SEHK:257

Stock Analysis Report

China Everbright International

Executive Summary

China Everbright International Limited, an investment holding company, provides environmental solutions in the People’s Republic of China, Germany, Poland, and Vietnam.

Snowflake

Fundamentals

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has China Everbright International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 257 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

257

1.1%

HK Commercial Services

-0.02%

HK Market


1 Year Return

-13.2%

257

39.9%

HK Commercial Services

0.6%

HK Market

Return vs Industry: 257 underperformed the Hong Kong Commercial Services industry which returned 39.9% over the past year.

Return vs Market: 257 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

257IndustryMarket
7 Day-0.7%1.1%-0.02%
30 Day-2.6%6.8%1.4%
90 Day-6.0%22.7%3.8%
1 Year-9.9%-13.2%43.2%39.9%4.2%0.6%
3 Year-28.4%-36.4%-23.3%-29.5%20.4%8.3%
5 Year-42.8%-50.7%-45.6%-51.6%18.9%-0.9%

Price Volatility Vs. Market

How volatile is China Everbright International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Everbright International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 257 (HK$5.97) is trading below our estimate of fair value (HK$25.09)

Significantly Below Fair Value: 257 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 257 is good value based on its PE Ratio (7.4x) compared to the Commercial Services industry average (12.2x).

PE vs Market: 257 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 257 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 257 is good value based on its PB Ratio (1x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is China Everbright International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 257's forecast earnings growth (16.2% per year) is above the savings rate (2%).

Earnings vs Market: 257's earnings (16.2% per year) are forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Earnings: 257's earnings are forecast to grow, but not significantly.

Revenue vs Market: 257's revenue (13.1% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 257's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 257's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has China Everbright International performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 257 has a high level of non-cash earnings.

Growing Profit Margin: 257's current net profit margins (15%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: 257's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: 257's earnings growth over the past year (21.3%) is below its 5-year average (23.1% per year).

Earnings vs Industry: 257 earnings growth over the past year (21.3%) exceeded the Commercial Services industry 9.1%.


Return on Equity

High ROE: 257's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Everbright International's financial position?


Financial Position Analysis

Short Term Liabilities: 257's short term assets (HK$29.9B) exceeds its short term liabilities (HK$17.3B)

Long Term Liabilities: 257's short term assets (HK$29.9B) do not cover its long term liabilities (44.7B)


Debt to Equity History and Analysis

Debt Level: 257's debt to equity ratio (102.2%) is considered high.

Reducing Debt: 257's debt to equity ratio has increased from 49.3% to 102.2% over the past 5 years.

Debt Coverage: 257's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 257's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

Inventory Level: 257 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 257's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is China Everbright International's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.3%industryaverage1.7%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: 257's dividend (4.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 257's dividend (4.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 257's dividends per share have been stable in the past 10 years.

Growing Dividend: 257's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 257's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 257's dividends in 3 years are forecast to be well covered by earnings (30.4% payout ratio).


Next Steps

Management

What is the CEO of China Everbright International's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average board tenure


CEO

Tianyi Wang (56yo)

1.8yrs

Tenure

HK$7,361,000

Compensation

Mr. Wang Tianyi has been Chief Executive Officer of China Everbright International Limited since January 1, 2018 and Executive Director since February 21, 2010. Mr. Wang served as the General Manager of Ch ...


CEO Compensation Analysis

Compensation vs Market: Tianyi's total compensation ($USD940.36K) is above average for companies of similar size in the Hong Kong market ($USD513.16K).

Compensation vs Earnings: Tianyi's compensation has increased by more than 20% in the past year.


Board Age and Tenure

8.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 257's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$9,500,22222 Oct 19
Everbright Investment & Management Limited
EntityCompany
Shares1,583,000
Max PriceHK$6.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 30.9%.


Management Team

  • Raymond Wong (55yo)

    CFO & Executive Director

    • Tenure: 16.9yrs
    • Compensation: HK$5.60m
  • Yuen Ling Poon (51yo)

    Company Secretary

    • Tenure: 0yrs
  • Yanguo Hu (52yo)

    Executive Director & Deputy GM

    • Tenure: 1.8yrs
    • Compensation: HK$5.16m
  • Xiaodong Qian (46yo)

    Deputy GM & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$5.05m
  • Yunge Cai (47yo)

    Chairman

    • Tenure: 2.9yrs
  • Tianyi Wang (56yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$7.36m
  • Xuesong An (48yo)

    Deputy General Manager

    • Tenure: 0yrs

Board Members

  • Selwyn Mar (83yo)

    Independent Non-Executive Director

    • Tenure: 15.2yrs
    • Compensation: HK$429.00k
  • Philip Fan (70yo)

    Independent Non-Executive Director

    • Tenure: 22yrs
    • Compensation: HK$426.00k
  • Raymond Wong (55yo)

    CFO & Executive Director

    • Tenure: 16.9yrs
    • Compensation: HK$5.60m
  • Haitao Zhai (50yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$419.00k
  • Yanguo Hu (52yo)

    Executive Director & Deputy GM

    • Tenure: 1.8yrs
    • Compensation: HK$5.16m
  • Xiaodong Qian (46yo)

    Deputy GM & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$5.05m
  • Yunge Cai (47yo)

    Chairman

    • Tenure: 2.9yrs
  • Tianyi Wang (56yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$7.36m
  • Xuquan Suo (61yo)

    Independent Non-executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$123.00k

Company Information

China Everbright International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Everbright International Limited
  • Ticker: 257
  • Exchange: SEHK
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$36.981b
  • Shares outstanding: 6.14b
  • Website: https://www.ebchinaintl.com

Number of Employees


Location

  • China Everbright International Limited
  • Far East Finance Centre
  • 27th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
257SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CHFF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CNEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
257SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
257SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
CHFF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMay 2014

Biography

China Everbright International Limited, an investment holding company, provides environmental solutions in the People’s Republic of China, Germany, Poland, and Vietnam. The company operates through four se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 12:32
End of Day Share Price2019/11/20 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.