SHSC:1359

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

China Cinda Asset Management

Executive Summary

China Cinda Asset Management Co., Ltd. acquires, manages, invests in, and disposes financial and non-financial institution distressed assets in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

How has China Cinda Asset Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1359 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1359's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0%

1359

-2.6%

HK Capital Markets

-0.5%

HK Market


1 Year Return

-13.3%

1359

36.7%

HK Capital Markets

21.5%

HK Market

Return vs Industry: 1359 underperformed the Hong Kong Capital Markets industry which returned 36.7% over the past year.

Return vs Market: 1359 underperformed the Hong Kong Market which returned 21.5% over the past year.


Shareholder returns

1359IndustryMarket
7 Day0%-2.6%-0.5%
30 Day4.7%-5.0%2.1%
90 Day4.7%7.9%11.9%
1 Year-6.5%-13.3%39.8%36.7%26.2%21.5%
3 Year-33.8%-46.0%7.9%-0.4%6.2%-4.9%
5 Year-16.0%-38.2%30.4%14.4%61.7%34.1%

Long-Term Price Volatility Vs. Market

How volatile is China Cinda Asset Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Cinda Asset Management 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: 1359 (HK$1.57) is trading below our estimate of fair value (HK$4.61)

Significantly Below Fair Value: 1359 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1359 is good value based on its PE Ratio (5.9x) compared to the HK Capital Markets industry average (14.8x).

PE vs Market: 1359 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1359 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 1359 is good value based on its PB Ratio (0.3x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is China Cinda Asset Management forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1359's forecast earnings growth (17.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 1359's earnings (17.6% per year) are forecast to grow slower than the Hong Kong market (21.3% per year).

High Growth Earnings: 1359's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1359's revenue (15.4% per year) is forecast to grow faster than the Hong Kong market (13.6% per year).

High Growth Revenue: 1359's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1359's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has China Cinda Asset Management performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1359 has high quality earnings.

Growing Profit Margin: 1359's current net profit margins (19%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: 1359's earnings have declined by 5.4% per year over the past 5 years.

Accelerating Growth: 1359's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1359 had negative earnings growth (-40.1%) over the past year, making it difficult to compare to the Capital Markets industry average (14.1%).


Return on Equity

High ROE: 1359's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is China Cinda Asset Management's financial position?


Financial Position Analysis

Short Term Liabilities: 1359's short term assets (CN¥1,152.5B) exceed its short term liabilities (CN¥924.1B).

Long Term Liabilities: 1359's short term assets (CN¥1,152.5B) exceed its long term liabilities (CN¥415.6B).


Debt to Equity History and Analysis

Debt Level: 1359's debt to equity ratio (467.2%) is considered high.

Reducing Debt: 1359's debt to equity ratio has increased from 356.8% to 467.2% over the past 5 years.

Debt Coverage: 1359's debt is not well covered by operating cash flow (0.2%).

Interest Coverage: Insufficient data to determine if 1359's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is China Cinda Asset Management current dividend yield, its reliability and sustainability?

7.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1359's dividend (7.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2%).

High Dividend: 1359's dividend (7.84%) is in the top 25% of dividend payers in the Hong Kong market (6.3%)


Stability and Growth of Payments

Stable Dividend: 1359 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1359's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), 1359's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1359's dividends in 3 years are forecast to be well covered by earnings (31.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Weidong Zhang (53 yo)

2.17yrs

Tenure

CN¥324,000

Compensation

Mr. Zhang Weidong is President and an Executive Director at China Cinda Asset Management Co., Ltd. Since January 21, 2020. Mr. Zhang served as an Assistant to President at China Cinda Asset Management Co.,...


CEO Compensation Analysis

Compensation vs Market: Weidong's total compensation ($USD50.10K) is below average for companies of similar size in the Hong Kong market ($USD622.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zi'ai Zhang
Chairman of the Board2.58yrsCN¥728.00kno data
Weidong Zhang
President & Executive Director2.17yrsCN¥324.00kno data
Yingxun Yang
CFO and GM of Planning & Finance Department0.58yrno datano data
Zhenhong Luo
Chief Risk Officer7.42yrsno datano data
Jiuchao Ai
Board Secretary4.92yrsno datano data

3.5yrs

Average Tenure

53yo

Average Age

Experienced Management: 1359's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zi'ai Zhang
Chairman of the Board2.58yrsCN¥728.00kno data
Weidong Zhang
President & Executive Director2.17yrsCN¥324.00kno data
Zhengfei Lu
Independent Non-Executive Director1.75yrsCN¥63.00kno data
Wuxiang Zhu
Independent Non-Executive Director4.42yrsCN¥250.00kno data
Chong Liu
Non-Executive Director3.58yrsno datano data
Baowen Sun
Independent Non-Executive Director4.42yrsCN¥250.00kno data
Jiande Gong
Chairman of Board of Supervisors6.08yrsno datano data
Guoqing Zhang
Non-Executive Director3.92yrsno datano data
Long Xu
Non-Executive Director2.67yrsno datano data
Jieping He
Non-Executive Director2.67yrsno datano data
Chi Lam
Independent Non-Executive Director1.33yrsCN¥32.00kno data
Yuxiang Zhang
Non-Executive Director0.58yrno datano data

2.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 1359's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

China Cinda Asset Management Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Cinda Asset Management Co., Ltd.
  • Ticker: 1359
  • Exchange: SHSC
  • Founded: 1999
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: HK$59.918b
  • Shares outstanding: 38.16b
  • Website: https://www.cinda.com.cn

Number of Employees


Location

  • China Cinda Asset Management Co., Ltd.
  • No. 1 Building
  • 9 Naoshikou Street
  • Beijing
  • 100031
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1359SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2013
0CIDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2013
1359SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2013
CCGD.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2013
1359SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2013
A1864FDB (Deutsche Boerse AG)4.45% NON CUM PERP OFFSHORE PREF SHSDEUSDNov 2016

Biography

China Cinda Asset Management Co., Ltd. acquires, manages, invests in, and disposes financial and non-financial institution distressed assets in the People’s Republic of China. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 10:03
End of Day Share Price2021/03/03 00:00
Earnings2020/06/30
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.