SEHK:42

Stock Analysis Report

Northeast Electric Development

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

42IndustryMarket
7 Day1.7%-0.1%0.3%
30 Day0%-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

Valuation

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

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

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage2.5%forecastin3Yearsn/a

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

0

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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
42SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 1995
NE4HDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURAug 1995
585SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYSep 1996
585XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)Domestic SharesCNCNYSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:38
End of Day Share Price2019/10/23 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.