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.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


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


Market Performance


7 Day Return

4.4%

SEHK:1313

3.2%

HK Basic Materials

2.2%

HK Market


1 Year Return

-23.1%

SEHK:1313

-13.4%

HK Basic Materials

-11.1%

HK Market

1313 underperformed the Basic Materials industry which returned -13.4% over the past year.

1313 underperformed the Market in Hong Kong which returned -11.1% over the past year.


Share holder returns

1313IndustryMarket
7 Day4.4%3.2%2.2%
30 Day-4.3%-6.9%-7.3%
90 Day4.2%0.6%-4.8%
1 Year-17.7%-23.1%-9.7%-13.4%-7.9%-11.1%
3 Year158.0%126.3%92.1%77.2%15.5%4.1%
5 Year60.8%34.1%47.5%30.5%10.0%-8.2%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Resources Cement Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Resources Cement Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Resources Cement Holdings is overvalued based on earnings compared to the HK Basic Materials industry average.

China Resources Cement Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Resources Cement Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

China Resources Cement Holdings is overvalued based on assets compared to the HK Basic Materials industry average.


Next Steps

Future Growth

How is China Resources Cement Holdings expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

-0.04%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Resources Cement Holdings's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).

China Resources Cement Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

China Resources Cement Holdings's revenue growth is positive but not above the Hong Kong market average.

China Resources Cement Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China Resources Cement Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Resources Cement Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

23.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Resources Cement Holdings has delivered over 20% year on year earnings growth in the past 5 years.

China Resources Cement Holdings's 1-year earnings growth exceeds its 5-year average (28.5% vs 23.1%)

China Resources Cement Holdings's earnings growth has not exceeded the HK Basic Materials industry average in the past year (28.5% vs 68.4%).


Return on Equity

China Resources Cement Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Resources Cement Holdings used its assets more efficiently than the HK Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

China Resources Cement Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Resources Cement Holdings's financial position?


Financial Position Analysis

China Resources Cement Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Resources Cement Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Resources Cement Holdings's level of debt (28.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (75.7% vs 28.6% today).

Debt is well covered by operating cash flow (99.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 29.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

7.23%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase China Resources Cement Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

China Resources Cement Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

China Resources Cement Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.18%).

China Resources Cement Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but China Resources Cement Holdings only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


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?

3.0yrs

Average management tenure


CEO

Youhong Ji (54yo)

2.9yrs

Tenure

HK$14,168,000

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

Youhong's remuneration is higher than average for companies of similar size in Hong Kong.

Youhong's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

52yo

Average Age

The tenure for the China Resources Cement Holdings management team is about average.


Board Age and Tenure

7.5yrs

Average Tenure

52.5yo

Average Age

The tenure for the China Resources Cement Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • LongShan Zhou (58yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: HK$19.06m
  • Youhong Ji (54yo)

    CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$14.17m
  • Xiaohu Wang (54yo)

    Chief Human Resource Officer

    • Tenure: 1.3yrs
  • Junxiang Wang (51yo)

    Senior Vice President

    • Tenure: 3.1yrs
  • Yingzhong Zhang (52yo)

    Chief Safety & Environmental Protection Officer

    • Tenure: 5.6yrs
  • Ting Huang (49yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
  • Liang Zhang (56yo)

    Senior VP and Regional GM of Guangdong & Hainan

    • Tenure: 5.6yrs
  • Yue Wang (42yo)

    Assistant President

    • Tenure: 5.6yrs
  • Wei Li (51yo)

    Chief Marketing Officer

    • Tenure: 3.0yrs
  • Xiang Cai (52yo)

    Chief Procurement Officer

    • Tenure: 3.0yrs

Board Members

  • LongShan Zhou (58yo)

    Executive Chairman

    • Tenure: 7.8yrs
    • Compensation: HK$19.06m
  • Abraham Razack Shek (73yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: HK$260.00k
  • Ying Chen (48yo)

    Non-Executive Director

    • Tenure: 7.3yrs
  • Youhong Ji (54yo)

    CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$14.17m
  • Stephen Ip (68yo)

    Independent Non-Executive Director

    • Tenure: 11.0yrs
    • Compensation: HK$260.00k
  • Yan Wang (47yo)

    Non-Executive Director

    • Tenure: 5.0yrs
  • Xuemin Zeng (75yo)

    Independent Non-Executive Director

    • Tenure: 11.0yrs
    • Compensation: HK$260.00k
  • Nelson Lam (51yo)

    Independent Non-Executive Director

    • Tenure: 11.0yrs
    • Compensation: HK$260.00k
  • Suet Wan (42yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Shiqing Jing (38yo)

    Non-Executive Director

    • Tenure: 1.3yrs

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$49.719b
  • 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 Analysis2019/08/23 12:59
End of Day Share Price2019/08/23 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.