SEHK:2014

Stock Analysis Report

Ozner Water International Holding

Executive Summary

Ozner Water International Holding Limited, an investment holding company, engages in the water purification, air sanitization, supply chain, and other businesses in the People’s Republic of China.

Snowflake

Fundamentals

Reasonable growth potential and fair value.

Share Price & News

How has Ozner Water International Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

18.7%

2014

2.5%

HK Consumer Durables

2.4%

HK Market


1 Year Return

-21.5%

2014

11.4%

HK Consumer Durables

0.4%

HK Market

Return vs Industry: 2014 underperformed the Hong Kong Consumer Durables industry which returned 11.4% over the past year.

Return vs Market: 2014 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

2014IndustryMarket
7 Day18.7%2.5%2.4%
30 Day15.0%-0.7%-2.6%
90 Day17.7%3.7%-5.6%
1 Year-21.5%-21.5%13.5%11.4%4.0%0.4%
3 Year-9.0%-10.4%11.1%3.8%15.1%3.5%
5 Year-55.9%-56.5%9.1%-3.9%20.3%0.3%

Price Volatility Vs. Market

How volatile is Ozner Water International Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ozner Water International Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2014 (HK$1.46) is trading below our estimate of fair value (HK$3.14)

Significantly Undervalued: 2014 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2014 is poor value based on its PE Ratio (21.3x) compared to the Consumer Durables industry average (12.8x).

PE vs Market: 2014 is poor value based on its PE Ratio (21.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2014 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 2014 is overvalued based on its PB Ratio (0.9x) compared to the HK Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Ozner Water International Holding forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2014's forecast earnings growth (33.2% per year) is above the savings rate (2%).

Earnings vs Market: 2014's earnings (33.2% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2014's revenue (13.4% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2014's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2014's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Ozner Water International Holding performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2014's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: 2014's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2014 had negative earnings growth (-46.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (-8.4%).


Return on Equity

High ROE: 2014's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: 2014's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: 2014 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ozner Water International Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2014's short term assets (CN¥2.9B) do not cover its short term liabilities (CN¥3.2B)

Long Term Liabilities: 2014's short term assets (2.9B) exceeds its long term liabilities (653.8M)


Debt to Equity History and Analysis

Debt Level: 2014's debt to equity ratio (59.8%) is considered high

Reducing Debt: 2014's debt to equity ratio has increased from 5.8% to 59.8% over the past 5 years.

Debt Coverage: 2014's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: 2014's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: 2014 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2014's debt is covered by short term assets (assets are 1.431740x debt).


Next Steps

Dividend

What is Ozner Water International Holding's current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2014's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2014's dividend (0.83%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

Stable Dividend: 2014 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2014 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2014 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 2014's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Ozner Water International Holding's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average board tenure


CEO

Shu Xiao (45yo)

0yrs

Tenure

CN¥17,322,000

Compensation

Mr. Shu Xiao is Founder and Chief Executive Officer at Fresh Water Group Ltd. Mr. Xiao serves as Chairman and Chief Executive Officer at Ozner Water International Holding Limited. Mr. Xiao serves as the Pr ...


CEO Compensation Analysis

Compensation vs. Market: Shu's total compensation ($USD2.45M) is above average for companies of similar size in the Hong Kong market ($USD307.26K).

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


Board Age and Tenure

2.6yrs

Average Tenure

51yo

Average Age

Experienced Board: 2014's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 2014 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCN¥20,93623 Jul 19
Yonghui Wang
EntityIndividual
Role
Member of the Board of Directors
VP & Investment Director of the Group and Executive Director
Shares17,186
Max PriceCN¥1.22
SellCN¥5,47409 Jul 19
Yonghui Wang
EntityIndividual
Role
Member of the Board of Directors
VP & Investment Director of the Group and Executive Director
Shares4,783
Max PriceCN¥1.14
SellCN¥44,33009 Jul 19
Jibin Tan
EntityIndividual
Role
Member of the Board of Directors
Company Secretary & Executive Director
Shares38,733
Max PriceCN¥1.14
SellCN¥4,41509 Jul 19
Guanxuan Zhou
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,858
Max PriceCN¥1.14
SellCN¥28,47309 Jul 19
Honggao Li
EntityIndividual
Role
Member of the Board of Directors
President of the Public Water Purification Business Group
Shares24,878
Max PriceCN¥1.14
BuyCN¥76,960,15218 Apr 19
Hwabao Trust Co., Ltd., Asset Management Arm
EntityCompany
Shares74,000,000
Max PriceCN¥1.04
BuyCN¥99,91712 Apr 19
Shu Xiao
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares82,000
Max PriceCN¥1.22
SellCN¥78,03808 Apr 19
Shu Xiao
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares66,000
Max PriceCN¥1.18

Ownership Breakdown


Management Team

  • Shu Xiao (45yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥17.32m
  • Jibin Tan (37yo)

    Company Secretary & Executive Director

    • Tenure: 5.9yrs
    • Compensation: CN¥5.16m
  • Guanxuan Zhou (60yo)

    Vice Chairman

    • Tenure: 2.6yrs
    • Compensation: CN¥2.50m
  • Honggao Li (37yo)

    President of the Public Water Purification Business Group

    • Tenure: 2.6yrs
    • Compensation: CN¥6.21m
  • Yonghui Wang (42yo)

    VP & Investment Director of the Group and Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥3.10m

Board Members

  • Stanley Lau (57yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥175.00k
  • Shu Xiao (45yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: CN¥17.32m
  • Jibin Tan (37yo)

    Company Secretary & Executive Director

    • Tenure: 5.9yrs
    • Compensation: CN¥5.16m
  • Guanxuan Zhou (60yo)

    Vice Chairman

    • Tenure: 2.6yrs
    • Compensation: CN¥2.50m
  • Jiuchuan Gu (70yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥175.00k
  • Gilbert Chan (60yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥175.00k
  • Honggao Li (37yo)

    President of the Public Water Purification Business Group

    • Tenure: 2.6yrs
    • Compensation: CN¥6.21m
  • Songlei Gui (41yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Bao Jiming (67yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥175.00k
  • Yonghui Wang (42yo)

    VP & Investment Director of the Group and Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥3.10m

Company Information

Ozner Water International Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ozner Water International Holding Limited
  • Ticker: 2014
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: HK$3.062b
  • Shares outstanding: 2.10b
  • Website: https://www.ozner.net

Number of Employees


Location

  • Ozner Water International Holding Limited
  • No. 60 Guiqiao Road
  • Pudong New District
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2014SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2014
OZ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

Biography

Ozner Water International Holding Limited, an investment holding company, engages in the water purification, air sanitization, supply chain, and other businesses in the People’s Republic of China. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:53
End of Day Share Price2019/10/16 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.