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China Energy Engineering

SEHK:3996
Snowflake Description

Very undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3996
SEHK
HK$27B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

China Energy Engineering Corporation Limited provides solutions to the power industry in the People’s Republic of China and internationally. The last earnings update was 81 days ago. More info.


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3996 Share Price and Events
7 Day Returns
-2.2%
SEHK:3996
-0.5%
HK Construction
-0.2%
HK Market
1 Year Returns
-11.9%
SEHK:3996
-11.4%
HK Construction
-4.5%
HK Market
3996 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Energy Engineering (3996) -2.2% -7.3% -7.3% -11.9% -20.5% -
HK Construction -0.5% -3.6% -14% -11.4% -21.9% -4.9%
HK Market -0.2% 2.7% -8.3% -4.5% 16.5% 1%
1 Year Return vs Industry and Market
  • 3996 matched the Construction industry (-11.4%) over the past year.
  • 3996 underperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
3996
Industry
5yr Volatility vs Market
Related Companies

3996 Value

 Is China Energy Engineering 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 China Energy Engineering 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 China Energy Engineering.

SEHK:3996 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
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:3996
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.035 (1 + (1- 25%) (358.15%))
2.885
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (2 * 5.96%)
13.92%

Discounted Cash Flow Calculation for SEHK:3996 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Energy Engineering 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:3996 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.92%)
2020 8,032.00 Analyst x1 7,050.38
2021 9,136.00 Analyst x1 7,039.36
2022 10,013.94 Est @ 9.61% 6,772.84
2023 10,747.73 Est @ 7.33% 6,380.74
2024 11,363.60 Est @ 5.73% 5,921.87
2025 11,887.70 Est @ 4.61% 5,437.88
2026 12,342.92 Est @ 3.83% 4,956.08
2027 12,747.95 Est @ 3.28% 4,493.13
2028 13,117.38 Est @ 2.9% 4,058.30
2029 13,462.29 Est @ 2.63% 3,655.99
Present value of next 10 years cash flows CN¥55,766.56
SEHK:3996 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥13,462.29 × (1 + 2%) ÷ (13.92% – 2%)
CN¥115,200.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥115,200.84 ÷ (1 + 13.92%)10
CN¥31,285.39
SEHK:3996 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥55,766.56 + CN¥31,285.39
CN¥87,051.95
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥87,051.95 / 30,020.40
CN¥2.9
SEHK:3996 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3996)
1.136
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥2.9 x 1.136
HK$3.29
Value per share (HKD) From above. HK$3.29
Current discount Discount to share price of HK$0.89
= -1 x (HK$0.89 - HK$3.29) / HK$3.29
73%

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

Current Discount
Amount off the current price China Energy Engineering is available for.
Intrinsic value
>50%
Share price is HK$0.89 vs Future cash flow value of HK$3.29
Current Discount Checks
For China Energy Engineering to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Energy Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Energy Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 China Energy Engineering's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Energy Engineering's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3996 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.15
SEHK:3996 Share Price ** SEHK (2019-07-19) in HKD HK$0.89
SEHK:3996 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥0.78
Hong Kong Construction Industry PE Ratio Median Figure of 105 Publicly-Listed Construction Companies 10.19x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.72x

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

** Primary Listing of China Energy Engineering.

SEHK:3996 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3996 Share Price ÷ EPS (both in CNY)

= 0.78 ÷ 0.15

5.12x

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

  • China Energy Engineering is good value based on earnings compared to the HK Construction industry average.
  • China Energy Engineering is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Energy Engineering's expected growth come at a high price?
Raw Data
SEHK:3996 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
8.2%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 10 Publicly-Listed Construction Companies 0.56x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:3996 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.12x ÷ 8.2%

0.62x

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

  • China Energy Engineering is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Energy Engineering's assets?
Raw Data
SEHK:3996 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥1.72
SEHK:3996 Share Price * SEHK (2019-07-19) in HKD HK$0.89
SEHK:3996 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥0.78
Hong Kong Construction Industry PB Ratio Median Figure of 136 Publicly-Listed Construction Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:3996 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3996 Share Price ÷ Book Value per Share (both in CNY)

= 0.78 ÷ 1.72

0.46x

* Primary Listing of China Energy Engineering.

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

  • China Energy Engineering is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess China Energy Engineering'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 Construction 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 Construction industry average (and greater than 0)? (1 check)
  5. China Energy Engineering has a total score of 6/6, 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.

3996 Future Performance

 How is China Energy Engineering expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

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
8.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Energy Engineering expected to grow at an attractive rate?
  • China Energy Engineering's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Energy Engineering's earnings growth is positive but not above the Hong Kong market average.
  • China Energy Engineering's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:3996 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3996 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 8.2%
SEHK:3996 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 5.6%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*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:3996 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3996 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 263,977 16,497 5,789 3
2020-12-31 248,824 14,715 5,725 6
2019-12-31 236,229 16,124 5,061 6
SEHK:3996 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 226,039 15,933 4,598
2018-12-31 224,034 5,059 4,568
2018-09-30 222,774 3,732 5,148
2018-06-30 229,843 -3,791 5,287
2018-03-31 231,496 -452 5,246
2017-12-31 234,370 5,633 5,253
2017-09-30 240,941 8,021 4,580
2017-06-30 236,103 8,388 4,330
2017-03-31 228,740 391 4,367
2016-12-31 222,171 4,668 4,281
2016-09-30 216,106 -4,933 3,870
2016-06-30 210,988 -3,983 4,823

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Energy Engineering's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).
  • China Energy Engineering's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
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:3996 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from China Energy Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3996 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.20 0.20 0.19 3.00
2020-12-31 0.19 0.24 0.18 6.00
2019-12-31 0.17 0.18 0.16 5.00
SEHK:3996 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.15
2018-12-31 0.15
2018-09-30
2018-06-30 0.18
2018-03-31
2017-12-31 0.18
2017-09-30
2017-06-30 0.14
2017-03-31
2016-12-31 0.14
2016-09-30
2016-06-30 0.18

*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.
  • China Energy Engineering is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Energy Engineering'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.
China Energy Engineering has a total score of 1/6, 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.

3996 Past Performance

  How has China Energy Engineering 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 China Energy Engineering's growth in the last year to its industry (Construction).
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.
  • China Energy Engineering's year on year earnings growth rate has been positive over the past 5 years.
  • China Energy Engineering's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China Energy Engineering's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
China Energy Engineering'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 China Energy Engineering Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3996 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 226,038.62 4,597.89 15,228.42 4,035.80
2018-12-31 224,034.35 4,568.00 15,104.48 4,003.59
2018-09-30 222,773.57 5,148.42 13,733.32 4,097.65
2018-06-30 229,842.77 5,286.63 13,689.16 4,062.19
2018-03-31 231,495.75 5,245.68 13,256.24 3,803.19
2017-12-31 234,370.11 5,253.00 13,493.95 3,495.38
2017-09-30 240,941.15 4,579.80 12,211.44 4,087.63
2017-06-30 236,103.26 4,330.40 12,760.36 2,887.01
2017-03-31 228,739.77 4,367.05 12,903.48 2,835.67
2016-12-31 222,171.03 4,281.29 12,533.68 2,835.67
2016-09-30 216,105.57 3,870.19 12,428.38 1,287.74
2016-06-30 210,988.41 4,823.16 12,328.77 2,500.37
2016-03-31 202,976.31 4,028.87 12,020.28 1,991.37
2015-12-31 205,692.95 4,235.67 12,014.87 2,242.21
2014-12-31 183,823.96 2,152.85 11,107.28 1,955.43
2013-12-31 153,635.36 1,344.25 10,061.93 1,357.73
2012-12-31 139,178.06 1,548.32 9,732.64 734.77

*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.
  • China Energy Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Energy Engineering used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • China Energy Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Energy Engineering'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 Construction 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.
China Energy Engineering 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.

3996 Health

 How is China Energy Engineering'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 China Energy Engineering's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Energy Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Energy Engineering's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Energy Engineering'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 3x 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 China Energy Engineering Company Filings, last reported 3 months ago.

SEHK:3996 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 96,321.45 84,232.06 44,932.68
2018-12-31 95,163.86 111,988.58 50,197.26
2018-09-30 93,550.45 87,521.57 43,139.83
2018-06-30 91,711.61 112,181.60 45,797.58
2018-03-31 92,633.45 76,068.24 42,026.64
2017-12-31 79,855.71 96,891.50 48,462.81
2017-09-30 83,605.11 70,278.57 41,595.77
2017-06-30 78,685.58 81,539.63 42,576.04
2017-03-31 75,873.14 65,384.13 39,094.84
2016-12-31 73,989.00 78,059.80 49,185.24
2016-09-30 77,690.52 60,156.24 45,941.51
2016-06-30 64,588.54 76,806.77 38,079.22
2016-03-31 60,792.37 75,423.62 48,317.42
2015-12-31 60,792.37 74,915.74 48,317.42
2014-12-31 44,001.52 59,299.21 30,812.50
2013-12-31 27,876.31 52,581.73 26,015.55
2012-12-31 22,423.24 46,243.65 22,438.76
  • China Energy Engineering's level of debt (87.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (171.3% vs 87.4% today).
  • Debt is not well covered by operating cash flow (18.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
X
Financial health checks
We assess China Energy Engineering'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. China Energy Engineering has a total score of 4/6, 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.

3996 Dividends

 What is China Energy Engineering'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
3.91%
Current annual income from China Energy Engineering dividends. Estimated to be 7.09% next year.
If you bought HK$2,000 of China Energy Engineering shares you are expected to receive HK$78 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?
  • China Energy Engineering's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • China Energy Engineering's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
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:3996 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 6 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.9%
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.

SEHK:3996 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.04 3.00
2020-12-31 0.08 6.00
2019-12-31 0.03 5.00
SEHK:3996 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-28 0.031 3.785
2018-04-11 0.031 3.583
2018-03-29 0.031 2.532
2017-04-10 0.030 2.455
2017-03-29 0.030 2.326
2016-06-08 0.004 0.389

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

  • Whilst dividend payments have been stable, China Energy Engineering has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but China Energy Engineering only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of China Energy Engineering's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess China Energy Engineering'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 China Energy Engineering afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Energy Engineering has a total score of 3/6, see the detailed checks below.


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

3996 Management

 What is the CEO of China Energy Engineering'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
Yanzhang Ding
COMPENSATION CN¥984,000
AGE 55
CEO Bio

Mr. Yan Zhang Ding has been General Manager and Vice Chairman at China Energy Engineering Corporation Limited since December 19, 2014 and also serves as its Chief Executive. Mr. Ding is mainly responsible for assisting the chairman of the Board in formulating and implementing the general business and operational strategies of it, as well as the overall daily management, production and operational affairs. Mr. Ding started his career in Qi'an Branch of Gezhouba Engineering Bureau in July 1984 and has more than 30 years of management experience in the energy construction industry. Mr. Ding's primary work experience prior to joining China Energy Engineering: the General Manager of Gezhouba Engineering 2 Company from September 1996 to September 1998; the Vice President and President of Lancang River Construction Bureau of China Gezhouba Water Conservancy and Hydropower Engineering Group Co., Ltd. successively from September 1998 to June 2001; the Deputy General Manager of China Gezhouba Water Conservancy and Hydropower Engineering Group Co., Ltd. from June 2001 to March 2004; the Deputy General Manager of CGGC Group and the Chairman of the board of directors and Deputy General Manager of China Gezhouba Water Conservancy and Hydropower Engineering Group Co., Ltd. from March 2004 to October 2007; the Director and General Manager of CGGC and the Chairman of Gezhouba International Company from October 2007 to October 2011; the General Manager of Energy China Group from August 2011 to July 2015; and the Director of Energy China Group since October 2011, during which period he concurrently served as the General Manager of CGGC Group and the Chairman of the board of directors of CGGC from October 2011 to May 2013. Mr. Ding obtained a Bachelor's degree in Engineering, majoring in Hydraulic Engineering Machinery from Gezhouba Hydropower Engineering College (currently known as China Three Gorges University) in July 1984, obtained a Master's degree in Management, majoring in Administrative Management from Central China Normal University in January 2000 and graduated there from in April 2000. Mr. Ding obtained the qualification of professor-level senior engineer from CGGC Group in December 2005.

CEO Compensation
  • Yanzhang's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Yanzhang's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Energy Engineering management team in years:

4.5
Average Tenure
56.5
Average Age
  • The tenure for the China Energy Engineering management team is about average.
Management Team

Jianping Wang

TITLE
Chairman of the Board
COMPENSATION
CN¥984K
AGE
59

Yanzhang Ding

TITLE
Vice Chairman
COMPENSATION
CN¥984K
AGE
55

Xianchong Zhang

TITLE
Executive Director
COMPENSATION
CN¥939K
AGE
60
TENURE
4.6 yrs

Guanzhong Chen

TITLE
Chief Accountant
COMPENSATION
CN¥580K
AGE
50
TENURE
4.6 yrs

Yun Wu

TITLE
Chief Information Officer
AGE
55

Qiurong Duan

TITLE
Secretary to the Board & Joint Company Secretary
COMPENSATION
CN¥828K
AGE
58
TENURE
4.3 yrs

Suet Wing Leung

TITLE
Joint Company Secretary
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the China Energy Engineering board of directors in years:

4.6
Average Tenure
59.5
Average Age
  • The tenure for the China Energy Engineering board of directors is about average.
Board of Directors

Jianping Wang

TITLE
Chairman of the Board
COMPENSATION
CN¥984K
AGE
59
TENURE
4.6 yrs

Yanzhang Ding

TITLE
Vice Chairman
COMPENSATION
CN¥984K
AGE
55
TENURE
4.6 yrs

Xianchong Zhang

TITLE
Executive Director
COMPENSATION
CN¥939K
AGE
60
TENURE
4.6 yrs

Yuanchen Ding

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
70
TENURE
4.6 yrs

Qiyu Zheng

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
65
TENURE
4.6 yrs

Zengyong Wang

TITLE
Chairman of the Supervisory Committee
AGE
59
TENURE
2.6 yrs

Chuanjing Ma

TITLE
Non Executive Director
AGE
62
TENURE
4.6 yrs

Yuk Ming Cheung

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥56K
AGE
66
TENURE
4.2 yrs

Xueshi Liu

TITLE
Non-Executive Director
AGE
53
TENURE
1.6 yrs

Xinbo Si

TITLE
Non-Executive Director
AGE
51
TENURE
1.6 yrs
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 China Energy Engineering'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. China Energy Engineering 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.

3996 News

Simply Wall St News

Is China Energy Engineering Corporation Limited's (HKG:3996) CEO Salary Justified?

See our latest analysis for China Energy Engineering How Does Yanzhang Ding's Compensation Compare With Similar Sized Companies? … According to our data, China Energy Engineering Corporation Limited has a market capitalization of HK$28b, and pays its CEO total annual compensation worth CN¥984k. … It appears that China Energy Engineering Corporation Limited remunerates its CEO below most similar sized companies.

Simply Wall St -

China Energy Engineering Corporation Limited (HKG:3996): Time For A Financial Health Check

3996’s Debt (And Cash Flows) 3996 has built up its total debt levels in the last twelve months, from CN¥76b to CN¥84b – this includes long-term debt. … On top of this, 3996 has generated cash from operations of CN¥16b in the last twelve months, leading to an operating cash to total debt ratio of 19%, meaning that 3996’s debt is not covered by operating cash. … Next Steps: 3996’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Do You Know What China Energy Engineering Corporation Limited's (HKG:3996) P/E Ratio Means?

View our latest analysis for China Energy Engineering How Do I Calculate China Energy Engineering's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for China Energy Engineering: P/E of 5.17 = CN¥0.79 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.15 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … The Verdict On China Energy Engineering's P/E Ratio China Energy Engineering has a P/E of 5.2.

Simply Wall St -

How Do Analysts See China Energy Engineering Corporation Limited (HKG:3996) Performing Over The Next Few Years?

Help shape the future of investing tools and you could win a $250 gift card! … China Energy Engineering Corporation Limited's (HKG:3996) latest earnings announcement in December 2018

Simply Wall St -

One Thing To Remember About The China Energy Engineering Corporation Limited (HKG:3996) Share Price

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

China Energy Engineering Corporation Limited (HKG:3996): A Fundamentally Attractive Investment

China Energy Engineering Corporation Limited (HKG:3996) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … report on China Energy Engineering here

Simply Wall St -

How Much Did China Energy Engineering Corporation Limited's (HKG:3996) CEO Pocket Last Year?

Yanzhang Ding is the CEO of China Energy Engineering Corporation Limited (HKG:3996). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … At the time of writing our data says that China Energy Engineering Corporation Limited has a market cap of HK$29b, and is paying total annual CEO compensation of CN¥734k.

Simply Wall St -

Is There Now An Opportunity In China Energy Engineering Corporation Limited (HKG:3996)?

China Energy Engineering Corporation Limited (HKG:3996), which is in the construction business, and is based in China,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on China Energy Engineering’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Some China Energy Engineering Shareholders Are Down 32%

For example, the China Energy Engineering Corporation Limited (HKG:3996) share price is down 32% in the last year. … Even though the China Energy Engineering share price is down over the year, its EPS actually improved. … Many investors see falling revenue as a likely precursor to lower earnings, so this could well explain the weak share price.

Simply Wall St -

What Investors Should Know About China Energy Engineering Corporation Limited's (HKG:3996) Financial Strength

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as China Energy Engineering Corporation Limited (HKG:3996), with a market capitalization of HK$29b, rarely draw their attention from the investing community. … Don’t forget that this is a general and concentrated examination of China Energy Engineering’s financial health, so you should conduct further analysis. … See our latest analysis for China Energy Engineering

Simply Wall St -

3996 Company Info

Description

China Energy Engineering Corporation Limited provides solutions to the power industry in the People’s Republic of China and internationally. The company operates through Survey, Design and Consulting Services; Construction and Contracting; Equipment Manufacturing; Civil Explosives and Cement Production; and Investment and Other Businesses segments. The Survey, Design and Consulting segment offers survey and design services for large scale power generation, transformation, and transmission projects of fossil-fuel power, hydropower, nuclear power, wind farm, and solar power; and various consultancy services, including the policy and planning of the power industry, as well as testing, evaluation, and supervision of power projects. The Construction and Contracting segment provides infrastructure construction contracting services to the power generation, transformation, and transmission projects of fossil-fuel power, hydropower, nuclear power, wind farm, and solar power; and undertakes other construction projects, such as water conservancy facilities, transportation, municipal engineering, and industrial and civil construction projects. The Equipment Manufacturing segment designs, manufactures, and sells auxiliary machinery equipment for power plants, power grid equipment, steel structures, energy-saving and environmental-friendly equipment, and complete sets of equipment. The Civil Explosives and Cement Production segment manufactures and sells civil explosives and cement; and offers blasting services for the construction projects. The Investment and Other Businesses Segment invests in and operates power plants; and infrastructure projects, such as railways and roads, and environmental water projects, as well as engages in the real estate development business. The company was founded in 2014 and is headquartered in Beijing, the People’s Republic of China. China Energy Engineering Corporation Limited is a subsidiary of China Energy Engineering Group Co., Ltd.

Details
Name: China Energy Engineering Corporation Limited
3996
Exchange: SEHK
Founded: 2014
HK$26,718,152,763
30,020,396,364
Website: http://en.ceec.net.cn
Address: China Energy Engineering Corporation Limited
Building 1,
No. 26, West Dawang Road,
Beijing,
100022,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3996 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 10. Dec 2015
DB 2E5 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 10. Dec 2015
SHSC 3996 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 10. Dec 2015
Number of employees
Current staff
Staff numbers
124,503
China Energy Engineering employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 13:03
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
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.