SEHK:3899

Stock Analysis Report

Executive Summary

CIMC Enric Holdings Limited, an investment holding company, designs, develops, manufactures, engineers, sells, and maintains transportation, storage, and processing equipment used in the energy, chemicals, and liquid food industries worldwide.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.9%

3899

6.5%

HK Machinery

3.3%

HK Market


1 Year Return

-33.1%

3899

18.6%

HK Machinery

1.6%

HK Market

Return vs Industry: 3899 underperformed the Hong Kong Machinery industry which returned 18.6% over the past year.

Return vs Market: 3899 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

3899IndustryMarket
7 Day3.9%6.5%3.3%
30 Day-7.4%1.1%-0.009%
90 Day-22.7%-3.9%-5.1%
1 Year-31.6%-33.1%22.0%18.6%5.3%1.6%
3 Year46.0%41.6%54.0%44.6%16.1%4.4%
5 Year-34.8%-40.0%72.8%54.7%20.4%0.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3899 (HK$4.53) is trading below our estimate of fair value (HK$15.11)

Significantly Undervalued: 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 (9.3x) compared to the Machinery industry average (9.2x).

PE vs Market: 3899 is good value based on its PE Ratio (9.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3899 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 3899 is overvalued based on its PB Ratio (1.2x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

How is CIMC Enric Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3899's forecast earnings growth (14.2% per year) is above the savings rate (2%).

Earnings vs Market: 3899's earnings (14.2% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 3899's revenue (11.5% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3899's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3899's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

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

-4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3899's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: 3899's earnings growth over the past year (32%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: 3899 earnings growth over the past year (32%) exceeded the Machinery industry 7.4%.


Return on Equity

High ROE: 3899's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: 3899 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 3899 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CIMC Enric Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3899's short term assets (CN¥10.8B) exceeds its short term liabilities (CN¥7.1B)

Long Term Liabilities: 3899's short term assets (10.8B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: 3899's debt to equity ratio (16.9%) is considered satisfactory

Reducing Debt: 3899's debt to equity ratio has increased from 4.2% to 16.9% over the past 5 years.

Debt Coverage: 3899's debt is well covered by operating cash flow (88.4%).

Interest Coverage: 3899's interest payments on its debt are well covered by EBIT (26.4x coverage).


Balance Sheet

Inventory Level: 3899 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3899's debt is covered by short term assets (assets are 9.276210x debt).


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3899's dividend (3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3899's dividend (3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), 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 (32.7% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Xiaohu Yang (44yo)

2yrs

Tenure

CN¥1,970,000

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

2.9yrs

Average Tenure

52yo

Average Age

Experienced Management: 3899's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Board: 3899's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Siu Fai Cheong (47yo)

    Financial Controller & Company Secretary

    • Tenure: 0yrs
    • Compensation: CN¥643.45k
  • Caixing Shi (55yo)

    Deputy General Manager

    • Tenure: 7.4yrs
    • Compensation: CN¥6.00k
  • Xiang Gao (54yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: CN¥2.26m
  • Baoying Yang (51yo)

    Chief Officer of Science & Technology Management Department and Deputy GM

    • Tenure: 1.8yrs
  • Xiaohu Yang (44yo)

    GM & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥1.97m
  • Wenbao Gao (45yo)

    Deputy General Manager

    • Tenure: 3.8yrs
  • Huo Lating (56yo)

    Deputy General Manager

    • Tenure: 3.8yrs
  • Ko Brink (53yo)

    Deputy General Manager

    • Tenure: 0.8yrs

Board Members

  • Catherine Yien (48yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥39.00k
  • Yuqun Yu (54yo)

    Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: CN¥426.00k
  • Xiang Gao (54yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: CN¥2.26m
  • Kei Pang Tsui (59yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: CN¥226.00k
  • Yu Wang (47yo)

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥385.00k
  • Xueqian Zhang (70yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: CN¥226.00k
  • Caiyong Wang (67yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥47.00k
  • Xiaohu Yang (44yo)

    GM & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥1.97m
  • Han Zeng (44yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: CN¥329.00k

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$8.940b
  • Shares outstanding: 2.00b
  • 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, an investment holding company, designs, develops, manufactures, engineers, sells, and maintains transportation, storage, and processing equipment used in the energy, chemicals, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:41
End of Day Share Price2019/10/17 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.