive Director

    • Tenure: 15.4yrs
    • 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: 1.1yrs
    • Compensation: HK$5.63m
  • Jacky Zhou

    General Manager of Corporate Finance

    • Tenure: 0.9yrs

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: 14yrs
    • Compensation: HK$360.00k
  • Shuchen Tian (53yo)

    VP & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$4.64m
  • Sun Jie

    Honorary Chairman

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

    Financial Controller & Executive Director

    • Tenure: 15.4yrs
    • Compensation: HK$4.29m
  • Jianguo Yan (52yo)

    Chairman

    • Tenure: 0.5yrs
  • Haipeng Zhang (43yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • 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$39.181b
  • 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 Analysis2019/09/21 12:46
End of Day Share Price2019/09/20 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.