CMIC Ocean En-Tech Holding (SEHK:206) - Share price, News & Analysis

Q: What is the Fair Price of 206 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

206 (HK$0.26) is trading below our estimate of [[fair value]] (HK$3.96)

206 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

206 Stock Overview

Rewards

Trading at 93.6% below our estimate of its fair value

Risk Analysis

Large one-off items impacting financial results

CMIC Ocean En-Tech Holding Competitors

Hilong Holding

SEHK:1623

HK$1.1b

Anton Oilfield Services Group

SEHK:3337

HK$1.3b

SPT Energy Group

SEHK:1251

HK$500.5m

China Leon Inspection Holding

SEHK:1586

HK$683.0m

Price History & Performance

Summary of all time highs, changes and price drops for CMIC Ocean En-Tech Holding
Historical stock prices
Current Share Price	HK$0.26
52 Week High	HK$0.45
52 Week Low	HK$0.22
Beta	1.43
1 Month Change	2.00%
3 Month Change	8.51%
1 Year Change	-8.93%
3 Year Change	27.50%
5 Year Change	-52.78%
Change since IPO	-71.02%

Recent News & Updates

Jul 09

There Is A Reason CMIC Ocean En-Tech Holding Co., Ltd.'s (HKG:206) Price Is Undemanding

When close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") above 11x, you may consider...

Shareholder Returns

	206	HK Energy Services	HK Market
7D	7.1%	3.8%	0.3%
1Y	-8.9%	8.8%	-21.6%

Return vs Industry: 206 underperformed the Hong Kong Energy Services industry which returned 8.8% over the past year.

Return vs Market: 206 exceeded the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 206's price volatile compared to industry and market?
206 volatility
206 Average Weekly Movement	5.9%
Energy Services Industry Average Movement	5.9%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.7%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 206 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 206's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	390	Bing Hua Jiang	https://www.cmicholding.com

CMIC Ocean En-Tech Holding Co., Ltd., an investment holding company, engages in the design, manufacture, installation, and commissioning of capital equipment and packages on land and offshore rigs worldwide. It operates through three segments: Capital Equipment and Packages, Oilfield Expendables and Supplies, and Management and Engineering Services. The company engages in asset investment and operation management of offshore engineering platforms; and offers specific equipment products, which include cranes, machine rack pipes, jacking systems, power control and transmission systems, tension adjustment and compensation devices and systems, etc. It also provides drilling rigs maintenance, repair, and operation products and services comprising oilfield expendables, accessories and parts manufacturing, and sale and repair services; and provides management and engineering services.

CMIC Ocean En-Tech Holding Fundamentals Summary

How do CMIC Ocean En-Tech Holding's earnings and revenue compare to its market cap?
206 fundamental statistics
Market Cap	US$105.51m
Earnings (TTM)	US$9.22m
Revenue (TTM)	US$57.03m

11.5x

P/E Ratio

1.9x

P/S Ratio

Is 206 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
206 income statement (TTM)
Revenue	US$57.03m
Cost of Revenue	US$36.36m
Gross Profit	US$20.66m
Other Expenses	US$11.44m
Earnings	US$9.22m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0028
Gross Margin	36.24%
Net Profit Margin	16.17%
Debt/Equity Ratio	0%

How did 206 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 206 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 206?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 206. This is calculated by dividing 206's market cap by their current preferred multiple.
What is 206's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$105.51m

206 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	23.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 206's PE Ratio compare to its peers?

206 PE Ratio vs Peers

The above table shows the PE ratio for 206 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25x
1623 Hilong Holding	21.4x	32.9%	HK$1.1b
3337 Anton Oilfield Services Group	15.8x	37.9%	HK$1.3b
1251 SPT Energy Group	49x	53.8%	HK$500.5m
1586 China Leon Inspection Holding	13.7x	n/a	HK$683.0m
206 CMIC Ocean En-Tech Holding	11.5x	n/a	HK$827.1m

Price-To-Earnings vs Peers: 206 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does 206's PE Ratio compare vs other companies in the Asian Energy Services Industry?

Price-To-Earnings vs Industry: 206 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the Hong Kong Energy Services industry average (44.4x)

Price to Earnings Ratio vs Fair Ratio

What is 206's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

206 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 206's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 206 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 206 (HK$0.26) is trading below our estimate of fair value (HK$3.96)

Significantly Below Fair Value: 206 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is CMIC Ocean En-Tech Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

37.9%

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 CMIC Ocean En-Tech 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.

Discover growth companies

Examine whether CMIC Ocean En-Tech 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.
CMIC Ocean En-Tech Holding competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has CMIC Ocean En-Tech Holding performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

67.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 206 has a large one-off gain of $11.4M impacting its December 31 2021 financial results.

Growing Profit Margin: 206's current net profit margins (16.2%) are lower than last year (16.6%).

Past Earnings Growth Analysis

Earnings Trend: 206 has become profitable over the past 5 years, growing earnings by 67.1% per year.

Accelerating Growth: 206's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 206 had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Energy Services industry average (-75%).

Return on Equity

High ROE: 206's Return on Equity (6.3%) is considered low.

Discover strong past performing companies

Financial Health

How is CMIC Ocean En-Tech Holding's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 206's short term assets ($153.2M) exceed its short term liabilities ($79.2M).

Long Term Liabilities: 206's short term assets ($153.2M) exceed its long term liabilities ($2.2M).

Debt to Equity History and Analysis

Debt Level: 206 is debt free.

Reducing Debt: 206 has no debt compared to 5 years ago when its debt to equity ratio was 51.4%.

Debt Coverage: 206 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 206 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is CMIC Ocean En-Tech Holding current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 206's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 206'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 206's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 206's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 206 has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Bing Hua Jiang (73 yo)

0.58

Tenure

US$347,000

Compensation

Mr. Bing Hua Jiang serves as Chief Executive Officer of CMIC Ocean En-Tech Holding Co., Ltd. since January 26, 2022. He served as Co-Chairman at CMIC Ocean En-Tech Holding Co., Ltd.(formerly known as TSC...

CEO Compensation Analysis

Compensation vs Market: Bing Hua's total compensation ($USD347.00K) is above average for companies of similar size in the Hong Kong market ($USD246.34K).

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

Leadership Team

Experienced Management: 206's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: 206's board of directors are considered experienced (4.2 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31