SEHK:1818

Stock Analysis Report

Zhaojin Mining Industry

Executive Summary

Zhaojin Mining Industry Company Limited, an investment holding company, engages in the exploration, mining, processing, smelting, and sale of gold, silver, and copper products in the People’s Republic of China.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.

Share Price & News

How has Zhaojin Mining Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.2%

1818

1.2%

HK Metals and Mining

2.2%

HK Market


1 Year Return

26.1%

1818

-13.1%

HK Metals and Mining

-1.3%

HK Market

Return vs Industry: 1818 exceeded the Hong Kong Metals and Mining industry which returned -13.1% over the past year.

Return vs Market: 1818 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1818IndustryMarket
7 Day-4.2%1.2%2.2%
30 Day-4.3%-6.9%-2.9%
90 Day3.3%-7.5%-5.8%
1 Year26.9%26.1%-10.1%-13.1%2.3%-1.3%
3 Year22.9%20.0%-0.1%-6.9%15.6%3.9%
5 Year114.5%105.8%-2.5%-13.5%20.1%0.06%

Price Volatility Vs. Market

How volatile is Zhaojin Mining Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhaojin Mining Industry undervalued based on future cash flows and its price relative to the stock market?

62.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 1818 (HK$8.83) is trading above our estimate of fair value (HK$5.86)

Significantly Undervalued: 1818 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 1818 is poor value based on its PE Ratio (62.4x) compared to the Metals and Mining industry average (10.7x).

PE vs Market: 1818 is poor value based on its PE Ratio (62.4x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1818 is poor value based on its PEG Ratio (2.3x)


Price Based on Value of Assets

PB vs Industry: 1818 is overvalued based on its PB Ratio (1.9x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Zhaojin Mining Industry expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1818's forecast earnings growth (27.1% per year) is above the savings rate (2%).

Earnings vs Market: 1818's earnings (27.1% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1818's revenue (10.3% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1818's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1818's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has Zhaojin Mining Industry performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1818's earnings have grown by 1% per year over the past 5 years.

Accelerating Growth: 1818's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1818 had negative earnings growth (-25%) over the past year, making it difficult to compare to the Metals and Mining industry average (-24.5%).


Return on Equity

High ROE: 1818's Return on Equity (2.6%) is considered low.


Return on Assets

ROA vs Industry: 1818's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 1818's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Zhaojin Mining Industry's financial position?


Financial Position Analysis

Short Term Liabilities: 1818's short term assets (CN¥11.9B) do not cover its short term liabilities (CN¥13.1B)

Long Term Liabilities: 1818's short term assets (11.9B) exceeds its long term liabilities (9.3B)


Debt to Equity History and Analysis

Debt Level: 1818's debt to equity ratio (105.5%) is considered high

Reducing Debt: 1818's debt to equity ratio has reduced from 126.6% to 105.5% over the past 5 years.

Debt Coverage: 1818's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: 1818's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: 1818 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1818's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

  • Explore more healthy companies in the Materials industry.

Dividend

What is Zhaojin Mining Industry's current dividend yield, its reliability and sustainability?

1.12%

Expected Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%2.3%markettop25%6.3%industryaverage3.8%forecastin3Years1.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1818's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1818's dividend (0.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 1818 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1818 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1818 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1818's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Zhaojin Mining Industry's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Xin Dong (53yo)

1.6yrs

Tenure

CN¥868,008

Compensation

Mr. Dong Xin has been Executive Director and President of Zhaojin Mining Industry Co. Ltd. since March 06, 2018. Mr. Xin was Vice President of Zhaojin Mining Industry Co. Ltd., from February 26, 2013 to Ma ...


CEO Compensation Analysis

Compensation vs. Market: Xin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Insufficient data to compare Xin's compensation with company performance.


Management Age and Tenure

1.4yrs

Average Tenure

47yo

Average Age

Experienced Management: 1818's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

53yo

Average Age

Experienced Board: 1818's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Ligang Wang (47yo)

    VP, Secretary of the Board & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥801.63k
  • Zhanbin Weng (53yo)

    Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: CN¥955.00k
  • Xin Dong (53yo)

    President & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥868.01k
  • Ka Man Ng (41yo)

    Company Secretary

    • Tenure: 1.2yrs
  • Qingli Zou (43yo)

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Jojo Choy (60yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: CN¥160.00k
  • Jinrong Chen (60yo)

    Independent Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: CN¥160.00k
  • Ligang Wang (47yo)

    VP, Secretary of the Board & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥801.63k
  • Xiaojie Wang (46yo)

    Chairman of the Supervisory Committee

    • Tenure: 0.7yrs
  • Xiaoliang Xu (46yo)

    Vice Chairman of the Board

    • Tenure: 1.6yrs
  • Zhanbin Weng (53yo)

    Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: CN¥955.00k
  • Xin Dong (53yo)

    President & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥868.01k
  • Junhao Wei (58yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥160.00k
  • Min Gao (46yo)

    Non-Executive Director

    • Tenure: 3.7yrs
  • Shifu Shen (53yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥160.00k

Company Information

Zhaojin Mining Industry Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhaojin Mining Industry Company Limited
  • Ticker: 1818
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Gold
  • Sector: Materials
  • Market Cap: HK$29.502b
  • Shares outstanding: 3.22b
  • Website: https://www.zhaojin.com.cn

Number of Employees


Location

  • Zhaojin Mining Industry Company Limited
  • 299 Jinhui Road
  • Zhaoyuan
  • Shandong Province
  • 265400
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1818SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2006
ZVLDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2006
ZHAO.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2006
1818SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006

Biography

Zhaojin Mining Industry Company Limited, an investment holding company, engages in the exploration, mining, processing, smelting, and sale of gold, silver, and copper products in the People’s Republic of C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:41
End of Day Share Price2019/10/14 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.

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