SEHK:586

Stock Analysis Report

China Conch Venture Holdings

Executive Summary

China Conch Venture Holdings Limited, an investment holding company, provides energy preservation and environmental protection solutions in Mainland China, rest of Asia, Africa, Oceanica, and North and South America.

Rewards

PE ratio (7.8x) is below the Hong Kong market (10.2x)

Earnings are forecast to grow 9.01% per year

Earnings grew by 46% over the past year

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has China Conch Venture Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 586 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

586

3.9%

HK Machinery

2.2%

HK Market


1 Year Return

35.8%

586

31.1%

HK Machinery

-0.8%

HK Market

Return vs Industry: 586 exceeded the Hong Kong Machinery industry which returned 31.1% over the past year.

Return vs Market: 586 exceeded the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

586IndustryMarket
7 Day2.8%3.9%2.2%
30 Day3.8%2.6%-0.6%
90 Day9.8%7.1%-0.9%
1 Year38.5%35.8%34.9%31.1%2.8%-0.8%
3 Year136.0%122.5%65.0%54.3%19.5%7.4%
5 Year132.9%111.7%50.6%37.6%20.7%0.5%

Price Volatility Vs. Market

How volatile is China Conch Venture Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Conch Venture Holdings undervalued compared to its fair value and its price relative to the market?

7.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 586 (HK$31.5) is trading above our estimate of fair value (HK$8.83)

Significantly Below Fair Value: 586 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 586 is good value based on its PE Ratio (7.8x) compared to the Machinery industry average (9.7x).

PE vs Market: 586 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 586 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 586 is overvalued based on its PB Ratio (1.8x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is China Conch Venture Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 586's forecast earnings growth (9% per year) is above the savings rate (1.6%).

Earnings vs Market: 586's earnings (9% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 586's earnings are forecast to grow, but not significantly.

Revenue vs Market: 586's revenue (36.9% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 586's revenue (36.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 586's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has China Conch Venture Holdings performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 586 has a high level of non-cash earnings.

Growing Profit Margin: 586's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: 586's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: 586's earnings growth over the past year (46%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: 586 earnings growth over the past year (46%) exceeded the Machinery industry 7.3%.


Return on Equity

High ROE: 586's Return on Equity (23.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Conch Venture Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 586's short term assets (CN¥6.0B) exceed its short term liabilities (CN¥3.7B).

Long Term Liabilities: 586's short term assets (CN¥6.0B) exceed its long term liabilities (CN¥5.2B).


Debt to Equity History and Analysis

Debt Level: 586's debt to equity ratio (19.3%) is considered satisfactory.

Reducing Debt: 586's debt to equity ratio has increased from 7.6% to 19.3% over the past 5 years.

Debt Coverage: 586's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: 586's interest payments on its debt are well covered by EBIT (27.9x coverage).


Balance Sheet

Inventory Level: 586 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 586's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is China Conch Venture Holdings's current dividend yield, its reliability and sustainability?

1.71%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.3%markettop25%6.2%industryaverage2.8%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: 586's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 586's dividend (1.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: 586 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 586's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), 586's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 586's dividends in 3 years are forecast to be well covered by earnings (16.1% payout ratio).


Next Steps

Management

What is the CEO of China Conch Venture Holdings's salary, the management and board of directors tenure and is there insider trading?

6.2yrs

Average board tenure


CEO

Qinying Ji (63yo)

0yrs

Tenure

CN¥1,030,000

Compensation

Mr. Qinying Ji serves as the Chief Executive Officer and General Manager of China Conch Venture Holdings Limited. Mr. Ji served as General Manager at Anhui Conch Cement Co. Ltd. from October 2009 to May 28 ...


CEO Compensation Analysis

Compensation vs Market: Qinying's total compensation ($USD146.42K) is below average for companies of similar size in the Hong Kong market ($USD610.22K).

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


Board Age and Tenure

6.2yrs

Average Tenure

57yo

Average Age

Experienced Board: 586's board of directors are considered experienced (6.2 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

SellCN¥3,701,43518 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares131,500
Max PriceCN¥28.15
SellCN¥209,951,97807 Mar 19
Anhui Conch Venture Medical Investment Management Co., Ltd.
EntityCompany
Shares7,776,000
Max PriceCN¥27.00

Ownership Breakdown

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


Management Team

  • Jingbin Guo (61yo)

    Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: CN¥1.04m
  • Qinying Ji (63yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.03m
  • Zhongping Zhu (63yo)

    Chief Financial Officer and Chief Accountant

    • Tenure: 0yrs
  • Jian Li (58yo)

    Deputy GM & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥858.00k
  • Daming Li (54yo)

    Deputy GM & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥978.00k
  • Mao Shu (33yo)

    Company Secretary

    • Tenure: 6yrs
  • Xuesen Wang (55yo)

    Deputy General Manager

    • Tenure: 0yrs
  • Jiwu Han (56yo)

    Assistant GM & Head of Strategic Planning Department

    • Tenure: 0yrs
  • Keke Zhang (56yo)

    Assistant to General Manager

    • Tenure: 0yrs
  • Junxian Wang (46yo)

    Assistant to GM & Head of Operational Management Department

    • Tenure: 0yrs

Board Members

  • Jingbin Guo (61yo)

    Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: CN¥1.04m
  • Derek Chan (56yo)

    Independent Non Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥131.00k
  • Qinying Ji (63yo)

    CEO, GM & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.03m
  • Zhangli Chang (49yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Alex Lau (55yo)

    Independent Non Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥131.00k
  • Jian Li (58yo)

    Deputy GM & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥858.00k
  • Kai Wing Chan (58yo)

    Independent Non Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥131.00k
  • Daming Li (54yo)

    Deputy GM & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥978.00k

Company Information

China Conch Venture Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Conch Venture Holdings Limited
  • Ticker: 586
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$56.037b
  • Shares outstanding: 1.80b
  • Website: https://www.conchventure.com

Number of Employees


Location

  • China Conch Venture Holdings Limited
  • 1011 Jiuhua South Road
  • Wuhu
  • Anhui Province
  • 241070
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
586SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013
68CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
586SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013
586SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013

Biography

China Conch Venture Holdings Limited, an investment holding company, provides energy preservation and environmental protection solutions in Mainland China, rest of Asia, Africa, Oceanica, and North and Sou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 13:00
End of Day Share Price2019/12/11 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.