SEHK:3899

Stock Analysis Report

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Executive Summary

CIMC Enric Holdings Limited designs, develops, manufactures, engineers, sells, and maintains transportation, storage, and processing equipment for the energy, chemicals, and liquid food industries worldwide. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3899 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

3899

-0.3%

HK Machinery

1.9%

HK Market


1 Year Return

-15.0%

3899

41.6%

HK Machinery

1.5%

HK Market

Return vs Industry: 3899 underperformed the Hong Kong Machinery industry which returned 43.9% over the past year.

Return vs Market: 3899 underperformed the Hong Kong Market which returned 2% over the past year.


Shareholder returns

3899IndustryMarket
7 Day7.6%-0.3%1.9%
30 Day23.4%4.3%3.6%
90 Day15.5%4.6%2.8%
1 Year-9.7%-15.0%45.0%41.6%5.8%1.5%
3 Year-22.7%-29.4%50.7%39.2%-5.0%-15.4%
5 Year-16.2%-25.5%112.3%94.4%17.1%-2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CIMC Enric Holdings undervalued compared to its fair value and its price relative to the market?

25.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3899 (HK$3.8) is trading below our estimate of fair value (HK$5.1)

Significantly Below Fair Value: 3899 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3899 is good value based on its PE Ratio (8.7x) compared to the HK Machinery industry average (12.7x).

PE vs Market: 3899 is good value based on its PE Ratio (8.7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 3899 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3899's PB Ratio (0.9x) is in line with the HK Machinery industry average.


Next Steps

Future Growth

How is CIMC Enric Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3899's forecast earnings growth (18.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 3899's earnings (18.9% per year) are forecast to grow slower than the Hong Kong market (22.3% per year).

High Growth Earnings: 3899's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3899's revenue (10.1% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 3899's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3899's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has CIMC Enric Holdings performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3899 has high quality earnings.

Growing Profit Margin: 3899's current net profit margins (6%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 3899's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: 3899's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3899 had negative earnings growth (-13.5%) over the past year, making it difficult to compare to the Machinery industry average (-1.6%).


Return on Equity

High ROE: 3899's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is CIMC Enric Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3899's short term assets (CN¥11.0B) exceed its short term liabilities (CN¥7.6B).

Long Term Liabilities: 3899's short term assets (CN¥11.0B) exceed its long term liabilities (CN¥915.8M).


Debt to Equity History and Analysis

Debt Level: 3899's debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: 3899's debt to equity ratio has increased from 6.5% to 16.6% over the past 5 years.

Debt Coverage: 3899's debt is well covered by operating cash flow (115.4%).

Interest Coverage: 3899's interest payments on its debt are well covered by EBIT (28.4x coverage).


Balance Sheet


Next Steps

Dividend

What is CIMC Enric Holdings's current dividend yield, its reliability and sustainability?

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3899's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 3899's dividend (5.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


Stability and Growth of Payments

Stable Dividend: 3899 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3899's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.8%), 3899's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3899's dividends in 3 years are forecast to be well covered by earnings (43.9% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Xiaohu Yang (45 yo)

3yrs

Tenure

CN¥3,710,000

Compensation

Mr. Xiaohu Yang serves as General Manager and Executive Director at CIMC Enric Holdings Limited since October 27, 2017. Mr. Yang had served as Deputy General Manager of CIMC Enric Holdings Limited since Ap ...


CEO Compensation Analysis

Compensation vs Market: Xiaohu's total compensation ($USD557.89K) is about average for companies of similar size in the Hong Kong market ($USD476.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiang Gao
Executive Chairman5.5yrsCN¥938.00k0.050%
CN¥ 3.8m
Xiaohu Yang
GM & Executive Director3yrsCN¥3.71m0.060%
CN¥ 4.6m
Siu Fai Cheong
Financial Controller & Company Secretaryno dataCN¥643.45kno data
Baoying Yang
Chief Officer of Science & Technology Management Department and Deputy GM2.75yrsno datano data
Caixing Shi
Deputy General Manager8.42yrsCN¥6.00kno data
Wenbao Gao
Deputy General Manager4.75yrsno datano data
Huo Lating
Deputy General Manager4.75yrsno datano data
Ko Brink
Deputy General Manager1.75yrsno datano data

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 3899's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiang Gao
Executive Chairman5.5yrsCN¥938.00k0.050%
CN¥ 3.8m
Xiaohu Yang
GM & Executive Director3yrsCN¥3.71m0.060%
CN¥ 4.6m
Yu Yu Yien
Independent Non-Executive Director2yrsCN¥194.00kno data
Yu Qun Yu
Non-Executive Director13.08yrsCN¥486.00k0.020%
CN¥ 1.5m
Kei Pang Tsui
Independent Non-Executive Director10.92yrsCN¥194.00kno data
Yu Wang
Non-Executive Director4.08yrsCN¥486.00k0.020%
CN¥ 1.5m
Xueqian Zhang
Independent Non-Executive Director10.08yrsCN¥194.00kno data
Caiyong Wang
Independent Non-Executive Director2yrsCN¥194.00kno data
Han Zeng
Non-Executive Director2.42yrsCN¥486.00k0.020%
CN¥ 1.5m

4.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 3899's board of directors are considered experienced (4.1 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

CIMC Enric Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CIMC Enric Holdings Limited
  • Ticker: 3899
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$7.680b
  • Shares outstanding: 2.01b
  • Website: https://www.enricgroup.com

Number of Employees


Location

  • CIMC Enric Holdings Limited
  • CIMC R&D Center
  • No.2 Gangwan Avenue
  • Shenzhen
  • Guangdong Province
  • 518067
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3899SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2005
E8FDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2005
CIME.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2005
3899SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2005
3899SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2005

Biography

CIMC Enric Holdings Limited designs, develops, manufactures, engineers, sells, and maintains transportation, storage, and processing equipment for the energy, chemicals, and liquid food industries worldwid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 13:04
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.