SEHK:342

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NewOcean Energy Holdings

Executive Summary

NewOcean Energy Holdings Limited, an investment holding company, distributes and sells liquefied petroleum gas (LPG) and natural gas, and oil/chemical products in the People’s Republic of China.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 342's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.1%

342

8.6%

HK Oil and Gas

9.0%

HK Market


1 Year Return

-55.6%

342

-29.4%

HK Oil and Gas

0.2%

HK Market

Return vs Industry: 342 underperformed the Hong Kong Oil and Gas industry which returned -29.3% over the past year.

Return vs Market: 342 underperformed the Hong Kong Market which returned -0.5% over the past year.


Shareholder returns

342IndustryMarket
7 Day4.1%8.6%9.0%
30 Day5.6%-1.2%8.4%
90 Day-37.2%-5.8%12.9%
1 Year-55.6%-55.6%-24.4%-29.4%4.4%0.2%
3 Year-68.3%-68.3%-19.5%-32.0%10.1%-1.8%
5 Year-76.4%-76.6%-36.7%-48.9%12.2%-6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NewOcean 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: 342 (HK$0.76) is trading below our estimate of fair value (HK$15.47)

Significantly Below Fair Value: 342 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 342 is good value based on its PE Ratio (1.7x) compared to the Oil and Gas industry average (6.4x).

PE vs Market: 342 is good value based on its PE Ratio (1.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 342's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 342 is good value based on its PB Ratio (0.1x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

38.5%

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 NewOcean 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 NewOcean Energy Holdings performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 342 has high quality earnings.

Growing Profit Margin: 342's current net profit margins (2.3%) are lower than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 342's earnings have declined by -3.8% per year over the past 5 years.

Accelerating Growth: 342's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 342 had negative earnings growth (-15.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (1.8%).


Return on Equity

High ROE: 342's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is NewOcean Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 342's short term assets (HK$12.2B) exceed its short term liabilities (HK$7.1B).

Long Term Liabilities: 342's short term assets (HK$12.2B) exceed its long term liabilities (HK$1.6B).


Debt to Equity History and Analysis

Debt Level: 342's debt to equity ratio (88.5%) is considered high.

Reducing Debt: 342's debt to equity ratio has reduced from 150.9% to 88.5% over the past 5 years.

Debt Coverage: 342's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: 342's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 342's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 342'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 342's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 342's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 342 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 342's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Lawrence Shum (42yo)

11.08yrs

Tenure

HK$1,138,000

Compensation

Mr. Chun Shum, also known as Lawrence, has been the Managing Director of NewOcean Energy Holdings Limited since June 2009. Mr. Shum had been in charge of various operations ranging from retail operations,  ...


CEO Compensation Analysis

Compensation vs Market: Lawrence's total compensation ($USD146.84K) is below average for companies of similar size in the Hong Kong market ($USD228.40K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Siu Shum
Chairman15.08yrsHK$3.02m6.18% HK$69.9m
Chun Shum
MD & Executive Director11.08yrsHK$1.14m3.92% HK$44.4m
Ziniu Cen
Executive Director1.08yrsHK$1.62mno data
Ka Siu
Executive Director11.08yrsHK$2.31mno data
Man Cheung
Company Secretary7yrsno datano data

7.0yrs

Average Tenure

54yo

Average Age

Experienced Management: 342's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siu Shum
Chairman15.08yrsHK$3.02m6.18% HK$69.9m
Chun Shum
MD & Executive Director11.08yrsHK$1.14m3.92% HK$44.4m
Ziniu Cen
Executive Director1.08yrsHK$1.62mno data
Ka Siu
Executive Director11.08yrsHK$2.31mno data
Kwan Hung Cheung
Independent Non-Executive Director18.92yrsHK$150.00kno data
Yuk Chan
Independent Non Executive Director14.33yrsHK$120.00kno data
Mingshe Xu
Independent Non-Executive Director14yrsHK$120.00kno data

14.3yrs

Average Tenure

61yo

Average Age

Experienced Board: 342's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 342 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

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


Key Information

  • Name: NewOcean Energy Holdings Limited
  • Ticker: 342
  • Exchange: SEHK
  • Founded:
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: HK$1.130b
  • Shares outstanding: 1.47b
  • Website: https://www.newoceanhk.com

Number of Employees


Location

  • NewOcean Energy Holdings Limited
  • The Sun's Group Centre
  • 23rd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
342SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1999
NE6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1999
NOCE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1999

Biography

NewOcean Energy Holdings Limited, an investment holding company, distributes and sells liquefied petroleum gas (LPG) and natural gas, and oil/chemical products in the People’s Republic of China. The company sells LPG to industrial customers, auto-gas operators, wholesalers, bottled LPG end-users, auto-gas end-users, etc. It also trades in electronic products, such as integrated circuits and mobile phones. Further, it is involved in the property investment and development activities. The company is headquartered in Wanchai, Hong Kong. NewOcean Energy Holdings Limited is a subsidiary of Uniocean Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:40
End of Day Share Price2020/07/08 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.