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631

Sany Heavy Equipment International HoldingsSEHK:631 Stock Report

Market Cap

HK$29.6b

7D

0%

1Y

108.4%

Updated

24 Oct, 2021

Data

Company Financials +
631 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends3/6

631 Overview

Sany Heavy Equipment International Holdings Company Limited, an investment holding company, engages in the research, development, manufacture, and sale of integrated excavation machinery, integrated coal mining equipment, and coal mine transportation equipment.

Sany Heavy Equipment International Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sany Heavy Equipment International Holdings
Historical stock prices
Current Share PriceHK$9.38
52 Week HighHK$4.11
52 Week LowHK$10.80
Beta0.71
1 Month Change-1.06%
3 Month Change22.61%
1 Year Change108.44%
3 Year Change320.63%
5 Year Change656.45%
Change since IPO100.14%

Recent News & Updates

Oct 20
A Look At The Fair Value Of Sany Heavy Equipment International Holdings Company Limited (HKG:631)

A Look At The Fair Value Of Sany Heavy Equipment International Holdings Company Limited (HKG:631)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Sany Heavy Equipment...

Oct 05
Returns At Sany Heavy Equipment International Holdings (HKG:631) Are On The Way Up

Returns At Sany Heavy Equipment International Holdings (HKG:631) Are On The Way Up

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two...

Sep 20
Sany Heavy Equipment International Holdings (HKG:631) Has A Rock Solid Balance Sheet

Sany Heavy Equipment International Holdings (HKG:631) Has A Rock Solid Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 02
If You Like EPS Growth Then Check Out Sany Heavy Equipment International Holdings (HKG:631) Before It's Too Late

If You Like EPS Growth Then Check Out Sany Heavy Equipment International Holdings (HKG:631) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

631HK MachineryHK Market
7D0%1.3%2.2%
1Y108.4%22.8%6.0%

Return vs Industry: 631 exceeded the Hong Kong Machinery industry which returned 22.8% over the past year.

Return vs Market: 631 exceeded the Hong Kong Market which returned 6% over the past year.

Price Volatility

Is 631's price volatile compared to industry and market?
631 volatility
631 Beta0.71
Industry Beta1
Market Beta1

Stable Share Price: 631 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 631's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20043,573Jian Qihttps://www.sanyhe.com

Sany Heavy Equipment International Holdings Company Limited, an investment holding company, engages in the research, development, manufacture, and sale of integrated excavation machinery, integrated coal mining equipment, and coal mine transportation equipment. It operates in two segments, Mining Equipment and Logistics Equipment. The Mining Equipment segment provides coal mining machinery products, including roadheaders, such as soft rock and hard rock roadheaders, integrated excavation, bolting, and self-protection machinery; mining equipment consisting of coal mining machines (shearer), hydraulic support system, scraper conveyors (armored-face conveyer), etc.; non-coal mining machinery products comprising tunnel roadheaders and mining machines; mining transport equipment, including mechanical drive off-highway and electric drive off-highway dump trucks, widebody vehicles, and other relevant products; spare parts; robotic products, such as robotic system integration, mobile robots, and electric forklifts; and smart mine products, including unmanned driving, automated integrated mining, and smart mine operation systems.

Sany Heavy Equipment International Holdings Fundamentals Summary

How do Sany Heavy Equipment International Holdings's earnings and revenue compare to its market cap?
631 fundamental statistics
Market CapCN¥24.29b
Earnings (TTM)CN¥1.22b
Revenue (TTM)CN¥8.53b

20.0x

P/E Ratio

2.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
631 income statement (TTM)
RevenueCN¥8.53b
Cost of RevenueCN¥6.39b
Gross ProfitCN¥2.15b
ExpensesCN¥929.29m
EarningsCN¥1.22b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 29, 2021

Earnings per share (EPS)0.39
Gross Margin25.15%
Net Profit Margin14.26%
Debt/Equity Ratio39.6%

How did 631 perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

19.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 631 (HK$9.38) is trading above our estimate of fair value (HK$8.11)

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 (20x) compared to the Hong Kong Machinery industry average (11.8x).

PE vs Market: 631 is poor value based on its PE Ratio (20x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 631 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 631 is overvalued based on its PB Ratio (3x) compared to the HK Machinery industry average (1x).


Future Growth

How is Sany Heavy Equipment International Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 631's forecast earnings growth (24% per year) is above the savings rate (1.5%).

Earnings vs Market: 631's earnings (24% per year) are forecast to grow faster than the Hong Kong market (17.7% per year).

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

Revenue vs Market: 631's revenue (23.9% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).

High Growth Revenue: 631's revenue (23.9% 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 (18.4%).


Past Performance

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

54.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 631 has a large one-off gain of CN¥347.8M impacting its June 30 2021 financial results.

Growing Profit Margin: 631's current net profit margins (14.3%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: 631 has become profitable over the past 5 years, growing earnings by 54.6% per year.

Accelerating Growth: 631's earnings growth over the past year (20.7%) is below its 5-year average (54.6% per year).

Earnings vs Industry: 631 earnings growth over the past year (20.7%) underperformed the Machinery industry 23.8%.


Return on Equity

High ROE: 631's Return on Equity (15%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: 631's short term assets (CN¥13.2B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 631's short term assets (CN¥13.2B) exceed its long term liabilities (CN¥3.0B).


Debt to Equity History and Analysis

Debt Level: 631's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: 631's debt to equity ratio has increased from 3% to 39.6% over the past 5 years.

Debt Coverage: 631's debt is well covered by operating cash flow (38.3%).

Interest Coverage: 631's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 631's dividend (1.6%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 631's dividend (1.6%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


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 (32.5%), 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 (36.3% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Jian Qi (61 yo)

6.17yrs

Tenure

CN¥4,270,000

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 ($USD668.79K) is about average for companies of similar size in the Hong Kong market ($USD685.86K).

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


Leadership Team

Experienced Management: 631's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: 631's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 631 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sany Heavy Equipment International Holdings Company Limited's 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$29.578b
  • Shares outstanding: 3.15b
  • Website: https://www.sanyhe.com

Number of Employees


Location

  • Sany Heavy Equipment International Holdings Company Limited
  • No. 25, 16 Kaifa Road
  • Economic and Technological Development A
  • Shenyang
  • Liaoning Province
  • 111117
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 10:08
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.