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

-0.3%

SEHK:1818

5.0%

HK Metals and Mining

1.9%

HK Market


1 Year Return

56.0%

SEHK:1818

-6.9%

HK Metals and Mining

-3.3%

HK Market

1818 outperformed the Metals and Mining industry which returned -6.9% over the past year.

1818 outperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

1818IndustryMarket
7 Day-0.3%5.0%1.9%
30 Day-13.4%7.7%6.1%
90 Day18.1%0.9%-0.5%
1 Year56.9%56.0%-3.8%-6.9%0.1%-3.3%
3 Year15.8%13.1%5.3%-2.2%17.7%5.9%
5 Year114.7%106.0%-0.05%-11.3%19.0%-0.6%

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?

65.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Zhaojin Mining Industry's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Zhaojin Mining Industry's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Zhaojin Mining Industry is overvalued based on earnings compared to the HK Metals and Mining industry average.

Zhaojin Mining Industry is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Zhaojin Mining Industry is poor value based on expected growth next year.


Price Based on Value of Assets

Zhaojin Mining Industry is overvalued based on assets compared to the HK Metals and Mining industry average.


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?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Zhaojin Mining Industry's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Zhaojin Mining Industry's earnings are expected to grow significantly at over 20% yearly.

Zhaojin Mining Industry's revenue growth is expected to exceed the Hong Kong market average.

Zhaojin Mining Industry's earnings growth is expected to exceed the Hong Kong market average.

Zhaojin Mining Industry's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Zhaojin Mining Industry is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Zhaojin Mining Industry's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Zhaojin Mining Industry's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Zhaojin Mining Industry's 1-year earnings growth is negative, it can't be compared to the HK Metals and Mining industry average.


Return on Equity

Zhaojin Mining Industry has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Zhaojin Mining Industry used its assets less efficiently than the HK Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Zhaojin Mining Industry's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Zhaojin Mining Industry's financial position?


Financial Position Analysis

Zhaojin Mining Industry's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Zhaojin Mining Industry's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Zhaojin Mining Industry's level of debt (105.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (126.6% vs 105.5% today).

Debt is not well covered by operating cash flow (9.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Zhaojin Mining Industry's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Zhaojin Mining Industry's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

Zhaojin Mining Industry is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

Zhaojin Mining Industry is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Zhaojin Mining Industry's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

No need to calculate the sustainability of Zhaojin Mining Industry's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


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?

1.3yrs

Average management tenure


CEO

Xin Dong (53yo)

1.5yrs

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

Xin's remuneration is lower than average for companies of similar size in Hong Kong.

Insufficient data for Xin to compare compensation growth.


Management Age and Tenure

1.3yrs

Average Tenure

47yo

Average Age

The average tenure for the Zhaojin Mining Industry management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

The tenure for the Zhaojin Mining Industry board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Ligang Wang (47yo)

    VP, Secretary of the Board & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥801.63k
  • Zhanbin Weng (53yo)

    Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: CN¥955.00k
  • Xin Dong (53yo)

    President & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥868.01k
  • Ka Man Ng (41yo)

    Company Secretary

    • Tenure: 1.1yrs
  • Qingli Zou (43yo)

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Jojo Choy (60yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥160.00k
  • Jinrong Chen (60yo)

    Independent Non-Executive Director

    • Tenure: 12.4yrs
    • Compensation: CN¥160.00k
  • Ligang Wang (47yo)

    VP, Secretary of the Board & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥801.63k
  • Xiaojie Wang (46yo)

    Chairman of the Supervisory Committee

    • Tenure: 0.6yrs
  • Xiaoliang Xu (46yo)

    Vice Chairman of the Board

    • Tenure: 1.5yrs
  • Zhanbin Weng (53yo)

    Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: CN¥955.00k
  • Xin Dong (53yo)

    President & Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥868.01k
  • Junhao Wei (58yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: CN¥160.00k
  • Min Gao (46yo)

    Non-Executive Director

    • Tenure: 3.6yrs
  • Shifu Shen (53yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • 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$30.114b
  • 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
1818SHSC (Stock Exchange of Hong Kong Limited - Shanghai - 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 Analysis2019/09/17 12:46
End of Day Share Price2019/09/17 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.