SEHK:1251

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

SPT Energy Group Inc., an investment holding company, provides integrated oilfield services and manufactures oilfield services related products in the People's Republic of China, Kazakhstan, Turkmenistan, the Middle East, Canada, Indonesia, and internationally. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.

Share Price & News

How has SPT Energy Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1251 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1251's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

20.4%

1251

13.6%

HK Energy Services

1.1%

HK Market


1 Year Return

-44.9%

1251

-32.1%

HK Energy Services

8.2%

HK Market

Return vs Industry: 1251 underperformed the Hong Kong Energy Services industry which returned -31.8% over the past year.

Return vs Market: 1251 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

1251IndustryMarket
7 Day20.4%13.6%1.1%
30 Day35.4%24.5%7.2%
90 Day36.0%8.3%5.2%
1 Year-44.9%-44.9%-31.2%-32.1%12.6%8.2%
3 Year-43.0%-43.0%-33.7%-35.0%0.4%-10.0%
5 Year-57.2%-57.2%-53.4%-54.3%30.6%8.5%

Long-Term Price Volatility Vs. Market

How volatile is SPT Energy Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SPT Energy Group 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: 1251 (HK$0.33) is trading below our estimate of fair value (HK$5.75)

Significantly Below Fair Value: 1251 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1251 is good value based on its PE Ratio (3.5x) compared to the HK Energy Services industry average (11.8x).

PE vs Market: 1251 is good value based on its PE Ratio (3.5x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1251 is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: 1251 is good value based on its PB Ratio (0.4x) compared to the HK Energy Services industry average (0.5x).


Next Steps

Future Growth

How is SPT Energy Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1251's forecast earnings growth (23.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1251's earnings (23.5% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1251's revenue (7.9% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).

High Growth Revenue: 1251's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1251's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has SPT Energy Group performed over the past 5 years?

65.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1251 has high quality earnings.

Growing Profit Margin: 1251's current net profit margins (8%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 1251 has become profitable over the past 5 years, growing earnings by 65.3% per year.

Accelerating Growth: 1251's earnings growth over the past year (5.5%) is below its 5-year average (65.3% per year).

Earnings vs Industry: 1251 earnings growth over the past year (5.5%) exceeded the Energy Services industry -18.6%.


Return on Equity

High ROE: 1251's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is SPT Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1251's short term assets (CN¥2.2B) exceed its short term liabilities (CN¥1.1B).

Long Term Liabilities: 1251's short term assets (CN¥2.2B) exceed its long term liabilities (CN¥225.1M).


Debt to Equity History and Analysis

Debt Level: 1251's debt to equity ratio (27.8%) is considered satisfactory.

Reducing Debt: 1251's debt to equity ratio has reduced from 29.4% to 27.8% over the past 5 years.

Debt Coverage: 1251's debt is well covered by operating cash flow (59.3%).

Interest Coverage: 1251's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

What is SPT Energy Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1251's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1251's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1251's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1251's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1251 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 1251'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?

2.5yrs

Average management tenure


CEO

Ethan Wu (48 yo)

2.5yrs

Tenure

CN¥740,000

Compensation

Mr. Ethan Wu serves as the Chief Executive Officer of SPT Energy Group Inc. since May 11, 2018 and as its Executive Director since June 2008. He served as Deputy General Manager of SPT Energy Group Inc. si...


CEO Compensation Analysis

Compensation vs Market: Ethan's total compensation ($USD112.54K) is below average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Guoqiang Wang
Executive Chairman of the Boardno dataCN¥728.00kno data
Ethan Wu
Founder2.5yrsCN¥740.00kno data
Qiang Li
CFO, VP & Executive Director3.67yrsCN¥760.00kno data
Jiwei Wu
Executive Director1.67yrsCN¥4.82mno data
Zhiguo Li
Chief Operating Officer3.83yrsno datano data
Jian Chen
Director of Investor Relations1.42yrsno datano data
Wenhai Gao
Senior Vice President2.5yrsno datano data
Wenjiang Wan
Head of Engineering Technology Centre & VPno datano datano data
Ming-Wai Mok
Company Secretaryno datano datano data

2.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 1251's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guoqiang Wang
Executive Chairman of the Boardno dataCN¥728.00kno data
Ethan Wu
Founder2.5yrsCN¥740.00kno data
Qiang Li
CFO, VP & Executive Director3.67yrsCN¥760.00kno data
Jiwei Wu
Executive Director1.67yrsCN¥4.82mno data
Chunhua Chen
Non-Executive Director8.92yrsCN¥1.01mno data
Kwok Wu
Independent Non-Executive Director8.92yrsCN¥287.00kno data
Kah Ming Wan
Independent Non-Executive Director8.92yrsCN¥287.00k0.0018%
CN¥ 10.5k
Yujuan Zhang
Independent Non-Executive Director7.67yrsCN¥287.00kno data

8.9yrs

Average Tenure

49yo

Average Age

Experienced Board: 1251's board of directors are considered experienced (8.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SPT Energy Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SPT Energy Group Inc.
  • Ticker: 1251
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: HK$583.939m
  • Shares outstanding: 1.85b
  • Website: https://www.sptenergygroup.com

Number of Employees


Location

  • SPT Energy Group Inc.
  • Hongmao Business Building
  • 5th Floor
  • Beijing
  • Beijing Province
  • 100012
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1251SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011
SEIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011
SEGY.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMay 2013

Biography

SPT Energy Group Inc., an investment holding company, provides integrated oilfield services and manufactures oilfield services related products in the People's Republic of China, Kazakhstan, Turkmenistan, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:22
End of Day Share Price2020/11/26 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.