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2623

Add New Energy Investment Holdings Group SEHK:2623 Stock Report

Last Price

HK$0.095

Market Cap

HK$499.1m

7D

-4.0%

1Y

-60.4%

Updated

29 Jun, 2022

Data

Company Financials
2623 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2623 Stock Overview

Add New Energy Investment Holdings Group Limited, an investment holding company, engages in the exploration, mining, and processing of iron and ilmenite ores in the People's Republic of China.

Add New Energy Investment Holdings Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Add New Energy Investment Holdings Group
Historical stock prices
Current Share PriceHK$0.095
52 Week HighHK$0.24
52 Week LowHK$0.081
Beta1.45
1 Month Change-2.06%
3 Month Change3.26%
1 Year Change-60.42%
3 Year Change-5.00%
5 Year Change2.15%
Change since IPO-61.38%

Recent News & Updates

May 30
Does Add New Energy Investment Holdings Group (HKG:2623) Have A Healthy Balance Sheet?

Does Add New Energy Investment Holdings Group (HKG:2623) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 30
Here's Why Add New Energy Investment Holdings Group (HKG:2623) Has A Meaningful Debt Burden

Here's Why Add New Energy Investment Holdings Group (HKG:2623) Has A Meaningful Debt Burden

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 09
Returns On Capital Are Showing Encouraging Signs At Add New Energy Investment Holdings Group (HKG:2623)

Returns On Capital Are Showing Encouraging Signs At Add New Energy Investment Holdings Group (HKG:2623)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Shareholder Returns

2623HK Metals and MiningHK Market
7D-4.0%-3.1%3.1%
1Y-60.4%-17.9%-21.2%

Return vs Industry: 2623 underperformed the Hong Kong Metals and Mining industry which returned -14.6% over the past year.

Return vs Market: 2623 underperformed the Hong Kong Market which returned -20.1% over the past year.

Price Volatility

Is 2623's price volatile compared to industry and market?
2623 volatility
2623 Average Weekly Movement11.6%
Metals and Mining Industry Average Movement6.7%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2623 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: 2623's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
2011152Guohua Genghttps://www.addnewenergy.com.hk

Add New Energy Investment Holdings Group Limited, an investment holding company, engages in the exploration, mining, and processing of iron and ilmenite ores in the People's Republic of China. It primarily produces and sells iron and titanium concentrates to iron pellets and steel producers. The company’s mines include Yangzhuang Iron Mine, Zhuge Shangyu Ilmenite Mine, Luxing Titanium, and Qinjiazhuang Ilmenite Mine.

Add New Energy Investment Holdings Group Fundamentals Summary

How do Add New Energy Investment Holdings Group's earnings and revenue compare to its market cap?
2623 fundamental statistics
Market CapCN¥426.60m
Earnings (TTM)-CN¥30.06m
Revenue (TTM)CN¥1.63b

0.3x

P/S Ratio

-14.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2623 income statement (TTM)
RevenueCN¥1.63b
Cost of RevenueCN¥1.60b
Gross ProfitCN¥29.61m
Other ExpensesCN¥59.67m
Earnings-CN¥30.06m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0057
Gross Margin1.81%
Net Profit Margin-1.84%
Debt/Equity Ratio62.9%

How did 2623 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 2623 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2623?

Other financial metrics that can be useful for relative valuation.

2623 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA-41.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 2623's PS Ratio compare to its peers?

2623 PS Ratio vs Peers
The above table shows the PS ratio for 2623 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.2x
1266 Xiwang Special Steel
0.02xn/aHK$544.9m
1203 GDH Guangnan (Holdings)
0.1xn/aHK$608.1m
1553 Maike Tube Industry Holdings
0.3xn/aHK$590.0m
103 Shougang Century Holdings
0.2xn/aHK$502.7m
2623 Add New Energy Investment Holdings Group
0.3xn/aHK$499.1m

Price-To-Sales vs Peers: 2623 is expensive based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.2x).


Price to Earnings Ratio vs Industry

How does 2623's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Sales vs Industry: 2623 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong Metals and Mining industry average (0.4x)


Price to Sales Ratio vs Fair Ratio

What is 2623's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2623 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 2623's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2623 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2623 (HK$0.1) is trading below our estimate of fair value (HK$2.07)

Significantly Below Fair Value: 2623 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2623's PEG Ratio to determine if it is good value.


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Future Growth

How is Add New Energy Investment Holdings Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

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 Add New Energy Investment Holdings Group 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.


Discover growth companies

  • Examine whether Add New Energy Investment Holdings Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Add New Energy Investment Holdings Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Add New Energy Investment Holdings Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


42.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2623 is currently unprofitable.

Growing Profit Margin: 2623 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2623 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.1% per year.

Accelerating Growth: Unable to compare 2623's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2623 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (45.2%).


Return on Equity

High ROE: 2623 has a negative Return on Equity (-10.47%), as it is currently unprofitable.


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Financial Health

How is Add New Energy Investment Holdings Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2623's short term assets (CN¥442.6M) exceed its short term liabilities (CN¥397.4M).

Long Term Liabilities: 2623's short term assets (CN¥442.6M) exceed its long term liabilities (CN¥21.3M).


Debt to Equity History and Analysis

Debt Level: 2623 has more cash than its total debt.

Reducing Debt: 2623's debt to equity ratio has increased from 39.8% to 62.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2623 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2623 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.2% per year.


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Dividend

What is Add New Energy Investment Holdings Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2623's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2623's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2623's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2623's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 2623 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 2623 has not reported any payouts.


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Management

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

9.6yrs

Average management tenure


CEO

Guohua Geng (51 yo)

9.08yrs

Tenure

CN¥662,000

Compensation

Mr. Guohua Geng has been the Chief Executive Officer of Add New Energy Investment Holdings Group Limited (formerly known as China Zhongsheng Resources Holdings Limited) since May 14, 2013. Mr. Geng served...


CEO Compensation Analysis

Compensation vs Market: Guohua's total compensation ($USD98.69K) is below average for companies of similar size in the Hong Kong market ($USD233.43K).

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


Leadership Team

Experienced Management: 2623's management team is seasoned and experienced (9.6 years average tenure).


Board Members

Experienced Board: 2623's board of directors are seasoned and experienced ( 10.2 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

Add New Energy Investment Holdings Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Add New Energy Investment Holdings Group Limited
  • Ticker: 2623
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: HK$499.127m
  • Shares outstanding: 5.25b
  • Website: https://www.addnewenergy.com.hk

Number of Employees


Location

  • Add New Energy Investment Holdings Group Limited
  • Tower 6
  • Suite 3105, 31/F
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.