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Kinetic Mines and Energy

SEHK:1277
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1277
SEHK
HK$3B
Market Cap
  1. Home
  2. HK
  3. Energy
Company description

Kinetic Mines and Energy Limited, an investment holding company, engages in the extraction and sale of coal products. The last earnings update was 84 days ago. More info.


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1277 Share Price and Events
7 Day Returns
-1.2%
SEHK:1277
4.5%
HK Oil and Gas
3.9%
HK Market
1 Year Returns
-8%
SEHK:1277
-17.8%
HK Oil and Gas
-9.3%
HK Market
1277 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kinetic Mines and Energy (1277) -1.2% -11% -11% -8% 113.2% -5.8%
HK Oil and Gas 4.5% -1.3% -10.7% -17.8% 1.8% -39.7%
HK Market 3.9% 3.5% -3.6% -9.3% 24.9% 7.4%
1 Year Return vs Industry and Market
  • 1277 outperformed the Oil and Gas industry which returned -17.8% over the past year.
  • 1277 outperformed the Market in Hong Kong which returned -9.3% over the past year.
Price Volatility
1277
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Kinetic Mines and Energy's competitors could be found in our database.

Value

 Is Kinetic Mines and Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kinetic Mines and Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kinetic Mines and Energy.

SEHK:1277 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1277
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.919 (1 + (1- 25%) (15.75%))
1.018
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.018 * 5.96%)
8.07%

Discounted Cash Flow Calculation for SEHK:1277 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kinetic Mines and Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1277 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.07%)
2019 1,230.15 Est @ 26.13% 1,138.27
2020 1,462.57 Est @ 18.89% 1,252.24
2021 1,664.79 Est @ 13.83% 1,318.91
2022 1,835.91 Est @ 10.28% 1,345.84
2023 1,979.05 Est @ 7.8% 1,342.40
2024 2,098.95 Est @ 6.06% 1,317.39
2025 2,200.57 Est @ 4.84% 1,278.01
2026 2,288.38 Est @ 3.99% 1,229.73
2027 2,366.05 Est @ 3.39% 1,176.50
2028 2,436.48 Est @ 2.98% 1,121.03
Present value of next 10 years cash flows CN¥12,520.31
SEHK:1277 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥2,436.48 × (1 + 2%) ÷ (8.07% – 2%)
CN¥40,947.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥40,947.95 ÷ (1 + 8.07%)10
CN¥18,840.22
SEHK:1277 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥12,520.31 + CN¥18,840.22
CN¥31,360.52
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥31,360.52 / 8,430.00
CN¥3.72
SEHK:1277 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1277)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.72 x 1.137
HK$4.23
Value per share (HKD) From above. HK$4.23
Current discount Discount to share price of HK$0.41
= -1 x (HK$0.41 - HK$4.23) / HK$4.23
90.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kinetic Mines and Energy is available for.
Intrinsic value
>50%
Share price is HK$0.41 vs Future cash flow value of HK$4.23
Current Discount Checks
For Kinetic Mines and Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kinetic Mines and Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kinetic Mines and Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kinetic Mines and Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kinetic Mines and Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1277 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.10
SEHK:1277 Share Price ** SEHK (2019-06-24) in HKD HK$0.41
SEHK:1277 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥0.36
Hong Kong Oil and Gas Industry PE Ratio Median Figure of 27 Publicly-Listed Oil and Gas Companies 10.05x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kinetic Mines and Energy.

SEHK:1277 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1277 Share Price ÷ EPS (both in CNY)

= 0.36 ÷ 0.10

3.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kinetic Mines and Energy is good value based on earnings compared to the HK Oil and Gas industry average.
  • Kinetic Mines and Energy is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Kinetic Mines and Energy's expected growth come at a high price?
Raw Data
SEHK:1277 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-21.6%per year
Hong Kong Oil and Gas Industry PEG Ratio Median Figure of 11 Publicly-Listed Oil and Gas Companies 0.77x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Kinetic Mines and Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kinetic Mines and Energy's assets?
Raw Data
SEHK:1277 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥0.21
SEHK:1277 Share Price * SEHK (2019-06-24) in HKD HK$0.41
SEHK:1277 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥0.36
Hong Kong Oil and Gas Industry PB Ratio Median Figure of 45 Publicly-Listed Oil and Gas Companies 0.86x
Hong Kong Market PB Ratio Median Figure of 2,172 Publicly-Listed Companies 0.94x
SEHK:1277 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1277 Share Price ÷ Book Value per Share (both in CNY)

= 0.36 ÷ 0.21

1.69x

* Primary Listing of Kinetic Mines and Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kinetic Mines and Energy is overvalued based on assets compared to the HK Oil and Gas industry average.
X
Value checks
We assess Kinetic Mines and Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Kinetic Mines and Energy has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Kinetic Mines and Energy expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Kinetic Mines and Energy, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-21.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kinetic Mines and Energy expected to grow at an attractive rate?
  • Kinetic Mines and Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Kinetic Mines and Energy's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare Kinetic Mines and Energy's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1277 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1277 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -21.6%
Hong Kong Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
Hong Kong Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1277 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1277 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 2,443 1,086 807
2018-09-30 2,303 979 781
2018-06-30 2,162 872 754
2018-03-31 1,956 813 647
2017-12-31 1,750 754 540
2017-09-30 1,620 627 454
2017-06-30 1,491 501 368
2017-03-31 1,271 383 253
2016-12-31 1,051 264 138
2016-09-30 982 226 52
2016-06-30 912 187 -34
2016-03-31 1,044 197 -18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kinetic Mines and Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Kinetic Mines and Energy is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1277 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Kinetic Mines and Energy Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1277 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.10
2018-09-30 0.09
2018-06-30 0.09
2018-03-31 0.08
2017-12-31 0.06
2017-09-30 0.05
2017-06-30 0.04
2017-03-31 0.03
2016-12-31 0.02
2016-09-30 0.01
2016-06-30 0.00
2016-03-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Kinetic Mines and Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Kinetic Mines and Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kinetic Mines and Energy has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kinetic Mines and Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kinetic Mines and Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kinetic Mines and Energy has delivered over 20% year on year earnings growth in the past 5 years.
  • Kinetic Mines and Energy's 1-year earnings growth is less than its 5-year average (49.4% vs 74%)
  • Kinetic Mines and Energy's earnings growth has exceeded the HK Oil and Gas industry average in the past year (49.4% vs 10.8%).
Earnings and Revenue History
Kinetic Mines and Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kinetic Mines and Energy Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1277 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,443.44 806.97 129.45
2018-09-30 2,302.91 780.69 123.42
2018-06-30 2,162.39 754.41 117.39
2018-03-31 1,955.96 647.23 105.50
2017-12-31 1,749.54 540.05 93.62
2017-09-30 1,620.21 453.92 83.73
2017-06-30 1,490.87 367.78 73.84
2017-03-31 1,271.17 252.95 71.53
2016-12-31 1,051.46 138.11 69.22
2016-09-30 981.77 51.97 70.79
2016-06-30 912.08 -34.17 72.36
2016-03-31 1,044.06 -18.13 70.53
2015-12-31 1,176.04 -2.10 68.70
2015-09-30 1,101.19 10.41 78.36
2015-06-30 1,026.33 22.93 88.01
2015-03-31 933.31 42.24 86.79
2014-12-31 840.29 61.55 85.58
2014-09-30 647.26 2.56 96.14
2014-06-30 454.23 -56.42 106.71
2014-03-31 290.45 -105.50 116.15
2013-12-31 126.67 -154.58 125.59
2013-09-30 102.90 -136.21 115.34
2013-06-30 79.13 -117.85 105.08
2013-03-31 55.40 -116.93 102.09
2012-12-31 31.68 -116.01 99.11
2012-09-30 16.35 -108.95 92.04
2012-06-30 1.02 -101.89 84.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kinetic Mines and Energy made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Kinetic Mines and Energy used its assets more efficiently than the HK Oil and Gas industry average last year based on Return on Assets.
  • Kinetic Mines and Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kinetic Mines and Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kinetic Mines and Energy has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kinetic Mines and Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kinetic Mines and Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kinetic Mines and Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Kinetic Mines and Energy's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kinetic Mines and Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kinetic Mines and Energy Company Filings, last reported 5 months ago.

SEHK:1277 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,776.00 473.06 275.85
2018-09-30 1,776.00 473.06 275.85
2018-06-30 1,495.91 679.84 96.81
2018-03-31 1,495.91 679.84 96.81
2017-12-31 1,308.42 945.44 298.31
2017-09-30 1,308.42 945.44 298.31
2017-06-30 1,021.83 1,063.55 115.30
2017-03-31 1,021.83 1,063.55 115.30
2016-12-31 983.79 1,009.53 85.74
2016-09-30 983.79 1,009.53 85.74
2016-06-30 800.94 1,165.55 97.51
2016-03-31 800.94 1,165.55 97.51
2015-12-31 845.35 1,154.92 92.01
2015-09-30 845.35 1,154.92 92.01
2015-06-30 834.08 900.00 37.68
2015-03-31 834.08 900.00 37.68
2014-12-31 846.60 1,150.00 43.65
2014-09-30 846.60 1,150.00 43.65
2014-06-30 811.26 1,250.00 37.65
2014-03-31 811.26 1,250.00 37.65
2013-12-31 784.94 1,375.00 146.24
2013-09-30 784.94 1,375.00 146.24
2013-06-30 867.79 1,126.50 119.11
2013-03-31 867.79 1,126.50 119.11
2012-12-31 940.37 1,019.00 161.14
2012-09-30 940.37 1,019.00 161.14
2012-06-30 986.14 850.00 302.64
  • Kinetic Mines and Energy's level of debt (26.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (174.9% vs 26.6% today).
  • Debt is well covered by operating cash flow (229.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.5x coverage).
X
Financial health checks
We assess Kinetic Mines and Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kinetic Mines and Energy has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Kinetic Mines and Energy's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
10.85%
Current annual income from Kinetic Mines and Energy dividends.
If you bought HK$2,000 of Kinetic Mines and Energy shares you are expected to receive HK$217 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kinetic Mines and Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Kinetic Mines and Energy's dividend is above the markets top 25% of dividend payers in Hong Kong (5.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1277 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 5.9%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1277 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.039 10.359
2018-05-23 0.049 12.786
2017-09-01 0.016 4.917

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kinetic Mines and Energy has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Kinetic Mines and Energy only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Kinetic Mines and Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Kinetic Mines and Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kinetic Mines and Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kinetic Mines and Energy has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Kinetic Mines and Energy's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jianhua Gu
COMPENSATION CN¥1,180,000
AGE 64
TENURE AS CEO 6.4 years
CEO Bio

Mr. Jianhua Gu has been the Chief Executive Officer at Kinetic Mines and Energy Limited since January 7, 2013 and its Executive Director since January 7, 2013 and also served as its General Manager. Mr. Gu served as a General Manager of Kinetic Mines and Energy Limited. He has nearly 40 years of experience in the coal mining industry of China. Prior to joining Kinetic Mines and Energy in September 2009, he worked in Fengcheng Mining Bureau in Jiangxi Province, China from 1971 to 1995 where he accumulated extensive experience in coal production and safety management while serving in various senior positions including as deputy mine manager of Jianxin No. 2 Coal Mine and as Deputy Chief Engineer of the bureau. He served as general manager of a company under the Ministry of Coal Industry in Qingdao, China from 1995 to 1997, assistant to the general manager of the China Coal Comprehensive Utilisation Group Company, China and head of its general office from 1997 to 1999, Deputy Head of the Coal Industry Comprehensive Utilisation of Technology Consultation Centre under the Ministry of Coal Industry of China from 1999 to 2002, chairman and party secretary of China Coal Electric Company Limited from 2002 to 2004 with key responsibilities for overseeing the production of high- and low-voltage electrical cabinets, as well as deputy secretary and general manager for the development of mineral resources of China Coal Comprehensive Utilisation Group Company from 2004 to 2009 with key responsibilities in mineral resources development and technology consultation. Mr. Gu is a committee member of the National Technical Committee of Standardisation of Low-voltage Switchgear and Control Equipment Administration of the PRC. He directed and wrote numerous dissertations, including the “Measures for the Administration of Safety Production for Fengcheng Mining Bureau of Jiangxi Province, China in 1994 and the “Provisional Measures for the Administration of Safety Production of Beijing Zhongmei Electric Co., Ltd. in November 2002, which was then consolidated into the document “Zhongmei Electric Installation No. 001 and won various prizes for scientific and technological achievements, including awards in relation to the redevelopment of certain mine shaft ventilation systems and the construction of a new mine for Fengcheng Mining Bureau from 1973 to 1974 and 1982 to 1986, respectively. Mr. Gu was awarded a certificate of long-term service in the coal industry by China National Coal Association in 2005 in recognition of his contributions to the coal industry of China throughout the years. He studied mining management and engineering at Huainan Mining Institute (now known as Anhui University of Science & Technology from 1990 to 1993 and economics and management at the Central Party School in the PRC from 1994 to 1996 and is a qualified engineer in China.

CEO Compensation
  • Jianhua's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jianhua's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Kinetic Mines and Energy management team in years:

3.8
Average Tenure
50.5
Average Age
  • The tenure for the Kinetic Mines and Energy management team is about average.
Management Team

Li Zhang

TITLE
Executive Chairman
COMPENSATION
CN¥3M
AGE
64

Jianhua Gu

TITLE
CEO & Executive Director
COMPENSATION
CN¥1M
AGE
64
TENURE
6.4 yrs

Johnson Zhang

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
36

Runzhang Xiao

TITLE
Chief Engineer
AGE
59
TENURE
0.4 yrs

Mingbao Zhu

TITLE
Chief Engineer of Dafanpu Coal Mine
AGE
50

Yuncheng Li

TITLE
Head of the Group's Dafanpu Coal Mine
AGE
51

Tianfeng Ma

TITLE
Head of the Group’s Dafanpu Coal Washing Plant
AGE
53

Danny Chan

TITLE
Company Secretary
AGE
44
TENURE
3.8 yrs

Yanguo Zhao

TITLE
Deputy Chief Geological Engineer of the Group's Dafanpu Coal Mine
AGE
50

Qinsheng Li

TITLE
Deputy Chief Coal Mine Engineer
AGE
31
Board of Directors Tenure

Average tenure and age of the Kinetic Mines and Energy board of directors in years:

7.3
Average Tenure
64
Average Age
  • The tenure for the Kinetic Mines and Energy board of directors is about average.
Board of Directors

Li Zhang

TITLE
Executive Chairman
COMPENSATION
CN¥3M
AGE
64
TENURE
7.3 yrs

Jianhua Gu

TITLE
CEO & Executive Director
COMPENSATION
CN¥1M
AGE
64
TENURE
6.4 yrs

Johnson Zhang

TITLE
Executive Director
COMPENSATION
CN¥3M
AGE
36
TENURE
7.3 yrs

Peilian Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥240K
AGE
64
TENURE
7.3 yrs

Hui Xue

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥240K
AGE
62
TENURE
3.2 yrs

Lin Zhang

TITLE
Non-Executive Director
COMPENSATION
CN¥240K
AGE
69
TENURE
7.3 yrs

Ercheng Zheng

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥240K
AGE
60
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Kinetic Mines and Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kinetic Mines and Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do You Like Kinetic Mines and Energy Limited (HKG:1277) At This P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Kinetic Mines and Energy: P/E of 3.73 = CN¥0.36 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.096 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … Kinetic Mines and Energy increased earnings per share by a whopping 49% last year. … How Does Kinetic Mines and Energy's P/E Ratio Compare To Its Peers?

Simply Wall St -

Kinetic Mines and Energy Limited (HKG:1277) Is An Attractive Dividend Stock - Here's Why

Could Kinetic Mines and Energy Limited (HKG:1277) be an attractive dividend share to own for the long haul? … In this case, Kinetic Mines and Energy pays a decent-sized 9.8% dividend yield, and has been distributing cash to shareholders for the past two years. … It's good to see Kinetic Mines and Energy has been growing its earnings per share at 74% a year over the past 5 years.

Simply Wall St -

Is Kinetic Mines and Energy Limited (HKG:1277) A High Quality Stock To Own?

One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.45 in profit. … Check out our latest analysis for Kinetic Mines and Energy? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's Why We Think Kinetic Mines and Energy (HKG:1277) Is Well Worth Watching

So if you're like me, you might be more interested in profitable, growing companies, like Kinetic Mines and Energy (HKG:1277). … Over the last three years, Kinetic Mines and Energy has grown earnings per share (EPS) like bamboo after rain; fast, and from a low base. … Like a falcon taking flight, Kinetic Mines and Energy's EPS soared from CN¥0.064 to CN¥0.096, over the last year.

Simply Wall St -

If You Had Bought Kinetic Mines and Energy (HKG:1277) Shares Three Years Ago You'd Have A Total Return Of 168%

For example, the Kinetic Mines and Energy Limited (HKG:1277) share price has soared 124% in the last three years. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

Simply Wall St -

Why You Should Like Kinetic Mines and Energy Limited’s (HKG:1277) ROCE

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Do Insiders Own Shares In Kinetic Mines and Energy Limited (HKG:1277)?

If you want to know who really controls Kinetic Mines and Energy Limited (HKG:1277), then you'll have to look at the makeup of its share registry. … Kinetic Mines and Energy is a smaller company with a market capitalization of HK$3.9b, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Kinetic Mines and Energy

Simply Wall St -

Is Kinetic Mines and Energy Limited (HKG:1277) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Kinetic Mines and Energy Limited (HKG:1277), with a market cap of HK$4.0b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Does Kinetic Mines and Energy Limited (HKG:1277) Have A Particularly Volatile Share Price?

In finance, Beta is a measure of volatility. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

Does Kinetic Mines and Energy Limited's (HKG:1277) CEO Salary Reflect Performance?

Jianhua Gu has been the CEO of Kinetic Mines and Energy Limited (HKG:1277) since 2013. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jianhua Gu's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Company Info

Description

Kinetic Mines and Energy Limited, an investment holding company, engages in the extraction and sale of coal products. The company focuses on the development of its Dafanpu Coal Mine with a concession area of approximately 9.6 square kilometers located in Zhunge’er Banner, Erdos City, Inner Mongolia, China. It also engages in the coal mining, trading, washing, loading, and transportation; and the sale of mineral products. Kinetic Mines and Energy Limited was incorporated in 2010 and is headquartered in Ordos, the People’s Republic of China.

Details
Name: Kinetic Mines and Energy Limited
1277
Exchange: SEHK
Founded: 2010
HK$3,414,150,000
8,430,000,000
Website: http://www.kineticme.com
Address: Kinetic Mines and Energy Limited
Dafanpu Coal Mine,
Majiata Village,
Ordos,
Inner Mongolia Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1277 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 23. Mar 2012
DB 6KM Ordinary Shares Deutsche Boerse AG DE EUR 23. Mar 2012
Number of employees
Current staff
Staff numbers
810
Kinetic Mines and Energy employees.
Industry
Coal and Consumable Fuels
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 13:03
End of day share price update: 2019/06/24 00:00
Last earnings filing: 2019/04/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.