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

Established dividend payer and good value.

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

1.2%

934

3.1%

HK Oil and Gas

2.2%

HK Market


1 Year Return

4.1%

934

-25.5%

HK Oil and Gas

-1.3%

HK Market

Return vs Industry: 934 exceeded the Hong Kong Oil and Gas industry which returned -25.5% over the past year.

Return vs Market: 934 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

934IndustryMarket
7 Day1.2%3.1%2.2%
30 Day4.1%-2.7%-2.9%
90 Day0.6%-6.0%-5.8%
1 Year10.2%4.1%-21.1%-25.5%2.3%-1.3%
3 Year-2.8%-13.0%2.0%-12.5%15.6%3.9%
5 Year-34.8%-43.1%-26.6%-39.7%20.1%0.06%

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?

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 934 (HK$3.28) is trading below our estimate of fair value (HK$4.66)

Significantly Undervalued: 934 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: 934 is good value based on its PE Ratio (6.6x) compared to the Oil and Gas industry average (7x).

PE vs Market: 934 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 934 is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: 934 is good value based on its PB Ratio (0.7x) compared to the HK Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Sinopec Kantons Holdings expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 934's forecast earnings growth (6.2% per year) is above the savings rate (2%).

Earnings vs Market: 934's earnings (6.2% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 934's earnings are forecast to grow, but not significantly.

Revenue vs Market: 934's revenue (5.9% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 934's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 934's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

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

7.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 934's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: 934's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 934 had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (12.6%).


Return on Equity

High ROE: 934's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: 934 has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: 934's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sinopec Kantons Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 934's short term assets (HK$1.3B) do not cover its short term liabilities (HK$3.8B)

Long Term Liabilities: 934's short term assets (HK$1.3B) exceeds its long term liabilities (HK$175.0M)


Debt to Equity History and Analysis

Debt Level: 934's debt to equity ratio (25.5%) is considered satisfactory

Reducing Debt: 934's debt to equity ratio has increased from 0.4% to 25.5% over the past 5 years.

Debt Coverage: 934's debt is well covered by operating cash flow (40.9%).

Interest Coverage: 934's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: 934 has a high level of physical assets or inventory.

Debt Coverage by Assets: 934's 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?

5.53%

Expected Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.3%markettop25%6.3%industryaverage6.1%forecastin3Years5.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 934's dividend (5.49%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 934's dividend (5.49%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 934's dividends per share have been stable in the past 10 years.

Growing Dividend: 934's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), 934's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 934's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


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?

9.6yrs

Average management tenure


CEO

Zhijun Ye (53yo)

17.8yrs

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

Compensation vs. Market: Zhijun's total compensation ($USD298.32K) is about average for companies of similar size in the Hong Kong market ($USD420.49K).

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


Management Age and Tenure

9.6yrs

Average Tenure

53yo

Average Age

Experienced Management: 934's management team is seasoned and experienced (9.6 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 934's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Zhijun Ye (53yo)

    MD & Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$2.34m
  • Eugene Lai

    Joint Company Secretary

    • Tenure: 0yrs
  • Xiu Lan Zhang (52yo)

    Deputy General Manager

    • Tenure: 7.6yrs
  • Wenping Li (56yo)

    Joint Company Secretary

    • Tenure: 11.6yrs
  • Hong Chen (46yo)

    Chief Financial Officer

    • Tenure: 7.6yrs
  • Bo Chen (56yo)

    Executive Chairman

    • Tenure: 5.4yrs
  • Xiwen Xiang (54yo)

    Deputy Chairman of The Board

    • Tenure: 3.8yrs
  • Liqi Dai (52yo)

    Executive Director

    • Tenure: 3.8yrs
  • Jianxin Li (51yo)

    Executive Director

    • Tenure: 3.8yrs
  • Guotao Wang (54yo)

    Executive Director

    • Tenure: 3.8yrs

Board Members

  • Maria Tam (74yo)

    Independent Non-Executive Director

    • Tenure: 20.3yrs
    • Compensation: HK$360.00k
  • David Wong (61yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$360.00k
  • Zhijun Ye (53yo)

    MD & Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$2.34m
  • Mark Fong (68yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$360.00k
  • Bo Chen (56yo)

    Executive Chairman

    • Tenure: 5.4yrs
  • Priscilla Wong (58yo)

    Independent Non-executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$281.00k
  • Xiwen Xiang (54yo)

    Deputy Chairman of The Board

    • Tenure: 3.8yrs
  • Liqi Dai (52yo)

    Executive Director

    • Tenure: 3.8yrs
  • Jianxin Li (51yo)

    Executive Director

    • Tenure: 3.8yrs
  • Guotao Wang (54yo)

    Executive Director

    • Tenure: 3.8yrs

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$8.155b
  • 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 Analysis2019/10/13 12:47
End of Day Share Price2019/10/11 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.

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