SEHK:663

Stock Analysis Report

King Stone Energy Group

Executive Summary

King Stone Energy Group Limited, an investment holding company, explores for, drills, produces, and sells oil and natural gas in the United States.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 663's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

663

8.2%

HK Oil and Gas

0.2%

HK Market


1 Year Return

-47.4%

663

-38.7%

HK Oil and Gas

-22.0%

HK Market

Return vs Industry: 663 underperformed the Hong Kong Oil and Gas industry which returned -38.7% over the past year.

Return vs Market: 663 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

663IndustryMarket
7 Day7.1%8.2%0.2%
30 Day-14.3%-6.5%-10.8%
90 Day-31.8%-24.7%-16.5%
1 Year-47.4%-47.4%-35.0%-38.7%-19.1%-22.0%
3 Year-70.0%-70.0%-28.1%-38.5%-3.7%-13.4%
5 Year-81.0%-81.0%-47.1%-56.4%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 663's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 663's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 663 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: 663 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 663's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 663 is overvalued based on its PB Ratio (0.8x) compared to the HK Oil and Gas industry average (0.6x).


Next Steps

Future Growth

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

-1.7%

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 King Stone 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 King Stone Energy Group performed over the past 5 years?

63.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 663 is currently unprofitable.

Growing Profit Margin: 663 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 663 is unprofitable, but has reduced losses over the past 5 years at a rate of 63.3% per year.

Accelerating Growth: Unable to compare 663's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 663 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (12.1%).


Return on Equity

High ROE: 663 has a negative Return on Equity (-35.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is King Stone Energy Group's financial position?


Financial Position Analysis

Short Term Liabilities: 663's short term assets (HK$420.0M) exceed its short term liabilities (HK$275.3M).

Long Term Liabilities: 663's short term assets (HK$420.0M) exceed its long term liabilities (HK$3.1M).


Debt to Equity History and Analysis

Debt Level: 663's debt to equity ratio (50.7%) is considered high.

Reducing Debt: 663's debt to equity ratio has reduced from 1490.8% to 50.7% over the past 5 years.


Balance Sheet

Inventory Level: 663 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 663's debt is covered by short term assets (assets are 1.7x debt).


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: Insufficient data to determine if 663 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 663 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 663's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 663'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 663's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 663's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 663'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?

7.2yrs

Average management tenure


CEO

Hao Zong (49yo)

7.17s

Tenure

HK$2,223,000

Compensation

Mr. Hao Zong has been the Chief Executive Officer of King Stone Energy Group Limited since February 1, 2013. Mr. Zong has been an Executive Director at King Stone Energy Group Limited since February 01, 20 ...


CEO Compensation Analysis

Compensation vs Market: Hao's total compensation ($USD286.73K) is about average for companies of similar size in the Hong Kong market ($USD226.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhuliang Xu
Executive Chairman of the Board0.083yrHK$1.80mno data
Hao Zong
CEO & Executive Director7.17yrsHK$2.22mno data
Benjamin Clark Danielson
Chief Investment Officer7.08yrsHK$1.50mno data
Qing He
Executive Director3yrsHK$1.20mno data
Tao Wai Lee
Company Secretary7.83yrsno datano data
Xu Jianhua
General Manager of Eerduosi Hengtai Coal Company Limitedno dataHK$1.80mno data

7.2yrs

Average Tenure

49yo

Average Age

Experienced Management: 663's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhuliang Xu
Executive Chairman of the Board0.083yrHK$1.80mno data
Hao Zong
CEO & Executive Director7.17yrsHK$2.22mno data
Qing He
Executive Director3yrsHK$1.20mno data
Sui Keung Chiu
Independent Non-Executive Director10.25yrsHK$180.00kno data
Ping Lee
Independent Non-Executive Director7yrsHK$180.00kno data
Kwok Wan Lee
Independent Non-Executive Director0.42yrno datano data

5.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 663's board of directors are considered experienced (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

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


Key Information

  • Name: King Stone Energy Group Limited
  • Ticker: 663
  • Exchange: SEHK
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: HK$437.403m
  • Shares outstanding: 7.29b
  • Website: https://www.663hk.com

Number of Employees


Location

  • King Stone Energy Group Limited
  • V Heun Building
  • 17th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
663SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
YNSK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
YNSK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SZWBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

King Stone Energy Group Limited, an investment holding company, explores for, drills, produces, and sells oil and natural gas in the United States. The company operates through four segments: Silver Mining, Oil and Gas, Asset Financing, and LNG. It is also involved in mining and selling silver; the provision of finance leasing and factoring services; and the trade of liquefied natural gas in the People's Republic of China. In addition, the company owns and operates the Fu’an Silver mine covering an area of 2.1 square kilometers located in Fu’an City; and the Zherong Silver mine covering an area of 4.97 square kilometers located in Zherong County. Further, it owns patents of HydroFlame, a heavy oil extraction technology that burns a fuel directly inside a rotating stream of water; and trades in commodities. The company was formerly known as Yun Sky Chemical (International) Holdings Limited and changed its name to King Stone Energy Group Limited in February 2010. The company is based in Central, Hong Kong. King Stone Energy Group Limited is a subsidiary of Belton Light Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:47
End of Day Share Price2020/04/03 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.