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564

Zhengzhou Coal Mining Machinery GroupSEHK:564 Stock Report

Market Cap

HK$23.3b

7D

-3.4%

1Y

-7.0%

Updated

23 Oct, 2021

Data

Company Financials +
564 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends2/6

564 Overview

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.

Zhengzhou Coal Mining Machinery Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhengzhou Coal Mining Machinery Group
Historical stock prices
Current Share PriceHK$8.83
52 Week HighHK$7.63
52 Week LowHK$17.26
Beta0.84
1 Month Change1.73%
3 Month Change-1.34%
1 Year Change-6.96%
3 Year Change110.74%
5 Year Change128.17%
Change since IPO-6.76%

Recent News & Updates

Oct 22
Should You Think About Buying Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Now?

Should You Think About Buying Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Now?

Zhengzhou Coal Mining Machinery Group Company Limited ( HKG:564 ), is not the largest company out there, but it saw a...

Oct 07
Here's Why Zhengzhou Coal Mining Machinery Group (HKG:564) Can Manage Its Debt Responsibly

Here's Why Zhengzhou Coal Mining Machinery Group (HKG:564) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Aug 30
Zhengzhou Coal Mining Machinery Group (HKG:564) Is Doing The Right Things To Multiply Its Share Price

Zhengzhou Coal Mining Machinery Group (HKG:564) Is Doing The Right Things To Multiply Its Share Price

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

564HK MachineryHK Market
7D-3.4%1.3%2.2%
1Y-7.0%22.8%6.0%

Return vs Industry: 564 underperformed the Hong Kong Machinery industry which returned 22.8% over the past year.

Return vs Market: 564 underperformed the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 564's price volatile compared to industry and market?
564 volatility
564 Beta0.84
Industry Beta1
Market Beta1

Stable Share Price: 564 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 564's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
195817,415Hao Jiahttps://www.zzmj.com

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. It operates through Manufacture of Coal Mining Machinery and Manufacture of Auto Parts segments. The company offers shearer and intelligent longwall face equipment that are used in ultra-thin, thin, thin-medium, thick, and ultra-thick coal seams; armored face conveyors, which are used in conventional mining, fully-mechanized mining, and fully-mechanized top coal caving; hydraulic roof supports; and intelligent control system that encompasses hydraulic support electro-hydraulic control, shearer control and navigation, longwall face video monitoring, intelligent pumping, gate road centralized control, and surface remote monitoring systems, as well as intelligent longwall face big data platform and intelligent mine app.

Zhengzhou Coal Mining Machinery Group Fundamentals Summary

How do Zhengzhou Coal Mining Machinery Group's earnings and revenue compare to its market cap?
564 fundamental statistics
Market CapCN¥19.10b
Earnings (TTM)CN¥1.31b
Revenue (TTM)CN¥29.27b

10.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
564 income statement (TTM)
RevenueCN¥29.27b
Cost of RevenueCN¥22.07b
Gross ProfitCN¥7.19b
ExpensesCN¥5.89b
EarningsCN¥1.31b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)0.72
Gross Margin24.58%
Net Profit Margin4.46%
Debt/Equity Ratio35.2%

How did 564 perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

29%

Payout Ratio

Valuation

Is Zhengzhou Coal Mining Machinery Group undervalued compared to its fair value and its price relative to the market?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 564 (HK$8.83) is trading below our estimate of fair value (HK$14.33)

Significantly Below Fair Value: 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 (10.1x) compared to the Hong Kong Machinery industry average (11.8x).

PE vs Market: 564 is poor value based on its PE Ratio (10.1x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 564 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 564's PB Ratio (1x) is in line with the HK Machinery industry average.


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?

39.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 564's forecast earnings growth (39.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 564's earnings (39.8% per year) are forecast to grow faster than the Hong Kong market (17.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 564's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 564's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 564's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Zhengzhou Coal Mining Machinery Group performed over the past 5 years?

42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 564 has a large one-off loss of CN¥705.4M impacting its June 30 2021 financial results.

Growing Profit Margin: 564's current net profit margins (4.5%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 564's earnings have grown significantly by 42% per year over the past 5 years.

Accelerating Growth: 564's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 564 had negative earnings growth (-9.6%) over the past year, making it difficult to compare to the Machinery industry average (23.8%).


Return on Equity

High ROE: 564's Return on Equity (9.8%) is considered low.


Financial Health

How is Zhengzhou Coal Mining Machinery Group's financial position?


Financial Position Analysis

Short Term Liabilities: 564's short term assets (CN¥23.4B) exceed its short term liabilities (CN¥12.8B).

Long Term Liabilities: 564's short term assets (CN¥23.4B) exceed its long term liabilities (CN¥7.0B).


Debt to Equity History and Analysis

Debt Level: 564's debt to equity ratio (35.2%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 564's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 564's debt is well covered by operating cash flow (49.3%).

Interest Coverage: 564's interest payments on its debt are well covered by EBIT (108.1x coverage).


Balance Sheet


Dividend

What is Zhengzhou Coal Mining Machinery Group current dividend yield, its reliability and sustainability?

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 564's dividend (2.96%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 564's dividend (2.96%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

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 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.5%), 564's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Hao Jia (51 yo)

3.67yrs

Tenure

CN¥4,669,000

Compensation

Mr. Hao Jia has been General Manager of Zhengzhou Coal Mining Machinery Group Co., Ltd. since February 12, 2018 and served as its Vice Chairman since February 12, 2018 until March 31, 2021. He served as th...


CEO Compensation Analysis

Compensation vs Market: Hao's total compensation ($USD731.28K) is about average for companies of similar size in the Hong Kong market ($USD684.95K).

Compensation vs Earnings: Hao's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 564's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: 564's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

Company Information

Zhengzhou Coal Mining Machinery Group Company Limited's 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$23.256b
  • Shares outstanding: 1.82b
  • 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
  • 450016
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 10:06
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.