SEHK:2686

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AAG Energy Holdings

Executive Summary

AAG Energy Holdings Limited engages in the exploration, development, production, and sale of coalbed methane in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2686's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

2686

2.9%

HK Oil and Gas

1.4%

HK Market


1 Year Return

-29.9%

2686

-32.1%

HK Oil and Gas

-9.9%

HK Market

Return vs Industry: 2686 exceeded the Hong Kong Oil and Gas industry which returned -32.1% over the past year.

Return vs Market: 2686 underperformed the Hong Kong Market which returned -9.9% over the past year.


Shareholder returns

2686IndustryMarket
7 Day2.0%2.9%1.4%
30 Day-14.9%-4.4%-3.7%
90 Day-23.1%-12.4%-7.8%
1 Year-22.8%-29.9%-28.9%-32.1%-6.9%-9.9%
3 Year-3.8%-18.9%-27.1%-37.9%-4.8%-14.4%
5 Yearn/a-46.0%-55.3%-15.2%-28.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AAG Energy Holdings 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: 2686 (HK$1.03) is trading below our estimate of fair value (HK$4.97)

Significantly Below Fair Value: 2686 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2686 is good value based on its PE Ratio (4.5x) compared to the Oil and Gas industry average (5.6x).

PE vs Market: 2686 is good value based on its PE Ratio (4.5x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2686's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2686 is good value based on its PB Ratio (0.6x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is AAG Energy Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.8%

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 AAG Energy Holdings 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 AAG Energy Holdings performed over the past 5 years?

46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2686 has high quality earnings.

Growing Profit Margin: 2686's current net profit margins (60.9%) are higher than last year (42.2%).


Past Earnings Growth Analysis

Earnings Trend: 2686's earnings have grown significantly by 46.1% per year over the past 5 years.

Accelerating Growth: 2686's earnings growth over the past year (71.3%) exceeds its 5-year average (46.1% per year).

Earnings vs Industry: 2686 earnings growth over the past year (71.3%) exceeded the Oil and Gas industry 1.8%.


Return on Equity

High ROE: 2686's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is AAG Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2686's short term assets (CN¥2.9B) exceed its short term liabilities (CN¥463.0M).

Long Term Liabilities: 2686's short term assets (CN¥2.9B) exceed its long term liabilities (CN¥441.6M).


Debt to Equity History and Analysis

Debt Level: 2686 is debt free.

Reducing Debt: 2686 has no debt compared to 5 years ago when its debt to equity ratio was 12.8%.

Debt Coverage: 2686 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2686 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is AAG Energy Holdings's current dividend yield, its reliability and sustainability?

11.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2686's dividend (11.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.59%).

High Dividend: 2686's dividend (11.19%) is in the top 25% of dividend payers in the Hong Kong market (7.38%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 2686 has been paying a dividend for less than 10 years.

Growing Dividend: 2686's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), 2686's dividend payments are 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?

1.8yrs

Average management tenure


CEO

AAG Energy Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Zaiyuan Ming
Chairman of the Board1.83yrsCN¥5.02m0.060% CN¥2.1m
Danhua Yan
President & Executive Director1.83yrsCN¥2.65mno data
Jianbing Zhang
VP & Executive Director1.83yrsCN¥1.88mno data
Jiangtao Wei
VP & Financial Controller1.75yrsno datano data
Marshall Wu
Public Relations Directorno datano datano data
Jingyi Zhang
Director of Marketing & Sales5.42yrsno datano data
Lingyi Wang
Human Resource Directorno datano datano data
Han Wang
Treasury Managerno datano datano data
Xiaohang Su
Joint Company Secretary1.17yrsno datano data
Ming King Chiu
Joint Company Secretaryno datano datano data

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 2686's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zaiyuan Ming
Chairman of the Board1.83yrsCN¥5.02m0.060% CN¥2.1m
Danhua Yan
President & Executive Director1.83yrsCN¥2.65mno data
Jianbing Zhang
VP & Executive Director1.83yrsCN¥1.88mno data
Kwok Leung Tai
Independent Non-Executive Director1.83yrsCN¥310.00kno data
Guiyong Cui
Non-Executive Director5.42yrsno data0.0031% CN¥109.4k
Min Huang
Non-Executive Director0.25yrno datano data
Xiaofeng Liu
Independent Non-Executive Director1.83yrsCN¥310.00kno data
Ruizhao Yang
Independent Non-Executive Director1.58yrsCN¥310.00kno data
Ren Gu
Non-Executive Director1.25yrsno datano data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 2686's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

AAG Energy Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AAG Energy Holdings Limited
  • Ticker: 2686
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: HK$3.495b
  • Shares outstanding: 3.39b
  • Website: https://www.aagenergy.com

Number of Employees


Location

  • AAG Energy Holdings Limited
  • China Merchants Tower
  • Unit 2109–10, 21st Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2686SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2015
AANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015
AAGE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2015

Biography

AAG Energy Holdings Limited engages in the exploration, development, production, and sale of coalbed methane in the People's Republic of China. It holds interests in the Panzhuang concession covering an area of 141.8 square kilometers in the southern area of Qinshui Basin; and the Mabi concession extending over an area of 898.2 square kilometers in the southern Qinshui Basin in Shanxi province under production sharing contracts. The company was founded in 1994 and is headquartered in Central, Hong Kong. AAG Energy Holdings Limited is a subsidiary of Liming Holding Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 13:35
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
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.