SEHK:934

Stock Analysis Report

Sinopec Kantons Holdings

Executive Summary

Sinopec Kantons Holdings Limited, an investment holding company, engages in petrochemical storage and logistics businesses primarily in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued established dividend payer.

Share Price & News

How has Sinopec Kantons Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

SEHK:934

1.9%

HK Oil and Gas

3.3%

HK Market


1 Year Return

-6.4%

SEHK:934

-28.0%

HK Oil and Gas

-12.3%

HK Market

934 outperformed the Oil and Gas industry which returned -28% over the past year.

934 outperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

934IndustryMarket
7 Day2.7%1.9%3.3%
30 Day-4.9%-8.4%-8.0%
90 Day-3.8%-12.4%-5.5%
1 Year-2.0%-6.4%-24.0%-28.0%-9.2%-12.3%
3 Year-17.3%-24.7%0.7%-12.3%11.5%0.8%
5 Year-45.7%-51.5%-41.3%-51.5%6.7%-10.5%

Price Volatility Vs. Market

How volatile is Sinopec Kantons Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sinopec Kantons Holdings undervalued based on future cash flows and its price relative to the stock market?

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sinopec Kantons Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sinopec Kantons Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sinopec Kantons Holdings is good value based on earnings compared to the HK Oil and Gas industry average.

Sinopec Kantons Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Sinopec Kantons Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Sinopec Kantons Holdings is good value based on assets compared to the HK Oil and Gas industry average.


Next Steps

Future Growth

How is Sinopec Kantons Holdings expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sinopec Kantons Holdings's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Sinopec Kantons Holdings's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Sinopec Kantons Holdings's revenue growth is positive but not above the Hong Kong market average.

Sinopec Kantons Holdings's earnings growth is positive but not above the Hong Kong market average.

Sinopec Kantons Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Sinopec Kantons Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sinopec Kantons Holdings performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sinopec Kantons Holdings's year on year earnings growth rate has been positive over the past 5 years.

Sinopec Kantons Holdings's 1-year earnings growth is less than its 5-year average (4.5% vs 11.8%)

Sinopec Kantons Holdings's earnings growth has not exceeded the HK Oil and Gas industry average in the past year (4.5% vs 10.1%).


Return on Equity

Sinopec Kantons Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sinopec Kantons Holdings used its assets more efficiently than the HK Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Sinopec Kantons Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sinopec Kantons Holdings's financial position?


Financial Position Analysis

Sinopec Kantons Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sinopec Kantons Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sinopec Kantons Holdings's level of debt (31.4%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Sinopec Kantons Holdings's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (23.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is Sinopec Kantons Holdings's current dividend yield, its reliability and sustainability?

6.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sinopec Kantons Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Sinopec Kantons Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3x coverage).


Next Steps

Management

What is the CEO of Sinopec Kantons Holdings's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average management tenure


CEO

Zhijun Ye (53yo)

17.6yrs

Tenure

HK$2,340,000

Compensation

Mr. Zhijun Ye serves as Managing Director and Executive Director of Sinopec Yu Ji Pipeline Company Limited. Mr. Ye has been the Managing Director of Sinopec Kantons Holdings Limited since January 2002 and  ...


CEO Compensation Analysis

Zhijun's remuneration is lower than average for companies of similar size in Hong Kong.

Zhijun's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.4yrs

Average Tenure

53yo

Average Age

The average tenure for the Sinopec Kantons Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

The tenure for the Sinopec Kantons Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Zhijun Ye (53yo)

    MD & Executive Director

    • Tenure: 17.6yrs
    • Compensation: HK$2.34m
  • Eugene Lai

    Joint Company Secretary

    • Tenure: 0.0yrs
  • Xiu Lan Zhang (52yo)

    Deputy General Manager

    • Tenure: 7.4yrs
  • Wenping Li (56yo)

    Joint Company Secretary

    • Tenure: 11.4yrs
  • Hong Chen (46yo)

    Chief Financial Officer

    • Tenure: 7.4yrs
  • Bo Chen (56yo)

    Executive Chairman

    • Tenure: 5.3yrs
  • Xiwen Xiang (54yo)

    Deputy Chairman of The Board

    • Tenure: 3.7yrs
  • Liqi Dai (52yo)

    Executive Director

    • Tenure: 3.7yrs
  • Jianxin Li (51yo)

    Executive Director

    • Tenure: 3.7yrs
  • Guotao Wang (54yo)

    Executive Director

    • Tenure: 3.7yrs

Board Members

  • Maria Tam (74yo)

    Independent Non-Executive Director

    • Tenure: 20.2yrs
    • Compensation: HK$360.00k
  • David Wong (61yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: HK$360.00k
  • Zhijun Ye (53yo)

    MD & Executive Director

    • Tenure: 17.6yrs
    • Compensation: HK$2.34m
  • Mark Fong (68yo)

    Independent Non-Executive Director

    • Tenure: 14.9yrs
    • Compensation: HK$360.00k
  • Bo Chen (56yo)

    Executive Chairman

    • Tenure: 5.3yrs
  • Priscilla Wong (58yo)

    Independent Non-executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$281.00k
  • Xiwen Xiang (54yo)

    Deputy Chairman of The Board

    • Tenure: 3.7yrs
  • Liqi Dai (52yo)

    Executive Director

    • Tenure: 3.7yrs
  • Jianxin Li (51yo)

    Executive Director

    • Tenure: 3.7yrs
  • Guotao Wang (54yo)

    Executive Director

    • Tenure: 3.7yrs

Company Information

Sinopec Kantons Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinopec Kantons Holdings Limited
  • Ticker: 934
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: HK$7.682b
  • Shares outstanding: 2.49b
  • Website: https://www.sinopec.com.hk

Number of Employees


Location

  • Sinopec Kantons Holdings Limited
  • Citicorp Centre
  • 34th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
934SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1999
934SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
934SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
SPKO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

Sinopec Kantons Holdings Limited, an investment holding company, engages in petrochemical storage and logistics businesses primarily in the People’s Republic of China. The company operates through Crude Oi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:41
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
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.