SEHK:363

Stock Analysis Report

Shanghai Industrial Holdings

Executive Summary

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure facilities, real estate, and consumer products businesses in Hong Kong and the People’s Republic of China.

Snowflake

Fundamentals

Established dividend payer and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

SEHK:363

0.9%

HK Industrials

1.2%

HK Market


1 Year Return

-14.6%

SEHK:363

-18.4%

HK Industrials

-9.5%

HK Market

363 outperformed the Industrials industry which returned -18.4% over the past year.

363 underperformed the Market in Hong Kong which returned -9.5% over the past year.


Share holder returns

363IndustryMarket
7 Day1.9%0.9%1.2%
30 Day-10.6%-10.6%-8.0%
90 Day-9.8%-10.6%-5.9%
1 Year-9.4%-14.6%-15.2%-18.4%-6.2%-9.5%
3 Year-13.9%-25.3%-13.8%-22.1%14.5%3.1%
5 Year-28.5%-42.6%-13.3%-39.7%8.5%-9.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.54%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Shanghai Industrial Holdings is good value based on earnings compared to the HK Industrials industry average.

Shanghai Industrial Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Shanghai Industrial Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Shanghai Industrial Holdings is good value based on assets compared to the HK Industrials industry average.


Next Steps

Future Growth

How is Shanghai Industrial Holdings expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shanghai Industrial Holdings's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Shanghai Industrial Holdings's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Shanghai Industrial Holdings's revenue growth is positive but not above the Hong Kong market average.

Shanghai Industrial Holdings's earnings growth is positive but not above the Hong Kong market average.

Shanghai Industrial Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Shanghai Industrial Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Shanghai Industrial Holdings performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shanghai Industrial Holdings's year on year earnings growth rate has been positive over the past 5 years.

Shanghai Industrial Holdings's 1-year earnings growth exceeds its 5-year average (6.3% vs 4%)

Shanghai Industrial Holdings's earnings growth has not exceeded the HK Industrials industry average in the past year (6.3% vs 6.4%).


Return on Equity

Shanghai Industrial Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shanghai Industrial Holdings used its assets less efficiently than the HK Industrials industry average last year based on Return on Assets.


Return on Capital Employed

Shanghai Industrial Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shanghai Industrial Holdings's financial position?


Financial Position Analysis

Shanghai Industrial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shanghai Industrial Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shanghai Industrial Holdings's level of debt (74.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (72.7% vs 74.4% today).

Debt is not well covered by operating cash flow (0.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

What is Shanghai Industrial Holdings's current dividend yield, its reliability and sustainability?

7.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Shanghai Industrial Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Shanghai Industrial Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.19%).

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 (3.1x coverage).


Future Payout to Shareholders

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Jun Zhou (50yo)

3.0yrs

Tenure

HK$5,615,000

Compensation

Mr. Jun Zhou has been Vice Chairman and Chief Executive Officer of Shanghai Industrial Investment (Holding) Co., Ltd. since August 25, 2016 and serves as its Executive Director. Mr. Zhou has been the Presi ...


CEO Compensation Analysis

Jun's remuneration is higher than average for companies of similar size in Hong Kong.

Jun's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

The tenure for the Shanghai Industrial Holdings management team is about average.


Board Age and Tenure

4.9yrs

Average Tenure

60.5yo

Average Age

The tenure for the Shanghai Industrial Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$2,848,00502 Apr 19
Shanghai Industrial Investment (Holding) Co., Ltd.
EntityCompany
Shares150,000
Max PriceHK$18.99
BuyHK$1,617,00004 Jan 19
Jun Zhou
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & CEO
Shares105,000
Max PriceHK$15.40

Ownership Breakdown


Management Team

  • Cherie Chan (51yo)

    CFO & Assistant CEO

    • Tenure: 14.9yrs
  • Jun Zhou (50yo)

    Vice Chairman & CEO

    • Tenure: 3.0yrs
    • Compensation: HK$5.62m
  • Jackson Yee (55yo)

    Company Secretary and Chief Legal & Compliance Officer

    • Tenure: 0.0yrs
  • Xiaobing Xu (51yo)

    Deputy Chief Executive Officer

    • Tenure: 2.8yrs
  • Bo Xu (57yo)

    Deputy CEO & Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$2.82m
  • Han Sheng Li (55yo)

    Deputy Chief Executive Officer

    • Tenure: 7.3yrs
  • Zhan Xu (50yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$521.00k
  • Yi Chen (58yo)

    Executive

    • Tenure: 0.0yrs
  • Xiao Chu Shen (57yo)

    Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$4.57m

Board Members

  • Francis Yuen (67yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$440.00k
  • Vincent Cheng (71yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$449.00k
  • Chia-Wei Woo (81yo)

    Independent Non-Executive Director

    • Tenure: 23.4yrs
    • Compensation: HK$450.00k
  • Francis Leung (64yo)

    Independent Non-Executive Director

    • Tenure: 23.4yrs
    • Compensation: HK$440.00k
  • Jun Zhou (50yo)

    Vice Chairman & CEO

    • Tenure: 3.0yrs
    • Compensation: HK$5.62m
  • Bo Xu (57yo)

    Deputy CEO & Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$2.82m
  • Zhan Xu (50yo)

    Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$521.00k
  • Xiao Chu Shen (57yo)

    Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$4.57m

Company Information

Shanghai Industrial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Industrial Holdings Limited
  • Ticker: 363
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$16.569b
  • Shares outstanding: 1.09b
  • Website: https://www.sihl.com.hk

Number of Employees


Location

  • Shanghai Industrial Holdings Limited
  • Harcourt House
  • 26th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGHI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1996
SGIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1996
363SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1996
363SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1996
363SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1996
SGHI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2002

Biography

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure facilities, real estate, and consumer products businesses in Hong Kong and the People’s Republic of China. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:41
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
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.