SEHK:3323

Stock Analysis Report

China National Building Material

Executive Summary

China National Building Material Company Limited, an investment holding company, engages in the cement, lightweight building material, glass fiber, composite material, and engineering service businesses.

Snowflake

Fundamentals

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has China National Building Material's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

SEHK:3323

2.7%

HK Basic Materials

2.5%

HK Market


1 Year Return

13.4%

SEHK:3323

7.5%

HK Basic Materials

-3.9%

HK Market

3323 outperformed the Basic Materials industry which returned 7.5% over the past year.

3323 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

3323IndustryMarket
7 Day1.7%2.7%2.5%
30 Day15.7%12.9%7.6%
90 Day14.4%5.3%0.8%
1 Year17.3%13.4%12.3%7.5%-0.4%-3.9%
3 Year126.7%113.9%115.6%98.1%19.6%7.6%
5 Year10.4%0.4%62.7%43.6%17.7%-1.7%

Price Volatility Vs. Market

How volatile is China National Building Material's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China National Building Material undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China National Building Material's share price is below the future cash flow value, and at a moderate discount (> 20%).

China National Building Material's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China National Building Material is good value based on earnings compared to the HK Basic Materials industry average.

China National Building Material is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China National Building Material earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

China National Building Material is good value based on assets compared to the HK Basic Materials industry average.


Next Steps

Future Growth

How is China National Building Material expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China National Building Material's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

China National Building Material's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

China National Building Material's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China National Building Material's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China National Building Material's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China National Building Material is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has China National Building Material performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China National Building Material's year on year earnings growth rate has been positive over the past 5 years.

China National Building Material's 1-year earnings growth exceeds its 5-year average (37.6% vs 18%)

China National Building Material's earnings growth has not exceeded the HK Basic Materials industry average in the past year (37.6% vs 45.5%).


Return on Equity

China National Building Material has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China National Building Material used its assets less efficiently than the HK Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

China National Building Material has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China National Building Material's financial position?


Financial Position Analysis

China National Building Material's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China National Building Material's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China National Building Material's level of debt (137.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (328.4% vs 137.1% today).

Debt is well covered by operating cash flow (25.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is China National Building Material's current dividend yield, its reliability and sustainability?

3.59%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China National Building Material's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

China National Building Material's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

What is the CEO of China National Building Material's salary, the management and board of directors tenure and is there insider trading?

11.6yrs

Average management tenure


CEO

China National Building Material has no CEO, or we have no data on them.


Management Age and Tenure

11.6yrs

Average Tenure

54yo

Average Age

The average tenure for the China National Building Material management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

55yo

Average Age

The tenure for the China National Building Material board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥10,772,95805 Aug 19
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares1,532,295
Max PriceCN¥7.03
SellCN¥93,411,37209 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
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Shares12,882,733
Max PriceCN¥7.25
BuyCN¥376,609,83105 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares53,778,386
Max PriceCN¥7.00
SellCN¥19,743,66311 Jun 19
BlackRock, Inc.
EntityCompany
Shares3,354,000
Max PriceCN¥5.89
SellCN¥205,038,26925 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares33,943,367
Max PriceCN¥6.04
BuyCN¥164,944,07121 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares27,385,238
Max PriceCN¥6.02
BuyCN¥13,914,02902 Jan 19
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares2,673,000
Max PriceCN¥5.21
SellCN¥7,516,59502 Jan 19
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares1,444,000
Max PriceCN¥5.21
BuyCN¥7,558,95231 Dec 18
Citigroup Inc.,Banking and Securities Investments
EntityCompany
Shares1,462,420
Max PriceCN¥5.17

Ownership Breakdown


Management Team

  • Susan Lo (61yo)

    Joint Company Secretary

    • Tenure: 0yrs
  • Shou Peng (59yo)

    President & Executive Director

    • Tenure: 13.3yrs
    • Compensation: CN¥1.85m
  • Jianglin Cao (53yo)

    Chairman

    • Tenure: 1.3yrs
  • Hong Pei (46yo)

    Chief Accountant

    • Tenure: 0yrs
  • Xingtai Cui (58yo)

    VP & Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥1.77m
  • Zhangli Chang (49yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥821.00k
  • Shuhong Cui (51yo)

    GM - the Administration & HR Dept and Staff Representative Supervisor

    • Tenure: 14.3yrs
    • Compensation: CN¥309.00k
  • Yanjun Yang (51yo)

    Deputy General Manager

    • Tenure: 0yrs
  • Xue’an Chen (55yo)

    CFO & VP

    • Tenure: 14.5yrs
  • Guo Yanming (57yo)

    Independent Supervisor

    • Tenure: 1.3yrs

Board Members

  • Shou Peng (59yo)

    President & Executive Director

    • Tenure: 13.3yrs
    • Compensation: CN¥1.85m
  • Jianglin Cao (53yo)

    Chairman

    • Tenure: 1.3yrs
  • Xingtai Cui (58yo)

    VP & Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥1.77m
  • Zhangli Chang (49yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥821.00k
  • Shuhong Cui (51yo)

    GM - the Administration & HR Dept and Staff Representative Supervisor

    • Tenure: 14.3yrs
    • Compensation: CN¥309.00k
  • Steve Sun (49yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥300.00k
  • Fangsheng Zhou (70yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥300.00k
  • Fengsheng Qian (55yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥300.00k
  • Xinhua Li (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 1.3yrs
  • Guo Yanming (57yo)

    Independent Supervisor

    • Tenure: 1.3yrs

Company Information

China National Building Material Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China National Building Material Company Limited
  • Ticker: 3323
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$62.249b
  • Shares outstanding: 8.43b
  • Website: https://www.cnbmltd.com

Number of Employees


Location

  • China National Building Material Company Limited
  • Guohai Plaza, Tower 2
  • 21st Floor
  • Beijing
  • 100036
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3323SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2006
D1YDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 2006
3323SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 2006
3323SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 2006
CBUM.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

China National Building Material Company Limited, an investment holding company, engages in the cement, lightweight building material, glass fiber, composite material, and engineering service businesses. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:45
End of Day Share Price2019/09/13 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.