SEHK:2009

Stock Analysis Report

Executive Summary

BBMG Corporation provides cement and building materials in the People’s Republic of China and internationally.

Rewards

Trading at 71.6% below its fair value

Earnings are forecast to grow 5.19% per year

Earnings have grown 10.4% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Asia Cement (China) Holdings

SEHK:743

Share Price & News

How has BBMG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2009 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

2009

-2.1%

HK Basic Materials

-1.4%

HK Market


1 Year Return

-11.7%

2009

36.7%

HK Basic Materials

3.5%

HK Market

Return vs Industry: 2009 underperformed the Hong Kong Basic Materials industry which returned 41.3% over the past year.

Return vs Market: 2009 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2009IndustryMarket
7 Day-5.8%-2.1%-1.4%
30 Day-0.9%4.5%1.8%
90 Day-3.0%17.2%6.0%
1 Year-9.3%-11.7%42.5%36.7%7.3%3.5%
3 Year-20.4%-24.9%111.7%94.3%23.3%10.8%
5 Year-28.4%-33.1%80.3%60.0%19.2%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BBMG undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2009 (HK$2.39) is trading below our estimate of fair value (HK$8.41)

Significantly Below Fair Value: 2009 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2009 is good value based on its PE Ratio (5.9x) compared to the Basic Materials industry average (5.9x).

PE vs Market: 2009 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 2009 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2009 is good value based on its PB Ratio (0.4x) compared to the HK Basic Materials industry average (1.2x).


Next Steps

Future Growth

How is BBMG forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2009's forecast earnings growth (5.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 2009's earnings (5.2% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 2009's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2009's revenue (1.9% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 2009's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2009's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has BBMG performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2009 has high quality earnings.

Growing Profit Margin: 2009's current net profit margins (4.1%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 2009's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: 2009's earnings growth over the past year (16.1%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: 2009 earnings growth over the past year (16.1%) underperformed the Basic Materials industry 30.8%.


Return on Equity

High ROE: 2009's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BBMG's financial position?


Financial Position Analysis

Short Term Liabilities: 2009's short term assets (CN¥173.6B) exceed its short term liabilities (CN¥121.6B).

Long Term Liabilities: 2009's short term assets (CN¥173.6B) exceed its long term liabilities (CN¥74.6B).


Debt to Equity History and Analysis

Debt Level: 2009's debt to equity ratio (145.6%) is considered high.

Reducing Debt: 2009's debt to equity ratio has increased from 106.3% to 145.6% over the past 5 years.

Debt Coverage: 2009's debt is not well covered by operating cash flow (3.3%).

Interest Coverage: 2009's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: 2009 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2009's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is BBMG's current dividend yield, its reliability and sustainability?

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.2%markettop25%6.1%industryaverage3.6%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: 2009's dividend (2.6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 2009's dividend (2.6%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 2009's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2009's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.1%), 2009's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2009's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

BBMG has no CEO, or we have no data on them.


Management Age and Tenure

4.0yrs

Average Tenure

52yo

Average Age

Experienced Management: 2009's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 2009's board of directors are considered experienced (4.2 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

BuyHK$3,262,68527 Dec 19
FMR LLC
EntityCompany
Shares1,431,000
Max PriceHK$2.28
BuyHK$2,670,78806 Dec 19
FMR LLC
EntityCompany
Shares1,239,000
Max PriceHK$2.16
SellHK$4,506,60708 Nov 19
Prime Capital Management Company Limited
EntityCompany
Shares2,000,000
Max PriceHK$2.25
BuyHK$12,425,30904 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares5,515,004
Max PriceHK$2.25
BuyHK$3,060,61504 Jul 19
FMR LLC
EntityCompany
Shares1,224,000
Max PriceHK$2.50
SellHK$3,841,86213 Jun 19
FMR LLC
EntityCompany
Shares1,634,000
Max PriceHK$2.35
BuyHK$13,015,13606 May 19
FMR LLC
EntityCompany
Shares4,717,000
Max PriceHK$2.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Deyi Jiang (55yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: CN¥854.36k
  • Lawrence Lau (48yo)

    Company Secretary

    • Tenure: 7.3yrs
  • Dengfeng Zhang (48yo)

    General Counsel

    • Tenure: 2.6yrs
    • Compensation: CN¥474.72k
  • Baojin Zheng (53yo)

    Board Secretary & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥572.76k
  • Dong Wu (51yo)

    Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥756.65k
  • Guoliang Zhang (56yo)

    Head of the Discipline Inspection & Supervision Office and Supervisor

    • Tenure: 2.6yrs

Board Members

  • Maurice Ngai (57yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥150.00k
  • Deyi Jiang (55yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: CN¥854.36k
  • Yanming Guo (57yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥725.38k
  • Guangjin Wang (59yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥150.00k
  • Baojin Zheng (53yo)

    Board Secretary & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥572.76k
  • Lihui Tian (46yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥150.00k
  • Jun Tang (41yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥150.00k
  • Dong Wu (51yo)

    Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥756.65k
  • Guoliang Zhang (56yo)

    Head of the Discipline Inspection & Supervision Office and Supervisor

    • Tenure: 2.6yrs
  • Ying Pei (59yo)

    Chairman of the Supervisory Board

    Company Information

    BBMG Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: BBMG Corporation
    • Ticker: 2009
    • Exchange: SEHK
    • Founded: 2005
    • Industry: Construction Materials
    • Sector: Materials
    • Market Cap: HK$38.256b
    • Shares outstanding: 10.68b
    • Website: https://www.bbmg.com.cn

    Number of Employees


    Location

    • BBMG Corporation
    • Global Trade Center No. 36
    • Tower D
    • Beijing
    • 100013
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    2009SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2009
    BMBG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 2009
    9BMDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 2009
    2009SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2009
    2009SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 2009
    601992SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYMar 2011
    601992XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYMar 2011

    Biography

    BBMG Corporation provides cement and building materials in the People’s Republic of China and internationally. The company’s Cement and Ready-Mixed Concrete segment manufactures and sells cement and concrete. Its Modern Building Materials and Commerce and Logistics segment produces furniture and woods, decorative and fitting materials, and wall body and insulation materials; and offers commerce and logistics services. The company’s Property Development segment develops and sells housing properties. Its Property Investment and Management segment invests in properties; and provides management and security services to residential and commercial properties. The company offers mortars and crushed stones, aggregates, slag fine powders, wood based panels, coatings and construction hardware, glass made spectacle lenses, glass wool products, steam and distilled water, waterproof materials, clinkers, refractory materials, aerated concrete panels, resins, machinery equipment and accessories, wind power equipment, doors and windows, metal ores and mining products, sanitary wares, and lime and rock materials; wholesale of coal, building and metal materials, and metallic minerals; and imports and exports bulk materials. It provides building decoration and design consultancy, construction contracting and project management, accommodation and conference, hotel management, elderly care, finance leasing, engineering technology, property consultancy, property rental and incubation, travelling and guest rooms rental, machinery and equipment repair, goods transportation and storage, commodities trading, construction tendering and property agency, waste disposal, finance and financing advisory, exhibition, and knitting processing services; loading, offloading, and handling services; building material testing and labor dispatch services; and operates sports projects, as well as engages in mining of limestone. The company was founded in 2005 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 Analysis2020/01/23 13:01
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    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.