SEHK:1378

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China Hongqiao Group

Executive Summary

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has China Hongqiao Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1378's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.3%

1378

4.2%

HK Metals and Mining

5.8%

HK Market


1 Year Return

-34.0%

1378

-18.8%

HK Metals and Mining

-4.0%

HK Market

Return vs Industry: 1378 underperformed the Hong Kong Metals and Mining industry which returned -19.3% over the past year.

Return vs Market: 1378 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

1378IndustryMarket
7 Day0.3%4.2%5.8%
30 Day-4.7%0.9%4.0%
90 Day-15.1%-15.1%-2.6%
1 Year-27.4%-34.0%-16.4%-18.8%-0.6%-4.0%
3 Yearn/a-17.7%-22.5%1.3%-9.2%
5 Year-42.4%-54.3%-33.7%-40.7%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is China Hongqiao Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Hongqiao Group undervalued compared to its fair value and its price relative to the market?

2.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1378 (HK$3.42) is trading below our estimate of fair value (HK$3.51)

Significantly Below Fair Value: 1378 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1378 is good value based on its PE Ratio (4.4x) compared to the Metals and Mining industry average (9.9x).

PE vs Market: 1378 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1378 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1378 is good value based on its PB Ratio (0.4x) compared to the HK Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is China Hongqiao Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1378's forecast earnings growth (5.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1378's earnings (5.4% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 1378's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1378's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: 1378's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1378's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has China Hongqiao Group performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1378 has high quality earnings.

Growing Profit Margin: 1378's current net profit margins (7.2%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: 1378's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: 1378's earnings growth over the past year (12.7%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: 1378 earnings growth over the past year (12.7%) exceeded the Metals and Mining industry -20%.


Return on Equity

High ROE: 1378's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is China Hongqiao Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1378's short term assets (CN¥93.2B) exceed its short term liabilities (CN¥65.3B).

Long Term Liabilities: 1378's short term assets (CN¥93.2B) exceed its long term liabilities (CN¥48.3B).


Debt to Equity History and Analysis

Debt Level: 1378's debt to equity ratio (119.1%) is considered high.

Reducing Debt: 1378's debt to equity ratio has reduced from 123.5% to 119.1% over the past 5 years.

Debt Coverage: 1378's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: 1378's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is China Hongqiao Group's current dividend yield, its reliability and sustainability?

9.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1378's dividend (9.87%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.46%).

High Dividend: 1378's dividend (9.87%) is in the top 25% of dividend payers in the Hong Kong market (7.13%)


Stability and Growth of Payments

Stable Dividend: 1378 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1378's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), 1378's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1378's dividends in 3 years are forecast to be covered by earnings (61.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Bo Zhang (50yo)

9.42yrs

Tenure

CN¥950,000

Compensation

Mr. Zhang Bo has been the Chief Executive Officer of China Hongqiao Group Limited since January 16, 2011. Mr. Zhang has been the General Manager and the chairman of the board of directors of Weiqiao Alumin ...


CEO Compensation Analysis

Compensation vs Market: Bo's total compensation ($USD133.62K) is below average for companies of similar size in the Hong Kong market ($USD419.64K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bo Zhang
CEO & Chairman9.42yrsCN¥950.00kno data
Shuliang Zheng
Vice Chairman9.42yrsCN¥548.00kno data
Ruilian Zhang
VP, CFO & Executive Director2.5yrsCN¥596.00kno data
Yuexia Zhang
Company Secretary9.42yrsno datano data

9.4yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 1378's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bo Zhang
CEO & Chairman9.42yrsCN¥950.00kno data
Shuliang Zheng
Vice Chairman9.42yrsCN¥548.00kno data
Ruilian Zhang
VP, CFO & Executive Director2.5yrsCN¥596.00kno data
Yisong Chen
Non-Executive Director1.83yrsCN¥300.00kno data
Jinglei Zhang
Non-Executive Director9.42yrsCN¥300.00kno data
Jian Xing
Independent Non-Executive Director9.42yrsCN¥200.00kno data
Congsen Yang
Non-Executive Director9.42yrsCN¥712.00kno data
Benwen Han
Independent Non-Executive Director9.42yrsCN¥200.00kno data
Hao Zhang
Alternate Director1.83yrsno datano data
Xinyi Dong
Independent Non-Executive Director2.5yrsCN¥200.00kno data

6.0yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1378's board of directors are considered experienced (6 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

China Hongqiao Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Hongqiao Group Limited
  • Ticker: 1378
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: HK$29.312b
  • Shares outstanding: 8.57b
  • Website: https://www.hongqiaochina.com

Number of Employees


Location

  • China Hongqiao Group Limited
  • Huixian One Road
  • Zouping Economic Development District
  • Zouping
  • Shandong Province
  • 256200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1378SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2011
H0QDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2011
1378SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2011
1378SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2011

Biography

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia. The company’s products include molten aluminum alloys, aluminum alloy ingots, aluminum busbars, and aluminum alloy processing products. It also engages in the research, development, and trading of bauxite; production and sale of electricity; and provision of financial leasing services. The company was founded in 1994 and is headquartered in Zouping, the People's Republic of China. China Hongqiao Group Limited is a subsidiary of China Hongqiao Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 13:23
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.