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China High Speed Transmission Equipment Group

SEHK:658
Snowflake Description

Mediocre balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
658
SEHK
HK$8B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

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. The last earnings update was 82 days ago. More info.


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658 Share Price and Events
7 Day Returns
-4.1%
SEHK:658
-1.3%
HK Electrical
1.5%
HK Market
1 Year Returns
-51.8%
SEHK:658
-27.9%
HK Electrical
-4.7%
HK Market
658 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China High Speed Transmission Equipment Group (658) -4.1% 11.1% -14.5% -51.8% -20.4% -16%
HK Electrical -1.3% -4.4% -19.5% -27.9% -33.5% -36.2%
HK Market 1.5% 3.9% -8.2% -4.7% 18.3% 3.4%
1 Year Return vs Industry and Market
  • 658 underperformed the Electrical industry which returned -27.9% over the past year.
  • 658 underperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
658
Industry
5yr Volatility vs Market

658 Value

 Is China High Speed Transmission Equipment Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China High Speed Transmission Equipment Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China High Speed Transmission Equipment Group.

SEHK:658 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:658
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.189 (1 + (1- 25%) (99.71%))
1.722
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.72
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.722 * 6.65%)
13.45%

Discounted Cash Flow Calculation for SEHK:658 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China High Speed Transmission Equipment Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:658 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.45%)
2020 40.55 Est @ -56.34% 35.74
2021 24.80 Est @ -38.84% 19.27
2022 18.21 Est @ -26.59% 12.47
2023 14.93 Est @ -18.01% 9.01
2024 13.14 Est @ -12.01% 6.99
2025 12.11 Est @ -7.8% 5.68
2026 11.52 Est @ -4.86% 4.76
2027 11.20 Est @ -2.8% 4.08
2028 11.05 Est @ -1.36% 3.55
2029 11.01 Est @ -0.35% 3.12
Present value of next 10 years cash flows CN¥104.67
SEHK:658 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥11.01 × (1 + 2%) ÷ (13.45% – 2%)
CN¥98.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥98.07 ÷ (1 + 13.45%)10
CN¥27.76
SEHK:658 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥104.67 + CN¥27.76
CN¥132.43
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥132.43 / 1,635.29
CN¥0.08
SEHK:658 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:658)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥0.08 x 1.137
HK$0.09
Value per share (HKD) From above. HK$0.09
Current discount Discount to share price of HK$5.11
= -1 x (HK$5.11 - HK$0.09) / HK$0.09
-5450.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of China High Speed Transmission Equipment Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China High Speed Transmission Equipment Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China High Speed Transmission Equipment Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:658 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.17
SEHK:658 Share Price ** SEHK (2019-07-17) in HKD HK$5.11
SEHK:658 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥4.5
Hong Kong Electrical Industry PE Ratio Median Figure of 23 Publicly-Listed Electrical Companies 10.72x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China High Speed Transmission Equipment Group.

SEHK:658 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:658 Share Price ÷ EPS (both in CNY)

= 4.5 ÷ 0.17

27.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China High Speed Transmission Equipment Group is overvalued based on earnings compared to the HK Electrical industry average.
  • China High Speed Transmission Equipment Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China High Speed Transmission Equipment Group's expected growth come at a high price?
Raw Data
SEHK:658 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
16.1%per year
Hong Kong Electrical Industry PEG Ratio Median Figure of 9 Publicly-Listed Electrical Companies 0.96x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:658 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.13x ÷ 16.1%

1.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China High Speed Transmission Equipment Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on China High Speed Transmission Equipment Group's assets?
Raw Data
SEHK:658 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥6.60
SEHK:658 Share Price * SEHK (2019-07-17) in HKD HK$5.11
SEHK:658 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥4.5
Hong Kong Electrical Industry PB Ratio Median Figure of 34 Publicly-Listed Electrical Companies 0.63x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:658 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:658 Share Price ÷ Book Value per Share (both in CNY)

= 4.5 ÷ 6.60

0.68x

* Primary Listing of China High Speed Transmission Equipment Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China High Speed Transmission Equipment Group is overvalued based on assets compared to the HK Electrical industry average.
X
Value checks
We assess China High Speed Transmission Equipment Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. China High Speed Transmission Equipment Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

658 Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China High Speed Transmission Equipment Group expected to grow at an attractive rate?
  • China High Speed Transmission Equipment Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China High Speed Transmission Equipment Group's earnings growth is expected to exceed the Hong Kong market average.
  • China High Speed Transmission Equipment Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:658 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:658 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 16.1%
SEHK:658 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 7.5%
Hong Kong Electrical Industry Earnings Growth Rate Market Cap Weighted Average 8.2%
Hong Kong Electrical Industry Revenue Growth Rate Market Cap Weighted Average 9.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -7.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:658 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:658 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10,405 1,239 509 1
2020-12-31 9,908 368 411 1
2019-12-31 9,395 2,344 460 1
SEHK:658 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 8,204 556 271
2018-06-30 7,815 1,861 44
2018-03-31 8,028 2,032 248
2017-12-31 7,991 2,203 1,041
2017-09-30 8,402 1,940 789
2017-06-30 8,481 1,678 1,031
2017-03-31 8,724 2,285 1,070
2016-12-31 8,966 2,891 1,109
2016-09-30 9,220 1,141
2016-06-30 9,473 4,162 1,174
2016-03-31 9,660 4,629 1,104

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China High Speed Transmission Equipment Group's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).
  • China High Speed Transmission Equipment Group's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:658 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from China High Speed Transmission Equipment Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:658 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.31 0.31 0.31 1.00
2020-12-31 0.25 0.25 0.25 1.00
2019-12-31 0.28 0.28 0.28 1.00
SEHK:658 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.17
2018-06-30 0.03
2018-03-31 0.15
2017-12-31 0.64
2017-09-30 0.48
2017-06-30 0.63
2017-03-31 0.65
2016-12-31 0.68
2016-09-30 0.70
2016-06-30 0.72
2016-03-31 0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China High Speed Transmission Equipment Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China High Speed Transmission Equipment Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China High Speed Transmission Equipment Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

658 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China High Speed Transmission Equipment Group's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China High Speed Transmission Equipment Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • China High Speed Transmission Equipment Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China High Speed Transmission Equipment Group's 1-year earnings growth is negative, it can't be compared to the HK Electrical industry average.
Earnings and Revenue History
China High Speed Transmission Equipment Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China High Speed Transmission Equipment Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:658 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,203.50 270.93 787.49 337.46
2018-06-30 7,814.50 44.34 950.00 302.00
2018-03-31 8,028.21 248.02 977.40 298.71
2017-12-31 7,990.60 1,040.68 927.13 286.20
2017-09-30 8,402.48 788.96 1,055.72 328.13
2017-06-30 8,481.06 1,030.63 1,083.23 352.58
2017-03-31 8,723.55 1,069.81 1,033.23 356.55
2016-12-31 8,966.05 1,109.00 983.23 360.52
2016-09-30 9,219.73 1,141.49 982.82 369.04
2016-06-30 9,473.40 1,173.99 982.40 377.56
2016-03-31 9,659.55 1,103.54 993.65 354.12
2015-12-31 9,845.70 1,033.10 1,004.89 330.69
2015-09-30 9,398.52 795.07 986.62 251.04
2015-06-30 8,951.35 557.04 968.35 171.40
2015-03-31 8,549.35 382.73 976.18 169.44
2014-12-31 8,147.34 208.42 984.01 167.48
2014-09-30 7,996.76 368.91 945.64 168.49
2014-06-30 7,846.18 529.40 907.27 169.50
2014-03-31 7,192.62 296.98 900.90 154.39
2013-12-31 6,539.06 64.57 894.53 139.27
2013-09-30 6,127.78 -91.22 854.81 133.70
2013-06-30 5,716.49 -247.01 815.09 128.13
2013-03-31 6,042.66 -54.29 797.98 132.97
2012-12-31 6,368.82 138.43 780.87 137.80
2012-09-30 6,799.74 252.52 823.05 117.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China High Speed Transmission Equipment Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China High Speed Transmission Equipment Group used its assets less efficiently than the HK Electrical industry average last year based on Return on Assets.
  • China High Speed Transmission Equipment Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China High Speed Transmission Equipment Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China High Speed Transmission Equipment Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

658 Health

 How is China High Speed Transmission Equipment Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China High Speed Transmission Equipment Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China High Speed Transmission Equipment Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China High Speed Transmission Equipment Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China High Speed Transmission Equipment Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China High Speed Transmission Equipment Group Company Filings, last reported 6 months ago.

SEHK:658 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,865.26 7,372.96 6,587.95
2018-06-30 10,907.98 8,627.56 6,995.94
2018-03-31 10,907.98 8,627.56 6,995.94
2017-12-31 10,976.00 7,786.90 4,138.41
2017-09-30 10,976.00 7,786.90 5,052.34
2017-06-30 11,388.80 6,752.21 4,739.53
2017-03-31 11,388.80 6,752.21 4,739.53
2016-12-31 11,240.35 6,501.81 3,258.56
2016-09-30 11,240.35 6,501.81 3,258.56
2016-06-30 10,206.42 9,148.56 3,728.61
2016-03-31 10,206.42 9,148.56 3,728.61
2015-12-31 9,974.74 7,566.32 4,092.86
2015-09-30 9,974.74 7,566.32 4,092.86
2015-06-30 9,344.50 8,037.75 1,893.98
2015-03-31 9,344.50 8,037.75 1,893.98
2014-12-31 8,870.10 10,938.77 2,593.61
2014-09-30 8,870.10 10,938.77 2,593.61
2014-06-30 8,983.43 11,148.49 1,244.29
2014-03-31 8,983.43 11,148.49 1,244.29
2013-12-31 8,761.70 9,448.42 2,435.37
2013-09-30 8,761.70 9,448.42 2,435.37
2013-06-30 7,571.32 8,789.15 1,312.61
2013-03-31 7,571.32 8,789.15 1,312.61
2012-12-31 7,744.56 8,743.85 2,404.50
2012-09-30 7,744.56 8,743.85 2,404.50
  • China High Speed Transmission Equipment Group's level of debt (67.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (112.6% vs 67.9% today).
  • Debt is not well covered by operating cash flow (7.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess China High Speed Transmission Equipment Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China High Speed Transmission Equipment Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

658 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.52%
Current annual income from China High Speed Transmission Equipment Group dividends. Estimated to be 2.28% next year.
If you bought HK$2,000 of China High Speed Transmission Equipment Group shares you are expected to receive HK$30 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China High Speed Transmission Equipment Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • China High Speed Transmission Equipment Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:658 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Hong Kong Electrical Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:658 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 2.00
2020-12-31 0.09 2.00
2019-12-31 0.14 2.00
SEHK:658 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-18 0.068 1.550
2018-04-12 0.144 2.175
2017-05-19 0.184 2.434
2016-05-17 0.193 3.002
2012-09-13 0.000 0.000
2012-08-24 0.000 0.000
2012-03-30 0.000 0.000
2011-03-25 0.280 6.622
2010-04-19 0.252 2.008
2009-04-28 0.220 1.489
2009-04-20 0.220 1.980
2008-09-17 0.070 0.902

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of China High Speed Transmission Equipment Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess China High Speed Transmission Equipment Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China High Speed Transmission Equipment Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China High Speed Transmission Equipment Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

658 Management

 What is the CEO of China High Speed Transmission Equipment Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jichun Hu
COMPENSATION CN¥2,450,000
AGE 40
TENURE AS CEO 2.6 years
CEO Bio

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 served as the Vice General Manager of Nanjing E-crystal Energy Co., Ltd. since January 2012 and the Vice General Manager of Nanjing Jingjing Photoelectric Science & Technology Co. Ltd. since August 2012. Mr. Hu has been Executive Director of China High Speed Transmission Equipment Group Co., Ltd. since June 27, 2015. He holder a postgraduate degree. Mr. Hu has served as a director of NGC since November 2016 and the chairman and the general manager of NGC since December 2016. He has served as the president of NGC since January 2017. Mr. Hu also holds directorship in certain subsidiaries of the Group, including Nanjing High Speed & Accurate Gear (Group) Co., Ltd, Nanjing High Speed Gear Manufacturing Co., Ltd., NGC Transmission Equipment (America), Inc. and China Transmission Holdings Limited. Mr. Hu graduated from Shanghai University in Control Theory and Control Engineering and obtained a Master's degree in Engineering in 2004.

CEO Compensation
  • Jichun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jichun's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China High Speed Transmission Equipment Group management team in years:

2.6
Average Tenure
51
Average Age
  • The tenure for the China High Speed Transmission Equipment Group management team is about average.
Management Team

Jichun Hu

TITLE
Chairman & CEO
COMPENSATION
CN¥2M
AGE
40
TENURE
2.6 yrs

Zhengbing Wang

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
48

Yongdao Chen

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
56

Yueming Hu

TITLE
Executive Director
COMPENSATION
CN¥1,000K
AGE
70
TENURE
13.6 yrs

Zhijin Zhou

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
47

Qing Zheng

TITLE
Executive Director
COMPENSATION
CN¥203K
AGE
52

Edward Lui

TITLE
CFO & Company Secretary
AGE
56

Xiaobin Gu

TITLE
Executive Director
AGE
50
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the China High Speed Transmission Equipment Group board of directors in years:

4.1
Average Tenure
53
Average Age
  • The tenure for the China High Speed Transmission Equipment Group board of directors is about average.
Board of Directors

Jichun Hu

TITLE
Chairman & CEO
COMPENSATION
CN¥2M
AGE
40
TENURE
0.2 yrs

Zhengbing Wang

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
48
TENURE
4.1 yrs

Yongdao Chen

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
56
TENURE
13.6 yrs

Yueming Hu

TITLE
Executive Director
COMPENSATION
CN¥1,000K
AGE
70
TENURE
13.6 yrs

Zhijin Zhou

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
47
TENURE
4.1 yrs

Qing Zheng

TITLE
Executive Director
COMPENSATION
CN¥203K
AGE
52
TENURE
2.6 yrs

Xiaobin Gu

TITLE
Executive Director
AGE
50
TENURE
0.2 yrs

Xihe Jiang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥203K
AGE
61
TENURE
12.1 yrs

Bob Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥203K
AGE
56
TENURE
2.6 yrs

Jianhua Jiang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥203K
AGE
54
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess China High Speed Transmission Equipment Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China High Speed Transmission Equipment Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

658 News

Simply Wall St News

What Should You Know About The Future Of China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658)?

In December 2018, China High Speed Transmission Equipment Group Co., Ltd. … Below is a brief commentary around China High Speed Transmission Equipment Group's earnings outlook going forward, which may give you a sense of market sentiment for the company. … Check out our latest analysis for China High Speed Transmission Equipment Group How is China High Speed Transmission Equipment Group going to perform in the near future?

Simply Wall St -

Is China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) Growth Strong Enough To Justify Its June Share Price?

China High Speed Transmission Equipment Group is poised for significantly high earnings growth in the near future. … However, to properly examine the value of a high-growth stock such as China High Speed Transmission Equipment Group, we must reflect its earnings growth into the valuation. … A PE ratio of 26.44x and expected year-on-year earnings growth of 16% give China High Speed Transmission Equipment Group a higher PEG ratio of 1.64x.

Simply Wall St -

Is China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) Balance Sheet Strong Enough To Weather A Storm?

658’s Debt (And Cash Flows) 658 has shrunk its total debt levels in the last twelve months, from CN¥7.8b to CN¥7.4b , which includes long-term debt. … On top of this, 658 has produced cash from operations of CN¥556m over the same time period, resulting in an operating cash to total debt ratio of 7.5%, meaning that 658’s debt is not covered by operating cash. … Next Steps: Although 658’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

China High Speed Transmission Equipment Group Co., Ltd. (HKG:658): Are Analysts Bullish?

Below is my commentary, albeit very simple and high-level, on how market analysts perceive China High Speed Transmission Equipment Group's earnings growth outlook over the next few years and whether the future looks brighter. … Check out our latest analysis for China High Speed Transmission Equipment Group Market analysts' prospects for next year seems positive, with earnings climbing by a significant 70%. … The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of China High Speed Transmission Equipment Group's earnings trajectory over time, be more volatile.

Simply Wall St -

Is China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) 1.4% Dividend Worth Your Time?

Dividend paying stocks like China High Speed Transmission Equipment Group Co., Ltd. … (HKG:658) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. Investors might not know much about China High Speed Transmission Equipment Group's dividend prospects, even though it has been paying dividends for the last nine years and offers a 1.4% yield. While the yield may not look too great, the relatively long payment history is interesting. There are a few simple ways to reduce the risks of buying China High Speed Transmission Equipment Group for its dividend, and we'll go through these below. Click the interactive chart for our full dividend analysis SEHK:658 Historical Dividend Yield, May 10th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, China High Speed Transmission Equipment Group paid out 42% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. China High Speed Transmission Equipment Group paid out 367% of its free cash flow last year, suggesting the dividend is poorly covered by cash flow. Paying out more than 100% of your free cash flow in dividends is generally not a long-term, sustainable state of affairs, so we think shareholders should watch this metric closely. Is China High Speed Transmission Equipment Group's Balance Sheet Risky? As China High Speed Transmission Equipment Group has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … It's good to see that China High Speed Transmission Equipment Group has been paying a dividend for a number of years.

Simply Wall St -

Why We’re Not Keen On China High Speed Transmission Equipment Group Co., Ltd.’s (HKG:658) 3.7% Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) High P/E Ratio A Problem For Investors?

We'll look at China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) P/E ratio and reflect on what it tells us about the company's share price. … China High Speed Transmission Equipment Group has a P/E ratio of 33.02, based on the last twelve months. … View our latest analysis for China High Speed Transmission Equipment Group?

Simply Wall St -

Introducing China High Speed Transmission Equipment Group, The Stock That Dropped 40% In The Last Year

Unfortunately the China High Speed Transmission Equipment Group Co., Ltd. … View our latest analysis for China High Speed Transmission Equipment Group. … Unfortunately China High Speed Transmission Equipment Group reported an EPS drop of 96% for the last year.

Simply Wall St -

Is China High Speed Transmission Equipment Group Co., Ltd.'s (HKG:658) Balance Sheet Strong Enough To Weather A Storm?

(HKG:658) with its market cap of HK$12b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Does China High Speed Transmission Equipment Group Co Ltd (HKG:658)'s Capital Return Make The Cut?

and want to begin learning the link between China High Speed Transmission Equipment Group Co Ltd (HKG:658)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently China High Speed Transmission Equipment Group is able to use capital to create earnings will help us understand your potential return. … See our latest analysis for China High Speed Transmission Equipment Group

Simply Wall St -

658 Company Info

Description

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. It offers wind gear transmission equipment; industrial gear transmission equipment for the metallurgy, construction materials, traffic, transportation, petrochemical, aerospace, and mining industries; and rail transportation gear equipment products. The company provides gears, gear boxes, and fittings. It also engages in the provision of financial leasing services; and trading business. The company also exports products to the United States, India, Japan, and Europe. China High Speed Transmission Equipment Group Co., Ltd. was founded in 1969 and is headquartered in Causeway Bay, Hong Kong.

Details
Name: China High Speed Transmission Equipment Group Co., Ltd.
658
Exchange: SEHK
Founded: 1969
HK$8,405,398,597
1,635,291,556
Website: http://www.chste.com
Address: China High Speed Transmission Equipment Group Co., Ltd.
COFCO Tower,
13th Floor,
Causeway bay,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 658 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 04. Jul 2007
OTCPK CHST.F Ordinary Shares Pink Sheets LLC US USD 04. Jul 2007
DB BGR Ordinary Shares Deutsche Boerse AG DE EUR 04. Jul 2007
SHSC 658 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 04. Jul 2007
SZSC 658 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 04. Jul 2007
OTCPK CHST.Y ADR Pink Sheets LLC US USD 15. Oct 2008
Number of employees
Current staff
Staff numbers
5,588
China High Speed Transmission Equipment Group employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 12:51
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/06/28
Last earnings filing: 2019/04/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.