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 overvalued.

Risks

  • Shengli Oil & Gas Pipe Holdings has significant price volatility in the past 3 months.
  • Shengli Oil & Gas Pipe Holdings is not covered by any analysts.

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

-10.1%

SEHK:1080

-4.2%

HK Energy Services

-0.6%

HK Market


1 Year Return

-58.2%

SEHK:1080

-9.1%

HK Energy Services

-9.8%

HK Market

1080 underperformed the Energy Services industry which returned -9.1% over the past year.

1080 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1080IndustryMarket
7 Day-10.1%-4.2%-0.6%
30 Day-4.3%-12.9%-8.8%
90 Day-15.2%-8.2%-8.4%
1 Year-58.2%-58.2%-8.3%-9.1%-6.5%-9.8%
3 Year-72.2%-72.2%-26.1%-26.9%12.8%1.6%
5 Year-83.5%-83.5%-67.1%-69.1%7.2%-10.6%

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 based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Shengli Oil & Gas Pipe Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Shengli Oil & Gas Pipe Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Shengli Oil & Gas Pipe Holdings is loss making, we can't compare its value to the HK Energy Services industry average.

Shengli Oil & Gas Pipe Holdings is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Shengli Oil & Gas Pipe Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Shengli Oil & Gas Pipe Holdings is good value based on assets compared to the HK Energy Services industry average.


Next Steps

Future Growth

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

35.6%

Forecasted Energy Services 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?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shengli Oil & Gas Pipe Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Shengli Oil & Gas Pipe Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Shengli Oil & Gas Pipe Holdings's 1-year growth to the HK Energy Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Shengli Oil & Gas Pipe Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Shengli Oil & Gas Pipe Holdings has efficiently used its assets last year compared to the HK Energy Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Shengli Oil & Gas Pipe Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

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


Financial Position Analysis

Shengli Oil & Gas Pipe Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Shengli Oil & Gas Pipe Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Shengli Oil & Gas Pipe Holdings's level of debt (59.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (66.4% vs 59.7% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x 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.

Whilst loss making Shengli Oil & Gas Pipe Holdings has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Shengli Oil & Gas Pipe Holdings has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -72.4% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Shengli Oil & Gas Pipe Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Shengli Oil & Gas Pipe Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Shengli Oil & Gas Pipe Holdings has not reported any payouts.

Unable to verify if Shengli Oil & Gas Pipe Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Shengli Oil & Gas Pipe Holdings 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.


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?

6.3yrs

Average board tenure


CEO

Bizhuang Zhang (51yo)

10.1yrs

Tenure

CN¥2,181,000

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

Bizhuang's remuneration is higher than average for companies of similar size in Hong Kong.

Bizhuang's compensation has increased whilst company is loss making.


Board Age and Tenure

6.3yrs

Average Tenure

51yo

Average Age

The tenure for the Shengli Oil & Gas Pipe Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellHK$9,900,24827 Mar 19
Luxin Venture Capital Group Co., Ltd.
EntityCompany
Shares90,000,000
Max PriceHK$0.11

Ownership Breakdown


Management Team

  • Aizhi Han (51yo)

    VP & Executive Director

    • Compensation: CN¥1.96m
  • Bizhuang Zhang (51yo)

    CEO & Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥2.18m
  • Kunxian Wang (50yo)

    VP & Executive Director

    • Compensation: CN¥1.98m
  • Xichen Song (54yo)

    VP & Executive Director

    • Compensation: CN¥1.96m
  • Yong Jiang (51yo)

    VP & Executive Director

    • Compensation: CN¥1.88m
  • Kam Le Hong (40yo)

    Company Secretary

    • Tenure: 5.7yrs

Board Members

  • Geng Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥441.00k
  • Xichen Song (54yo)

    VP & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥1.96m
  • Jianmin Qiao (59yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥441.00k
  • Aizhi Han (51yo)

    VP & Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥1.96m
  • Yong Jiang (51yo)

    VP & Executive Director

    • Tenure: 7.0yrs
    • Compensation: CN¥1.88m
  • Junzhu Chen (43yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥441.00k
  • Bizhuang Zhang (51yo)

    CEO & Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥2.18m
  • Kunxian Wang (50yo)

    VP & Executive Director

    • Tenure: 5.0yrs
    • Compensation: CN¥1.98m
  • Jun Wei (51yo)

    Chairman

    • Tenure: 0.6yrs

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$291.419m
  • Shares outstanding: 3.27b
  • Website: Click here

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 Analysis2019/08/18 12:53
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.