SEHK:1277

Stock Analysis Report

Kinetic Mines and Energy

Executive Summary

Kinetic Mines and Energy Limited, an investment holding company, engages in the extraction and sale of coal products.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1277 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

1277

-5.7%

HK Oil and Gas

-3.3%

HK Market


1 Year Return

-18.1%

1277

-34.2%

HK Oil and Gas

-9.6%

HK Market

Return vs Industry: 1277 exceeded the Hong Kong Oil and Gas industry which returned -33.8% over the past year.

Return vs Market: 1277 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1277IndustryMarket
7 Day-1.3%-5.7%-3.3%
30 Day1.3%-11.8%-3.8%
90 Day2.7%-10.6%-0.2%
1 Year-8.7%-18.1%-30.2%-34.2%-6.3%-9.6%
3 Year115.9%61.8%-18.6%-30.1%11.2%-0.05%
5 Year55.7%16.7%-34.3%-46.1%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kinetic Mines and Energy 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: 1277 (HK$0.39) is trading below our estimate of fair value (HK$2.38)

Significantly Below Fair Value: 1277 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1277 is good value based on its PE Ratio (3.7x) compared to the Oil and Gas industry average (6.1x).

PE vs Market: 1277 is good value based on its PE Ratio (3.7x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1277's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1277 is overvalued based on its PB Ratio (1.5x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

6.4%

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

64.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1277 has high quality earnings.

Growing Profit Margin: 1277's current net profit margins (30.6%) are lower than last year (34.9%).


Past Earnings Growth Analysis

Earnings Trend: 1277 has become profitable over the past 5 years, growing earnings by 64% per year.

Accelerating Growth: 1277's earnings growth over the past year (4.3%) is below its 5-year average (64% per year).

Earnings vs Industry: 1277 earnings growth over the past year (4.3%) underperformed the Oil and Gas industry 11.7%.


Return on Equity

High ROE: 1277's Return on Equity (40.8%) is considered outstanding.


Next Steps

Financial Health

How is Kinetic Mines and Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 1277's short term assets (CN¥831.5M) do not cover its short term liabilities (CN¥977.0M).

Long Term Liabilities: 1277's short term assets (CN¥831.5M) exceed its long term liabilities (CN¥85.3M).


Debt to Equity History and Analysis

Debt Level: 1277's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: 1277's debt to equity ratio has reduced from 153.9% to 28.4% over the past 5 years.

Debt Coverage: 1277's debt is well covered by operating cash flow (184.2%).

Interest Coverage: 1277's interest payments on its debt are well covered by EBIT (60.8x coverage).


Balance Sheet

Inventory Level: 1277 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1277's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

11.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1277's dividend (11.46%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 1277's dividend (11.46%) is in the top 25% of dividend payers in the Hong Kong market (6.41%)


Stability and Growth of Payments

Stable Dividend: 1277 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1277's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), 1277's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Jianhua Gu (65yo)

7.1yrs

Tenure

CN¥1,180,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Jianhua's total compensation ($USD168.21K) is below average for companies of similar size in the Hong Kong market ($USD339.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Li Zhang
Executive Chairman7.9yrsCN¥3.00m11.22% CN¥364.3m
Jianhua Gu
CEO & Executive Director7.1yrsCN¥1.18m0.011% CN¥366.7k
Liang Zhang
Executive Director7.9yrsCN¥3.00m62.96% CN¥2.0b
Runzhang Xiao
Chief Engineer1.1yrsno datano data
Mingbao Zhu
Chief Engineer of Dafanpu Coal Mine0yrsno datano data
Yuncheng Li
Head of the Group's Dafanpu Coal Mine0yrsno datano data
Tianfeng Ma
Head of the Group’s Dafanpu Coal Washing Plant0yrsno datano data
Kwok Chan
Company Secretary4.5yrsno datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: 1277's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Li Zhang
Executive Chairman7.9yrsCN¥3.00m11.22% CN¥364.3m
Jianhua Gu
CEO & Executive Director7.1yrsCN¥1.18m0.011% CN¥366.7k
Liang Zhang
Executive Director7.9yrsCN¥3.00m62.96% CN¥2.0b
Ercheng Zheng
Independent Non-Executive Director4.9yrsCN¥240.00kno data
Lin Zhang
Non-Executive Director7.9yrsCN¥240.00kno data
Peilian Liu
Independent Non-Executive Director7.9yrsCN¥240.00kno data
Hui Xue
Independent Non-Executive Director3.8yrsCN¥240.00k0.046% CN¥1.5m

7.9yrs

Average Tenure

65yo

Average Age

Experienced Board: 1277's board of directors are considered experienced (7.9 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

Kinetic Mines and Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kinetic Mines and Energy Limited
  • Ticker: 1277
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: HK$3.246b
  • Shares outstanding: 8.43b
  • Website: https://www.kineticme.com

Number of Employees


Location

  • Kinetic Mines and Energy Limited
  • Unit B 20th Floor
  • Two Chinachem Plaza
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1277SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2012
6KMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2012

Biography

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 Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:22
End of Day Share Price2020/02/26 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.