SEHK:569

Stock Analysis Report

China Automation Group

Executive Summary

China Automation Group Limited, an investment holding company, provides safety and critical control systems in the People’s Republic of China, the United States, Japan, and Singapore.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

How has China Automation Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 569 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

569

0.3%

HK Machinery

-0.6%

HK Market


1 Year Return

40.6%

569

20.1%

HK Machinery

-7.6%

HK Market

Return vs Industry: 569 exceeded the Hong Kong Machinery industry which returned 35% over the past year.

Return vs Market: 569 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

569IndustryMarket
7 Day0%0.3%-0.6%
30 Day0%3.3%-1.2%
90 Day7.2%13.1%3.0%
1 Year40.6%40.6%23.6%20.1%-4.2%-7.6%
3 Year8.8%8.8%59.2%49.2%12.9%1.5%
5 Year0%0%60.6%46.8%13.1%-5.6%

Price Volatility Vs. Market

How volatile is China Automation Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Automation Group undervalued compared to its fair value and its price relative to the market?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 569 (HK$1.49) is trading below our estimate of fair value (HK$1.88)

Significantly Below Fair Value: 569 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 569 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: 569 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 569's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 569 is overvalued based on its PB Ratio (1.3x) compared to the HK Machinery industry average (1.1x).


Next Steps

Future Growth

How is China Automation Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.4%

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 China Automation Group 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 China Automation Group performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 569 is currently unprofitable.

Growing Profit Margin: 569 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 569 is unprofitable, and losses have increased over the past 5 years at a rate of -6.1% per year.

Accelerating Growth: Unable to compare 569's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 569 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (7.3%).


Return on Equity

High ROE: 569 has a negative Return on Equity (-0.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Automation Group's financial position?


Financial Position Analysis

Short Term Liabilities: 569's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.9B).

Long Term Liabilities: 569's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥1.8B).


Debt to Equity History and Analysis

Debt Level: 569's debt to equity ratio (160.4%) is considered high.

Reducing Debt: 569's debt to equity ratio has increased from 67.3% to 160.4% over the past 5 years.


Balance Sheet

Inventory Level: 569 has a high level of physical assets or inventory.

Debt Coverage by Assets: 569's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 569 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 569 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 118.2% per year.


Next Steps

Dividend

What is China Automation Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 569's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 569's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 569's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 569's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 569 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 569's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Rui Guo Xuan (51yo)

3.1yrs

Tenure

CN¥3,673,000

Compensation

Mr. Rui Guo Xuan is Co- founder of China Automation Group Ltd. and has been its Chief Executive Officer since September 14, 2016 and responsible for its overall strategic and financial planning and long-te ...


CEO Compensation Analysis

Compensation vs Market: Rui Guo's total compensation ($USD519.86K) is above average for companies of similar size in the Hong Kong market ($USD296.12K).

Compensation vs Earnings: Rui Guo's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Rui Guo Xuan
Co-Founder3.1yrsCN¥3.67m21.12% CN¥322.9m
Chuensheng Wang
Executive Director3.2yrsCN¥856.00kno data
Zheng Qiang Zhou
Group President3.1yrsno datano data
Qiu Ping Wang
Group Chief Financial Officer2.1yrsno datano data
Chiu Chi Chow
Financial Controller & Company Secretary0yrsno datano data
William Barkovitz
President of US Operations of Inovex Corporation0yrsno datano data
Yan Mei Wang
Chairman & GM of Beijing Haidian Zhongjing Engineering Software Technologies Ltd0yrsno datano data

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: 569's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rui Guo Xuan
Co-Founder3.1yrsCN¥3.67m21.12% CN¥322.9m
Chuensheng Wang
Executive Director3.2yrsCN¥856.00kno data
Yan Mei Wang
Chairman & GM of Beijing Haidian Zhongjing Engineering Software Technologies Ltd0yrsno datano data
Xin Zhi Zhang
Independent Non-Executive Director3.2yrsCN¥154.00kno data
Wing Fai Ng
Independent Non-Executive Director12.3yrsCN¥205.00kno data
Tai Wen Wang
Independent Non-Executive Director11.8yrsCN¥154.00kno data

7.5yrs

Average Tenure

66yo

Average Age

Experienced Board: 569's board of directors are considered experienced (7.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Automation Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Automation Group Limited
  • Ticker: 569
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$1.529b
  • Shares outstanding: 1.03b
  • Website: https://www.cag.com.hk

Number of Employees


Location

  • China Automation Group Limited
  • No. 7, Anxiang Street
  • Area B
  • Beijing
  • 101318
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
569SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
3CAADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
CAUZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007

Biography

China Automation Group Limited, an investment holding company, provides safety and critical control systems in the People’s Republic of China, the United States, Japan, and Singapore. It operates through Petrochemical and Hospital Services segments. The company offers safety and critical control systems, including integrated turbine and compressor controls, intelligent machinery expert control and safety operation management systems, integrated turbine and compressor controls–operation training systems, emergency shutdown devices, and fire and gas systems; and control valves. It also sells software products to the petrochemical, chemical, oil and gas, biodiesel, and coal chemical industries; trades in equipment and automation products; provides maintenance and engineering, and design and consultation services; provides healthcare services; and sells pharmaceutical products. In addition, the company offers industrial turbo machinery process controls; systems design and development; software development and integrated circuit design; and energy-saving and environmental technology services. Further, it distributes, trains, and engineers instrumentation and control products; designs, develops, and sells construction material for railway and highroad; and researches and develops, and programs and licenses software. Additionally, it manufactures steel-casting; develops and sells real estate; and produces biodiesel fuel and related technology services; develops new energy; and sells power generation equipment. The company also engages in infrastructure and investment management activities. The company was founded in 1999 and is headquartered in Beijing, China. China Automation Group Limited is a subsidiary of Araco Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/27 12:45
End of Day Share Price2019/10/10 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.