SEHK:631

Stock Analysis Report

Sany Heavy Equipment International Holdings

Executive Summary

Sany Heavy Equipment International Holdings Company Limited, an investment holding company, researches, develops, manufactures, and sells integrated excavation machinery, integrated coal mining equipment, and coal mine transportation equipment.

Snowflake

Fundamentals

Solid track record with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Sany Heavy Equipment International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 631's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

631

-1.0%

HK Machinery

-0.7%

HK Market


1 Year Return

77.4%

631

20.9%

HK Machinery

-2.3%

HK Market

Return vs Industry: 631 exceeded the Hong Kong Machinery industry which returned 20.9% over the past year.

Return vs Market: 631 exceeded the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

631IndustryMarket
7 Day5.1%-1.0%-0.7%
30 Day14.6%4.5%0.2%
90 Day39.5%9.0%2.8%
1 Year82.9%77.4%24.4%20.9%1.2%-2.3%
3 Year278.0%239.4%62.9%52.5%20.4%8.4%
5 Year133.0%109.2%40.6%28.8%16.9%-2.6%

Price Volatility Vs. Market

How volatile is Sany Heavy Equipment International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sany Heavy Equipment International Holdings undervalued compared to its fair value and its price relative to the market?

13.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 631 (HK$4.31) is trading above our estimate of fair value (HK$2.99)

Significantly Below Fair Value: 631 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 631 is poor value based on its PE Ratio (13.6x) compared to the Machinery industry average (10.2x).

PE vs Market: 631 is poor value based on its PE Ratio (13.6x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 631 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 631 is overvalued based on its PB Ratio (1.8x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is Sany Heavy Equipment International Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 631's forecast earnings growth (22% per year) is above the savings rate (2%).

Earnings vs Market: 631's earnings (22% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 631's revenue (23.4% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 631's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 631's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Sany Heavy Equipment International Holdings performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 631 has high quality earnings.

Growing Profit Margin: 631's current net profit margins (16.3%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: 631's earnings have grown significantly by 44.2% per year over the past 5 years.

Accelerating Growth: 631's earnings growth over the past year (60.3%) exceeds its 5-year average (44.2% per year).

Earnings vs Industry: 631 earnings growth over the past year (60.3%) exceeded the Machinery industry 5.7%.


Return on Equity

High ROE: 631's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sany Heavy Equipment International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 631's short term assets (CN¥8.2B) exceeds its short term liabilities (CN¥5.3B)

Long Term Liabilities: 631's short term assets (CN¥8.2B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: 631's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: 631's debt to equity ratio has increased from 5.2% to 22.3% over the past 5 years.

Debt Coverage: 631's debt is well covered by operating cash flow (48.2%).

Interest Coverage: 631 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 631 has a high level of physical assets or inventory.

Debt Coverage by Assets: 631's debt is covered by short term assets (assets are 5.4x debt).


Next Steps

Dividend

What is Sany Heavy Equipment International Holdings's current dividend yield, its reliability and sustainability?

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.2%markettop25%6.4%industryaverage2.9%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: 631's dividend (2.2%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 631's dividend (2.2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.39%).


Stability and Growth of Payments

Stable Dividend: 631's dividend payments have been volatile in the past 10 years.

Growing Dividend: 631's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), 631's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 631's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

What is the CEO of Sany Heavy Equipment International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Jian Qi (59yo)

4.3yrs

Tenure

CN¥2,832,000

Compensation

Mr. Jian Qi has been Chief Executive Officer of Sany Heavy Equipment International Holdings Company Ltd. since August 6, 2015 and served as its Chairman since August 6, 2015 until October 2, 2019. Mr. Qi s ...


CEO Compensation Analysis

Compensation vs Market: Jian's total compensation ($USD403.24K) is about average for companies of similar size in the Hong Kong market ($USD488.74K).

Compensation vs Earnings: Jian's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

46yo

Average Age

Experienced Management: 631's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 631's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 631 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥163,50020 Sep 19
Chiu Kwok Poon
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceCN¥3.27
SellCN¥126,102,37429 Apr 19
Sany Heavy Equipment Investments Company Limited
EntityCompany
Shares36,132,500
Max PriceCN¥3.49

Ownership Breakdown

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


Management Team

  • Philip Yu (42yo)

    Joint Company Secretary

    • Tenure: 2.8yrs
  • Weizhong Fu (46yo)

    Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥2.39m
  • Weili Liu (56yo)

    General Manager of the Sales Department

    • Tenure: 13.8yrs
    • Compensation: CN¥1.52m
  • Huidong Zhou (43yo)

    Joint Company Secretary

    • Tenure: 0.8yrs
  • Zaizhong Liang (35yo)

    Chairman

    • Tenure: 0.08yrs
  • Kuang Canghao (48yo)

    Standing Vice General Manager

    • Tenure: 7.2yrs
    • Compensation: CN¥292.00k
  • Jian Qi (59yo)

    Vice Chairman of the Board & CEO

    • Tenure: 4.3yrs
    • Compensation: CN¥2.83m
  • Xiangjun Zhu (35yo)

    Chief Financial Officer

    • Tenure: 3.2yrs
  • Zhihong Zhang (48yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥2.21m

Board Members

  • Chiu Kwok Poon (57yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥472.00k
  • Yuk Keung Ng (54yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥472.00k
  • Weizhong Fu (46yo)

    Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥2.39m
  • Xiuguo Tang (56yo)

    Non-Executive Director

    • Tenure: 5.2yrs
  • Wenbo Xiang (57yo)

    Non-Executive Director

    • Tenure: 10.3yrs
  • Zaizhong Liang (35yo)

    Chairman

    • Tenure: 0.08yrs
  • Jian Qi (59yo)

    Vice Chairman of the Board & CEO

    • Tenure: 4.3yrs
    • Compensation: CN¥2.83m
  • Jiquan Hu (61yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥419.00k
  • Zhihong Zhang (48yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥2.21m

Company Information

Sany Heavy Equipment International Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sany Heavy Equipment International Holdings Company Limited
  • Ticker: 631
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$12.522b
  • Shares outstanding: 3.10b
  • Website: https://www.sanyhe.com

Location

  • Sany Heavy Equipment International Holdings Company Limited
  • No. 25, 16 Kaifa Road
  • Economic and Technological Development Area
  • Shenyang
  • Liaoning Province
  • 110027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
631SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
YXSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
SNYY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
631SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
631SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009

Biography

Sany Heavy Equipment International Holdings Company Limited, an investment holding company, researches, develops, manufactures, and sells integrated excavation machinery, integrated coal mining equipment,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:50
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.