SEHK:1313

Stock Analysis Report

China Resources Cement Holdings

Executive Summary

China Resources Cement Holdings Limited, an investment holding company, manufactures and sells cement, concrete, and related products and services in Mainland China and Hong Kong.

Rewards

Trading at 51.5% below its fair value

Earnings have grown 28.1% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -0.2% per year for the next 3 years

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has China Resources Cement Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1313's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

1313

1.6%

HK Basic Materials

0.9%

HK Market


1 Year Return

28.7%

1313

25.9%

HK Basic Materials

-1.5%

HK Market

Return vs Industry: 1313 exceeded the Hong Kong Basic Materials industry which returned 25.9% over the past year.

Return vs Market: 1313 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1313IndustryMarket
7 Day-1.1%1.6%0.9%
30 Day3.0%3.1%-3.7%
90 Day20.4%7.0%-0.1%
1 Year38.9%28.7%31.3%25.9%2.0%-1.5%
3 Year227.3%176.7%111.3%94.1%17.3%5.4%
5 Year127.8%83.2%66.7%47.5%17.1%-2.2%

Price Volatility Vs. Market

How volatile is China Resources Cement Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Resources Cement Holdings 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: 1313 (HK$9.27) is trading below our estimate of fair value (HK$19.11)

Significantly Below Fair Value: 1313 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1313 is poor value based on its PE Ratio (8.4x) compared to the Basic Materials industry average (5.5x).

PE vs Market: 1313 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1313's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1313 is overvalued based on its PB Ratio (1.7x) compared to the HK Basic Materials industry average (1x).


Next Steps

Future Growth

How is China Resources Cement Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1313's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: 1313's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: 1313's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1313's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: 1313's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1313's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has China Resources Cement Holdings performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1313 has high quality earnings.

Growing Profit Margin: 1313's current net profit margins (20.2%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: 1313's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: 1313's earnings growth over the past year (8.7%) is below its 5-year average (28.1% per year).

Earnings vs Industry: 1313 earnings growth over the past year (8.7%) underperformed the Basic Materials industry 37.6%.


Return on Equity

High ROE: 1313's Return on Equity (19.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Resources Cement Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1313's short term assets (HK$16.5B) exceed its short term liabilities (HK$8.9B).

Long Term Liabilities: 1313's short term assets (HK$16.5B) exceed its long term liabilities (HK$9.8B).


Debt to Equity History and Analysis

Debt Level: 1313's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: 1313's debt to equity ratio has reduced from 72% to 23.4% over the past 5 years.

Debt Coverage: 1313's debt is well covered by operating cash flow (104.6%).

Interest Coverage: 1313's interest payments on its debt are well covered by EBIT (29.5x coverage).


Balance Sheet

Inventory Level: 1313 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1313's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is China Resources Cement Holdings's current dividend yield, its reliability and sustainability?

5.91%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.2%markettop25%6.3%industryaverage3.9%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: 1313's dividend (5.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1313's dividend (5.91%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


Stability and Growth of Payments

Stable Dividend: 1313 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1313'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 (48.5%), 1313's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1313's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

What is the CEO of China Resources Cement Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Youhong Ji (54yo)

3.3yrs

Tenure

HK$4,776,000

Compensation

Mr. Youhong Ji has been the Chief Executive Officer and Executive Director at China Resources Cement Holdings Ltd. since September 22, 2016 and served as its Regional General Manager of Guangxi since April ...


CEO Compensation Analysis

Compensation vs Market: Youhong's total compensation ($USD610.03K) is about average for companies of similar size in the Hong Kong market ($USD511.20K).

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


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Management: 1313's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 1313's board of directors are considered experienced (7.9 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Management Team

  • LongShan Zhou (58yo)

    Executive Chairman

    • Tenure: 8.2yrs
    • Compensation: HK$6.41m
  • Youhong Ji (54yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$4.78m
  • Xiaohu Wang (54yo)

    Chief Human Resource Officer

    • Tenure: 1.7yrs
  • Junxiang Wang (51yo)

    Senior Vice President

    • Tenure: 3.4yrs
  • Yingzhong Zhang (52yo)

    Chief Safety & Environmental Protection Officer

    • Tenure: 5.9yrs
  • Ting Huang (49yo)

    Chief Procurement Officer & VP

    • Tenure: 0.2yrs
  • Liang Zhang (56yo)

    Senior VP and Regional GM of Guangdong & Hainan

    • Tenure: 5.9yrs
  • Yue Wang (42yo)

    Assistant President

    • Tenure: 5.9yrs
  • Wei Li (51yo)

    Chief Marketing Officer

    • Tenure: 3.3yrs
  • Wanli Duan

    General Manager of Finance Department

    • Tenure: 0.2yrs

Board Members

  • LongShan Zhou (58yo)

    Executive Chairman

    • Tenure: 8.2yrs
    • Compensation: HK$6.41m
  • Abraham Razack Shek (73yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$260.00k
  • Ying Chen (48yo)

    Non-Executive Director

    • Tenure: 7.6yrs
  • Youhong Ji (54yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$4.78m
  • Stephen Ip (68yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$260.00k
  • Yan Wang (47yo)

    Non-Executive Director

    • Tenure: 5.3yrs
  • Xuemin Zeng (75yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$260.00k
  • Nelson Lam (51yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$260.00k
  • Suet Wan (42yo)

    Non-Executive Director

    • Tenure: 1.6yrs
  • Shiqing Jing (38yo)

    Non-Executive Director

    • Tenure: 1.6yrs

Company Information

China Resources Cement Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Cement Holdings Limited
  • Ticker: 1313
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$63.475b
  • Shares outstanding: 6.98b
  • Website: https://www.crcement.com

Number of Employees


Location

  • China Resources Cement Holdings Limited
  • China Resources Building
  • Room 4606-08
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1313SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2009
CJRC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2009
C44DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
1313SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009
1313SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009
CARC.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2010

Biography

China Resources Cement Holdings Limited, an investment holding company, manufactures and sells cement, concrete, and related products and services in Mainland China and Hong Kong. The company engages in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 12:57
End of Day Share Price2019/12/06 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.