SEHK:697

Stock Analysis Report

Shougang Concord International Enterprises

Executive Summary

Shougang Concord International Enterprises Company Limited, an investment holding company, engages in the trading of iron ore in the People's Republic of China.

Rewards

Earnings grew by 226.6% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Dividend of 4.11% is not well covered by earnings



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Shougang Concord International Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 697 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

697

1.0%

HK Trade Distributors

0.6%

HK Market


1 Year Return

51.7%

697

-15.0%

HK Trade Distributors

-4.5%

HK Market

Return vs Industry: 697 exceeded the Hong Kong Trade Distributors industry which returned -13.9% over the past year.

Return vs Market: 697 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

697IndustryMarket
7 Day2.9%1.0%0.6%
30 Day-6.6%-2.4%-5.2%
90 Day-1.4%-5.7%2.3%
1 Year69.1%51.7%-12.1%-15.0%-1.0%-4.5%
3 Year46.6%31.5%-15.8%-23.2%14.4%2.9%
5 Year21.8%9.2%-50.4%-59.1%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Shougang Concord International Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shougang Concord International Enterprises undervalued compared to its fair value and its price relative to the market?

19.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 697 (HK$0.36) is trading above our estimate of fair value (HK$0.17)

Significantly Below Fair Value: 697 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 697 is poor value based on its PE Ratio (19.2x) compared to the Trade Distributors industry average (10x).

PE vs Market: 697 is poor value based on its PE Ratio (19.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 697's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 697 is overvalued based on its PB Ratio (1x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

How is Shougang Concord International Enterprises forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.0%

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 Shougang Concord International Enterprises 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 Shougang Concord International Enterprises performed over the past 5 years?

61.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 697 has high quality earnings.

Growing Profit Margin: 697's current net profit margins (37.9%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: 697 has become profitable over the past 5 years, growing earnings by 61.6% per year.

Accelerating Growth: 697's earnings growth over the past year (226.6%) exceeds its 5-year average (61.6% per year).

Earnings vs Industry: 697 earnings growth over the past year (226.6%) exceeded the Trade Distributors industry 1.4%.


Return on Equity

High ROE: 697's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shougang Concord International Enterprises's financial position?


Financial Position Analysis

Short Term Liabilities: 697's short term assets (HK$4.5B) exceed its short term liabilities (HK$879.8M).

Long Term Liabilities: 697's short term assets (HK$4.5B) exceed its long term liabilities (HK$604.5M).


Debt to Equity History and Analysis

Debt Level: 697's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: 697's debt to equity ratio has reduced from 189.3% to 4.9% over the past 5 years.


Balance Sheet

Inventory Level: 697 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 697's debt is covered by short term assets (assets are 9.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 697 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 697 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Shougang Concord International Enterprises's current dividend yield, its reliability and sustainability?

4.11%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%2.3%markettop25%6.4%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 697's dividend (4.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 697's dividend (4.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 697's dividend payments have been volatile in the past 10 years.

Growing Dividend: 697's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (177.4%), 697's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Hengyi Liang (45yo)

2.1yrs

Tenure

0

Mr. Hengyi Liang has been Executive Director and the Managing Director of Shougang Concord International Enterprises Company Limited since January 6, 2018. Mr. Liang holds a master degree in Economics and  ...


Leadership Team

NamePositionTenureCompensationOwnership
Tianyang Zhao
Executive Chairman of the Board2.1yrsno datano data
Hengyi Liang
MD & Executive Director2.1yrsno data0.012% HK$1.4m
Liang Xu
Executive Director1.8yrsno datano data
Yuen Leung
Company Secretary2.1yrsno datano data

2.1yrs

Average Tenure

45yo

Average Age

Experienced Management: 697's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tianyang Zhao
Executive Chairman of the Board2.1yrsno datano data
Hengyi Liang
MD & Executive Director2.1yrsno data0.012% HK$1.4m
Liang Xu
Executive Director1.8yrsno datano data
Chi Hang Ho
Non-Executive Director1.8yrsno datano data
Jingwei Liu
Non-Executive Director2.1yrsno data0.0087% HK$1.0m
Xin Wang
Independent Non-Executive Director1.8yrsno data0.0036% HK$425.7k
Fan Keung Choi
Independent Non-Executive Director1.8yrsno datano data
Quanling Zhang
Independent Non-Executive Director2.1yrsno datano data
Yinhui Li
Non-Executive Director2.1yrsno datano data
Yougao Deng
Independent Non-Executive Director1.8yrsno datano data

1.9yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 697's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 58.6%.


Top Shareholders

Company Information

Shougang Concord International Enterprises Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shougang Concord International Enterprises Company Limited
  • Ticker: 697
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$11.760b
  • Shares outstanding: 33.13b
  • Website: https://www.shougang-intl.com.hk

Number of Employees


Location

  • Shougang Concord International Enterprises Company Limited
  • Bank of East Asia Harbour View Centre
  • 7th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
697SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SCGE.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Shougang Concord International Enterprises Company Limited, an investment holding company, engages in the trading of iron ore in the People's Republic of China. It also provides management, private fund management, and education and training services, as well as operates and manages car parking assets. The company was formerly known as Tung Wing Steel Holdings Limited and changed its name to Shougang Concord International Enterprises Company Limited in July 1993. Shougang Concord International Enterprises Company Limited is based in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:40
End of Day Share Price2020/02/18 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.