Zhengzhou Coal Mining Machinery Group
Market Cap
HK$11.1b
Last Updated
2019/10/17 12:54 UTC
Data Sources
Company Financials +
Executive Summary
Zhengzhou Coal Mining Machinery Group Company Limited, together with its subsidiaries, manufactures and sells coal mining and excavating equipment in the People’s Republic of China, Germany, and internationally.
Snowflake
Fundamentals
Very undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Zhengzhou Coal Mining Machinery Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-1.0%
564
7.4%
HK Machinery
3.1%
HK Market
1 Year Return
6.5%
564
17.4%
HK Machinery
0.5%
HK Market
Return vs Industry: 564 underperformed the Hong Kong Machinery industry which returned 17.4% over the past year.
Return vs Market: 564 exceeded the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 564 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 7.4% | 3.1% |
| 30 Day | -0.2% | -1.0% | -1.8% |
| 90 Day | 11.1% | -3.0% | -4.8% |
| 1 Year | 11.5%6.5% | 20.7%17.4% | 4.1%0.5% |
| 3 Year | 17.5%10.2% | 54.0%44.6% | 15.8%4.2% |
| 5 Year | -12.5%-18.8% | 69.8%52.1% | 18.9%-0.9% |
Price Volatility Vs. Market
How volatile is Zhengzhou Coal Mining Machinery Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Is Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Expensive For A Reason? A Look At Its Intrinsic Value2 months ago | Simply Wall St
Does Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Create Value For Shareholders?2 months ago | Simply Wall St
Do You Know What Zhengzhou Coal Mining Machinery Group Company Limited's (HKG:564) P/E Ratio Means?Valuation
Is Zhengzhou Coal Mining Machinery Group 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: 564 (HK$4.1) is trading below our estimate of fair value (HK$26.18)
Significantly Undervalued: 564 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 564 is good value based on its PE Ratio (5.8x) compared to the Machinery industry average (9.5x).
PE vs Market: 564 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
Low PEG Ratio: 564 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 564 is good value based on its PB Ratio (0.5x) compared to the HK Machinery industry average (0.8x).
Next Steps
Future Growth
How is Zhengzhou Coal Mining Machinery Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
8.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 564's forecast earnings growth (8% per year) is above the savings rate (2%).
Earnings vs Market: 564's earnings (8% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).
High Growth Earnings: 564's earnings are forecast to grow, but not significantly.
Revenue vs Market: 564's revenue (5.2% per year) is forecast to grow slower than the Hong Kong market (10% per year).
High Growth Revenue: 564's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: 564's Return on Equity is forecast to be low in 3 years time (15.5%).
Next Steps
Past Performance
How has Zhengzhou Coal Mining Machinery Group performed over the past 5 years?
41.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 564's earnings have grown significantly by 41.7% per year over the past 5 years.
Accelerating Growth: 564's earnings growth over the past year (91.8%) exceeds its 5-year average (41.7% per year).
Earnings vs Industry: 564 earnings growth over the past year (91.8%) exceeded the Machinery industry 7.4%.
Return on Equity
High ROE: 564's Return on Equity (9.4%) is considered low.
Return on Assets
ROA vs Industry: 564's Return on Assets is below or equal to the Machinery industry average last year.
Return on Capital Employed
ROCE Improving: 564's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Zhengzhou Coal Mining Machinery Group's financial position?
Financial Position Analysis
Short Term Liabilities: 564's short term assets (CN¥18.9B) exceeds its short term liabilities (CN¥12.4B)
Long Term Liabilities: 564's short term assets (18.9B) exceeds its long term liabilities (3.7B)
Debt to Equity History and Analysis
Debt Level: 564's debt to equity ratio (32.8%) is considered satisfactory
Reducing Debt: 564's debt to equity ratio has increased from 1% to 32.8% over the past 5 years.
Debt Coverage: 564's debt is well covered by operating cash flow (61%).
Interest Coverage: 564's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Inventory Level: 564 has a high level of physical assets or inventory.
Debt Coverage by Assets: 564's debt is covered by short term assets (assets are 4.496150x debt).
Next Steps
Dividend
What is Zhengzhou Coal Mining Machinery Group's current dividend yield, its reliability and sustainability?
3.91%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 564's dividend (3.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 564's dividend (3.91%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).
Stable Dividend: 564 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 564 has only been paying a dividend for 6 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.6%), 564's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 564's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).
Next Steps
Management
What is the CEO of Zhengzhou Coal Mining Machinery Group's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Hao Jia (49yo)
1.7yrs
Tenure
CN¥4,263,000
Compensation
Mr. Hao Jia has been Vice Chairman and General Manager of Zhengzhou Coal Mining Machinery Group Co., Ltd. since February 12, 2018 and served as its Deputy General Manager since February 16, 2015 until Febr ...
CEO Compensation Analysis
Compensation vs. Market: Hao 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: Insufficient data to compare Hao's compensation with company performance.
Management Age and Tenure
3.2yrs
Average Tenure
54yo
Average Age
Experienced Management: 564's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
4.7yrs
Average Tenure
54yo
Average Age
Experienced Board: 564's board of directors are considered experienced (4.7 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.
Recent Insider Transactions
| Entity | Company |
| Shares | 74,000 |
| Max Price | CN¥3.86 |
| Entity | Company |
| Shares | 200,000 |
| Max Price | CN¥4.00 |
| Entity | Company |
| Shares | 800,000 |
| Max Price | CN¥3.98 |
| Entity | Company |
| Shares | 1,591,200 |
| Max Price | CN¥3.79 |
Ownership Breakdown
Management Team
Chengyao Jiao (56yo)
Executive Chairman
- Tenure: 10.8yrs
- Compensation: CN¥1.30m
Jiayu Xiang (54yo)
Executive Director
- Tenure: 10.8yrs
- Compensation: CN¥1.30m
Zugang Fu (54yo)
Executive Director
- Tenure: 1.7yrs
- Compensation: CN¥1.45m
Xinying Wang (54yo)
Executive Director
- Tenure: 4.7yrs
Youjin Gao (56yo)
Chief Engineer and Deputy General Manager
- Tenure: 10.8yrs
Qi Fu (50yo)
Deputy General Manager
- Tenure: 7.7yrs
Hao Jia (49yo)
Vice Chairman & GM
- Tenure: 1.7yrs
- Compensation: CN¥4.26m
Haibin Zhang (38yo)
Deputy GM & Company Secretary
- Tenure: 4.7yrs
- Compensation: CN¥1.03m
Hua Huang (50yo)
Chief Financial Officer
- Tenure: 1.7yrs
Bin Wang (59yo)
Executive Director
- Tenure: 1.7yrs
- Compensation: CN¥4.12m
Board Members
Chengyao Jiao (56yo)
Executive Chairman
- Tenure: 10.8yrs
- Compensation: CN¥1.30m
Jiayu Xiang (54yo)
Executive Director
- Tenure: 10.8yrs
- Compensation: CN¥1.30m
Zugang Fu (54yo)
Executive Director
- Tenure: 1.7yrs
- Compensation: CN¥1.45m
Xinying Wang (54yo)
Executive Director
- Tenure: 4.7yrs
Yao Liu (44yo)
Independent Non-Executive Director
- Tenure: 5.3yrs
- Compensation: CN¥158.00k
Qiang Liu (50yo)
Chairman of the Board of Supervisors
- Tenure: 1.7yrs
- Compensation: CN¥440.00k
Hua Jiang (56yo)
Independent Non-Executive Director
- Tenure: 4.7yrs
- Compensation: CN¥140.00k
Xudong Li (49yo)
Independent Non-Executive Director
- Tenure: 4.7yrs
- Compensation: CN¥140.00k
Hao Jia (49yo)
Vice Chairman & GM
- Tenure: 1.7yrs
- Compensation: CN¥4.26m
Bin Wang (59yo)
Executive Director
- Tenure: 1.7yrs
- Compensation: CN¥4.12m
Company Information
Zhengzhou Coal Mining Machinery Group Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Zhengzhou Coal Mining Machinery Group Company Limited
- Ticker: 564
- Exchange: SEHK
- Founded: 1958
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: HK$11.115b
- Shares outstanding: 1.73b
- Website: https://www.zzmj.com
Number of Employees
Location
- Zhengzhou Coal Mining Machinery Group Company Limited
- No. 167, 9th Street
- Econ-Tech Development Zone
- Zhengzhou
- Henan Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 601717 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Aug 2010 | |
| 601717 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Aug 2010 | |
| 564 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2012 |
| ZGC | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Dec 2012 |
| 564 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2012 |
| 564 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2012 |
Biography
Zhengzhou Coal Mining Machinery Group Company Limited, together with its subsidiaries, manufactures and sells coal mining and excavating equipment in the People’s Republic of China, Germany, and internatio ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 12:54 |
| End of Day Share Price | 2019/10/17 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.