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Zhengzhou Coal Mining Machinery Group

SEHK:564
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
564
SEHK
HK$11B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

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. The last earnings update was 78 days ago. More info.


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564 Share Price and Events
7 Day Returns
5.6%
SEHK:564
0.1%
HK Machinery
0.6%
HK Market
1 Year Returns
10.8%
SEHK:564
7.5%
HK Machinery
-5.9%
HK Market
564 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zhengzhou Coal Mining Machinery Group (564) 5.6% 4.1% -6% 10.8% 13.8% -19%
HK Machinery 0.1% 1.5% -10.5% 7.5% 60.3% 42.7%
HK Market 0.6% 3.7% -8.2% -5.9% 17.2% 4.8%
1 Year Return vs Industry and Market
  • 564 outperformed the Machinery industry which returned 7.5% over the past year.
  • 564 outperformed the Market in Hong Kong which returned -5.9% over the past year.
Price Volatility
564
Industry
5yr Volatility vs Market

Value

 Is Zhengzhou Coal Mining Machinery Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zhengzhou Coal Mining Machinery Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zhengzhou Coal Mining Machinery Group.

SEHK:564 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:564
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 25%) (42.92%))
1.291
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.291 * 5.96%)
9.7%

Discounted Cash Flow Calculation for SEHK:564 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zhengzhou Coal Mining Machinery Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:564 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.7%)
2020 172.75 Est @ -32.29% 157.47
2021 134.74 Est @ -22% 111.97
2022 114.80 Est @ -14.8% 86.96
2023 103.60 Est @ -9.76% 71.54
2024 97.14 Est @ -6.23% 61.15
2025 93.49 Est @ -3.76% 53.65
2026 91.59 Est @ -2.03% 47.91
2027 90.84 Est @ -0.82% 43.32
2028 90.86 Est @ 0.03% 39.50
2029 91.43 Est @ 0.62% 36.23
Present value of next 10 years cash flows CN¥709.69
SEHK:564 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥91.43 × (1 + 2%) ÷ (9.7% – 2%)
CN¥1,211.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,211.72 ÷ (1 + 9.7%)10
CN¥480.13
SEHK:564 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥709.69 + CN¥480.13
CN¥1,189.83
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,189.83 / 1,732.47
CN¥0.69
SEHK:564 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:564)
1.138
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.69 x 1.138
HK$0.78
Value per share (HKD) From above. HK$0.78
Current discount Discount to share price of HK$3.79
= -1 x (HK$3.79 - HK$0.78) / HK$0.78
-384.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zhengzhou Coal Mining Machinery Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zhengzhou Coal Mining Machinery Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zhengzhou Coal Mining Machinery Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:564 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.61
SEHK:564 Share Price ** SEHK (2019-07-16) in HKD HK$3.79
SEHK:564 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥3.33
Hong Kong Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 9.32x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zhengzhou Coal Mining Machinery Group.

SEHK:564 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:564 Share Price ÷ EPS (both in CNY)

= 3.33 ÷ 0.61

5.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhengzhou Coal Mining Machinery Group is good value based on earnings compared to the HK Machinery industry average.
  • Zhengzhou Coal Mining Machinery Group is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Zhengzhou Coal Mining Machinery Group's expected growth come at a high price?
Raw Data
SEHK:564 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
9.9%per year
Hong Kong Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 0.68x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:564 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.46x ÷ 9.9%

0.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhengzhou Coal Mining Machinery Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Zhengzhou Coal Mining Machinery Group's assets?
Raw Data
SEHK:564 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥6.79
SEHK:564 Share Price * SEHK (2019-07-16) in HKD HK$3.79
SEHK:564 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥3.33
Hong Kong Machinery Industry PB Ratio Median Figure of 50 Publicly-Listed Machinery Companies 0.99x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:564 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:564 Share Price ÷ Book Value per Share (both in CNY)

= 3.33 ÷ 6.79

0.49x

* Primary Listing of Zhengzhou Coal Mining Machinery Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhengzhou Coal Mining Machinery Group is good value based on assets compared to the HK Machinery industry average.
X
Value checks
We assess Zhengzhou Coal Mining Machinery Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Zhengzhou Coal Mining Machinery Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Zhengzhou Coal Mining Machinery Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zhengzhou Coal Mining Machinery Group expected to grow at an attractive rate?
  • Zhengzhou Coal Mining Machinery Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Zhengzhou Coal Mining Machinery Group's earnings growth is positive but not above the Hong Kong market average.
  • Zhengzhou Coal Mining Machinery Group's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:564 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:564 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 9.9%
SEHK:564 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts -0.7%
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:564 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:564 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 28,931 2,601 1,247 2
2019-12-31 27,100 1,970 1,110 1
SEHK:564 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 29,861 1,362 1,057
2018-12-31 26,012 1,232 832
2018-09-30 21,336 634 650
2018-06-30 17,007 82 577
2018-03-31 9,195 769 363
2017-12-31 7,548 1,185 284
2017-09-30 6,222 1,039 253
2017-06-30 5,122 958 183
2017-03-31 3,505 813 117
2016-12-31 3,629 528 62
2016-09-30 3,716 433 126
2016-06-30 3,965 324 26

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zhengzhou Coal Mining Machinery Group's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Zhengzhou Coal Mining Machinery Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:564 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Zhengzhou Coal Mining Machinery Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:564 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.72 0.73 0.71 2.00
2019-12-31 0.64 0.64 0.64 1.00
SEHK:564 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.61
2018-12-31 0.48
2018-09-30 0.38
2018-06-30 0.33
2018-03-31 0.22
2017-12-31 0.17
2017-09-30 0.15
2017-06-30 0.10
2017-03-31 0.07
2016-12-31 0.04
2016-09-30 0.08
2016-06-30 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Zhengzhou Coal Mining Machinery Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Zhengzhou Coal Mining Machinery Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zhengzhou Coal Mining Machinery Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zhengzhou Coal Mining Machinery Group's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zhengzhou Coal Mining Machinery Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Zhengzhou Coal Mining Machinery Group's 1-year earnings growth exceeds its 5-year average (191% vs 25.9%)
  • Zhengzhou Coal Mining Machinery Group's earnings growth has exceeded the HK Machinery industry average in the past year (191% vs 18%).
Earnings and Revenue History
Zhengzhou Coal Mining Machinery Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zhengzhou Coal Mining Machinery Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:564 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 29,861.01 1,057.10 2,395.65 1,209.38
2018-12-31 26,011.73 832.34 2,205.64 1,004.91
2018-09-30 21,336.31 650.38 2,576.08 317.30
2018-06-30 17,006.88 577.15 2,082.70 361.23
2018-03-31 9,194.69 363.27 1,010.34 361.23
2017-12-31 7,547.67 284.25 852.51 279.06
2017-09-30 6,222.48 253.01 867.02 175.40
2017-06-30 5,121.80 182.81 817.94
2017-03-31 3,505.16 116.66 752.82
2016-12-31 3,628.53 62.00 761.82
2016-09-30 3,716.35 125.63 842.56
2016-06-30 3,965.16 25.57 928.99
2016-03-31 4,269.41 21.58 864.36
2015-12-31 4,510.86 42.20 891.05
2015-09-30 5,055.17 -11.18 891.89
2015-06-30 5,255.60 16.08 869.58
2015-03-31 5,649.87 104.86 905.27
2014-12-31 6,124.46 205.19 893.29
2014-09-30 6,861.71 429.49 727.35
2014-06-30 7,460.25 578.98 848.98
2014-03-31 7,762.62 623.53 803.28
2013-12-31 8,055.31 866.71 818.98
2013-09-30 8,717.99 1,086.81 847.03
2013-06-30 9,266.88 1,317.22 805.50
2013-03-31 10,015.81 1,554.01 880.49
2012-12-31 10,212.85 1,589.15 890.32
2012-09-30 9,277.02 1,519.65 797.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zhengzhou Coal Mining Machinery Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zhengzhou Coal Mining Machinery Group used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.
  • Zhengzhou Coal Mining Machinery Group has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Zhengzhou Coal Mining Machinery Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zhengzhou Coal Mining Machinery Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Zhengzhou Coal Mining Machinery Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zhengzhou Coal Mining Machinery Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zhengzhou Coal Mining Machinery Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zhengzhou Coal Mining Machinery Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zhengzhou Coal Mining Machinery Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zhengzhou Coal Mining Machinery Group Company Filings, last reported 3 months ago.

SEHK:564 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 12,610.91 3,580.40 4,003.66
2018-12-31 12,290.84 4,045.75 3,976.62
2018-09-30 12,228.28 4,419.86 3,518.60
2018-06-30 11,918.73 4,040.90 3,639.64
2018-03-31 11,706.56 3,173.54 2,744.41
2017-12-31 11,575.31 2,077.14 2,761.38
2017-09-30 11,594.73 1,056.00 2,961.50
2017-06-30 11,377.11 1,026.00 4,668.66
2017-03-31 10,659.36 900.00 3,172.15
2016-12-31 9,758.53 0.00 4,437.58
2016-09-30 9,727.71 0.00 2,681.58
2016-06-30 9,638.19 0.00 3,730.21
2016-03-31 9,634.13 0.00 2,925.81
2015-12-31 9,622.46 0.00 3,352.30
2015-09-30 9,553.05 101.02 1,912.71
2015-06-30 9,590.49 102.08 3,454.04
2015-03-31 9,644.17 97.54 2,567.56
2014-12-31 9,583.79 97.17 3,119.63
2014-09-30 9,684.19 98.44 2,446.21
2014-06-30 9,664.98 98.44 3,240.19
2014-03-31 9,804.92 98.43 2,514.01
2013-12-31 9,682.18 136.05 3,606.66
2013-09-30 9,548.32 0.00 2,783.64
2013-06-30 9,396.62 48.50 4,169.30
2013-03-31 9,732.54 0.00 4,560.48
2012-12-31 9,353.85 49.00 4,921.22
2012-09-30 7,288.21 49.50 3,274.76
  • Zhengzhou Coal Mining Machinery Group's level of debt (28.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1% vs 28.4% today).
  • Debt is well covered by operating cash flow (38%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).
X
Financial health checks
We assess Zhengzhou Coal Mining Machinery Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zhengzhou Coal Mining Machinery Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.35%
Current annual income from Zhengzhou Coal Mining Machinery Group dividends. Estimated to be 5.87% next year.
If you bought HK$2,000 of Zhengzhou Coal Mining Machinery Group shares you are expected to receive HK$87 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zhengzhou Coal Mining Machinery Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Zhengzhou Coal Mining Machinery Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:564 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:564 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.21 1.00
2019-12-31 0.18 1.00
SEHK:564 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-20 0.145 4.466
2018-07-09 0.050 1.502
2017-07-17 0.011 0.295
2016-03-31 0.008 0.240
2015-04-20 0.038 1.202
2014-06-30 0.165 4.073
2013-06-07 0.300 7.927

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhengzhou Coal Mining Machinery Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Zhengzhou Coal Mining Machinery Group has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Zhengzhou Coal Mining Machinery Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Zhengzhou Coal Mining Machinery Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zhengzhou Coal Mining Machinery Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zhengzhou Coal Mining Machinery Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

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?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hao Jia
COMPENSATION CN¥4,263,000
AGE 49
TENURE AS CEO 1.4 years
CEO Bio

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 February 13, 2018. Mr. Jia served as General Manager of the investment department of Salim Group (China) Company Limited. Since March 2006, he served as President of Shanghai Huili Group Company Limited. In 1990, Mr. Jia worked at Guangzhou Electrical and Mechanical Scientific Research Institute of China National Machinery Industry Corporation and was responsible for design and research. He also worked at Parker Hannifin Motion & Control (Shanghai) Co., Ltd and was responsible for sales. He served as Director of Shanghai Huili Company Limited. Mr. Jia graduated from University of Shanghai for Science and Technology in 1991, majoring in mechanical engineering. In April 2001, he obtained an Executive Master of Business Administration (EMBA) degree from China Europe International Business School.

CEO Compensation
  • Insufficient data for Hao to compare compensation growth.
  • Hao's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Zhengzhou Coal Mining Machinery Group management team in years:

2.9
Average Tenure
54
Average Age
  • The tenure for the Zhengzhou Coal Mining Machinery Group management team is about average.
Management Team

Chengyao Jiao

TITLE
Executive Chairman
COMPENSATION
CN¥1M
AGE
56

Hao Jia

TITLE
Vice Chairman & GM
COMPENSATION
CN¥4M
AGE
49
TENURE
1.4 yrs

Jiayu Xiang

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
54

Zugang Fu

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
54

Xinying Wang

TITLE
Executive Director
AGE
54

Haibin Zhang

TITLE
Deputy GM & Company Secretary
COMPENSATION
CN¥1M
AGE
38
TENURE
4.4 yrs

Bin Wang

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
59
TENURE
1.4 yrs

Hua Huang

TITLE
Chief Financial Officer
AGE
50
TENURE
1.4 yrs

Youjin Gao

TITLE
Chief Engineer and Deputy General Manager
AGE
56
TENURE
10.6 yrs

Qi Fu

TITLE
Deputy General Manager
AGE
50
TENURE
7.4 yrs
Board of Directors Tenure

Average tenure and age of the Zhengzhou Coal Mining Machinery Group board of directors in years:

4.4
Average Tenure
54
Average Age
  • The tenure for the Zhengzhou Coal Mining Machinery Group board of directors is about average.
Board of Directors

Chengyao Jiao

TITLE
Executive Chairman
COMPENSATION
CN¥1M
AGE
56
TENURE
10.6 yrs

Hao Jia

TITLE
Vice Chairman & GM
COMPENSATION
CN¥4M
AGE
49
TENURE
1.4 yrs

Jiayu Xiang

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
54
TENURE
10.6 yrs

Zugang Fu

TITLE
Executive Director
COMPENSATION
CN¥1M
AGE
54
TENURE
1.4 yrs

Xinying Wang

TITLE
Executive Director
AGE
54
TENURE
4.4 yrs

Bin Wang

TITLE
Executive Director
COMPENSATION
CN¥4M
AGE
59
TENURE
1.4 yrs

Qiang Liu

TITLE
Chairman of the Board of Supervisors
COMPENSATION
CN¥440K
AGE
50
TENURE
1.4 yrs

Hua Jiang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥140K
AGE
56
TENURE
4.4 yrs

Xudong Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥140K
AGE
49
TENURE
4.4 yrs

Yao Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥158K
AGE
44
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
10. May 19 Sell UBS Asset Management Company 07. May 19 07. May 19 -74,000 HK$3.86 HK$-285,973
06. May 19 Buy UBS Asset Management Company 30. Apr 19 30. Apr 19 200,000 HK$4.00 HK$799,800
23. Apr 19 Sell UBS Asset Management Company 15. Apr 19 15. Apr 19 -800,000 HK$3.98 HK$-3,184,321
15. Mar 19 Buy UBS Asset Management Company 12. Mar 19 12. Mar 19 1,591,200 HK$3.79 HK$6,036,374
X
Management checks
We assess Zhengzhou Coal Mining Machinery Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zhengzhou Coal Mining Machinery Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

With EPS Growth And More, Zhengzhou Coal Mining Machinery Group (HKG:564) Is Interesting

Like the last firework on New Year's Eve accelerating into the sky, Zhengzhou Coal Mining Machinery Group's EPS shot from CN¥0.17 to CN¥0.48, over the last year. … Not all of Zhengzhou Coal Mining Machinery Group's revenue this year is revenue from operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. … While we note Zhengzhou Coal Mining Machinery Group's EBIT margins were flat over the last year, revenue grew by a solid 245% to CN¥26b.

Simply Wall St -

Volatility 101: Should Zhengzhou Coal Mining Machinery Group (HKG:564) Shares Have Dropped 14%?

So we wouldn't blame long term Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) shareholders for doubting their decision to hold, with the stock down 14% over a half decade. … Looking back five years, both Zhengzhou Coal Mining Machinery Group's share price and EPS declined; the latter at a rate of 2.0% per year. … It is of course excellent to see how Zhengzhou Coal Mining Machinery Group has grown profits over the years, but the future is more important for shareholders

Simply Wall St -

How Do Zhengzhou Coal Mining Machinery Group Company Limited’s (HKG:564) Returns Compare To Its Industry?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564): Time For A Financial Health Check

However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

How Does Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Fare As A Dividend Stock?

Historically, Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) has paid a dividend to shareholders. … Let's take a look at Zhengzhou Coal Mining Machinery Group in more detail. … View our latest analysis for Zhengzhou Coal Mining Machinery Group

Simply Wall St -

What Kind Of Shareholder Owns Most Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Stock?

The big shareholder groups in Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Zhengzhou Coal Mining Machinery Group has a market capitalization of HK$11b, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Why Fundamental Investors Might Love Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564), it

Simply Wall St -

Does The Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) Share Price Tend To Follow The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Does Zhengzhou Coal Mining Machinery Group Company Limited's (HKG:564) P/E Ratio Signal A Buying Opportunity?

To keep it practical, we'll show how Zhengzhou Coal Mining Machinery Group Company Limited's (HKG:564) P/E ratio could help you assess the value on offer. … Zhengzhou Coal Mining Machinery Group has a P/E ratio of 8.67, based on the last twelve months. … View our latest analysis for Zhengzhou Coal Mining Machinery Group?

Simply Wall St -

What You Must Know About Zhengzhou Coal Mining Machinery Group Company Limited's (HKG:564) Financial Strength

While small-cap stocks, such as Zhengzhou Coal Mining Machinery Group Company Limited (HKG:564) with its market cap of HK$11b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Assessing first and foremost the financial health is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Company Info

Description

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 powered roof support products that are used in thin seam, medium seam, thick seam, and longwall top coal caving; armored face conveyors, which are used in longwall mining operations; beam stage loaders to transfer coal cut from the longwall face; crushers to crush lump coal and oversize rocks to facilitate the conveying of belt conveyors; boot ends for longwall retreats; and complete longwall systems. It also engages in the research and development, manufacture, sale, and service of auto parts; manufacturing hydraulic products; and trading of steel and other raw materials. In addition, the company is involved in hotel management and construction activities; sale of molding and metal materials; the provision of aftermarket service of mining machinery; and research and development of mining products. The company was founded in 1958 and is headquartered in Zhengzhou, the People’s Republic of China. Zhengzhou Coal Mining Machinery Group Company Limited is a subsidiary of Henan Machinery Investment Group Co., Ltd.

Details
Name: Zhengzhou Coal Mining Machinery Group Company Limited
564
Exchange: SEHK
Founded: 1958
HK$11,044,695,209
1,732,471,370
Website: http://www.zzmj.com
Address: Zhengzhou Coal Mining Machinery Group Company Limited
No. 167, 9th Street,
Econ-Tech Development Zone,
Zhengzhou,
Henan Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 564 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 05. Dec 2012
DB ZGC Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 05. Dec 2012
SHSC 564 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 05. Dec 2012
SZSC 564 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 05. Dec 2012
SHSE 601717 Domestic Shares Shanghai Stock Exchange CN CNY 03. Aug 2010
XSSC 601717 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 03. Aug 2010
Number of employees
Current staff
Staff numbers
9,760
Zhengzhou Coal Mining Machinery Group employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 12:58
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/06/27
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.