SEHK:956

Stock Analysis Report

China Suntien Green Energy

Executive Summary

China Suntien Green Energy Corporation Limited, together with its subsidiaries, explores for and utilizes new and clean energies in Mainland China.

Rewards

Trading at 53.9% below its fair value

Earnings are forecast to grow 9.88% per year

Earnings grew by 21.9% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

How has China Suntien Green Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 956 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

956

-5.0%

HK Oil and Gas

-4.1%

HK Market


1 Year Return

6.7%

956

-21.9%

HK Oil and Gas

-0.5%

HK Market

Return vs Industry: 956 exceeded the Hong Kong Oil and Gas industry which returned -15.7% over the past year.

Return vs Market: 956 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

956IndustryMarket
7 Day-4.7%-5.0%-4.1%
30 Day-0.4%-2.5%0.05%
90 Day-4.3%-4.6%4.3%
1 Year14.0%6.7%-17.1%-21.9%3.2%-0.5%
3 Year119.8%86.7%-11.7%-24.3%20.4%8.2%
5 Year58.3%28.7%-23.4%-37.4%19.0%-0.9%

Price Volatility Vs. Market

How volatile is China Suntien Green Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Suntien Green Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 956 (HK$2.28) is trading below our estimate of fair value (HK$4.95)

Significantly Below Fair Value: 956 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 956 is good value based on its PE Ratio (5.6x) compared to the Oil and Gas industry average (6.9x).

PE vs Market: 956 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 956 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 956 is good value based on its PB Ratio (0.7x) compared to the HK Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is China Suntien Green Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 956's forecast earnings growth (9.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 956's earnings (9.9% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 956's earnings are forecast to grow, but not significantly.

Revenue vs Market: 956's revenue (14.6% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 956's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 956's Return on Equity is forecast to be low in 3 years time (13.3%).


Next Steps

Past Performance

How has China Suntien Green Energy performed over the past 5 years?

35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 956 has high quality earnings.

Growing Profit Margin: 956's current net profit margins (11.6%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: 956's earnings have grown significantly by 35.3% per year over the past 5 years.

Accelerating Growth: 956's earnings growth over the past year (21.9%) is below its 5-year average (35.3% per year).

Earnings vs Industry: 956 earnings growth over the past year (21.9%) exceeded the Oil and Gas industry 6.8%.


Return on Equity

High ROE: 956's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Suntien Green Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 956's short term assets (CN¥9.2B) exceed its short term liabilities (CN¥8.4B).

Long Term Liabilities: 956's short term assets (CN¥9.2B) do not cover its long term liabilities (CN¥20.0B).


Debt to Equity History and Analysis

Debt Level: 956's debt to equity ratio (132.5%) is considered high.

Reducing Debt: 956's debt to equity ratio has increased from 125.8% to 132.5% over the past 5 years.

Debt Coverage: 956's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: 956's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 956 has a high level of physical assets or inventory.

Debt Coverage by Assets: 956's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is China Suntien Green Energy's current dividend yield, its reliability and sustainability?

6.25%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.2%markettop25%6.2%industryaverage6.4%forecastin3Years8.6%

Current dividend yield vs market & industry

Notable Dividend: 956's dividend (6.19%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 956's dividend (6.25%) is in the top 25% of dividend payers in the Hong Kong market (6.21%)


Stability and Growth of Payments

Stable Dividend: 956 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 956's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.4%), 956's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 956's dividends in 3 years are forecast to be well covered by earnings (37% payout ratio).


Next Steps

Management

What is the CEO of China Suntien Green Energy's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Chun Mei (50yo)

2.8yrs

Tenure

CN¥1,109,000

Compensation

Mr. Chun Xiao Mei has been the President of China Suntien Green Energy Corporation Limited since March 31, 2017 and as its Executive Director since June 8, 2017. Mr. Mei also serves as General Manager of H ...


CEO Compensation Analysis

Compensation vs Market: Chun's total compensation ($USD160.96K) is below average for companies of similar size in the Hong Kong market ($USD470.54K).

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


Management Age and Tenure

5.8yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 956's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 956's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyHK$104,00027 Jun 19
Chun Mei
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,000
Max PriceHK$2.08
BuyHK$112,00009 May 19
Xin Cao
EntityIndividual
Role
Chairman of the Board
Chairman
Shares50,000
Max PriceHK$2.24

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Eva Lam (53yo)

    Joint Company Secretary

    • Tenure: 9.8yrs
  • Chun Mei (50yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥1.11m
  • Hong Wang (54yo)

    Executive Director

    • Tenure: 6.6yrs
    • Compensation: CN¥1.09m
  • Ze Ban (41yo)

    Joint Company Secretary & Secretary of the Board

    • Tenure: 5.8yrs
  • Wei Fan (48yo)

    Chief Accountant

    • Tenure: 5.8yrs
  • Xiu Wang (49yo)

    Manager of Business Planning Department & Employee Representative Supervisor

    • Tenure: 1.8yrs

Board Members

  • Lian Li (56yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Daniel Wan (61yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Xin Cao (48yo)

    Chairman

    • Tenure: 6.8yrs
  • Chun Mei (50yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥1.11m
  • Wei Xian Xie

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Hong Wang (54yo)

    Executive Director

    • Tenure: 6.6yrs
    • Compensation: CN¥1.09m
  • Gang Qin (44yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • Chun Wang (52yo)

    Chairman of the Supervisory board

    • Tenure: 2.2yrs
  • Xiu Wang (49yo)

    Manager of Business Planning Department & Employee Representative Supervisor

    • Tenure: 1.8yrs
  • Tao Lin

    Independent Non-Executive Director

    • Tenure: 0.6yrs

Company Information

China Suntien Green Energy Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Suntien Green Energy Corporation Limited
  • Ticker: 956
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: HK$8.322b
  • Shares outstanding: 3.72b
  • Website: https://www.suntien.com

Number of Employees


Location

  • China Suntien Green Energy Corporation Limited
  • Yu Yuan Plaza
  • 9th Floor
  • Shijiazhuang
  • Hebei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
956SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2010
9C6DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2010

Biography

China Suntien Green Energy Corporation Limited, together with its subsidiaries, explores for and utilizes new and clean energies in Mainland China. The company operates through two segments, Natural Gas; and Wind Power and Solar Energy. The Natural Gas segment sells natural gas and gas appliances, as well as provides construction and connection services for natural gas pipelines. The Wind Power and Solar Energy segment engages in the development, management, and operation of wind power and solar energy plants; and generates and sells electric power for power grid companies. China Suntien Green Energy Corporation Limited also engages in the provision of investment and consulting services related to wind farms, as well as project investment, investment management, and technical development services; and investment and sale of solar energy appliances. As of December 31, 2018, the company owned 6 long-distance natural gas transmission pipelines, 14 high-pressure branch pipelines, 30 urban gas projects, 19 distribution stations, 11 gate stations, 7 compressed natural gas (CNG) refilling stations, and 7 CNG primary filling stations. It also had wind power consolidated installed capacity of 3,858.15 megawatts (MW), as well as attributable installed capacity of 3,482.75 MW. The company was founded in 2010 and is headquartered in Shijiazhuang, the People’s Republic of China. China Suntien Green Energy Corporation Limited Hebei is a subsidiary of Construction & Investment Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 13:11
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
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.