SEHK:1907

Stock Analysis Report

Executive Summary

China Risun Group Limited, an investment holding company, produces, trades in, and supplies coke, coking chemicals, and refined chemicals in China.


Snowflake Analysis

Solid track record second-rate dividend payer.

Share Price & News

How has China Risun Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1907 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

1907

1.0%

HK Chemicals

0.6%

HK Market


1 Year Return

n/a

1907

-31.7%

HK Chemicals

-4.5%

HK Market

Return vs Industry: Insufficient data to determine how 1907 performed against the Hong Kong Chemicals industry.

Return vs Market: Insufficient data to determine how 1907 performed against the Hong Kong Market.


Shareholder returns

1907IndustryMarket
7 Day1.6%1.0%0.6%
30 Day1.6%-7.0%-5.2%
90 Day-3.7%-1.5%2.3%
1 Yearn/a-26.7%-31.7%-1.0%-4.5%
3 Yearn/a-33.9%-44.3%14.4%2.9%
5 Yearn/a-18.4%-31.9%15.5%-3.8%

Price Volatility Vs. Market

How volatile is China Risun Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Risun Group undervalued compared to its fair value and its price relative to the market?

3.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1907 (HK$2.6) is trading above our estimate of fair value (HK$2.05)

Significantly Below Fair Value: 1907 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1907 is good value based on its PE Ratio (3.8x) compared to the Chemicals industry average (7.1x).

PE vs Market: 1907 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1907's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1907 is overvalued based on its PB Ratio (1.5x) compared to the HK Chemicals industry average (0.8x).


Next Steps

Future Growth

How is China Risun Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1907's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1907's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 1907's revenue (16.1% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 1907's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1907's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has China Risun Group performed over the past 5 years?

58.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1907 has high quality earnings.

Growing Profit Margin: 1907's current net profit margins (10.9%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: 1907's earnings have grown significantly by 58.3% per year over the past 5 years.

Accelerating Growth: 1907's earnings growth over the past year (63.8%) exceeds its 5-year average (58.3% per year).

Earnings vs Industry: 1907 earnings growth over the past year (63.8%) exceeded the Chemicals industry 21.4%.


Return on Equity

High ROE: Whilst 1907's Return on Equity (34.86%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Risun Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1907's short term assets (CN¥8.4B) do not cover its short term liabilities (CN¥13.6B).

Long Term Liabilities: 1907's short term assets (CN¥8.4B) exceed its long term liabilities (CN¥980.5M).


Debt to Equity History and Analysis

Debt Level: 1907's debt to equity ratio (120.6%) is considered high.

Reducing Debt: Insufficient data to determine if 1907's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1907's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: 1907's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet

Inventory Level: 1907 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1907's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is China Risun Group's current dividend yield, its reliability and sustainability?

5.29%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.3%markettop25%6.4%industryaverage9.4%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: 1907's dividend (5.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1907's dividend (5.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1907's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1907's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.6%), 1907's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1907's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Xuegang Yang (54yo)

CN¥3,641,000

Compensation

Mr. Xuegang Yang serves as Chief Executive Officer and Chairman at China Risun Group Limited and serves as its Executive Director since November 2007. Mr. Yang is responsible for the overall management and ...


CEO Compensation Analysis

Compensation vs Market: Xuegang's total compensation ($USD521.54K) is about average for companies of similar size in the Hong Kong market ($USD540.41K).

Compensation vs Earnings: Xuegang's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xuegang Yang
CEO & Chairman0yrsCN¥3.64m55.42% CN¥5.9b
Yingwei Zhang
Executive Director & VP10.6yrsCN¥1.26mno data
Qinliang Han
Executive Director & VP8.8yrsCN¥1.26mno data
Fengshan Wang
Executive Director & VP1.4yrsCN¥595.00kno data
Nianping Wang
Executive Director & VP1.4yrsCN¥693.00kno data
Lu Yang
Executive Director & GM of Beijing Risun Hongye1.4yrsCN¥585.00kno data
Yunshan Jia
Vice President15.2yrsno datano data
Qinghua Li
Vice President4.7yrsno datano data
Xixian Yuan
Vice President2.5yrsno datano data
Pui Ho
Company Secretary2.4yrsno datano data

3.6yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 1907's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuegang Yang
CEO & Chairman0yrsCN¥3.64m55.42% CN¥5.9b
Yingwei Zhang
Executive Director & VP10.6yrsCN¥1.26mno data
Qinliang Han
Executive Director & VP8.8yrsCN¥1.26mno data
Fengshan Wang
Executive Director & VP1.4yrsCN¥595.00kno data
Nianping Wang
Executive Director & VP1.4yrsCN¥693.00kno data
Lu Yang
Executive Director & GM of Beijing Risun Hongye1.4yrsCN¥585.00kno data
Yinping Wang
Independent Nonexecutive Director1.4yrsCN¥63.00kno data
Woon Kang
Independent Non-Executive Director8.3yrsCN¥63.00kno data
Kwok Kuen Yu
Independent Non-Executive Director1.4yrsCN¥63.00kno data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Board: 1907's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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: 1907 only recently listed within the past 12 months, with total shares outstanding growing by 13% in the past year..


Top Shareholders

Company Information

China Risun Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Risun Group Limited
  • Ticker: 1907
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$10.634b
  • Shares outstanding: 4.09b
  • Website: https://www.risun.com

Number of Employees


Location

  • China Risun Group Limited
  • Building 4
  • Block 5, ABP Area
  • Beijing
  • 100070
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1907SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2019
1907SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2019
45YDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2019

Biography

China Risun Group Limited, an investment holding company, produces, trades in, and supplies coke, coking chemicals, and refined chemicals in China. The company operates through three segments: Coke and Coking Chemicals, Refined Chemicals, and Trading. It offers coking chemical products, such as coal tar, coke oven gas, and crude benzene for use in producing refined chemicals; and refined chemicals, including carbon material, alcohol-ether, and aromatic chemicals. The company serves iron and steel, and chemical industry. China Risun Group Limited also exports its products. The company was formerly known as China Risun Coal Chemicals Group Limited and changed its name to China Risun Group Limited in July 2018. China Risun Group Limited was founded in 1995 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:28
End of Day Share Price2020/02/18 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.