SEHK:564

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Zhengzhou Coal Mining Machinery Group

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. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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

Stable Share Price: 564's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.3%

564

4.7%

HK Machinery

1.5%

HK Market


1 Year Return

110.5%

564

42.1%

HK Machinery

0.7%

HK Market

Return vs Industry: 564 exceeded the Hong Kong Machinery industry which returned 40% over the past year.

Return vs Market: 564 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

564IndustryMarket
7 Day18.3%4.7%1.5%
30 Day75.0%-2.0%-3.1%
90 Day157.7%18.2%2.9%
1 Year123.6%110.5%46.2%42.1%4.8%0.7%
3 Year79.0%58.5%51.4%39.1%-5.6%-15.8%
5 Year191.0%156.1%118.1%100.0%24.5%3.4%

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

Valuation

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

8.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 564 (HK$8.4) is trading above our estimate of fair value (HK$3.07)

Significantly Below Fair Value: 564 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 564 is good value based on its PE Ratio (8.8x) compared to the HK Machinery industry average (12.9x).

PE vs Market: 564 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 564 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

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


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?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 564's forecast earnings growth (11.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 564's earnings (11.2% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

High Growth Earnings: 564's earnings are forecast to grow, but not significantly.

Revenue vs Market: 564's revenue (2.9% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 564's revenue (2.9% 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


Next Steps

Past Performance

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

59.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 564 has high quality earnings.

Growing Profit Margin: 564's current net profit margins (5.7%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 564's earnings have grown significantly by 59.3% per year over the past 5 years.

Accelerating Growth: 564's earnings growth over the past year (30.4%) is below its 5-year average (59.3% per year).

Earnings vs Industry: 564 earnings growth over the past year (30.4%) exceeded the Machinery industry 1%.


Return on Equity

High ROE: 564's Return on Equity (11.2%) is considered low.


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¥21.3B) exceed its short term liabilities (CN¥12.0B).

Long Term Liabilities: 564's short term assets (CN¥21.3B) exceed its long term liabilities (CN¥4.6B).


Debt to Equity History and Analysis

Debt Level: 564's debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: 564's debt to equity ratio has increased from 1.1% to 36.6% over the past 5 years.

Debt Coverage: 564's debt is well covered by operating cash flow (38%).

Interest Coverage: 564's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 564's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 564's dividend (2.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


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 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), 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?

2.6yrs

Average management tenure


CEO

Hao Jia (50 yo)

2.58yrs

Tenure

CN¥4,308,000

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's total compensation ($USD637.74K) is about average for companies of similar size in the Hong Kong market ($USD512.80K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chengyao Jiao
Executive Chairman11.75yrsCN¥1.31m0.17%
CN¥ 32.9m
Hao Jia
Vice Chairman & GM2.58yrsCN¥4.31mno data
Jiayu Xiang
Executive Director11.75yrsCN¥1.30m0.11%
CN¥ 21.5m
Zugang Fu
Executive Director2.58yrsCN¥1.72m0.16%
CN¥ 30.9m
Bin Wang
Executive Director2.58yrsCN¥5.09mno data
Haibin Zhang
Company Secretary & Secretary to the Board5.5yrsCN¥966.00kno data
Hua Huang
Chief Financial Officer2.58yrsno datano data
Xinying Wang
Executive Director5.58yrsno data0.11%
CN¥ 21.5m
Youjin Gao
Chief Engineer and Deputy General Manager 11.75yrsno datano data
Qi Fu
Deputy General Manager8.58yrsno datano data
Weiping Li
Deputy General Manager1.92yrsno datano data
Yin Wah Chan
Assistant to the Company Secretaryno datano datano data

2.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 564's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chengyao Jiao
Executive Chairman11.75yrsCN¥1.31m0.17%
CN¥ 32.9m
Hao Jia
Vice Chairman & GM2.58yrsCN¥4.31mno data
Jiayu Xiang
Executive Director11.75yrsCN¥1.30m0.11%
CN¥ 21.5m
Zugang Fu
Executive Director2.58yrsCN¥1.72m0.16%
CN¥ 30.9m
Bin Wang
Executive Director2.58yrsCN¥5.09mno data
Xinying Wang
Executive Director5.58yrsno data0.11%
CN¥ 21.5m
Qiang Liu
Chairman of the Board of Supervisors2.58yrsCN¥440.00k0.00066%
CN¥ 129.7k
Hua Jiang
Independent Non-Executive Director5.58yrsCN¥140.00kno data
Xudong Li
Independent Non-Executive Director5.58yrsCN¥140.00kno data
Rong Zhou
Supervisor5.58yrsno data0.0023%
CN¥ 454.0k
Yichen Zhang
Employee Representative Supervisor2.58yrsno datano data
Jinglei Cheng
Independent Non-Executive Director0.92yrCN¥47.00kno data

4.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 564's board of directors are considered experienced (4.1 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$19.653b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601717SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYAug 2010
601717XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYAug 2010
564SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2012
ZGCDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2012
564SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2012
564SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/17 19:57
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.