SEHK:1697

Stock Analysis Report

Shandong International Trust

Executive Summary

Shandong International Trust Co., Ltd. provides various trust services in the People’s Republic of China.


Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1697 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

1697

4.7%

HK Capital Markets

5.3%

HK Market


1 Year Return

-35.5%

1697

-26.1%

HK Capital Markets

-20.4%

HK Market

Return vs Industry: 1697 underperformed the Hong Kong Capital Markets industry which returned -27.1% over the past year.

Return vs Market: 1697 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

1697IndustryMarket
7 Day3.9%4.7%5.3%
30 Day1.3%-10.3%-8.5%
90 Day-9.1%-12.7%-14.7%
1 Year-29.1%-35.5%-23.9%-26.1%-17.6%-20.4%
3 Yearn/a-24.3%-31.5%-2.5%-12.3%
5 Yearn/a-30.4%-42.3%-5.7%-20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shandong International Trust 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: 1697 (HK$0.8) is trading below our estimate of fair value (HK$2.21)

Significantly Below Fair Value: 1697 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1697 is good value based on its PE Ratio (5.1x) compared to the Capital Markets industry average (10.7x).

PE vs Market: 1697 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1697's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1697 is good value based on its PB Ratio (0.3x) compared to the HK Capital Markets industry average (0.4x).


Next Steps

Future Growth

How is Shandong International Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.0%

Forecasted Diversified Financials 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 Shandong International Trust 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 Shandong International Trust performed over the past 5 years?

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1697 has high quality earnings.

Growing Profit Margin: 1697's current net profit margins (62.7%) are lower than last year (71%).


Past Earnings Growth Analysis

Earnings Trend: 1697's earnings have declined by -7.3% per year over the past 5 years.

Accelerating Growth: 1697's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1697 had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Capital Markets industry average (-24%).


Return on Equity

High ROE: 1697's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Shandong International Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 1697 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1697's debt is covered by short term assets (assets are 31x debt).


Financial Institutions Analysis

Asset Level: 1697's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 1697 has a sufficient allowance for bad loans.

Low Risk Liabilities: 1697 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 1697 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 1697 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 1697 has an appropriate level of bad loans.


Next Steps

Dividend

What is Shandong International Trust's current dividend yield, its reliability and sustainability?

7.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1697's dividend (7.51%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 1697's dividend (7.51%) is in the top 25% of dividend payers in the Hong Kong market (7.28%)


Stability and Growth of Payments

Stable Dividend: 1697 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1697 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), 1697's dividend payments are 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?

3.7yrs

Average management tenure


CEO

Zengguang Yue (45yo)

1.67s

Tenure

CN¥484,000

Compensation

Mr. Zengguang Yue has been General Manager and Executive Director of Shandong International Trust Co.Ltd. since July 10, 2018. Mr. Yue Mr. Yue has over 24 years of experience in accounting, financial and t ...


CEO Compensation Analysis

Compensation vs Market: Zengguang's total compensation ($USD68.18K) is below average for companies of similar size in the Hong Kong market ($USD335.42K).

Compensation vs Earnings: Insufficient data to compare Zengguang's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Zhong Wan
Chairperson of the Board1.67yrsCN¥2.60mno data
Zengguang Yue
GM & Executive Director1.67yrsCN¥484.00kno data
Wenbo Ma
Chief Financial Officer5.67yrsno datano data
Jianqu Zhou
Vice General Manager8.42yrsno datano data
Chuangye He
Vice GM3.83yrsno datano data
Jiguang Fu
Chief Risk Management Officer3.67yrsno datano data
Xucheng Niu
Vice General Manager1.83yrsno datano data
Kwok Fai Lee
Joint Company Secretary1.58yrsno datano data

3.7yrs

Average Tenure

46yo

Average Age

Experienced Management: 1697's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhong Wan
Chairperson of the Board1.67yrsCN¥2.60mno data
Zengguang Yue
GM & Executive Director1.67yrsCN¥484.00kno data
Huiping Ding
Independent Non-Executive Director4.42yrsCN¥100.00kno data
Tongshui Jin
Non-Executive Director7.58yrsno datano data
Huai-Chiang Yen
Independent Non-Executive Director4.25yrsCN¥100.00kno data
Rujing Meng
Independent Non-Executive Director3.42yrsCN¥100.00kno data
Zhenkai Hou
Supervisor3.83yrsno datano data
Hua Xiao
Vice-Chairperson2.67yrsno datano data
Shougui Guo
Chairperson of the Board of Supervisorsno datano datano data
Bailing Wang
Non-Executive Directorno datano datano data

3.6yrs

Average Tenure

46yo

Average Age

Experienced Board: 1697's board of directors are considered experienced (3.6 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

Shandong International Trust Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong International Trust Co., Ltd.
  • Ticker: 1697
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: HK$3.727b
  • Shares outstanding: 4.66b
  • Website: https://www.sitic.com.cn

Number of Employees


Location

  • Shandong International Trust Co., Ltd.
  • No. 166 Jiefang Road
  • Lixia District
  • Jinan
  • Shandong Province
  • 250013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1697SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2017

Biography

Shandong International Trust Co., Ltd. provides various trust services in the People’s Republic of China. The company operates through Trust Business and Proprietary Business segments. It accepts entrustment of funds and property from its trustor clients; and manages such entrusted funds and property to satisfy its trustor clients’ financing, investment, and wealth management needs. The company offers private equity investment banking services to various enterprises and institutions through real estate trusts, infrastructure trusts, and industrial and commercial enterprises trusts; and asset and wealth management services to institutional investors and high-net-worth individuals through securities investment, indirect investment, family, discretionary wealth management, and other trusts. It also provides administrative services to the trustors through administrative management trusts. In addition, the company offers professional, personalized, and integrated financial services for various investors, as well as various investment forms, including loans, equity investments, asset securitization, income right securitization, and financial leasing. Further, it invests its asset in various types of equity products, such as listed shares and mutual funds, as well as wealth management products. The company was founded in 1987 and is headquartered in Jinan, China. Shandong International Trust Co., Ltd. is a subsidiary of Shandong Lucion Investment Holdings Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:55
End of Day Share Price2020/03/31 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.