SEHK:3628

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RENHENG Enterprise Holdings

Executive Summary

RENHENG Enterprise Holdings Limited, an investment holding company, manufactures and sells tobacco machinery products in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has RENHENG Enterprise Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3628's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.3%

3628

-2.3%

HK Machinery

-3.7%

HK Market


1 Year Return

-75.4%

3628

11.1%

HK Machinery

-10.0%

HK Market

Return vs Industry: 3628 underperformed the Hong Kong Machinery industry which returned 11.1% over the past year.

Return vs Market: 3628 underperformed the Hong Kong Market which returned -10% over the past year.


Shareholder returns

3628IndustryMarket
7 Day-13.3%-2.3%-3.7%
30 Day-32.6%7.6%-1.5%
90 Day-54.5%-4.4%-8.8%
1 Year-75.4%-75.4%14.2%11.1%-6.9%-10.0%
3 Year-85.3%-85.3%41.7%32.8%-3.9%-13.7%
5 Year-84.5%-86.5%8.3%0.6%-16.3%-29.2%

Price Volatility Vs. Market

How volatile is RENHENG Enterprise Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RENHENG Enterprise 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: 3628 (HK$0.09) is trading below our estimate of fair value (HK$0.44)

Significantly Below Fair Value: 3628 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3628 is poor value based on its PE Ratio (104.1x) compared to the Machinery industry average (9x).

PE vs Market: 3628 is poor value based on its PE Ratio (104.1x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3628's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3628 is good value based on its PB Ratio (0.6x) compared to the HK Machinery industry average (0.8x).


Next Steps

Future Growth

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

6.8%

Forecasted Capital Goods industry annual growth in earnings


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 SimplyWall St do have past financial data.


Next Steps

Past Performance

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

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3628 has high quality earnings.

Growing Profit Margin: 3628's current net profit margins (1%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 3628's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: 3628's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3628 had negative earnings growth (-92.4%) over the past year, making it difficult to compare to the Machinery industry average (-8.3%).


Return on Equity

High ROE: 3628's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is RENHENG Enterprise Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3628's short term assets (HK$158.9M) exceed its short term liabilities (HK$74.2M).

Long Term Liabilities: 3628's short term assets (HK$158.9M) exceed its long term liabilities (HK$1.9M).


Debt to Equity History and Analysis

Debt Level: 3628's debt to equity ratio (3.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3628's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3628's debt is well covered by operating cash flow (225.1%).

Interest Coverage: Insufficient data to determine if 3628's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3628's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3628's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3628's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3628's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3628's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Li Liu (48yo)

4yrs

Tenure

HK$1,233,000

Compensation

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 overseein ...


CEO Compensation Analysis

Compensation vs Market: Li's total compensation ($USD159.06K) is about average for companies of similar size in the Hong Kong market ($USD225.40K).

Compensation vs Earnings: Li's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Li Liu
Chairman & CEO4yrsHK$1.23m74.63% HK$54.6m
Jiagui Xu
Executive Director5.75yrsHK$470.00k0.10% HK$72.8k
Wei Wu
Independent Non-Executive Director5.58yrsHK$120.00kno data
Hing Ki Kong
Independent Non-Executive Director8.58yrsHK$120.00kno data
Yiu Kit Wong
Independent Non-Executive Director8.58yrsHK$120.00kno data
Yang Liu
Vice GM & Director of Baoying Renhengno datano datano data

5.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 3628's board of directors are considered experienced (5.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RENHENG Enterprise Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RENHENG Enterprise Holdings Limited
  • Ticker: 3628
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$73.164m
  • Shares outstanding: 804.00m
  • Website: https://www.renhengenterprise.com

Number of Employees


Location

  • RENHENG Enterprise Holdings Limited
  • Far East Finance Centre
  • Room 3805
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3628SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2011

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 14:28
End of Day Share Price2020/05/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.