SEHK:1885

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China Wood Optimization (Holding)

Executive Summary

China Wood Optimization (Holding) Limited, together with its subsidiaries, processes, manufactures, and sells processed wood products in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has China Wood Optimization (Holding)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1885's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

1885

3.8%

HK Forestry

1.2%

HK Market


1 Year Return

-24.0%

1885

29.7%

HK Forestry

5.4%

HK Market

Return vs Industry: 1885 underperformed the Hong Kong Forestry industry which returned 29.7% over the past year.

Return vs Market: 1885 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

1885IndustryMarket
7 Day-3.1%3.8%1.2%
30 Day-20.5%3.1%-2.7%
90 Day-16.7%12.4%6.9%
1 Year-24.0%-24.0%35.4%29.7%9.7%5.4%
3 Year-28.5%-29.9%-20.3%-30.7%3.5%-7.6%
5 Year-42.0%-43.6%33.7%12.6%12.0%-6.8%

Price Volatility Vs. Market

How volatile is China Wood Optimization (Holding)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Wood Optimization (Holding) undervalued compared to its fair value and its price relative to the market?

19.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1885 (HK$1.55) is trading above our estimate of fair value (HK$0.26)

Significantly Below Fair Value: 1885 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1885 is poor value based on its PE Ratio (19.4x) compared to the XA Forestry industry average (13.7x).

PE vs Market: 1885 is poor value based on its PE Ratio (19.4x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1885's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1885 is overvalued based on its PB Ratio (2.1x) compared to the HK Forestry industry average (0.7x).


Next Steps

Future Growth

How is China Wood Optimization (Holding) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.1%

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 Wood Optimization (Holding) 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 Wood Optimization (Holding) performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1885 has high quality earnings.

Growing Profit Margin: 1885's current net profit margins (33.1%) are higher than last year (28.1%).


Past Earnings Growth Analysis

Earnings Trend: 1885's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: 1885's earnings growth over the past year (0.6%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: 1885 earnings growth over the past year (0.6%) exceeded the Forestry industry -12.9%.


Return on Equity

High ROE: 1885's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is China Wood Optimization (Holding)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1885's short term assets (CN¥462.2M) exceed its short term liabilities (CN¥71.8M).

Long Term Liabilities: 1885's short term assets (CN¥462.2M) exceed its long term liabilities (CN¥30.3M).


Debt to Equity History and Analysis

Debt Level: 1885's debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: 1885's debt to equity ratio has reduced from 12.9% to 7.6% over the past 5 years.

Debt Coverage: 1885's debt is well covered by operating cash flow (93.6%).

Interest Coverage: 1885 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China Wood Optimization (Holding) current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1885's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1885's dividend (1.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.85%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1885 has been paying a dividend for less than 10 years.

Growing Dividend: 1885's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), 1885's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.7yrs

Average board tenure


CEO

Li Li (41 yo)

6.67yrs

Tenure

CN¥744,000

Compensation

Mr. Li Li is a Co-founder and serves as the Chief Executive Officer and Executive Director of China Wood Optimization (Holdings) Limited since December 20, 2013 and July 23, 2012 respectively. Mr. Li is ma ...


CEO Compensation Analysis

Compensation vs Market: Li's total compensation ($USD106.78K) is below average for companies of similar size in the Hong Kong market ($USD275.99K).

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


Board Members

NamePositionTenureCompensationOwnership
Tsun Yim
Chairladyno dataCN¥744.00k67.33%
CN¥ 1.0b
Li Li
CEO, Compliance Officer & Executive Director6.67yrsCN¥744.00kno data
Ying Kit Lau
Independent Non-Executive Director6.67yrsCN¥133.00kno data
Dali Zhang
Independent Non-Executive Director6.67yrsCN¥133.00kno data
Junwen Pu
Independent Non-Executive Director6.67yrsCN¥133.00kno data

6.7yrs

Average Tenure

49yo

Average Age

Experienced Board: 1885's board of directors are considered experienced (6.7 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 Wood Optimization (Holding) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Wood Optimization (Holding) Limited
  • Ticker: 1885
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: HK$1.550b
  • Shares outstanding: 1.00b
  • Website: https://www.chinawood.com.hk

Number of Employees


Location

  • China Wood Optimization (Holding) Limited
  • No. 9 Yimin River East Road
  • Wei Zhou Industrial Area
  • Handan
  • Hebei Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1885SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2014

Biography

China Wood Optimization (Holding) Limited, together with its subsidiaries, processes, manufactures, and sells processed wood products in the People’s Republic of China. It offers processed wood panels, whi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:46
End of Day Share Price2020/08/07 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.