SEHK:1636

Stock Analysis Report

China Metal Resources Utilization

Executive Summary

China Metal Resources Utilization Limited, together with its subsidiaries, manufactures and sells copper and related products in the People’s Republic of China.


Snowflake Analysis

Imperfect balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1636 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

1636

0.2%

HK Metals and Mining

0.3%

HK Market


1 Year Return

-31.5%

1636

-12.0%

HK Metals and Mining

-5.1%

HK Market

Return vs Industry: 1636 underperformed the Hong Kong Metals and Mining industry which returned -12% over the past year.

Return vs Market: 1636 underperformed the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

1636IndustryMarket
7 Day-0.3%0.2%0.3%
30 Day-9.1%-5.7%-3.9%
90 Day-2.0%14.1%4.4%
1 Year-31.5%-31.5%-9.0%-12.0%-1.6%-5.1%
3 Year-0.7%-0.7%-12.2%-17.8%13.4%1.9%
5 Year116.5%112.9%7.7%-3.7%15.6%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Metal Resources Utilization undervalued compared to its fair value and its price relative to the market?

1792.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1636's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1636's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1636 is poor value based on its PE Ratio (1792.6x) compared to the Metals and Mining industry average (10.3x).

PE vs Market: 1636 is poor value based on its PE Ratio (1792.6x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1636's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1636 is overvalued based on its PB Ratio (3.5x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is China Metal Resources Utilization forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Metal Resources Utilization has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Metal Resources Utilization performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1636 has a large one-off gain of CN¥89.3M impacting its June 30 2019 financial results.

Growing Profit Margin: 1636's current net profit margins (0.02%) are lower than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: 1636 has become profitable over the past 5 years, growing earnings by -0.4% per year.

Accelerating Growth: 1636's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1636 had negative earnings growth (-97.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-25%).


Return on Equity

High ROE: 1636's Return on Equity (0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Metal Resources Utilization's financial position?


Financial Position Analysis

Short Term Liabilities: 1636's short term assets (CN¥3.2B) exceed its short term liabilities (CN¥2.5B).

Long Term Liabilities: 1636's short term assets (CN¥3.2B) exceed its long term liabilities (CN¥353.4M).


Debt to Equity History and Analysis

Debt Level: 1636's debt to equity ratio (67.3%) is considered high.

Reducing Debt: 1636's debt to equity ratio has increased from 35.3% to 67.3% over the past 5 years.


Balance Sheet

Inventory Level: 1636 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1636's debt is covered by short term assets (assets are 2.3x 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: 1636 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 1636 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is China Metal Resources Utilization's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1636's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1636'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 1636's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1636's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1636 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1636'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?

6.7yrs

Average management tenure


CEO

Jianqiu Yu (54yo)

CN¥2,710,000

Compensation

Mr. Jianqiu Yu serves as the Founder, Chairman and Chief Executive Officer of China Metal Resources Utilization Limited. Mr. Yu is primarily responsible for the overall business and strategy of China Metal ...


CEO Compensation Analysis

Compensation vs Market: Jianqiu's total compensation ($USD387.25K) is about average for companies of similar size in the Hong Kong market ($USD498.49K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianqiu Yu
Founder0yrsCN¥2.71m39.57% CN¥3.1b
Wai Sun Kwong
Executive Director6.5yrsCN¥4.34m0.12% CN¥9.8m
Weiping Huang
Executive Director6.5yrsCN¥337.00k11.79% CN¥927.8m
Yufen Zhu
Executive Director6.5yrsCN¥313.00kno data
Ngai Chi Chan
Chief Financial Officer6.4yrsno datano data
Guidi Luo
Risk Management Officer and Controller 0yrsno datano data
Ying Kwan Cheung
Company Secretary6.9yrsno datano data
Dunxian Fan
General Manager of Baohe Taiyue and Director of Baohe Taiyue8.3yrsno datano data
Jin Cai
Assistant to Chairman6.4yrsno datano data

6.7yrs

Average Tenure

53yo

Average Age

Experienced Management: 1636's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianqiu Yu
Founder0yrsCN¥2.71m39.57% CN¥3.1b
Wai Sun Kwong
Executive Director6.5yrsCN¥4.34m0.12% CN¥9.8m
Weiping Huang
Executive Director6.5yrsCN¥337.00k11.79% CN¥927.8m
Yufen Zhu
Executive Director6.5yrsCN¥313.00kno data
Dunxian Fan
General Manager of Baohe Taiyue and Director of Baohe Taiyue8.3yrsno datano data
Ting Bun Lee
Independent Non-Executive Director6.5yrsCN¥191.00kno data
Liansheng Pan
Independent Non-Executive Director6.5yrsCN¥191.00kno data
Ren Ruxian
Independent Non-Executive Director4.3yrsCN¥350.00kno data

6.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 1636's board of directors are considered experienced (6.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

China Metal Resources Utilization Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Metal Resources Utilization Limited
  • Ticker: 1636
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Copper
  • Sector: Materials
  • Market Cap: HK$7.868b
  • Shares outstanding: 2.63b
  • Website: https://www.cmru.com.cn

Number of Employees


Location

  • China Metal Resources Utilization Limited
  • She Nos 1, 3 and 8
  • Shunhe Village
  • Mianyang
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1636SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2014
0CUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2014
1636SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2014
1636SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2014

Biography

China Metal Resources Utilization Limited, together with its subsidiaries, manufactures and sells copper and related products in the People’s Republic of China. The company operates in four segments: Recycled Copper Products, Power Transmission and Distribution Cables, Communication Cables, and Aluminium Products. It processes recycled scrap copper and electrolytic copper to manufacture a range of copper products, including copper wire rods, wires, plates, and granules; and offers anodic copper, aluminum, and nickel products. The company also manufactures and sells various power transmission and distribution, and communication cables. China Metal Resources Utilization Limited was incorporated in 2013 and is headquartered in Mianyang, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:11
End of Day Share Price2020/02/20 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.