SEHK:658

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China High Speed Transmission Equipment Group

Executive Summary

China High Speed Transmission Equipment Group Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and distribution of a range of mechanical transmission equipment in the People’s Republic of China.


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has China High Speed Transmission Equipment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 658's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

658

0.9%

HK Electrical

0.8%

HK Market


1 Year Return

36.1%

658

-0.6%

HK Electrical

6.9%

HK Market

Return vs Industry: 658 exceeded the Hong Kong Electrical industry which returned -1.9% over the past year.

Return vs Market: 658 exceeded the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

658IndustryMarket
7 Day5.2%0.9%0.8%
30 Day21.2%-0.2%-0.5%
90 Day15.8%12.0%9.8%
1 Year42.3%36.1%0.9%-0.6%11.3%6.9%
3 Year-24.6%-30.1%-41.9%-44.7%3.3%-7.7%
5 Year20.8%4.4%-48.0%-51.3%22.6%1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China High Speed Transmission Equipment Group undervalued compared to its fair value and its price relative to the market?

31.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 658 (HK$5.65) is trading below our estimate of fair value (HK$8.22)

Significantly Below Fair Value: 658 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 658 is poor value based on its PE Ratio (22.1x) compared to the HK Electrical industry average (11.4x).

PE vs Market: 658 is poor value based on its PE Ratio (22.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 658 is poor value based on its PEG Ratio (6.9x)


Price to Book Ratio

PB vs Industry: 658's PB Ratio (0.7x) is in line with the HK Electrical industry average.


Next Steps

Future Growth

How is China High Speed Transmission Equipment Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 658's forecast earnings growth (3.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 658's earnings (3.2% per year) are forecast to grow slower than the Hong Kong market (18.7% per year).

High Growth Earnings: 658's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 658's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 658's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 658's Return on Equity is forecast to be low in 3 years time (3.6%).


Next Steps

Past Performance

How has China High Speed Transmission Equipment Group performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 658 has high quality earnings.

Growing Profit Margin: 658's current net profit margins (3.8%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: 658's earnings have declined by 8.7% per year over the past 5 years.

Accelerating Growth: 658's earnings growth over the past year (38.1%) exceeds its 5-year average (-8.7% per year).

Earnings vs Industry: 658 earnings growth over the past year (38.1%) exceeded the Electrical industry 9.9%.


Return on Equity

High ROE: 658's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is China High Speed Transmission Equipment Group's financial position?


Financial Position Analysis

Short Term Liabilities: 658's short term assets (CN¥15.9B) exceed its short term liabilities (CN¥12.6B).

Long Term Liabilities: 658's short term assets (CN¥15.9B) exceed its long term liabilities (CN¥974.6M).


Debt to Equity History and Analysis

Debt Level: 658's debt to equity ratio (46.2%) is considered high.

Reducing Debt: 658's debt to equity ratio has reduced from 122.9% to 46.2% over the past 5 years.

Debt Coverage: 658's debt is well covered by operating cash flow (40.4%).

Interest Coverage: 658's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

What is China High Speed Transmission Equipment Group current dividend yield, its reliability and sustainability?

3.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 658's dividend (3.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 658's dividend (3.54%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.76%).


Stability and Growth of Payments

Stable Dividend: 658's dividend payments have been volatile in the past 10 years.

Growing Dividend: 658's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.1%), 658's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 658's dividends in 3 years are forecast to be covered by earnings (75% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Jichun Hu (41 yo)

3.67yrs

Tenure

CN¥2,450,000

Compensation

Mr. Jichun Hu has been the Chief Executive Officer of China High Speed Transmission Equipment Group Co., Ltd. since December 5, 2016 and serves as Chairman since May 24, 2019. Mr. Hu has served as the Vic ...


CEO Compensation Analysis

Compensation vs Market: Jichun's total compensation ($USD352.78K) is about average for companies of similar size in the Hong Kong market ($USD462.69K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jichun Hu
Chairman & CEO3.67yrsCN¥2.45mno data
Zhengbing Wang
Executive Director5.17yrsCN¥2.75mno data
Yongdao Chen
Executive Director14.67yrsCN¥3.15mno data
Yueming Hu
Executive Director14.67yrsCN¥3.45mno data
Zhijin Zhou
Executive Director5.17yrsCN¥2.75mno data
Qing Zheng
Executive Director3.67yrsCN¥215.00kno data
Xiaobin Gu
Executive Director1.25yrsCN¥3.21mno data
Wing Hong Lui
CFO & Company Secretaryno datano datano data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: 658's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jichun Hu
Chairman & CEO3.67yrsCN¥2.45mno data
Zhengbing Wang
Executive Director5.17yrsCN¥2.75mno data
Yongdao Chen
Executive Director14.67yrsCN¥3.15mno data
Yueming Hu
Executive Director14.67yrsCN¥3.45mno data
Zhijin Zhou
Executive Director5.17yrsCN¥2.75mno data
Qing Zheng
Executive Director3.67yrsCN¥215.00kno data
Xiaobin Gu
Executive Director1.25yrsCN¥3.21mno data
Yau Ching Chan
Independent Non-Executive Director3.67yrsCN¥215.00kno data
Xihe Jiang
Independent Non-Executive Director13.17yrsCN¥215.00kno data
Jian Hua Jiang
Independent Non-Executive Director7.67yrsCN¥215.00kno data
Chi Ping Yuen
Non-Executive Director3.67yrsCN¥215.00kno data
Li Yu
Independent Non-Executive Director3.67yrsCN¥215.00kno data

4.4yrs

Average Tenure

52yo

Average Age

Experienced Board: 658's board of directors are considered experienced (4.4 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 High Speed Transmission Equipment Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China High Speed Transmission Equipment Group Co., Ltd.
  • Ticker: 658
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$9.239b
  • Shares outstanding: 1.64b
  • Website: https://www.chste.com

Number of Employees


Location

  • China High Speed Transmission Equipment Group Co., Ltd.
  • COFCO Tower
  • 13th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
658SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
CHST.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
BGRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
658SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
CHST.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

China High Speed Transmission Equipment Group Co., Ltd., together with its subsidiaries, engages in the research, design, development, manufacture, and distribution of a range of mechanical transmission eq ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:50
End of Day Share Price2020/08/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.