SEHK:1586

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China Leon Inspection Holding

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


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

1586IndustryMarket
7 Day1.0%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 Yearn/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

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

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

NamePositionTenureCompensationOwnership
Xiangli Li
Chairman & CEOno dataCN¥1.69m35.24%
CN¥ 143.8m
Rongbing Yang
Vice Chairman2.33yrsCN¥1.67m0.47%
CN¥ 1.9m
Aiying Zhang
VP & Executive Director4.83yrsCN¥685.00k12.32%
CN¥ 50.3m
Yi Liu
VP & Executive Director4.83yrsCN¥1.02m9.19%
CN¥ 37.5m
Hoi Keung Liu
Independent Non-Executive Director2.33yrsCN¥87.00kno data
Gang Wang
Non-Executive Director4.83yrsno datano data
Zichen Wang
Independent Non-Executive Director4.42yrsCN¥87.00kno data
Hong Zhao
Independent Non-Executive Director4.42yrsCN¥87.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1586SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:24
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.