SEHK:1080

Stock Analysis Report

Shengli Oil & Gas Pipe Holdings

Executive Summary

Shengli Oil & Gas Pipe Holdings Limited, an investment holding company, engages in the manufacture, processing, and sale of welded pipes for oil and gas pipeline, and other construction and manufacturing applications primarily in Mainland China.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.

Share Price & News

How has Shengli Oil & Gas Pipe Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

1080

5.7%

HK Energy Services

2.9%

HK Market


1 Year Return

-52.4%

1080

4.0%

HK Energy Services

0.7%

HK Market

Return vs Industry: 1080 underperformed the Hong Kong Energy Services industry which returned 4% over the past year.

Return vs Market: 1080 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1080IndustryMarket
7 Day5.4%5.7%2.9%
30 Day0%1.1%-2.5%
90 Day-17.9%1.2%-5.4%
1 Year-52.4%-52.4%4.7%4.0%4.4%0.7%
3 Year-80.5%-80.5%-20.1%-21.1%17.0%5.2%
5 Year-82.7%-82.7%-53.4%-56.4%20.2%0.2%

Price Volatility Vs. Market

How volatile is Shengli Oil & Gas Pipe Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shengli Oil & Gas Pipe Holdings undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1080 (HK$0.08) is trading below our estimate of fair value (HK$0.11)

Significantly Undervalued: 1080 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1080 is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: 1080 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1080's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1080 is good value based on its PB Ratio (0.2x) compared to the HK Energy Services industry average (0.7x).


Next Steps

  • Explore potentially undervalued companies in the Energy industry.

Future Growth

How is Shengli Oil & Gas Pipe Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.5%

Forecasted Energy 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 Shengli Oil & Gas Pipe Holdings 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 Shengli Oil & Gas Pipe Holdings performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1080 is unprofitable, but has reduced losses over the past 5 years at a rate of 11% per year.

Accelerating Growth: Unable to compare 1080's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1080 is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (52.3%).


Return on Equity

High ROE: 1080 has a negative Return on Equity (-6.47%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1080 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1080 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Shengli Oil & Gas Pipe Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1080's short term assets (CN¥1.2B) exceeds its short term liabilities (CN¥1.2B)

Long Term Liabilities: 1080's short term assets (1.2B) exceeds its long term liabilities (5.8M)


Debt to Equity History and Analysis

Debt Level: 1080's debt to equity ratio (61.7%) is considered high

Reducing Debt: 1080's debt to equity ratio has increased from 51.1% to 61.7% over the past 5 years.


Balance Sheet

Inventory Level: 1080 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1080's debt is covered by short term assets (assets are 1.443830x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 1080 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1080 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 67.9% per year.


Next Steps

Dividend

What is Shengli Oil & Gas Pipe Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1080's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1080's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1080's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1080's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1080 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1080'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 Shengli Oil & Gas Pipe Holdings's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average board tenure


CEO

Bizhuang Zhang (51yo)

10.3yrs

Tenure

CN¥1,673,000

Compensation

Mr. Bizhuang Zhang has been the Chief Executive Officer of Shengli Oil & Gas Pipe Holdings Limited since July 2009. Mr. Zhang has been General Manager of Shandong Shengli Steel Pipe Co., Ltd. since Decembe ...


CEO Compensation Analysis

Compensation vs. Market: Bizhuang's total compensation ($USD236.78K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

Compensation vs Earnings: Bizhuang's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 1080's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥9,900,24827 Mar 19
Luxin Venture Capital Group Co., Ltd.
EntityCompany
Shares90,000,000
Max PriceCN¥0.11

Ownership Breakdown


Management Team

  • Aizhi Han (51yo)

    VP & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥1.45m
  • Bizhuang Zhang (51yo)

    CEO & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥1.67m
  • Kunxian Wang (50yo)

    VP & Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥1.47m
  • Xichen Song (54yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥1.45m
  • Yong Jiang (51yo)

    VP & Executive Director

    • Tenure: 7.2yrs
    • Compensation: CN¥1.37m
  • Kam Le Hong (40yo)

    Company Secretary

    • Tenure: 5.8yrs

Board Members

  • Aizhi Han (51yo)

    VP & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥1.45m
  • Bizhuang Zhang (51yo)

    CEO & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥1.67m
  • Kunxian Wang (50yo)

    VP & Executive Director

    • Tenure: 5.2yrs
    • Compensation: CN¥1.47m
  • Xichen Song (54yo)

    VP & Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥1.45m
  • Geng Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥441.00k
  • Yong Jiang (51yo)

    VP & Executive Director

    • Tenure: 7.2yrs
    • Compensation: CN¥1.37m
  • Junzhu Chen (43yo)

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥441.00k
  • Jianmin Qiao (59yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥441.00k
  • Jun Wei (51yo)

    Chairman

    • Tenure: 0.8yrs

Company Information

Shengli Oil & Gas Pipe Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shengli Oil & Gas Pipe Holdings Limited
  • Ticker: 1080
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: HK$252.126m
  • Shares outstanding: 3.27b
  • Website: https://www.slogp.com

Number of Employees


Location

  • Shengli Oil & Gas Pipe Holdings Limited
  • Zhongbu Town
  • Zhangdian District
  • Zibo
  • Shandong Province
  • 255082
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1080SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2009
GSGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2009

Biography

Shengli Oil & Gas Pipe Holdings Limited, an investment holding company, engages in the manufacture, processing, and sale of welded pipes for oil and gas pipeline, and other construction and manufacturing a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:53
End of Day Share Price2019/10/15 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.