SEHK:1029

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Executive Summary

IRC Limited, an investment holding company, develops, produces, and sells industrial commodities products in the People’s Republic of China and internationally. More Details


Snowflake Analysis

Fair value with moderate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1029

0.1%

HK Metals and Mining

-0.6%

HK Market


1 Year Return

-27.5%

1029

6.4%

HK Metals and Mining

0.9%

HK Market

Return vs Industry: 1029 underperformed the Hong Kong Metals and Mining industry which returned 6.4% over the past year.

Return vs Market: 1029 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1029IndustryMarket
7 Day0%0.1%-0.6%
30 Day-7.4%-4.7%0.02%
90 Day-11.2%0.3%-1.7%
1 Year-27.5%-27.5%8.9%6.4%5.1%0.9%
3 Year-65.9%-65.9%-32.8%-37.1%-6.1%-16.3%
5 Year-67.8%-67.8%26.7%14.4%14.1%-5.3%

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

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$0.09) is trading below our estimate of fair value (HK$0.39)

Significantly Below Fair Value: 1029 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1029 is unprofitable, so we can't compare its PE Ratio to the HK Metals and Mining industry average.

PE vs Market: 1029 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 1029's PEG Ratio to determine if it is good value.


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 (0.4x).


Next Steps

Future Growth

How is IRC forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

63.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1029 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1029 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1029's is expected to become profitable in the next 3 years.

Revenue vs Market: 1029's revenue (8.9% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 1029's revenue (8.9% 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 (4.1%).


Next Steps

Past Performance

How has IRC performed over the past 5 years?

68.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1029 is currently unprofitable.

Growing Profit Margin: 1029 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1029 is unprofitable, but has reduced losses over the past 5 years at a rate of 68.2% per year.

Accelerating Growth: Unable to compare 1029's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1029 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-11.8%).


Return on Equity

High ROE: 1029 has a negative Return on Equity (-2.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is IRC's financial position?


Financial Position Analysis

Short Term Liabilities: 1029's short term assets ($57.0M) do not cover its short term liabilities ($102.7M).

Long Term Liabilities: 1029's short term assets ($57.0M) do not cover its long term liabilities ($216.2M).


Debt to Equity History and Analysis

Debt Level: 1029's debt to equity ratio (74.1%) is considered high.

Reducing Debt: 1029's debt to equity ratio has reduced from 77.2% to 74.1% over the past 5 years.


Balance Sheet


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: Whilst unprofitable 1029 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1029 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 68% per year.


Next Steps

Dividend

What is IRC current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1029's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1029's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

0.7yrs

Average management tenure


CEO

Yury V. Makarov (45 yo)

10.17yrs

Tenure

US$890,000

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 ($USD890.00K) is above average for companies of similar size in the Hong Kong market ($USD233.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yury V. Makarov
CEO & Executive Director10.17yrsUS$890.00k0.44%
$ 2.7m
Chi Kin Cheng
Consultant0.58yrUS$90.00kno data
Cheong Yuen Shiu
Interim CFO0.67yrno datano data
Galina Samoylova
Group Head of Technologiesno datano datano data
Kent Lo
Manager of Communications & Investor Relationsno datano datano data
Roman Kazakov
Group Head of Legal & Corporate Affairsno datano datano data
Vladimir Lebedinskiy
Head of Procurement - Russiano datano datano data
Vladimir Mikhailovich
Group Head of Designno datano datano data
Svetlana Obydenkova
Group Head of Health Safety & Environmentno datano datano data

0.7yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 1029's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yury V. Makarov
CEO & Executive Director10.17yrsUS$890.00k0.44%
$ 2.7m
Peter Charles Percival Hambro
Chairman0.17yrUS$175.00k0.22%
$ 1.3m
Pavel Maslovsky
Emeritus Directorno dataUS$98.00kno data
Daniel Rochfort Bradshaw
Deputy Chairman & Senior Independent Non-Executive Director0.17yrUS$140.00kno data
Danila Kotlyarov
Non-Executive Director4.75yrsUS$855.00kno data
Kar Tung Woo
Independent Non-Executive Director10.25yrsUS$90.00k0.10%
$ 646.9k
Chuang-Fei Li
Independent Non-Executive Director10.08yrsUS$126.00kno data
Jonathan Eric Martin Smith
Independent Non-Executive Director10.08yrsUS$126.00kno data
Martin Davison
Independent Non-Executive Director0.58yrno datano data

7.4yrs

Average Tenure

61yo

Average Age

Experienced Board: 1029's board of directors are considered experienced (7.4 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$617.125m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1029SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2010
2I8DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 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: ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 13:00
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.