SEHK:2623

Stock Analysis Report

Add New Energy Investment Holdings Group

Executive Summary

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.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Add New Energy Investment Holdings Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.9%

2623

1.2%

HK Metals and Mining

2.2%

HK Market


1 Year Return

-30.4%

2623

-13.1%

HK Metals and Mining

-1.3%

HK Market

Return vs Industry: 2623 underperformed the Hong Kong Metals and Mining industry which returned -13.1% over the past year.

Return vs Market: 2623 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

2623IndustryMarket
7 Day-5.9%1.2%2.2%
30 Day-8.0%-6.9%-2.9%
90 Day-7.0%-7.5%-5.8%
1 Year-30.4%-30.4%-10.1%-13.1%2.3%-1.3%
3 Year-60.4%-60.4%-0.1%-6.9%15.6%3.9%
5 Year-93.3%-93.3%-2.5%-13.5%20.1%0.06%

Price Volatility Vs. Market

How volatile is Add New Energy Investment Holdings Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Add New Energy Investment Holdings Group undervalued based on future cash flows and its price relative to the stock market?

1.27x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate 2623's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 2623's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: 2623 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 2623 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: 2623 is overvalued based on its PB Ratio (1.3x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

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

18.8%

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.


Next Steps

Past Performance

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

3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2623 is unprofitable, but has reduced losses over the past 5 years at a rate of 3.9% 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 (-24.5%).


Return on Equity

High ROE: 2623 has a negative Return on Equity (-33.16%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2623 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2623 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 2623's short term assets (HK$197.3M) exceeds its short term liabilities (HK$60.9M)

Long Term Liabilities: 2623's short term assets (HK$197.3M) exceeds its long term liabilities (HK$137.9M)


Debt to Equity History and Analysis

Debt Level: 2623's debt to equity ratio (42.3%) is considered high

Reducing Debt: 2623's debt to equity ratio has increased from 37.3% to 42.3% over the past 5 years.


Balance Sheet

Inventory Level: 2623 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2623's debt is covered by short term assets (assets are 1.667490x debt).


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: 2623 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 2623 has sufficient cash runway for 1.392602 years if free cash flow continues to reduce at historical rates of -52.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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.


Current Payout to Shareholders

Dividend Coverage: 2623 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2623's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Add New Energy Investment Holdings Group's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Guohua Geng (49yo)

6.4yrs

Tenure

CN¥522,000

Compensation

Mr. Guohua Geng has been the Chief Executive Officer of China Zhongsheng Resources Holdings Limited since May 14, 2013. Mr. Geng served as the Chief Operating Officer of China Zhongsheng Resources Holdings ...


CEO Compensation Analysis

Compensation vs. Market: Guohua's total compensation ($USD73.64K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

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


Management Age and Tenure

7.0yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 2623's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

56yo

Average Age

Experienced Board: 2623's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: 2623 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥3,68009 Oct 19
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares40,000
Max PriceCN¥0.092
BuyCN¥21,000,56603 Oct 19
Wealthy Land Investment Group Limited
EntityCompany
Shares233,332,000
Max PriceCN¥0.09
BuyCN¥138,23805 Sep 19
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,536,000
Max PriceCN¥0.09
BuyCN¥28,44004 Sep 19
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares316,000
Max PriceCN¥0.09
BuyCN¥7,22429 Aug 19
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares80,000
Max PriceCN¥0.09
BuyCN¥102,00224 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares1,000,000
Max PriceCN¥0.10
BuyCN¥99,99823 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares1,000,000
Max PriceCN¥0.10
BuyCN¥102,00122 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares1,000,000
Max PriceCN¥0.10
BuyCN¥101,99921 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares1,000,000
Max PriceCN¥0.10
BuyCN¥101,00020 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares1,000,000
Max PriceCN¥0.10
BuyCN¥202,00617 May 19
Yunde Li
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares2,000,000
Max PriceCN¥0.10
BuyCN¥10,548,50103 Apr 19
Hongfa Holdings Limited
EntityCompany
Shares80,522,000
Max PriceCN¥0.13
BuyCN¥3,98002 Apr 19
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares40,000
Max PriceCN¥0.099
BuyCN¥38,16027 Dec 18
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares360,000
Max PriceCN¥0.11
BuyCN¥78,58929 Nov 18
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares690,000
Max PriceCN¥0.11
BuyCN¥402,85429 Nov 18
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares3,500,000
Max PriceCN¥0.12
BuyCN¥171,80826 Nov 18
Guohua Geng
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,494,000
Max PriceCN¥0.11

Ownership Breakdown


Management Team

  • Weiguo Lang (60yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥213.00k
  • Stella Chan (48yo)

    Company Secretary

    • Tenure: 7.5yrs
  • Yunde Li (52yo)

    Executive Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: CN¥555.00k
  • Guohua Geng (49yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥522.00k
  • Michele Chan (38yo)

    Chief Financial Officer

    • Tenure: 7.5yrs
  • Zhou Shifeng (46yo)

    Financial Controller

    • Tenure: 3.2yrs

Board Members

  • Weiguo Lang (60yo)

    Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥213.00k
  • Yunde Li (52yo)

    Executive Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: CN¥555.00k
  • Guohua Geng (49yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥522.00k
  • Xiaoyang Li (63yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥101.00k
  • Jingsheng Zhang (73yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥101.00k
  • Nga Leung (37yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Add New Energy Investment Holdings Group Limited's company bio, 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
  • Market Cap: HK$428.626m
  • Shares outstanding: 5.36b
  • Website: https://www.addnewenergy.com.hk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2623SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2012
Z4RNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2012

Biography

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. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 13:10
End of Day Share Price2019/10/11 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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)