SEHK:6069

Stock Analysis Report

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Market Cap

HK$8.4b

Last Updated

2021/07/28 10:44 UTC

Data Sources

Company Financials +

Executive Summary

Sheng Ye Capital Limited, an investment holding company, provides factoring and guarantee services primarily for energy, infrastructure, and medical sectors in the People's Republic of China. More Details


Snowflake Analysis

Proven track record with adequate balance sheet.

Share Price & News

How has Sheng Ye Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6069 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6069's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.1%

6069

-4.4%

HK Diversified Financial

-8.0%

HK Market


1 Year Return

38.8%

6069

20.4%

HK Diversified Financial

3.5%

HK Market

Return vs Industry: 6069 exceeded the Hong Kong Diversified Financial industry which returned 20.4% over the past year.

Return vs Market: 6069 exceeded the Hong Kong Market which returned 3.5% over the past year.


Shareholder returns

6069IndustryMarket
7 Day-3.1%-4.4%-8.0%
30 Day21.5%-5.6%-14.5%
90 Day54.8%-4.6%-15.0%
1 Year40.0%38.8%25.5%20.4%7.1%3.5%
3 Year31.6%28.8%1.5%-9.9%3.3%-8.1%
5 Yearn/a-21.0%-33.4%35.5%11.5%

Long-Term Price Volatility Vs. Market

How volatile is Sheng Ye Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sheng Ye Capital undervalued compared to its fair value and its price relative to the market?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6069 (HK$9.44) is trading below our estimate of fair value (HK$9.81)

Significantly Below Fair Value: 6069 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6069 is poor value based on its PE Ratio (21.5x) compared to the Hong Kong Diversified Financial industry average (8.2x).

PE vs Market: 6069 is poor value based on its PE Ratio (21.5x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6069 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 6069 is overvalued based on its PB Ratio (2.5x) compared to the HK Diversified Financial industry average (0.6x).


Future Growth

How is Sheng Ye Capital forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6069's forecast earnings growth (18.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 6069's earnings (18.9% per year) are forecast to grow faster than the Hong Kong market (17.9% per year).

High Growth Earnings: 6069's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6069's revenue (16.4% per year) is forecast to grow faster than the Hong Kong market (12.1% per year).

High Growth Revenue: 6069's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6069's Return on Equity is forecast to be low in 3 years time (14.6%).


Past Performance

How has Sheng Ye Capital performed over the past 5 years?

43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6069 has high quality earnings.

Growing Profit Margin: 6069's current net profit margins (51.9%) are higher than last year (46.2%).


Past Earnings Growth Analysis

Earnings Trend: 6069's earnings have grown significantly by 43.2% per year over the past 5 years.

Accelerating Growth: 6069's earnings growth over the past year (17.2%) is below its 5-year average (43.2% per year).

Earnings vs Industry: 6069 earnings growth over the past year (17.2%) exceeded the Diversified Financial industry 9.7%.


Return on Equity

High ROE: 6069's Return on Equity (11.1%) is considered low.


Financial Health

How is Sheng Ye Capital's financial position?


Financial Position Analysis

Short Term Liabilities: 6069's short term assets (CN¥4.5B) exceed its short term liabilities (CN¥1.7B).

Long Term Liabilities: 6069's short term assets (CN¥4.5B) exceed its long term liabilities (CN¥69.8M).


Debt to Equity History and Analysis

Debt Level: 6069's debt to equity ratio (49.1%) is considered high.

Reducing Debt: 6069's debt to equity ratio has increased from 6.2% to 49.1% over the past 5 years.

Debt Coverage: 6069's debt is well covered by operating cash flow (31%).

Interest Coverage: 6069's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

What is Sheng Ye Capital current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6069's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 6069's dividend (0.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.6%).


Stability and Growth of Payments

Stable Dividend: 6069 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6069 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: 6069 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 6069'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?

1.9yrs

Average management tenure


CEO

Chi Fung Tung (34 yo)

no data

Tenure

CN¥2,704,000

Compensation

Mr. Chi Fung Tung has been Chairman at Sheng Ye Capital Ltd since March 4, 2017 and serves as its General Manager and Compliance Officer. Mr. Tung is the founder of Sheng Ye Capital Ltd. Mr. Tung is respon...


CEO Compensation Analysis

Compensation vs Market: Chi Fung's total compensation ($USD415.28K) is about average for companies of similar size in the Hong Kong market ($USD444.71K).

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


Leadership Team

Experienced Management: 6069's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6069's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 6069 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Top Shareholders

Company Information

Sheng Ye Capital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheng Ye Capital Limited
  • Ticker: 6069
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: HK$8.386b
  • Shares outstanding: 938.02m
  • Website: https://www.shengyecapital.com

Number of Employees


Location

  • Sheng Ye Capital Limited
  • Kerry Plaza Tower 2
  • 10th and 18th Floors
  • Shenzhen
  • Guangdong Province
  • 518048
  • China

Listings


Biography

Sheng Ye Capital Limited, an investment holding company, provides factoring and guarantee services primarily for energy, infrastructure, and medical sectors in the People's Republic of China. It also offer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 10:44
End of Day Share Price2021/07/28 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.