Executive Summary
China Leon Inspection Holding Limited, an investment holding company, provides coal and coke testing and inspection services in the People’s Republic of China, Singapore, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
Share Price & News
How has China Leon Inspection Holding's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1586 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: 1586's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
1.0%
1586
13.6%
HK Energy Services
1.1%
HK Market
1 Year Return
-19.0%
1586
-32.1%
HK Energy Services
8.2%
HK Market
Return vs Industry: 1586 exceeded the Hong Kong Energy Services industry which returned -31.8% over the past year.
Return vs Market: 1586 underperformed the Hong Kong Market which returned 7.6% over the past year.
Shareholder returns
| 1586 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 13.6% | 1.1% |
| 30 Day | -11.3% | 24.5% | 7.2% |
| 90 Day | -3.8% | 8.3% | 5.2% |
| 1 Year | -16.1%-19.0% | -31.2%-32.1% | 12.6%8.2% |
| 3 Year | -32.1%-36.3% | -33.7%-35.0% | 0.4%-10.0% |
| 5 Year | n/a | -53.4%-54.3% | 30.6%8.5% |
Long-Term Price Volatility Vs. Market
How volatile is China Leon Inspection Holding's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Insider Buying: The China Leon Inspection Holding Limited (HKG:1586) VP & Executive Director Just Bought 3.1% More Shares2 weeks ago | Simply Wall St
Should You Be Impressed By China Leon Inspection Holding's (HKG:1586) Returns on Capital?4 weeks ago | Simply Wall St
China Leon Inspection Holding's(HKG:1586) Share Price Is Down 35% Over The Past Three Years.Valuation
Is China Leon Inspection Holding 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: 1586 (HK$1.02) is trading below our estimate of fair value (HK$5.91)
Significantly Below Fair Value: 1586 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1586 is good value based on its PE Ratio (10.8x) compared to the HK Energy Services industry average (11.8x).
PE vs Market: 1586 is good value based on its PE Ratio (10.8x) compared to the Hong Kong market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1586's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1586 is overvalued based on its PB Ratio (1.4x) compared to the HK Energy Services industry average (0.5x).
Next Steps
Future Growth
How is China Leon Inspection Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
18.1%
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 China Leon Inspection Holding 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
- Examine whether China Leon Inspection Holding is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- China Leon Inspection Holding competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has China Leon Inspection Holding performed over the past 5 years?
-6.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1586 has high quality earnings.
Growing Profit Margin: 1586's current net profit margins (6.9%) are higher than last year (5.3%).
Past Earnings Growth Analysis
Earnings Trend: 1586's earnings have declined by 6.3% per year over the past 5 years.
Accelerating Growth: 1586's earnings growth over the past year (100.8%) exceeds its 5-year average (-6.3% per year).
Earnings vs Industry: 1586 earnings growth over the past year (100.8%) exceeded the Energy Services industry -18.6%.
Return on Equity
High ROE: 1586's Return on Equity (19%) is considered low.
Next Steps
Financial Health
How is China Leon Inspection Holding's financial position?
Financial Position Analysis
Short Term Liabilities: 1586's short term assets (CN¥231.5M) exceed its short term liabilities (CN¥169.5M).
Long Term Liabilities: 1586's short term assets (CN¥231.5M) exceed its long term liabilities (CN¥28.1M).
Debt to Equity History and Analysis
Debt Level: 1586's debt to equity ratio (27.5%) is considered satisfactory.
Reducing Debt: 1586's debt to equity ratio has reduced from 46.3% to 27.5% over the past 5 years.
Debt Coverage: 1586's debt is well covered by operating cash flow (166.2%).
Interest Coverage: 1586's interest payments on its debt are well covered by EBIT (10.2x coverage).
Balance Sheet
Next Steps
Dividend
What is China Leon Inspection Holding current dividend yield, its reliability and sustainability?
4.33%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1586's dividend (4.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).
High Dividend: 1586's dividend (4.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).
Stability and Growth of Payments
Stable Dividend: 1586 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1586's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.8%), 1586'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?
4.4yrs
Average board tenure
CEO
Xiangli Li (57 yo)
no data
Tenure
CN¥1,693,000
Compensation
Mr. Xiangli Li serves as Chairman and Chief Executive Officer of China Leon Inspection Holding Limited and has been its Executive Director since January 2016. Mr. Li serves as a Legal Representative and Ex...
CEO Compensation Analysis
Compensation vs Market: Xiangli's total compensation ($USD257.47K) is about average for companies of similar size in the Hong Kong market ($USD230.00K).
Compensation vs Earnings: Xiangli's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | no data | CN¥1.69m | 35.24% CN¥ 143.8m | |
| Vice Chairman | 2.33yrs | CN¥1.67m | 0.47% CN¥ 1.9m | |
| VP & Executive Director | 4.83yrs | CN¥685.00k | 12.32% CN¥ 50.3m | |
| VP & Executive Director | 4.83yrs | CN¥1.02m | 9.19% CN¥ 37.5m | |
| Independent Non-Executive Director | 2.33yrs | CN¥87.00k | no data | |
| Non-Executive Director | 4.83yrs | no data | no data | |
| Independent Non-Executive Director | 4.42yrs | CN¥87.00k | no data | |
| Independent Non-Executive Director | 4.42yrs | CN¥87.00k | no data |
4.4yrs
Average Tenure
55yo
Average Age
Experienced Board: 1586's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 1586 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
China Leon Inspection Holding Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Leon Inspection Holding Limited
- Ticker: 1586
- Exchange: SEHK
- Founded: 2009
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: HK$408.000m
- Shares outstanding: 400.00m
- Website: https://www.huaxialihong.com
Number of Employees
Location
- China Leon Inspection Holding Limited
- Building No. 78
- Zhuyuan Road
- Beijing
- Beijing Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1586 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jul 2016 |
Biography
China Leon Inspection Holding Limited, an investment holding company, provides coal and coke testing and inspection services in the People’s Republic of China, Singapore, and internationally. The company o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 10:24 |
| End of Day Share Price | 2020/11/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.