Executive Summary
IRC Limited, an investment holding company, develops, produces, and sells industrial commodities products in the People’s Republic of China and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with reasonable growth potential.
Similar Companies
Share Price & News
How has IRC's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1029 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
1029
5.3%
HK Metals and Mining
0.6%
HK Market
1 Year Return
-28.4%
1029
-7.3%
HK Metals and Mining
-4.5%
HK Market
Return vs Industry: 1029 underperformed the Hong Kong Metals and Mining industry which returned -6.5% over the past year.
Return vs Market: 1029 underperformed the Hong Kong Market which returned -3.8% over the past year.
Shareholder returns
| 1029 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 5.3% | 0.6% |
| 30 Day | -14.4% | -4.3% | -5.2% |
| 90 Day | -1.0% | 15.0% | 2.3% |
| 1 Year | -28.4%-28.4% | -4.2%-7.3% | -1.0%-4.5% |
| 3 Year | -76.0%-76.0% | -8.3%-14.2% | 14.4%2.9% |
| 5 Year | -77.0%-77.0% | 9.8%-1.8% | 15.5%-3.8% |
Price Volatility Vs. Market
How volatile is IRC's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Why IRC Limited’s (HKG:1029) Return On Capital Employed Looks Uninspiring3 weeks ago | Simply Wall St
Do You Know What IRC Limited's (HKG:1029) P/E Ratio Means?1 month ago | Simply Wall St
Did Changing Sentiment Drive IRC's (HKG:1029) Share Price Down A Painful 77%?Valuation
Is IRC 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: 1029 (HK$0.1) is trading below our estimate of fair value (HK$0.51)
Significantly Below Fair Value: 1029 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1029 is good value based on its PE Ratio (1.6x) compared to the Metals and Mining industry average (10.4x).
PE vs Market: 1029 is good value based on its PE Ratio (1.6x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 1029 is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: 1029 is good value based on its PB Ratio (0.3x) compared to the HK Metals and Mining industry average (0.7x).
Next Steps
Future Growth
How is IRC forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
22.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1029's forecast earnings growth (22% per year) is above the savings rate (1.6%).
Earnings vs Market: 1029's earnings (22% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1029's revenue (14.9% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).
High Growth Revenue: 1029's revenue (14.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1029's Return on Equity is forecast to be low in 3 years time (12.9%).
Next Steps
Past Performance
How has IRC performed over the past 5 years?
57.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1029 has a large one-off gain of $78.9M impacting its June 30 2019 financial results.
Growing Profit Margin: 1029's current net profit margins (34.4%) are lower than last year (83.7%).
Past Earnings Growth Analysis
Earnings Trend: 1029 has become profitable over the past 5 years, growing earnings by 57.6% per year.
Accelerating Growth: 1029's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1029 had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-25%).
Return on Equity
High ROE: 1029's Return on Equity (21.4%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is IRC's financial position?
Financial Position Analysis
Short Term Liabilities: 1029's short term assets ($54.5M) do not cover its short term liabilities ($109.0M).
Long Term Liabilities: 1029's short term assets ($54.5M) do not cover its long term liabilities ($235.0M).
Debt to Equity History and Analysis
Debt Level: 1029's debt to equity ratio (84.5%) is considered high.
Reducing Debt: 1029's debt to equity ratio has increased from 30.3% to 84.5% over the past 5 years.
Balance Sheet
Inventory Level: 1029 has a high level of physical assets or inventory.
Debt Coverage by Assets: 1029's debt is not covered by short term assets (assets are 0.2x 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: 1029 is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: 1029 is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is IRC's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 1029's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 1029'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 1029's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 1029'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 1029'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?
9.3yrs
Average board tenure
CEO
Yury V. Makarov (44yo)
9.5yrs
Tenure
US$1,072,000
Compensation
Mr. Yury V. Makarov has been the Chief Executive Officer of IRC Limited of Petropavlovsk PLC since August 25, 2010. Mr. Makarov served as Chief Operating Officer of IRC Limited (alternate name, is Aricom P ...
CEO Compensation Analysis
Compensation vs Market: Yury V.'s total compensation ($USD1.07M) is above average for companies of similar size in the Hong Kong market ($USD225.53K).
Compensation vs Earnings: Yury V.'s compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 9.5yrs | US$1.07m | 0.44% $3.1m | |
| Independent Non-Executive Director | 9.3yrs | US$90.00k | no data | |
| Non-Executive Chairman | 1.2yrs | US$42.00k | 0.22% $1.5m | |
| Emeritus Director | 0yrs | US$98.00k | no data | |
| Deputy Chairman & Senior Independent Non-Executive Director | 2.1yrs | US$126.00k | no data | |
| Independent Non-Executive Director | 9.6yrs | US$90.00k | 0.10% $743.5k | |
| Independent Non-Executive Director | 9.4yrs | US$126.00k | no data | |
| Independent Non-Executive Director | 9.4yrs | US$126.00k | no data | |
| Non-Executive Director | 3yrs | US$90.00k | no data |
9.3yrs
Average Tenure
63yo
Average Age
Experienced Board: 1029's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
IRC Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: IRC Limited
- Ticker: 1029
- Exchange: SEHK
- Founded: 2010
- Industry: Steel
- Sector: Materials
- Market Cap: HK$709.339m
- Shares outstanding: 7.09b
- Website: https://www.ircgroup.com.hk
Number of Employees
Location
- IRC Limited
- 6H, 9 Queen’s Road Central
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1029 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 2010 |
| 2I8 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 2010 |
Biography
IRC Limited, an investment holding company, develops, produces, and sells industrial commodities products in the People’s Republic of China and internationally. The company operates through four segments: Mines in Production, Mines in Development, Engineering, and Other. The Mines in Production segment comprises iron ore projects in production phase, which include the Kuranakh project that produces titanomagnetite and ilmenite concentrate products located in the Evreyskaya Avtononnaya Oblast, Russia. The Mines in Development segment consists of iron ore projects in the exploration and development phase comprising Garinskoye project that focuses on iron ore deposits in the Amur region; and Bolshoi Seym, an ilmenite and magneite project located in the Russian Far East region. The Engineering segment holds a 70.28% interest in Giproruda, which provides technical mining research and consultancy services. The Other segment has an interest in a joint venture agreement for the production of vanadium pentoxide and related products, as well as various other projects located in Heilongjiang, China. IRC Limited is also involved in the provision of general trading, financing, engineering, and procurement services; and development of titanium sponge. The company was founded in 2010 and is headquartered in Central, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 13:09 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.