SEHK:8250

Stock Analysis Report

Silk Road Energy Services Group

Executive Summary

Silk Road Energy Services Group Limited, an investment holding company, provides coal mining services in the Peoples Republic of China.

Risk Analysis

Earnings have declined by -2.41% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8250 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8250

-1.2%

HK Oil and Gas

1.5%

HK Market


1 Year Return

-28.6%

8250

-16.6%

HK Oil and Gas

5.9%

HK Market

Return vs Industry: 8250 underperformed the Hong Kong Oil and Gas industry which returned -15.7% over the past year.

Return vs Market: 8250 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8250IndustryMarket
7 Day0%-1.2%1.5%
30 Day-9.1%2.7%4.2%
90 Day0%1.2%8.7%
1 Year-28.6%-28.6%-11.5%-16.6%9.8%5.9%
3 Year-83.5%-83.5%-5.2%-18.6%27.7%14.7%
5 Year-95.7%-95.7%-23.2%-37.1%21.4%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Silk Road Energy Services Group undervalued compared to its fair value and its price relative to the market?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8250's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8250's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8250 is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: 8250 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 8250's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8250 is good value based on its PB Ratio (0.3x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

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

6.6%

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 Silk Road Energy Services 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 Silk Road Energy Services Group performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8250 is currently unprofitable.

Growing Profit Margin: 8250 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8250 is unprofitable, and losses have increased over the past 5 years at a rate of -2.4% per year.

Accelerating Growth: Unable to compare 8250's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8250 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (6.8%).


Return on Equity

High ROE: 8250 has a negative Return on Equity (-3.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Silk Road Energy Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8250's short term assets (HK$566.2M) exceed its short term liabilities (HK$69.0M).

Long Term Liabilities: 8250's short term assets (HK$566.2M) exceed its long term liabilities (HK$135.3M).


Debt to Equity History and Analysis

Debt Level: 8250's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8250's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 8250 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8250's debt is covered by short term assets (assets are 4.8x 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: 8250 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8250 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 68.7% each year


Next Steps

Dividend

What is Silk Road Energy Services Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.0%industryaverage6.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8250's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8250'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 8250's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8250'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 8250's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Silk Road Energy Services Group's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Youhua Chen (47yo)

3.6yrs

Tenure

HK$1,318,000

Compensation

Mr. Youhua Chen has been the Chief Executive Officer and Executive Director of Silk Road Energy Services Group Limited (Formerly known as China Natural Investment Company Limited) since June 13, 2016 and N ...


CEO Compensation Analysis

Compensation vs Market: Youhua's total compensation ($USD169.51K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Youhua's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 8250's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 8250's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 8250 insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

BuyHK$5,040,39318 Dec 19
Gongming Xu
EntityIndividual
Shares336,000,000
Max PriceHK$0.015
SellHK$5,040,39318 Dec 19
Gongming Xu
EntityIndividual
Shares336,000,000
Max PriceHK$0.015
BuyHK$2,033,43304 Oct 19
Gongming Xu
EntityIndividual
Shares101,680,000
Max PriceHK$0.02
BuyHK$4,000,56305 Aug 19
Chao Hui Chen
EntityIndividual
Shares200,000,000
Max PriceHK$0.02
BuyHK$3,166,04505 Aug 19
Kai Wei
EntityIndividual
Shares158,280,000
Max PriceHK$0.02
SellHK$5,713,58226 Jun 19
Ying Chen
EntityIndividual
Shares237,100,000
Max PriceHK$0.024
SellHK$1,269,94826 Jun 19
Ying Chen
EntityIndividual
Shares50,000,000
Max PriceHK$0.025

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.7%.


Management Team

  • Dennis Lo (55yo)

    Scientific Consultant

    • Man Wo Ngai

      Company Secretary

      • Tenure: 4.2yrs
    • Wai Hung Li (57yo)

      Executive Director

      • Tenure: 10.3yrs
      • Compensation: HK$408.00k
    • Xianghong Li (53yo)

      Co-Chairman

      • Tenure: 1.4yrs
      • Compensation: HK$1.00m
    • Da Cai (44yo)

      Co-Chairman & Compliance Officer

      • Tenure: 1.4yrs
      • Compensation: HK$1.04m
    • Youhua Chen (47yo)

      CEO & Executive Director

      • Tenure: 3.6yrs
      • Compensation: HK$1.32m
    • Koon Ling (63yo)

      Managing Director of Wholly Owned Subsidiary

      • Guoan Hu (50yo)

        Executive Director

        • Tenure: 0.8yrs
        • Compensation: HK$273.00k
      • Wang Tong Tong (30yo)

        Executive Director

        • Tenure: 1.9yrs
        • Compensation: HK$480.00k

      Board Members

      • Wai Hung Li (57yo)

        Executive Director

        • Tenure: 10.3yrs
        • Compensation: HK$408.00k
      • Xianghong Li (53yo)

        Co-Chairman

        • Tenure: 1.4yrs
        • Compensation: HK$1.00m
      • Da Cai (44yo)

        Co-Chairman & Compliance Officer

        • Tenure: 1.4yrs
        • Compensation: HK$1.04m
      • Youhua Chen (47yo)

        CEO & Executive Director

        • Tenure: 3.6yrs
        • Compensation: HK$1.32m
      • Zhixiang Wang (61yo)

        Independent Non-Executive Director

        • Tenure: 5.2yrs
        • Compensation: HK$60.00k
      • Na Na Wong (46yo)

        Independent Non-Executive Director

        • Tenure: 4.3yrs
        • Compensation: HK$60.00k
      • Jibei Feng (61yo)

        Independent Non-Executive Director

        • Tenure: 3.4yrs
        • Compensation: HK$60.00k
      • Guoan Hu (50yo)

        Executive Director

        • Tenure: 0.8yrs
        • Compensation: HK$273.00k
      • Wang Tong Tong (30yo)

        Executive Director

        • Tenure: 1.9yrs
        • Compensation: HK$480.00k
      • Xier Chen (53yo)

        Independent Non-Executive Director

        • Tenure: 1.4yrs
        • Compensation: HK$52.00k

      Company Information

      Silk Road Energy Services Group Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Silk Road Energy Services Group Limited
      • Ticker: 8250
      • Exchange: SEHK
      • Founded:
      • Industry: Coal and Consumable Fuels
      • Sector: Energy
      • Market Cap: HK$149.851m
      • Shares outstanding: 7.49b
      • Website: https://www.silkroadenergy.com.hk

      Number of Employees


      Location

      • Silk Road Energy Services Group Limited
      • West Tower
      • 35th Floor
      • Central
      • Hong Kong

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      8250SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2005

      Biography

      Silk Road Energy Services Group Limited, an investment holding company, provides coal mining services in the Peoples Republic of China. It operates through Coal Mining Services, Money Lending, and Heating supply Services segments. The company offers mine construction engineering, mechanical equipment installation, and coal production and technical services; and trades in mineral products. It also provides money lending and heating supply services. The company was formerly known as China Natural Investment Company Limited and changed its name to Silk Road Energy Services Group Limited in August 2015. Silk Road Energy Services Group Limited is headquartered in Central, Hong Kong. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/17 12:43
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2019/06/30


      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.