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RENHENG Enterprise Holdings

SEHK:3628
Snowflake Description

Excellent balance sheet with poor track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3628
SEHK
HK$229M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

RENHENG Enterprise Holdings Limited, an investment holding company, manufactures and sells tobacco machinery products in the People’s Republic of China. The last earnings update was 97 days ago. More info.


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  • RENHENG Enterprise Holdings has significant price volatility in the past 3 months.
3628 Share Price and Events
7 Day Returns
-5.2%
SEHK:3628
1.6%
HK Machinery
1%
HK Market
1 Year Returns
-52.6%
SEHK:3628
9%
HK Machinery
-4.7%
HK Market
3628 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RENHENG Enterprise Holdings (3628) -5.2% -9.8% 14.6% -52.6% -60.7% -14.7%
HK Machinery 1.6% 3.5% -10.2% 9% 60.1% 41.5%
HK Market 1% 3.9% -7.8% -4.7% 17.5% 2%
1 Year Return vs Industry and Market
  • 3628 underperformed the Machinery industry which returned 9% over the past year.
  • 3628 underperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
3628
Industry
5yr Volatility vs Market

3628 Value

 Is RENHENG Enterprise Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RENHENG Enterprise Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RENHENG Enterprise Holdings.

SEHK:3628 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3628
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 25%) (1.83%))
1.065
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.065 * 6.65%)
9.09%

Discounted Cash Flow Calculation for SEHK:3628 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RENHENG Enterprise Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3628 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.09%)
2020 2.69 Est @ -33.83% 2.46
2021 2.07 Est @ -23.08% 1.74
2022 1.74 Est @ -15.56% 1.34
2023 1.57 Est @ -10.29% 1.11
2024 1.46 Est @ -6.6% 0.95
2025 1.40 Est @ -4.02% 0.83
2026 1.37 Est @ -2.21% 0.75
2027 1.36 Est @ -0.95% 0.68
2028 1.36 Est @ -0.06% 0.62
2029 1.37 Est @ 0.56% 0.57
Present value of next 10 years cash flows HK$11.04
SEHK:3628 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$1.37 × (1 + 2%) ÷ (9.09% – 2%)
HK$19.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$19.67 ÷ (1 + 9.09%)10
HK$8.24
SEHK:3628 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$11.04 + HK$8.24
HK$19.29
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$19.29 / 804.00
HK$0.02
SEHK:3628 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.02
Current discount Discount to share price of HK$0.28
= -1 x (HK$0.28 - HK$0.02) / HK$0.02
-1046.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of RENHENG Enterprise Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RENHENG Enterprise Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RENHENG Enterprise Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3628 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.01
SEHK:3628 Share Price ** SEHK (2019-07-18) in HKD HK$0.28
Hong Kong Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 9.18x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RENHENG Enterprise Holdings.

SEHK:3628 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3628 Share Price ÷ EPS (both in HKD)

= 0.28 ÷ 0.01

23.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RENHENG Enterprise Holdings is overvalued based on earnings compared to the HK Machinery industry average.
  • RENHENG Enterprise Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does RENHENG Enterprise Holdings's expected growth come at a high price?
Raw Data
SEHK:3628 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Hong Kong Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 0.71x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for RENHENG Enterprise Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on RENHENG Enterprise Holdings's assets?
Raw Data
SEHK:3628 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.14
SEHK:3628 Share Price * SEHK (2019-07-18) in HKD HK$0.28
Hong Kong Machinery Industry PB Ratio Median Figure of 50 Publicly-Listed Machinery Companies 0.98x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:3628 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3628 Share Price ÷ Book Value per Share (both in HKD)

= 0.28 ÷ 0.14

1.92x

* Primary Listing of RENHENG Enterprise Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RENHENG Enterprise Holdings is overvalued based on assets compared to the HK Machinery industry average.
X
Value checks
We assess RENHENG Enterprise Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. RENHENG Enterprise Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3628 Future Performance

 How is RENHENG Enterprise Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 RENHENG Enterprise 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.3%
Expected Machinery industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RENHENG Enterprise Holdings expected to grow at an attractive rate?
  • Unable to compare RENHENG Enterprise Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare RENHENG Enterprise Holdings's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare RENHENG Enterprise Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:3628 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 13.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3628 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3628 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 101 5 9
2018-09-30 96 11 6
2018-06-30 91 17 2
2018-03-31 67 0 0
2017-12-31 44 -18 -3
2017-09-30 38 -6 -8
2017-06-30 32 6 -14
2017-03-31 36 12 -13
2016-12-31 40 18 -13
2016-09-30 45 7 -10
2016-06-30 50 -4 -6
2016-03-31 60 7 -3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if RENHENG Enterprise Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if RENHENG Enterprise Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3628 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from RENHENG Enterprise Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3628 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.01
2018-09-30 0.01
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 -0.01
2017-06-30 -0.02
2017-03-31 -0.02
2016-12-31 -0.02
2016-09-30 -0.01
2016-06-30 -0.01
2016-03-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RENHENG Enterprise Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine RENHENG Enterprise Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. RENHENG Enterprise Holdings's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. RENHENG Enterprise Holdings's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess RENHENG Enterprise Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RENHENG Enterprise Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3628 Past Performance

  How has RENHENG Enterprise Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RENHENG Enterprise Holdings's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RENHENG Enterprise Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • RENHENG Enterprise Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • RENHENG Enterprise Holdings has become profitable in the last year making it difficult to compare the HK Machinery industry average.
Earnings and Revenue History
RENHENG Enterprise Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RENHENG Enterprise Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3628 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 101.04 9.22 27.02
2018-09-30 96.01 5.73 30.04
2018-06-30 90.97 2.24 31.21 1.85
2018-03-31 67.32 -0.50 27.44 1.85
2017-12-31 43.67 -3.23 25.53
2017-09-30 38.02 -8.43 24.82 1.36
2017-06-30 32.36 -13.64 24.10 2.72
2017-03-31 36.23 -13.31 24.50 2.72
2016-12-31 40.11 -12.99 24.89 2.72
2016-09-30 44.90 -9.59 23.91 2.32
2016-06-30 49.68 -6.19 22.93 1.92
2016-03-31 59.53 -2.50 24.64 2.42
2015-12-31 69.38 1.18 26.35 2.93
2015-09-30 80.24 5.46 26.08 3.28
2015-06-30 91.11 9.74 25.81 3.63
2015-03-31 94.29 10.17 24.80 5.13
2014-12-31 97.47 10.61 23.80 6.62
2014-09-30 130.35 23.22 29.73 6.75
2014-06-30 135.98 28.32 29.78 7.00
2014-03-31 137.25 28.20 31.10 7.08
2013-12-31 133.87 27.93 29.89 7.01
2013-09-30 135.41 29.88 24.38 9.85
2013-06-30 137.28 30.63 24.53 10.13
2013-03-31 149.02 32.15 24.28 10.76
2012-12-31 145.46 29.69 24.46 10.29
2012-09-30 153.11 28.63 23.86 7.95

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RENHENG Enterprise Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RENHENG Enterprise Holdings used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.
  • RENHENG Enterprise Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RENHENG Enterprise Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RENHENG Enterprise Holdings has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3628 Health

 How is RENHENG Enterprise Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RENHENG Enterprise Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RENHENG Enterprise Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RENHENG Enterprise Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RENHENG Enterprise Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 37.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RENHENG Enterprise Holdings Company Filings, last reported 6 months ago.

SEHK:3628 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 115.29 4.20 61.10
2018-09-30 115.29 4.20 61.10
2018-06-30 113.94 2.00 64.09
2018-03-31 113.94 2.00 64.09
2017-12-31 112.46 0.00 50.46
2017-09-30 112.46 0.00 50.46
2017-06-30 108.51 0.00 19.24
2017-03-31 108.51 0.00 19.24
2016-12-31 109.11 0.00 68.29
2016-09-30 109.11 0.00 68.29
2016-06-30 126.48 0.00 6.55
2016-03-31 126.48 0.00 6.55
2015-12-31 128.61 0.00 60.92
2015-09-30 128.61 0.00 60.92
2015-06-30 256.15 0.00 45.90
2015-03-31 256.15 0.00 45.90
2014-12-31 254.07 0.00 158.34
2014-09-30 254.07 0.00 158.34
2014-06-30 248.91 0.00 147.59
2014-03-31 248.91 0.00 147.59
2013-12-31 245.87 0.00 158.59
2013-09-30 219.77 0.00 136.81
2013-06-30 219.77 0.00 136.81
2013-03-31 210.22 0.00 120.69
2012-12-31 210.22 0.00 120.69
2012-09-30
  • RENHENG Enterprise Holdings's level of debt (3.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 3.6% today).
  • Debt is well covered by operating cash flow (127.7%, greater than 20% of total debt).
  • RENHENG Enterprise Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess RENHENG Enterprise Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RENHENG Enterprise Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3628 Dividends

 What is RENHENG Enterprise Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from RENHENG Enterprise Holdings dividends.
If you bought HK$2,000 of RENHENG Enterprise Holdings shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate RENHENG Enterprise Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate RENHENG Enterprise Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3628 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as RENHENG Enterprise Holdings has not reported any payouts.
  • Unable to verify if RENHENG Enterprise Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of RENHENG Enterprise Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as RENHENG Enterprise Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RENHENG Enterprise Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RENHENG Enterprise Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RENHENG Enterprise Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3628 Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Li Liu
COMPENSATION HK$1,233,000
AGE 48
TENURE AS CEO 3.2 years
CEO Bio

Ms. Li Liu has been the Chairman and Chief Executive Officer of RENHENG Enterprise Holdings Limited since May 4, 2016 and its Executive Director since February 2, 2011. Ms. Liu is responsible for overseeing the human resources and administration functions. Ms. Liu is principally responsible for the treasury, human resources and administrative functions. Since February 2007, she has been a Director of Yanlord Industry Investment and has been responsible for overseeing the operation of Baoying Renheng thereafter since the completion of the transfer of equity interest in Baoying Renheng from Yanlord Industrial to Yanlord Industry Investment in 2008. She obtained a Bachelor's degree in Sport Management from Beijing Sport University (formerly known as Beijing Institute of Physical Education) in July 1992.

CEO Compensation
  • Li's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Li's remuneration is about average for companies of similar size in Hong Kong.
Management Team

Li Liu

TITLE
Chairman & CEO
COMPENSATION
HK$1M
AGE
48
TENURE
3.2 yrs

Jiagui Xu

TITLE
Executive Director
COMPENSATION
HK$285K
AGE
52

Wai Ting Law

TITLE
Financial Controller & Secretary
TENURE
1.8 yrs

Zhanqi An

TITLE
Head of Technical Department & Procurement Department
AGE
60
Board of Directors Tenure

Average tenure and age of the RENHENG Enterprise Holdings board of directors in years:

4.9
Average Tenure
48
Average Age
  • The tenure for the RENHENG Enterprise Holdings board of directors is about average.
Board of Directors

Li Liu

TITLE
Chairman & CEO
COMPENSATION
HK$1M
AGE
48
TENURE
3.2 yrs

Jiagui Xu

TITLE
Executive Director
COMPENSATION
HK$285K
AGE
52
TENURE
4.9 yrs

Ernest Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
51
TENURE
7.8 yrs

Hing Ki Kong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
48
TENURE
7.8 yrs

Roger Wu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
46
TENURE
4.8 yrs

Yang Liu

TITLE
Vice GM & Director of Baoying Renheng
AGE
46
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess RENHENG Enterprise Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RENHENG Enterprise Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3628 News

Simply Wall St News

Is RENHENG Enterprise Holdings Limited's (HKG:3628) CEO Overpaid Relative To Its Peers?

View our latest analysis for RENHENG Enterprise Holdings How Does Li Liu's Compensation Compare With Similar Sized Companies? … Our data indicates that RENHENG Enterprise Holdings Limited is worth HK$306m, and total annual CEO compensation is HK$1.2m. … SEHK:3628 CEO Compensation, June 3rd 2019 Is RENHENG Enterprise Holdings Limited Growing?

Simply Wall St -

Are RENHENG Enterprise Holdings Limited’s (HKG:3628) Returns On Investment Worth Your While?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for RENHENG Enterprise Holdings: 0.087 = HK$10m ÷ (HK$188m - HK$71m) (Based on the trailing twelve months to December 2018.) So, RENHENG Enterprise Holdings has an ROCE of 8.7%. … How RENHENG Enterprise Holdings's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … RENHENG Enterprise Holdings's middling level of current liabilities have the effect of boosting its ROCE a bit.

Simply Wall St -

Some RENHENG Enterprise Holdings Shareholders Have Copped A Big 70% Share Price Drop

Regrettably, they have had to cope with a 70% drop in the share price over that period. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, RENHENG Enterprise Holdings moved from a loss to profitability.

Simply Wall St -

RENHENG Enterprise Holdings Limited’s (HKG:3628) Investment Returns Are Lagging Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is RENHENG Enterprise Holdings Limited's (HKG:3628) CEO Pay Justified?

Li Liu has been the CEO of RENHENG Enterprise Holdings Limited (HKG:3628) since 2016. … See our latest analysis for RENHENG Enterprise Holdings? … At the time of writing our data says that RENHENG Enterprise Holdings Limited has a market cap of HK$346m, and is paying total annual CEO compensation of HK$978k.

Simply Wall St -

Should You Be Concerned About RENHENG Enterprise Holdings Limited's (HKG:3628) ROE?

We'll use ROE to examine RENHENG Enterprise Holdings Limited (HKG:3628), by way of a worked example. … Our data shows RENHENG Enterprise Holdings has a return on equity of 2.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How RENHENG Enterprise Holdings Limited's (HKG:3628) Earnings Growth Stacks Up Against The Industry

In this commentary, I will examine RENHENG Enterprise Holdings Limited's (HKG:3628) latest earnings update (30 June 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the machinery industry performed. … See our latest analysis for RENHENG Enterprise Holdings? … 3628's trailing twelve-month earnings (from 30 June 2018) of HK$2.24m has

Simply Wall St -

Are RENHENG Enterprise Holdings Limited's (HKG:3628) Interest Costs Too High?

Zero-debt allows substantial financial flexibility, especially for small-cap companies like RENHENG Enterprise Holdings Limited (HKG:3628), as the company does not have to adhere to strict debt covenants. … However, it also faces higher cost of capital given interest cost is generally lower than equity. … Does 3628's growth rate justify its decision for financial flexibility over lower cost of capital

Simply Wall St -

3628 Company Info

Description

RENHENG Enterprise Holdings Limited, an investment holding company, manufactures and sells tobacco machinery products in the People’s Republic of China. It offers special-purpose tobacco machinery products, such as casing and flavoring systems, pneumatic feeding systems, and pre-pressing packing machines. The company also provides non-catalogued ancillary tobacco machinery, including dedusting systems and swelling agent delivery systems; and maintenance, overhaul, and modification services. RENHENG Enterprise Holdings Limited was incorporated in 2011 and is headquartered in Admiralty, Hong Kong.

Details
Name: RENHENG Enterprise Holdings Limited
3628
Exchange: SEHK
Founded: 2011
HK$229,140,000
804,000,000
Website: http://www.renhengenterprise.com
Address: RENHENG Enterprise Holdings Limited
Far East Finance Centre,
Room 3805,
Admiralty,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3628 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 18. Nov 2011
Number of employees
Current staff
Staff numbers
129
RENHENG Enterprise Holdings employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 12:59
End of day share price update: 2019/07/18 00:00
Last earnings filing: 2019/04/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.