Northeast Electric Development
Market Cap
HK$1.4b
Last Updated
2019/10/23 12:38 UTC
Data Sources
Company Financials
Executive Summary
Northeast Electric Development Company Limited produces and sells power transmission equipment and related accessories.
Snowflake
Fundamentals
Imperfect balance sheet with poor track record.
Share Price & News
How has Northeast Electric Development's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
1.7%
42
-0.1%
HK Electrical
0.3%
HK Market
1 Year Return
-14.3%
42
-31.8%
HK Electrical
1.3%
HK Market
Return vs Industry: 42 exceeded the Hong Kong Electrical industry which returned -31.8% over the past year.
Return vs Market: 42 underperformed the Hong Kong Market which returned 1.3% over the past year.
Shareholder returns
| 42 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | -0.1% | 0.3% |
| 30 Day | 0% | -4.1% | 0.5% |
| 90 Day | -21.1% | -11.8% | -4.6% |
| 1 Year | -14.3%-14.3% | -30.8%-31.8% | 4.9%1.3% |
| 3 Year | -80.6%-80.6% | -47.7%-49.7% | 15.3%3.7% |
| 5 Year | -72.6%-72.6% | -44.3%-47.4% | 20.0%-0.006% |
Price Volatility Vs. Market
How volatile is Northeast Electric Development's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Could The Northeast Electric Development Company Limited (HKG:42) Ownership Structure Tell Us Something Useful?3 months ago | Simply Wall St
Northeast Electric Development (HKG:42) Is Using Debt In A Risky Way5 months ago | Simply Wall St
The Northeast Electric Development (HKG:42) Share Price Is Down 65% So Some Shareholders Are Wishing They SoldValuation
Is Northeast Electric Development undervalued compared to its fair value and its price relative to the market?
15.94x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate 42's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate 42's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: 42 is poor value based on its PE Ratio (15.9x) compared to the Electrical industry average (8.9x).
PE vs Market: 42 is poor value based on its PE Ratio (15.9x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 42's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 42 is overvalued based on its PB Ratio (36.2x) compared to the HK Electrical industry average (0.6x).
Next Steps
Future Growth
How is Northeast Electric Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
9.5%
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 Northeast Electric Development 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
- Take a look at our analysis of 42’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Northeast Electric Development competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has Northeast Electric Development performed over the past 5 years?
-46.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 42's earnings have declined by -46.4% per year over the past 5 years.
Accelerating Growth: 42 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: 42 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (8%).
Return on Equity
High ROE: 42's Return on Equity (132.9%) is considered outstanding.
Return on Assets
ROA vs Industry: 42's Return on Assets is below or equal to the Electrical industry average last year.
Return on Capital Employed
ROCE Improving: 42 is currently unprofitable, so its Return on Capital Employed is negative.
Next Steps
Financial Health
How is Northeast Electric Development's financial position?
Financial Position Analysis
Short Term Liabilities: 42's short term assets (CN¥194.2M) do not cover its short term liabilities (CN¥410.8M)
Long Term Liabilities: 42's short term assets (194.2M) exceeds its long term liabilities (111.3M)
Debt to Equity History and Analysis
Debt Level: 42's debt to equity ratio (24.3%) is considered satisfactory
Reducing Debt: 42's debt to equity ratio has increased from 3.1% to 24.3% over the past 5 years.
Debt Coverage: 42's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if 42's interest payments on its debt are well covered by EBIT.
Balance Sheet
Inventory Level: 42 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 42's debt is covered by short term assets (assets are 43.148880x debt).
Next Steps
Dividend
What is Northeast Electric Development's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate 42's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 42's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if 42's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 42'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 42's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
What is the CEO of Northeast Electric Development's salary, the management and board of directors tenure and is there insider trading?
0.9yrs
Average board tenure
CEO
Rui Li (42yo)
0yrs
Tenure
Mr. Rui Li has been an Executive Director of Northeast Electric Development Company Limited since May 11, 2017, was its Interim Chairman since August, 2019 also serves as its General Manager and served as ...
Board Age and Tenure
0.9yrs
Average Tenure
50.5yo
Average Age
Experienced Board: 42's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.
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
Weiguo Su (57yo)
Deputy GM & Director
- Tenure: 0.8yrs
Jie Zhu (38yo)
Chairman of Board
- Tenure: 0.2yrs
Bin Lin
Head of the Internal Audit Department
- Tenure: 0yrs
Kouming Qian
Head of Financial Section
- Tenure: 0yrs
Rui Li (42yo)
GM & Director
- Tenure: 0yrs
Zongbao Bao (36yo)
Executive Director
- Tenure: 2.3yrs
Ma Yun (47yo)
Executive Director
- Tenure: 0.6yrs
Kai Wang (44yo)
Vice GM & CFO
- Tenure: 0.6yrs
Liwen Xing
Chief Accounting Officer
- Tenure: 0yrs
Tao Hu (34yo)
Chief of Internal Audit Department & Employee Representative Supervisor
- Tenure: 0.2yrs
Board Members
Weiguo Su (57yo)
Deputy GM & Director
- Tenure: 0.8yrs
Fengsheng Qian (55yo)
Independent Non-Executive Director
- Tenure: 3.6yrs
Jie Zhu (38yo)
Chairman of Board
- Tenure: 0.2yrs
Rui Li (42yo)
GM & Director
- Tenure: 0yrs
Zongbao Bao (36yo)
Executive Director
- Tenure: 2.3yrs
Ming Li (66yo)
Independent Non-Executive Director
- Tenure: 1.4yrs
Jinyang Zhou (54yo)
Shareholder Representative Supervisor
- Tenure: 1yrs
Ma Yun (47yo)
Executive Director
- Tenure: 0.6yrs
Fang Guangrong (64yo)
Independent Non-Executive Director
- Tenure: 0.6yrs
Tao Hu (34yo)
Chief of Internal Audit Department & Employee Representative Supervisor
- Tenure: 0.2yrs
Company Information
Northeast Electric Development Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Northeast Electric Development Company Limited
- Ticker: 42
- Exchange: SEHK
- Founded: 1993
- Industry: Electrical Components and Equipment
- Sector: Capital Goods
- Market Cap: HK$1.444b
- Shares outstanding: 873.37m
- Website: https://www.nee.com.cn
Number of Employees
Location
- Northeast Electric Development Company Limited
- Room A1-1077 Building A
- 5th Floor
- Haikou
- Hainan Province
- 571152
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 42 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Aug 1995 |
| NE4H | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Aug 1995 |
| 585 | SZSE (Shenzhen Stock Exchange) | Domestic Shares | CN | CNY | Sep 1996 | |
| 585 | XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Sep 1996 |
Biography
Northeast Electric Development Company Limited produces and sells power transmission equipment and related accessories. The company primarily offers power capacitors, enclosed bus bars, and other system pr ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 12:38 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.