SEHK:830

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China State Construction Development Holdings

Executive Summary

China State Construction Development Holdings Limited, an investment holding company, engages in the general contracting business in Greater China, rest of Asia, North America, and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has China State Construction Development Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 830 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

17.0%

830

8.7%

HK Building

0.8%

HK Market


1 Year Return

-32.9%

830

101.7%

HK Building

5.5%

HK Market

Return vs Industry: 830 underperformed the Hong Kong Building industry which returned 102.9% over the past year.

Return vs Market: 830 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

830IndustryMarket
7 Day17.0%8.7%0.8%
30 Day7.8%24.4%-2.4%
90 Day-3.5%41.2%7.6%
1 Year-31.9%-32.9%108.6%101.7%9.8%5.5%
3 Year-43.6%-47.1%103.6%88.9%2.1%-8.9%
5 Year-52.5%-56.7%48.9%36.3%12.7%-6.2%

Price Volatility Vs. Market

How volatile is China State Construction Development Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China State Construction Development Holdings undervalued compared to its fair value and its price relative to the market?

6.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 830 (HK$0.55) is trading above our estimate of fair value (HK$0.31)

Significantly Below Fair Value: 830 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 830 is good value based on its PE Ratio (6.8x) compared to the HK Building industry average (7.7x).

PE vs Market: 830 is good value based on its PE Ratio (6.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 830 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 830 is overvalued based on its PB Ratio (1.1x) compared to the HK Building industry average (0.5x).


Next Steps

Future Growth

How is China State Construction Development Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 830's forecast earnings growth (11.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 830's earnings (11.4% per year) are forecast to grow slower than the Hong Kong market (18.9% per year).

High Growth Earnings: 830's earnings are forecast to grow, but not significantly.

Revenue vs Market: 830's revenue (11% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 830's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 830's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has China State Construction Development Holdings performed over the past 5 years?

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 830 has high quality earnings.

Growing Profit Margin: 830's current net profit margins (3.8%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 830's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: 830's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 830 had negative earnings growth (-4%) over the past year, making it difficult to compare to the Building industry average (3.4%).


Return on Equity

High ROE: 830's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is China State Construction Development Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 830's short term assets (HK$4.6B) do not cover its short term liabilities (HK$4.7B).

Long Term Liabilities: 830's short term assets (HK$4.6B) exceed its long term liabilities (HK$1.2B).


Debt to Equity History and Analysis

Debt Level: 830's debt to equity ratio (82%) is considered high.

Reducing Debt: 830's debt to equity ratio has increased from 32.5% to 82% over the past 5 years.

Debt Coverage: 830's debt is well covered by operating cash flow (46.6%).

Interest Coverage: 830's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Next Steps

Dividend

What is China State Construction Development Holdings's current dividend yield, its reliability and sustainability?

5.88%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 830's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 830's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 830's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 830's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 830 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 830's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Mingqing Wu (55 yo)

2yrs

Tenure

HK$6,172,000

Compensation

Mr. Mingqing Wu has been Vice Chairman and Chief Executive Officer of China State Construction Development Holdings Limited since August 18, 2018. Mr. Wu served as a Vice President of China State Construct ...


CEO Compensation Analysis

Compensation vs Market: Mingqing's total compensation ($USD796.36K) is above average for companies of similar size in the Hong Kong market ($USD275.99K).

Compensation vs Earnings: Mingqing's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mingqing Wu
Vice Chairman & CEO2yrsHK$6.17m0.23%
HK$ 2.8m
Hai Wang
Senior VP & Executive Director8yrsHK$3.99mno data
Sai Ying Lau
Marketing Director2.58yrsno datano data
Wai Man Ho
Senior Vice Presidentno datano datano data
Shuk Lau
Company Secretary8yrsno datano data

2.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 830's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mingqing Wu
Vice Chairman & CEO2yrsHK$6.17m0.23%
HK$ 2.8m
Hai Wang
Senior VP & Executive Director8yrsHK$3.99mno data
Jinsong Zhou
Independent Non-Executive Director10.42yrsHK$180.00kno data
Winn Hong
Independent Non-Executive Director10.42yrsHK$150.00kno data
Haipeng Zhang
Non-Executive Chairman2yrsno data0.14%
HK$ 1.7m
Sum Yee Kwong
Independent Non-Executive Director7.08yrsHK$150.00kno data
Jiang Huang
Non-Executive Director3.42yrsno data0.14%
HK$ 1.7m

7.1yrs

Average Tenure

49yo

Average Age

Experienced Board: 830's board of directors are considered experienced (7.1 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 State Construction Development Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China State Construction Development Holdings Limited
  • Ticker: 830
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: HK$1.186b
  • Shares outstanding: 2.16b
  • Website: https://www.cscd.com.hk

Number of Employees


Location

  • China State Construction Development Holdings Limited
  • Eight Commercial Tower
  • 16th Floor
  • Chai Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
830SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2010

Biography

China State Construction Development Holdings Limited, an investment holding company, engages in the general contracting business in Greater China, rest of Asia, North America, and internationally. It oper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:34
End of Day Share Price2020/08/07 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.