SEHK:65

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Grand Ocean Advanced Resources

Executive Summary

Grand Ocean Advanced Resources Company Limited, an investment holding company, engages in coal mining business in Inner Mongolia, the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Grand Ocean Advanced Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 65 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: 65's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

6.3%

65

3.6%

HK Oil and Gas

-0.5%

HK Market


1 Year Return

77.1%

65

-20.1%

HK Oil and Gas

7.6%

HK Market

Return vs Industry: 65 exceeded the Hong Kong Oil and Gas industry which returned -20.1% over the past year.

Return vs Market: 65 exceeded the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

65IndustryMarket
7 Day6.3%3.6%-0.5%
30 Day28.8%14.2%5.3%
90 Day154.5%5.5%4.2%
1 Year77.1%77.1%-13.9%-20.1%11.9%7.6%
3 Year21.4%21.4%-23.7%-36.2%-1.2%-11.4%
5 Year-28.0%-28.0%-14.1%-32.3%29.7%7.9%

Long-Term Price Volatility Vs. Market

How volatile is Grand Ocean Advanced Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grand Ocean Advanced Resources undervalued compared to its fair value and its price relative to the market?

5.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 65 (HK$0.43) is trading above our estimate of fair value (HK$0.36)

Significantly Below Fair Value: 65 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 65 is unprofitable, so we can't compare its PE Ratio to the HK Oil and Gas industry average.

PE vs Market: 65 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 65's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 65 is overvalued based on its PB Ratio (5.4x) compared to the HK Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Grand Ocean Advanced Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.9%

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 Grand Ocean Advanced Resources 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 Grand Ocean Advanced Resources performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 65 is currently unprofitable.

Growing Profit Margin: 65 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 65 is unprofitable, but has reduced losses over the past 5 years at a rate of 40.8% per year.

Accelerating Growth: Unable to compare 65's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 65 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11%).


Return on Equity

High ROE: 65 has a negative Return on Equity (-35.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Grand Ocean Advanced Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 65's short term assets (HK$180.0M) exceed its short term liabilities (HK$87.6M).

Long Term Liabilities: 65's short term assets (HK$180.0M) exceed its long term liabilities (HK$22.4M).


Debt to Equity History and Analysis

Debt Level: 65 is debt free.

Reducing Debt: 65 has no debt compared to 5 years ago when its debt to equity ratio was 18.4%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 65 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 65 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.6% per year.


Next Steps

Dividend

What is Grand Ocean Advanced Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 65's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 65'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 65's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 65's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 65 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 65'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?

3.5yrs

Average board tenure


CEO

Grand Ocean Advanced Resources has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Ying Kit Ng
VP of Business Development & Corporate Finance5.75yrsHK$2.66mno data
Hang Ren
Executive Director2.33yrsHK$738.00kno data
Ye Tao
Executive Directorno datano datano data
Man Ho
Independent Non-Executive Director0.83yrno datano data
Wai Ming Lee
Independent Non Executive Directorno datano datano data
Xuejun Chang
Independent Non-Executive Director4.67yrsHK$240.00kno data

3.5yrs

Average Tenure

46yo

Average Age

Experienced Board: 65's board of directors are considered experienced (3.5 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

Grand Ocean Advanced Resources Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grand Ocean Advanced Resources Company Limited
  • Ticker: 65
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: HK$593.873m
  • Shares outstanding: 1.50b
  • Website: https://grandocean65.com

Number of Employees


Location

  • Grand Ocean Advanced Resources Company Limited
  • Sino Plaza
  • Suite 3103
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
65SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2001

Biography

Grand Ocean Advanced Resources Company Limited, an investment holding company, engages in coal mining business in Inner Mongolia, the People’s Republic of China. It produces and sells coal. The company was...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:19
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.