SEHK:611

Stock Analysis Report

China Nuclear Energy Technology

Executive Summary

China Nuclear Energy Technology Corporation Limited, an investment holding company, provides engineering, procurement, and construction (EPC) services for photovoltaic power plants in the People’s Republic of China.

Rewards

PE ratio (4x) is below the Hong Kong market (10.1x)

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$414M)



Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has China Nuclear Energy Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 611's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.5%

611

-0.4%

HK Construction

0.9%

HK Market


1 Year Return

-59.1%

611

-16.2%

HK Construction

-1.5%

HK Market

Return vs Industry: 611 underperformed the Hong Kong Construction industry which returned -16.2% over the past year.

Return vs Market: 611 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

611IndustryMarket
7 Day14.5%-0.4%0.9%
30 Day-7.4%-3.5%-3.7%
90 Day-24.1%-3.0%-0.1%
1 Year-59.1%-59.1%-12.3%-16.2%2.0%-1.5%
3 Year-77.5%-77.5%-25.8%-33.8%17.3%5.4%
5 Year-69.7%-69.7%-20.9%-32.7%17.1%-2.2%

Price Volatility Vs. Market

How volatile is China Nuclear Energy Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Nuclear Energy Technology undervalued compared to its fair value and its price relative to the market?

4.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 611's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 611's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 611 is good value based on its PE Ratio (4x) compared to the Construction industry average (10.3x).

PE vs Market: 611 is good value based on its PE Ratio (4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 611's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 611 is good value based on its PB Ratio (0.5x) compared to the HK Construction industry average (1x).


Next Steps

Future Growth

How is China Nuclear Energy Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.4%

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 Nuclear Energy Technology 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 Nuclear Energy Technology performed over the past 5 years?

55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 611 has high quality earnings.

Growing Profit Margin: 611's current net profit margins (4.5%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 611 has become profitable over the past 5 years, growing earnings by 55.7% per year.

Accelerating Growth: 611's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 611 had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 611's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Nuclear Energy Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 611's short term assets (HK$3.5B) exceed its short term liabilities (HK$3.5B).

Long Term Liabilities: 611's short term assets (HK$3.5B) exceed its long term liabilities (HK$686.7M).


Debt to Equity History and Analysis

Debt Level: 611's debt to equity ratio (255.2%) is considered high.

Reducing Debt: 611's debt to equity ratio has increased from 7.7% to 255.2% over the past 5 years.

Debt Coverage: 611's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: 611's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 611 has a high level of physical assets or inventory.

Debt Coverage by Assets: 611's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is China Nuclear Energy Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 611's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 611'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 611's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 611's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 611 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 611's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Nuclear Energy Technology's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Zhigang Fu (48yo)

0.7yrs

Tenure

HK$581,000

Compensation

Mr. Zhigang Fu has been Executive Director and the Chief Executive Officer of China Nuclear Energy Technology Corporation Limited since April 4, 2019. He serves as the Vice Financial Controller and the Dir ...


CEO Compensation Analysis

Compensation vs Market: Zhigang's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD213.05K).

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


Management Age and Tenure

0.9yrs

Average Tenure

48yo

Average Age

Experienced Management: 611's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

51yo

Average Age

Experienced Board: 611's board of directors are considered experienced (3.1 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.


Ownership Breakdown

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


Management Team

  • Eric Chung (54yo)

    Executive Director

    • Tenure: 9yrs
    • Compensation: HK$978.00k
  • Genyu Liu (55yo)

    Vice Chairman

    • Tenure: 2.5yrs
    • Compensation: HK$2.54m
  • Qing Jian (48yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: HK$978.00k
  • Zhigang Fu (48yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: HK$581.00k
  • Jianhua Tang (48yo)

    COO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$1.22m
  • Jinying Li (62yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$75.00k
  • Yuanchen Wu (37yo)

    Executive Director

    • Tenure: 1.1yrs
  • Yixin Zhao (43yo)

    Chairman

    • Tenure: 0.9yrs
  • Tin Shu Cheung

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Eric Chung (54yo)

    Executive Director

    • Tenure: 9yrs
    • Compensation: HK$978.00k
  • Edmond Chan (60yo)

    Independent Non-Executive Director

    • Tenure: 27.3yrs
    • Compensation: HK$150.00k
  • Genyu Liu (55yo)

    Vice Chairman

    • Tenure: 2.5yrs
    • Compensation: HK$2.54m
  • Qing Jian (48yo)

    Executive Director

    • Tenure: 10.2yrs
    • Compensation: HK$978.00k
  • Zhigang Fu (48yo)

    CEO & Executive Director

    • Tenure: 0.7yrs
    • Compensation: HK$581.00k
  • Jimin Wang (54yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$150.00k
  • Jianhua Tang (48yo)

    COO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: HK$1.22m
  • Jinying Li (62yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$75.00k
  • Yuanchen Wu (37yo)

    Executive Director

    • Tenure: 1.1yrs
  • Yixin Zhao (43yo)

    Chairman

    • Tenure: 0.9yrs

Company Information

China Nuclear Energy Technology Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Nuclear Energy Technology Corporation Limited
  • Ticker: 611
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$413.625m
  • Shares outstanding: 1.31b
  • Website: https://www.cnetcl.com

Number of Employees


Location

  • China Nuclear Energy Technology Corporation Limited
  • China Resources Building
  • Room 2801
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
611SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 1993

Biography

China Nuclear Energy Technology Corporation Limited, an investment holding company, provides engineering, procurement, and construction (EPC) services for photovoltaic power plants in the People’s Republic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:42
End of Day Share Price2019/12/09 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.