SEHK:467

Stock Analysis Report

United Energy Group

Executive Summary

United Energy Group Limited, an investment holding company, engages in the investment and operation of upstream oil, natural gas, and other energy related businesses in Pakistan and Singapore.

Rewards

Trading at 46.9% below its fair value

Earnings have grown 2.2% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 467 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

467

-1.1%

HK Oil and Gas

0.6%

HK Market


1 Year Return

12.0%

467

-29.8%

HK Oil and Gas

-4.5%

HK Market

Return vs Industry: 467 exceeded the Hong Kong Oil and Gas industry which returned -29.8% over the past year.

Return vs Market: 467 exceeded the Hong Kong Market which returned -4.5% over the past year.


Shareholder returns

467IndustryMarket
7 Day3.5%-1.1%0.6%
30 Day8.0%-11.2%-5.2%
90 Day-4.5%-5.3%2.3%
1 Year15.1%12.0%-25.6%-29.8%-1.0%-4.5%
3 Year269.9%213.7%-16.9%-28.6%14.4%2.9%
5 Year104.5%34.2%-31.2%-43.6%15.5%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Energy Group undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 467 (HK$1.49) is trading below our estimate of fair value (HK$2.81)

Significantly Below Fair Value: 467 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 467 is poor value based on its PE Ratio (23x) compared to the Oil and Gas industry average (6.4x).

PE vs Market: 467 is poor value based on its PE Ratio (23x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 467's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 467 is overvalued based on its PB Ratio (3.2x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

6.4%

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 United Energy Group 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 United Energy Group performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 467 has high quality earnings.

Growing Profit Margin: 467's current net profit margins (26.8%) are lower than last year (31%).


Past Earnings Growth Analysis

Earnings Trend: 467's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: 467's earnings growth over the past year (11.7%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: 467 earnings growth over the past year (11.7%) underperformed the Oil and Gas industry 11.7%.


Return on Equity

High ROE: 467's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: 467's short term assets (HK$7.4B) do not cover its short term liabilities (HK$9.4B).

Long Term Liabilities: 467's short term assets (HK$7.4B) exceed its long term liabilities (HK$4.1B).


Debt to Equity History and Analysis

Debt Level: 467's debt to equity ratio (42.9%) is considered high.

Reducing Debt: 467's debt to equity ratio has reduced from 57.7% to 42.9% over the past 5 years.

Debt Coverage: 467's debt is well covered by operating cash flow (99.1%).

Interest Coverage: 467's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet

Inventory Level: 467 has a high level of physical assets or inventory.

Debt Coverage by Assets: 467's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is United Energy Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage6.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 467's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 467's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 467's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 467's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 467 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 467'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?

5.0yrs

Average management tenure


CEO

Junfeng Zhu (58yo)

1.8yrs

Tenure

0

Mr. Junfeng Zhu has been the Chief Executive Officer at United Energy Group Limited since May 9, 2018. He was the former senior management of China National Petroleum Company (“CNPC”) and has 34 years’ wor ...


Leadership Team

NamePositionTenureCompensationOwnership
Hong Wei Zhang
Executive Chairman0yrsHK$14.49m71.37% HK$27.4b
Meiying Zhang
Executive Director13.7yrsHK$5.57mno data
Junfeng Zhu
Chief Executive Officer1.8yrsno datano data
Yu Song
Chief Operation Officer8.3yrsno datano data
Lap Kay Hung
Company Secretary9.9yrsno datano data
Muyao Meng
Expert Consultant to Chairman1.8yrsno datano data

5.0yrs

Average Tenure

58yo

Average Age

Experienced Management: 467's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hong Wei Zhang
Executive Chairman0yrsHK$14.49m71.37% HK$27.4b
Meiying Zhang
Executive Director13.7yrsHK$5.57mno data
Siu Chau
Independent Non-Executive Director15.3yrsHK$120.00kno data
Fung San
Independent Non-Executive Director15.3yrsHK$120.00kno data
Ying Wang
Independent Non-Executive Director2.6yrsHK$120.00kno data

14.5yrs

Average Tenure

50yo

Average Age

Experienced Board: 467's board of directors are seasoned and experienced ( 14.5 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.


Top Shareholders

Company Information

United Energy Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Energy Group Limited
  • Ticker: 467
  • Exchange: SEHK
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: HK$38.366b
  • Shares outstanding: 26.28b
  • Website: https://www.uegl.com.hk

Number of Employees


Location

  • United Energy Group Limited
  • Two Pacific Place
  • Suite 2505
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
467SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992
UNEG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1992
1UENDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1992
467SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992
467SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1992

Biography

United Energy Group Limited, an investment holding company, engages in the investment and operation of upstream oil, natural gas, and other energy related businesses in Pakistan and Singapore. The company explores for and produces crude oil and natural gas. As of December 31, 2018, its net proven reserves consisted of 95.3 million barrels of oil equivalent. United Energy Group Limited is headquartered in Admiralty, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:56
End of Day Share Price2020/02/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.