SEHK:702

Stock Analysis Report

Sino Oil and Gas Holdings

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.


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

-6.4%

702

-5.7%

HK Oil and Gas

-3.3%

HK Market


1 Year Return

-39.3%

702

-34.2%

HK Oil and Gas

-9.6%

HK Market

Return vs Industry: 702 underperformed the Hong Kong Oil and Gas industry which returned -33.8% over the past year.

Return vs Market: 702 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

702IndustryMarket
7 Day-6.4%-5.7%-3.3%
30 Day-38.9%-11.8%-3.8%
90 Day-12.9%-10.6%-0.2%
1 Year-39.3%-39.3%-30.2%-34.2%-6.3%-9.6%
3 Year-95.6%-95.6%-18.6%-30.1%11.2%-0.05%
5 Year-95.1%-95.1%-34.3%-46.1%12.7%-6.0%

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

Valuation

Is Sino Oil and Gas Holdings undervalued compared to its fair value and its price relative to the market?

0.1x

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?

6.4%

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 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

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.


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

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 ($USD259.01K) is about average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiaobing Dai
Executive Chairman8.4yrsHK$2.55m0.63% HK$1.9m
Hap King
Deputy Chairman & CEO5.7yrsHK$2.02m0.042% HK$124.6k
Tze Fan Wan
CFO & Executive Director10.9yrsHK$2.02m0.10% HK$299.6k
Danping Zhu
Chief Operating Officer4.5yrsHK$1.13mno data
Mengyu Rao
Group Chief Geologist12.2yrsno datano data
Ximin Mei
Group Executive Vice President4.4yrsno datano data
Siu Yim
Company Secretary8.2yrsno datano 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

NamePositionTenureCompensationOwnership
Xiaobing Dai
Executive Chairman8.4yrsHK$2.55m0.63% HK$1.9m
Hap King
Deputy Chairman & CEO5.7yrsHK$2.02m0.042% HK$124.6k
Tze Fan Wan
CFO & Executive Director10.9yrsHK$2.02m0.10% HK$299.6k
Lung Tak Wong
Independent Non-Executive Director9.5yrsHK$200.00kno data
Yanbin Wang
Independent Non-Executive Director8.4yrsHK$200.00kno data
Shaowu Huang
Non-Executive Director5.7yrsHK$200.00kno data
Weihua Dang
Independent Non-Executive Director6.6yrsHK$200.00kno data
Hua Chen
Non-Executive Director5.7yrsHK$200.00kno data
Lin Chai
Non-Executive Director1.8yrsno datano 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$297.744m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
702SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:43
End of Day Share Price2020/02/26 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.