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Hengtai Securities

SEHK:1476
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1476
SEHK
HK$9B
Market Cap
  1. Home
  2. HK
  3. Diversified Financials
Company description

Hengtai Securities Co., Ltd provides a range of financial products and services in China. The last earnings update was 75 days ago. More info.


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  • Hengtai Securities has significant price volatility in the past 3 months.
1476 Share Price and Events
7 Day Returns
4.8%
SEHK:1476
1.6%
HK Capital Markets
0.5%
HK Market
1 Year Returns
30.6%
SEHK:1476
-19.7%
HK Capital Markets
-15.9%
HK Market
1476 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hengtai Securities (1476) 4.8% 26.3% 26.3% 30.6% -4.7% -
HK Capital Markets 1.6% -2.7% -18.5% -19.7% -21.4% 0.5%
HK Market 0.5% -2.7% -9.9% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 1476 outperformed the Capital Markets industry which returned -19.7% over the past year.
  • 1476 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
1476
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Hengtai Securities's competitors could be found in our database.

Value

 Is Hengtai Securities 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 Hengtai Securities 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 Hengtai Securities.

SEHK:1476 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥3.71 * 6.4%
CN¥0.24
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥3.71
Discount Rate (Cost of Equity) See below 9.5%
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:1476
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.698 (1 + (1- 25%) (129.34%))
1.252
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.252 * 5.96%)
9.46%

Discounted Cash Flow Calculation for SEHK:1476 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Hengtai Securities is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1476 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.4% – 9.46%) * CN¥3.71)
CN¥-0.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.11 / (9.46% - 2%)
CN¥-1.51
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥3.71 + CN¥-1.51
CN¥2.2
SEHK:1476 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1476)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥2.2 x 1.13
HK$2.49
Value per share (HKD) From above. HK$2.49
Current discount Discount to share price of HK$3.46
= -1 x (HK$3.46 - HK$2.49) / HK$2.49
-39%

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

  • The current share price of Hengtai Securities 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 Hengtai Securities's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hengtai Securities's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1476 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥-0.30
SEHK:1476 Share Price ** SEHK (2019-06-14) in HKD HK$3.46
SEHK:1476 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥3.06
Hong Kong Capital Markets Industry PE Ratio Median Figure of 43 Publicly-Listed Capital Markets Companies 14.64x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

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

** Primary Listing of Hengtai Securities.

SEHK:1476 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1476 Share Price ÷ EPS (both in CNY)

= 3.06 ÷ -0.30

-10.28x

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

  • Hengtai Securities is loss making, we can't compare its value to the HK Capital Markets industry average.
  • Hengtai Securities is loss making, we can't compare the value of its earnings to the Hong Kong market.
Price based on expected Growth
Does Hengtai Securities's expected growth come at a high price?
Raw Data
SEHK:1476 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -10.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
30.3%per year
Hong Kong Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 0.71x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Hengtai Securities, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hengtai Securities's assets?
Raw Data
SEHK:1476 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥3.66
SEHK:1476 Share Price * SEHK (2019-06-14) in HKD HK$3.46
SEHK:1476 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥3.06
Hong Kong Capital Markets Industry PB Ratio Median Figure of 72 Publicly-Listed Capital Markets Companies 0.63x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:1476 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1476 Share Price ÷ Book Value per Share (both in CNY)

= 3.06 ÷ 3.66

0.84x

* Primary Listing of Hengtai Securities.

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

  • Hengtai Securities is overvalued based on assets compared to the HK Capital Markets industry average.
X
Value checks
We assess Hengtai Securities'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 Capital Markets 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 Capital Markets industry average (and greater than 0)? (1 check)
  5. Hengtai Securities 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.

Future Performance

 How is Hengtai Securities expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Hengtai Securities, future earnings growth has been estimated based on fundamentals.
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
30.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hengtai Securities expected to grow at an attractive rate?
  • Hengtai Securities's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Hengtai Securities's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Hengtai Securities's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1476 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1476 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 30.3%
Hong Kong Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 15.1%
Hong Kong Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 13.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*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:1476 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1476 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:1476 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 1,546 7 -775
2018-09-30 2,063 622 -419
2018-06-30 2,260 1,237 -62
2018-03-31 2,708 -367 271
2017-12-31 3,475 -1,970 604
2017-09-30 3,301 -1,513 561
2017-06-30 3,127 -1,055 517
2017-03-31 2,981 165 435
2016-12-31 2,835 1,385 353
2016-09-30 3,199 -273 483
2016-06-30 3,562 -1,931 614
2016-03-31 4,533 -2,108 1,249

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hengtai Securities's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Hengtai Securities is high growth as no revenue estimate data is available.
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:1476 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Hengtai Securities Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1476 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:1476 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 -0.30
2018-09-30 -0.16
2018-06-30 -0.02
2018-03-31 0.10
2017-12-31 0.23
2017-09-30 0.22
2017-06-30 0.20
2017-03-31 0.17
2016-12-31 0.14
2016-09-30 0.19
2016-06-30 0.25
2016-03-31 0.52

*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.
  • Unable to establish if Hengtai Securities will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hengtai Securities'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.
Hengtai Securities has a total score of 3/6, 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.

Past Performance

  How has Hengtai Securities 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 Hengtai Securities's growth in the last year to its industry (Capital Markets).
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.
  • Hengtai Securities does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Hengtai Securities's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Hengtai Securities's 1-year growth to the HK Capital Markets industry average as it is not currently profitable.
Earnings and Revenue History
Hengtai Securities'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 Hengtai Securities Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1476 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 1,546.09 -775.45 982.21
2018-09-30 2,062.83 -418.50 1,031.06
2018-06-30 2,259.86 -61.56 1,079.91
2018-03-31 2,707.76 271.32 1,143.10
2017-12-31 3,475.37 604.20 1,206.28
2017-09-30 3,301.14 560.76 1,231.05
2017-06-30 3,126.92 517.31 1,255.82
2017-03-31 2,981.20 435.02 1,258.85
2016-12-31 2,835.49 352.72 1,261.89
2016-09-30 3,198.79 483.24 1,344.81
2016-06-30 3,562.10 613.75 1,427.73
2016-03-31 4,532.61 1,248.72 1,555.67
2015-12-31 4,840.96 1,648.79 1,445.79
2015-09-30 4,380.36 1,643.86 1,369.15
2015-06-30 3,919.76 1,638.93 1,292.52
2015-03-31 2,638.49 1,037.28 741.06
2014-12-31 2,041.35 654.11 708.26
2013-12-31 1,362.34 399.10 352.77
2012-12-31 810.40 111.56 297.59

*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.
  • It is difficult to establish if Hengtai Securities has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Hengtai Securities has efficiently used its assets last year compared to the HK Capital Markets industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Hengtai Securities improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Hengtai Securities'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 Capital Markets 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.
Hengtai Securities has a total score of 0/6, 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.

Health

 How is Hengtai Securities'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 Hengtai Securities's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hengtai Securities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hengtai Securities's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hengtai Securities'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.8x 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 Hengtai Securities Company Filings, last reported 5 months ago.

SEHK:1476 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,944.82 10,313.64 23,649.11
2018-09-30 9,944.82 10,313.64 23,649.11
2018-06-30 10,300.94 9,469.28 22,902.69
2018-03-31 10,300.94 9,469.28 22,902.69
2017-12-31 10,942.43 11,200.64 26,489.46
2017-09-30 10,942.43 11,200.64 26,489.46
2017-06-30 10,306.20 11,361.27 27,189.01
2017-03-31 10,306.20 11,361.27 27,189.01
2016-12-31 9,936.21 12,665.81 25,007.28
2016-09-30 9,936.21 12,665.81 25,007.28
2016-06-30 9,610.73 11,287.22 26,142.39
2016-03-31 9,610.73 11,287.22 26,142.39
2015-12-31 9,733.03 11,992.74 26,820.44
2015-09-30 9,733.03 11,992.74 26,820.44
2015-06-30 7,844.39 11,398.48 21,883.78
2015-03-31 5,722.33 8,666.49 17,055.73
2014-12-31 5,275.00 7,367.46 13,359.23
2013-12-31 4,656.89 1,371.96 6,084.57
2012-12-31 4,367.17 823.56 6,513.60
  • Hengtai Securities's level of debt (103.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.8% vs 103.7% today).
  • Debt is not well covered by operating cash flow (0.1%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Hengtai Securities's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Hengtai Securities'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. Hengtai Securities has a total score of 2/6, 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.

Dividends

 What is Hengtai Securities'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
0%
Current annual income from Hengtai Securities dividends.
If you bought HK$2,000 of Hengtai Securities shares you are expected to receive HK$0 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?
  • Unable to evaluate Hengtai Securities's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Hengtai Securities's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:1476 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
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 6%

Industry and Market average data is calculated daily.

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

SEHK:1476 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
SEHK:1476 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-03 0.000 0.000
2019-03-25 0.000 0.000
2018-04-13 0.100 5.745
2017-08-25 0.000 0.000
2017-03-27 0.000 0.000
2016-05-27 0.100 3.191

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

  • Unable to perform a dividend volatility check as Hengtai Securities has not reported any payouts.
  • Unable to verify if Hengtai Securities's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Hengtai Securities's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Hengtai Securities has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Hengtai Securities'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 Hengtai Securities afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hengtai Securities has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of Hengtai Securities'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
Zhuang Niu
COMPENSATION CN¥11,643,000
AGE 46
TENURE AS CEO 4 years
CEO Bio

Mr. Zhuang Niu has been the President of Hengtai Securities Co., Ltd since June 26, 2015. Mr. Niu is mainly responsible for formulating the Hengtai’s corporate and business strategies and making major corporate and operational decisions, being fully responsible for the Company’s overall operation and management and execution of the Board resolutions. Mr. Niu served as the chief financial officer and an executive vice president of the Company from February 2004 to September 2012 and from September 2012 to June 2015, respectively. Concurrently, Mr. Niu also has served as the chairman of the board and the legal representative of Inner Mongolia Hengtai Shengda Investment Management Co., Ltd. and an executive director and the legal representative of Shanghai Yingwo Investment Management Co, Ltd. from November 2015 and September 2016, respectively. Mr. Niu has served as an executive director and the legal representative of Hengtai Capital Investment Co., Ltd. from December 2015, and the general manager thereof since January 2017. Mr. Niu graduated from Beijing Institute of Fashion Technology in Beijing, the PRC with a bachelor’s degree majoring in industrial management engineering in July 1993. He obtained a master’s degree majoring in accounting from Renmin University of China in Beijing, the PRC in January 2005.

CEO Compensation
  • Insufficient data for Zhuang to compare compensation growth.
  • Zhuang's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Hengtai Securities management team in years:

4
Average Tenure
46
Average Age
  • The tenure for the Hengtai Securities management team is about average.
Management Team

Yigang Wu

TITLE
Vice Chairman of the Board
COMPENSATION
CN¥920K
AGE
58

Jiemin Pang

TITLE
Chairman & Acting Chief Compliance Officer
COMPENSATION
CN¥7M
AGE
46
TENURE
1.6 yrs

Zhuang Niu

TITLE
President
COMPENSATION
CN¥12M
AGE
46
TENURE
4 yrs

Shufei Yang

TITLE
Chief Financial Officer
AGE
45
TENURE
2.7 yrs

Fang Yu

TITLE
Chief Risk Officer
COMPENSATION
CN¥6M
AGE
38
TENURE
5.2 yrs

Lixin Fu

TITLE
Vice President
COMPENSATION
CN¥7M
AGE
52
TENURE
11.1 yrs

Lihui Wu

TITLE
Vice President
COMPENSATION
CN¥7M
AGE
47
TENURE
6.9 yrs

Peiwu Zhao

TITLE
Vice President
COMPENSATION
CN¥7M
AGE
54
TENURE
9.8 yrs

Weiguo Huang

TITLE
Vice President
COMPENSATION
CN¥552K
AGE
41
TENURE
3.5 yrs

Quansheng Liu

TITLE
Vice President
AGE
42
TENURE
3.1 yrs
Board of Directors Tenure

Average tenure and age of the Hengtai Securities board of directors in years:

4.3
Average Tenure
49
Average Age
  • The tenure for the Hengtai Securities board of directors is about average.
Board of Directors

Yigang Wu

TITLE
Vice Chairman of the Board
COMPENSATION
CN¥920K
AGE
58
TENURE
4 yrs

Jiemin Pang

TITLE
Chairman & Acting Chief Compliance Officer
COMPENSATION
CN¥7M
AGE
46
TENURE
8.5 yrs

Hui Wang

TITLE
Manager of Office of the Board & Employee Representative Supervisor
COMPENSATION
CN¥1M
AGE
45
TENURE
6.8 yrs

Jianjun Zhou

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
49
TENURE
4.2 yrs

Liwen Guo

TITLE
Chairman of the Supervisory Board
COMPENSATION
CN¥6M
AGE
58
TENURE
8.5 yrs

Tao Zhang

TITLE
Non-Executive Director
COMPENSATION
CN¥75K
AGE
39
TENURE
10.6 yrs

Chao Sun

TITLE
Non-Executive Director
COMPENSATION
CN¥50K
AGE
34
TENURE
4.4 yrs

Sek Kong Lam

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥150K
AGE
58
TENURE
4.2 yrs

Dong Hong

TITLE
Non-Executive Director
AGE
49
TENURE
1.4 yrs

Wendong Lv

TITLE
Independent Non-Executive Director
AGE
50
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
31. Dec 18 Buy Pohua JT Management Limited Company 28. Dec 18 28. Dec 18 36,205,000 HK$1.88 HK$68,065,278
31. Dec 18 Sell Mason Financial Holdings Limited, Asset Management Arm Company 28. Dec 18 28. Dec 18 -36,205,000 HK$1.88 HK$-68,065,278
21. Dec 18 Buy Pohua JT Management Limited Company 20. Dec 18 20. Dec 18 2,020,000 HK$1.60 HK$3,226,947
X
Management checks
We assess Hengtai Securities'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. Hengtai Securities 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.

News

Simply Wall St News

Hengtai Securities Co Ltd (HKG:1476): Did It Outperform The Industry?

After reading Hengtai Securities Co Ltd's (HKG:1476) latest earnings update (31 December 2017), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … How 1476 fared against its long-term earnings performance and its industry … 1476's trailing twelve-month earnings (from 31 December 2017) of CN¥604.20m has

Simply Wall St -

Hengtai Securities Co Ltd (HKG:1476): Risks You Need To Consider Before Buying

A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Hengtai Securities has a beta of 1.8, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements.

Simply Wall St -

Should You Be Tempted To Buy Hengtai Securities Co Ltd (HKG:1476) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 1476 Price per share = CN¥2.19 Earnings per share = CN¥0.232 ∴ Price-Earnings Ratio = CN¥2.19 ÷ CN¥0.232 = 9.4x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … 1476’s P/E of 9.4x is lower than its industry peers (13x), which implies that each dollar of 1476’s earnings is being undervalued by investors. … For example, if you are inadvertently comparing lower risk firms with 1476, then 1476’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

Simply Wall St -

Want To Invest In Hengtai Securities Co Ltd (HKG:1476)? Here's How It Performed Lately

When Hengtai Securities Co Ltd (SEHK:1476) announced its most recent earnings (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Since these figures may be somewhat short-term thinking, I have determined an annualized five-year figure for Hengtai Securities's earnings, which stands at CN¥752.60M This shows that, even though earnings growth from last year was positive, over the past couple of years, Hengtai Securities's earnings have been falling on average. … Revenue growth over the past couple of years, has been positive, however, earnings growth has been lagging behind meaning Hengtai Securities has been increasing its expenses by a lot more.

Simply Wall St -

Should You Be Concerned About Hengtai Securities Co Ltd's (HKG:1476) Risks?

A market capitalisation of HK$1.53B puts 1476 in the category of small-cap stocks, which tends to possess higher beta than larger companies. … An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … However, this is the opposite to what 1476’s actual beta value suggests, which is higher stock volatility relative to the market.

Simply Wall St -

Is Hengtai Securities Co Ltd (HKG:1476) A Financial Industry Laggard Or Leader?

In terms of returns, Hengtai Securities generated 6.90% in the past year, which is 2% below the capital markets sector. … Hengtai Securities has been a capital markets industry laggard in the past year. … If your initial investment thesis is around the growth prospects of Hengtai Securities, there are other capital markets companies that have delivered higher growth, and perhaps trading at a discount to the industry average.

Simply Wall St -

Hengtai Securities Co Ltd (HKG:1476): Does -15.71% Earnings Drop In A Year Reflect The Long-Term Trend?

Check out our latest analysis for Hengtai Securities Was 1476's recent earnings decline indicative of a tough track record? … For Hengtai Securities, its most recent earnings (trailing twelve month) is CN¥517.3M, which, relative to last year’s figure, has fallen by -15.71%. … Revenue growth over the past few years, has been positive, however, earnings growth has fallen behind meaning Hengtai Securities has been increasing its expenses by a lot more.

Simply Wall St -

Hengtai Securities Co Ltd (HKG:1476): Can It Deliver A Superior ROE To The Industry?

See our latest analysis for Hengtai Securities Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Hengtai Securities’s cost of equity is 11.09%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity SEHK:1476 Last Perf Dec 15th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.

Simply Wall St -

Company Info

Description

Hengtai Securities Co., Ltd provides a range of financial products and services in China. The company's Brokerage and Wealth Management segment trades in stocks, funds, bonds, and futures on behalf of the clients; and provides investment and financing solutions to high-end, professional, and institutional clients, including sale of financial products, margin financing and securities lending, and securities-backed lending. Its Investment Banking segment offers corporate finance services comprising financial advisory, equity underwriting, and debt underwriting services, as well as over-the-counter board-related services to institutional clients; and services to companies entering into National Equities Exchange and Quotations board for share quotation and transfer. The company's Proprietary Trading segment engages in trading of equities, bonds, funds, and derivatives for the group. Its Investment Management segment is involved in asset management, private equity investment, and alternative investment activities. The company is also involved in the securities investment and fund distribution, and securities sponsoring businesses; and venture capital and industrial investment businesses. In addition, it provides project investment, fund raising and management, investment advisory, and corporate management services, as well as investment, corporate management, business, and financial consulting services; and corporate asset reorganization, merger and acquisition, and marketing planning services, as well as manages equity investment funds and equity investments. The company also serves individuals and financial institutions, as well as large, small, and medium enterprises. As of December 31, 2018, the company operated 144 securities branches. Hengtai Securities Co., Ltd was founded in 1988 and is headquartered in Beijing, the People’s Republic of China.

Details
Name: Hengtai Securities Co., Ltd
1476
Exchange: SEHK
Founded: 1988
HK$9,011,803,245
2,604,567,412
Website: http://www.cnht.com.cn
Address: Hengtai Securities Co., Ltd
China Life Centre,
11th Floor,
Beijing,
100033,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1476 Foreign shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Oct 2015
Number of employees
Current staff
Staff numbers
2,064
Hengtai Securities employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 12:57
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2018/03/28
Last earnings filing: 2019/04/03
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.