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 Analysis

Reasonable growth potential with questionable track record.

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

Stable Share Price: 1818 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.2%

1818

-2.7%

HK Metals and Mining

-0.6%

HK Market


1 Year Return

9.5%

1818

-13.8%

HK Metals and Mining

-7.4%

HK Market

Return vs Industry: 1818 exceeded the Hong Kong Metals and Mining industry which returned -13.8% over the past year.

Return vs Market: 1818 exceeded the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1818IndustryMarket
7 Day10.2%-2.7%-0.6%
30 Day6.9%-3.7%-3.2%
90 Day16.3%13.2%3.1%
1 Year10.1%9.5%-10.9%-13.8%-4.1%-7.4%
3 Year24.6%21.7%-9.5%-15.3%13.5%2.0%
5 Year110.4%101.9%4.1%-6.8%13.8%-5.1%

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 compared to its fair value and its price relative to the market?

2.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1818 (HK$9.49) is trading below our estimate of fair value (HK$9.7)

Significantly Below Fair Value: 1818 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1818 is poor value based on its PE Ratio (67x) compared to the Metals and Mining industry average (10.6x).

PE vs Market: 1818 is poor value based on its PE Ratio (67x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1818 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 1818 is overvalued based on its PB Ratio (2.1x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Zhaojin Mining Industry forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

35.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1818's forecast earnings growth (35.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1818's earnings (35.1% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 1818's revenue (11.7% per year) is forecast to grow faster than the Hong Kong market (9.5% per year).

High Growth Revenue: 1818's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1818's Return on Equity is forecast to be low in 3 years time (8.2%).


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

Quality Earnings: 1818 has high quality earnings.

Growing Profit Margin: 1818's current net profit margins (5.8%) are lower than last year (8.4%).


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 (-25%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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 (CN¥11.9B) exceed its long term liabilities (CN¥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

Dividend

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

0.47%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%2.3%markettop25%6.3%industryaverage4.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: 1818's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1818's dividend (0.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

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 the Hong Kong market.


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

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

1.7yrs

Average management tenure


CEO

Xin Dong (53yo)

1.9yrs

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's total compensation ($USD123.49K) is below average for companies of similar size in the Hong Kong market ($USD556.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhanbin Weng
Executive Chairman6.1yrsCN¥955.00kno data
Xin Dong
President & Executive Director1.9yrsCN¥868.01k0.0092% CN¥2.8m
Ligang Wang
VP, Secretary of the Board & Executive Director1.9yrsCN¥801.63k0.031% CN¥9.5m
Qingli Zou
Chief Financial Officer1yrsno datano data
Ka Man Ng
Company Secretary1.5yrsno datano data

1.7yrs

Average Tenure

47yo

Average Age

Experienced Management: 1818's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Zhanbin Weng
Executive Chairman6.1yrsCN¥955.00kno data
Xin Dong
President & Executive Director1.9yrsCN¥868.01k0.0092% CN¥2.8m
Ligang Wang
VP, Secretary of the Board & Executive Director1.9yrsCN¥801.63k0.031% CN¥9.5m
Sze Chung Choy
Independent Non-Executive Director12.8yrsCN¥160.00kno data
Jinrong Chen
Independent Non-Executive Director12.8yrsCN¥160.00kno data
Xiaojie Wang
Chairman of the Supervisory Committee1yrsno datano data
Xiaoliang Xu
Vice Chairman of the Board1.9yrsno datano data
Junhao Wei
Independent Non-Executive Director4yrsCN¥160.00kno data
Min Gao
Non-Executive Director4yrsno datano data
Shifu Shen
Independent Non-Executive Director4yrsCN¥160.00kno data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Board: 1818's board of directors are considered experienced (4 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 not been meaningfully diluted in the past year.


Top Shareholders

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$31.036b
  • Shares outstanding: 3.27b
  • 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 China. It operates through three segments: Gold Operations, Copper Operations, and Others. The company produces gold products under the Zhaojin brand. It is also involved in the purchase of gold concentrates; manufacture and smelting of sulfuric acid; sale of residue; freight transportation; engineering design and development, research and development of investment systems; and mining and smelting of other precious metals, as well as mining, smelting, and sale of ceramic materials. In addition, the company provides accommodation, catering, financial, and advisory services. Zhaojin Mining Industry Company Limited was founded in 2004 and is headquartered in Zhaoyuan, 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 Analysis2020/02/22 12:56
End of Day Share Price2020/02/21 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.