SEHK:2303

Stock Analysis Report

Hengxing Gold Holding

Executive Summary

Hengxing Gold Holding Company Limited, an investment holding company, engages in the mining and processing of gold; and sale of processed gold products in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Hengxing Gold Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2303's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.1%

2303

3.2%

HK Metals and Mining

4.0%

HK Market


1 Year Return

-80.6%

2303

-34.2%

HK Metals and Mining

-20.1%

HK Market

Return vs Industry: 2303 underperformed the Hong Kong Metals and Mining industry which returned -34.2% over the past year.

Return vs Market: 2303 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

2303IndustryMarket
7 Day23.1%3.2%4.0%
30 Day-50.8%-23.2%-11.3%
90 Day-55.1%-28.1%-15.6%
1 Year-80.2%-80.6%-31.9%-34.2%-17.2%-20.1%
3 Year-40.4%-44.8%-30.3%-34.9%-2.9%-12.7%
5 Year5.1%-2.6%-28.4%-35.8%-6.8%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hengxing Gold Holding 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: 2303 (HK$1.49) is trading below our estimate of fair value (HK$6.12)

Significantly Below Fair Value: 2303 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2303 is good value based on its PE Ratio (5.8x) compared to the Metals and Mining industry average (7.8x).

PE vs Market: 2303 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2303's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2303 is overvalued based on its PB Ratio (1.4x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Hengxing Gold Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.4%

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 Hengxing Gold 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 Hengxing Gold Holding performed over the past 5 years?

47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2303 has high quality earnings.

Growing Profit Margin: 2303's current net profit margins (29.3%) are lower than last year (29.9%).


Past Earnings Growth Analysis

Earnings Trend: 2303 has become profitable over the past 5 years, growing earnings by 47.1% per year.

Accelerating Growth: 2303's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2303 had negative earnings growth (-11.4%) over the past year, making it difficult to compare to the Metals and Mining industry average (-17.2%).


Return on Equity

High ROE: 2303's Return on Equity (23.4%) is considered high.


Next Steps

Financial Health

How is Hengxing Gold Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2303's short term assets (CN¥506.3M) exceed its short term liabilities (CN¥182.6M).

Long Term Liabilities: 2303's short term assets (CN¥506.3M) exceed its long term liabilities (CN¥39.1M).


Debt to Equity History and Analysis

Debt Level: 2303's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: 2303's debt to equity ratio has reduced from 135.2% to 2.2% over the past 5 years.

Debt Coverage: 2303's debt is well covered by operating cash flow (1642.2%).

Interest Coverage: 2303's interest payments on its debt are well covered by EBIT (61.8x coverage).


Balance Sheet

Inventory Level: 2303 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2303's debt is covered by short term assets (assets are 25.3x debt).


Next Steps

Dividend

What is Hengxing Gold Holding's current dividend yield, its reliability and sustainability?

6.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2303's dividend (6.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 2303's dividend (6.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 2303 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2303's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), 2303'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?

2.0yrs

Average management tenure


CEO

Lydia Yang (41yo)

1.75s

Tenure

CN¥2,058,514

Compensation

Ms. Yifang Yang, also known as Lydia, is President, Chief Executive Officer and Executive Director of Hengxing Gold Holding Company Limited since June 1, 2018. 


CEO Compensation Analysis

Compensation vs Market: Lydia's total compensation ($USD290.10K) is about average for companies of similar size in the Hong Kong market ($USD300.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiping Ke
Chairman7.92yrsno data75% CN¥1.0b
Yifang Yang
President1.75yrsCN¥2.06mno data
Yu Chen
Executive Director7yrsCN¥1.95mno data
Yanjuan Lin
Finance Director4.67yrsno datano data
Lee Siu Yung
Legal Counsel1.17yrsno datano data
Jiaqi Ke
Executive Director1.75yrsno datano data
Wai Ling Wong
Company Secretary6.58yrsno datano data

2.0yrs

Average Tenure

40yo

Average Age

Experienced Management: 2303's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiping Ke
Chairman7.92yrsno data75% CN¥1.0b
Yifang Yang
President1.75yrsCN¥2.06mno data
Yu Chen
Executive Director7yrsCN¥1.95mno data
Jiaqi Ke
Executive Director1.75yrsno datano data
Tie Min Sun
Independent Non-Executive Director5.92yrsCN¥131.00kno data
Yan Ki Wong
Independent Non-Executive Director7yrsCN¥131.00kno data
Guocheng Pan
Independent Non-Executive Director1.75yrsCN¥77.00kno data
Lau Ho Fook
Non-Executive Director7yrsCN¥226.00kno data
Xizheng Ke
Chairman of Jinchuan Mining4.42yrsno datano data

5.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 2303's board of directors are considered experienced (5.9 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

Hengxing Gold Holding Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hengxing Gold Holding Company Limited
  • Ticker: 2303
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Gold
  • Sector: Materials
  • Market Cap: HK$1.378b
  • Shares outstanding: 925.00m
  • Website: https://www.hxgoldholding.com

Number of Employees


Location

  • Hengxing Gold Holding Company Limited
  • Suite 3202
  • 32/F, Central Plaza
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2303SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2014
119DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2014

Biography

Hengxing Gold Holding Company Limited, an investment holding company, engages in the mining and processing of gold; and sale of processed gold products in the People’s Republic of China. It operates through two segments, Gold Mining and International Trading. The company holds interest in the Gold Mountain Mine, which includes the Yelmand prospect, the Mayituobi prospect, the Jinxi-Balake prospect, the Kuangou prospect, and the Lion prospect, located in Yining County of Xinjiang. It also trades in palm oil and iron ore. The company was incorporated in 2012 and is headquartered in Wan Chai, Hong Kong. Hengxing Gold Holding Company Limited is a subsidiary of Gold Virtue Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:27
End of Day Share Price2020/03/27 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.