Executive Summary
Sino Oil and Gas Holdings Limited, an investment holding company, engages in coalbed methane, raw and cleaned coal, oil and gas exploitation, and financial services businesses in the People’s Republic of China.
Risk Analysis
Earnings have declined by -46.74% per year over past 5 years
Shareholders have been substantially diluted in the past year
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Mediocre balance sheet and overvalued.
Similar Companies
Share Price & News
How has Sino Oil and Gas Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 702's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.0%
702
-0.0009%
HK Oil and Gas
1.7%
HK Market
1 Year Return
-28.5%
702
-26.5%
HK Oil and Gas
-2.9%
HK Market
Return vs Industry: 702 underperformed the Hong Kong Oil and Gas industry which returned -26.5% over the past year.
Return vs Market: 702 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 702 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | -0.0009% | 1.7% |
| 30 Day | -32.4% | -9.9% | -4.2% |
| 90 Day | -1.0% | -4.2% | 4.6% |
| 1 Year | -28.5%-28.5% | -22.1%-26.5% | 0.7%-2.9% |
| 3 Year | -95.1%-95.1% | -14.8%-26.9% | 15.3%3.6% |
| 5 Year | -94.8%-94.8% | -31.7%-44.0% | 15.9%-3.5% |
Price Volatility Vs. Market
How volatile is Sino Oil and Gas Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should You Worry About Sino Oil and Gas Holdings Limited's (HKG:702) CEO Pay Cheque?1 month ago | Simply Wall St
Investors Who Bought Sino Oil and Gas Holdings (HKG:702) Shares Three Years Ago Are Now Down 90%2 months ago | Simply Wall St
This Insider Has Just Sold Shares In Sino Oil and Gas Holdings Limited (HKG:702)Valuation
Is Sino Oil and Gas Holdings undervalued compared to its fair value and its price relative to the market?
0.11x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate 702's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate 702's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: 702 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: 702 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 702's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 702 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 Sino Oil and Gas Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
6.3%
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 Sino Oil and Gas 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
- Take a look at our analysis of 702’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Sino Oil and Gas Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has Sino Oil and Gas Holdings performed over the past 5 years?
-46.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 702 is currently unprofitable.
Growing Profit Margin: 702 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 702 is unprofitable, and losses have increased over the past 5 years at a rate of -46.7% per year.
Accelerating Growth: Unable to compare 702's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 702 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (11.7%).
Return on Equity
High ROE: 702 has a negative Return on Equity (-10.03%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Sino Oil and Gas Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 702's short term assets (HK$548.5M) do not cover its short term liabilities (HK$1.6B).
Long Term Liabilities: 702's short term assets (HK$548.5M) exceed its long term liabilities (HK$488.0M).
Debt to Equity History and Analysis
Debt Level: 702's debt to equity ratio (56.9%) is considered high.
Reducing Debt: 702's debt to equity ratio has increased from 18.3% to 56.9% over the past 5 years.
Balance Sheet
Inventory Level: 702 has a high level of physical assets or inventory.
Debt Coverage by Assets: 702's debt is not covered by short term assets (assets are 0.3x 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: 702 has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: 702 has sufficient cash runway for 2.2 years if free cash flow continues to grow at historical rates of 29.8% each year.
Next Steps
Dividend
What is Sino Oil and Gas Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 702's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 702'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 702's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 702'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 702'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?
6.9yrs
Average management tenure
CEO
Harry King (57yo)
5.7yrs
Tenure
HK$2,018,000
Compensation
Mr. Hap Lee King, also known as Harry, has been the Chief Executive Officer of Sino Oil and Gas Holdings Limited since June 2014. Mr. King served as the Chief Executive Officer of Sino Oil and Gas Holdings ...
CEO Compensation Analysis
Compensation vs Market: Harry's total compensation ($USD259.82K) is about average for companies of similar size in the Hong Kong market ($USD225.53K).
Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.4yrs | HK$2.55m | 0.63% HK$2.1m | |
| Deputy Chairman & CEO | 5.7yrs | HK$2.02m | 0.042% HK$137.2k | |
| CFO & Executive Director | 10.9yrs | HK$2.02m | 0.10% HK$329.9k | |
| Chief Operating Officer | 4.5yrs | HK$1.13m | no data | |
| Group Chief Geologist | 12.2yrs | no data | no data | |
| Group Executive Vice President | 4.4yrs | no data | no data | |
| Company Secretary | 8.2yrs | no data | no data |
6.9yrs
Average Tenure
55yo
Average Age
Experienced Management: 702's management team is seasoned and experienced (6.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.4yrs | HK$2.55m | 0.63% HK$2.1m | |
| Deputy Chairman & CEO | 5.7yrs | HK$2.02m | 0.042% HK$137.2k | |
| CFO & Executive Director | 10.9yrs | HK$2.02m | 0.10% HK$329.9k | |
| Independent Non-Executive Director | 9.5yrs | HK$200.00k | no data | |
| Independent Non-Executive Director | 8.4yrs | HK$200.00k | no data | |
| Non-Executive Director | 5.7yrs | HK$200.00k | no data | |
| Independent Non-Executive Director | 6.6yrs | HK$200.00k | no data | |
| Non-Executive Director | 5.7yrs | HK$200.00k | no data | |
| Non-Executive Director | 1.8yrs | no data | no data |
7.4yrs
Average Tenure
54yo
Average Age
Experienced Board: 702's board of directors are considered experienced (7.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 702 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 79%.
Top Shareholders
Company Information
Sino Oil and Gas Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sino Oil and Gas Holdings Limited
- Ticker: 702
- Exchange: SEHK
- Founded: 1999
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: HK$327.853m
- Shares outstanding: 3.35b
- Website: https://www.sino-oilgas.hk
Number of Employees
Location
- Sino Oil and Gas Holdings Limited
- Convention Plaza Office Tower
- 44th Floor
- Wanchai
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 702 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Feb 2000 |
Biography
Sino Oil and Gas Holdings Limited, an investment holding company, engages in coalbed methane, raw and cleaned coal, oil and gas exploitation, and financial services businesses in the People’s Republic of China. The company is involved in the exploration, development, and production of coalbed methane; washing and sale of raw and cleaned coal; and exploitation and sale of crude oil and natural gas. It holds a 70% interest in the Sanjiao CBM block covering an area of 383 square kilometers located in Erdos Basin. The company was formerly known as Genesis Energy Holdings Limited and changed its name to Sino Oil and Gas Holdings Limited in 2010. Sino Oil and Gas Holdings Limited was incorporated in 1999 and is based in Wanchai, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 12:40 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.