SEHK:3788

Stock Analysis Report

China Hanking Holdings

Executive Summary

China Hanking Holdings Limited, together with its subsidiaries, engages in the exploration, mining, processing, smelting, and marketing of mineral resources in the People's Republic of China, Indonesia, and Australia.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has China Hanking Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3788's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

3788

-4.8%

HK Metals and Mining

-4.2%

HK Market


1 Year Return

95.6%

3788

-17.1%

HK Metals and Mining

-2.6%

HK Market

Return vs Industry: 3788 exceeded the Hong Kong Metals and Mining industry which returned -17.1% over the past year.

Return vs Market: 3788 exceeded the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

3788IndustryMarket
7 Day5.3%-4.8%-4.2%
30 Day25.4%-2.0%-1.4%
90 Day42.4%-2.4%3.5%
1 Year99.6%95.6%-14.1%-17.1%0.9%-2.6%
3 Year134.2%97.8%-7.8%-13.4%19.6%7.6%
5 Year53.9%29.9%-10.0%-19.9%18.6%-1.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Hanking Holdings 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: 3788 (HK$1.78) is trading below our estimate of fair value (HK$7.86)

Significantly Below Fair Value: 3788 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3788 is poor value based on its PE Ratio (34.2x) compared to the Metals and Mining industry average (10.6x).

PE vs Market: 3788 is poor value based on its PE Ratio (34.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3788's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3788 is overvalued based on its PB Ratio (4.7x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is China Hanking Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3788's earnings are forecast to decline over the next 3 years (-7.5% per year).

Earnings vs Market: 3788's earnings are forecast to decline over the next 3 years (-7.5% per year).

High Growth Earnings: 3788's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 3788's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 3788's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3788's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Hanking Holdings performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3788 has large one-off items impacting its financial results.

Growing Profit Margin: 3788's current net profit margins (8.5%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: 3788's earnings have grown significantly by 33.8% per year over the past 5 years.

Accelerating Growth: 3788's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3788 had negative earnings growth (-72.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-26.3%).


Return on Equity

High ROE: 3788's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Hanking Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3788's short term assets (CN¥1.8B) do not cover its short term liabilities (CN¥2.6B)

Long Term Liabilities: 3788's short term assets (1.8B) exceeds its long term liabilities (41.5M)


Debt to Equity History and Analysis

Debt Level: 3788's debt to equity ratio (184.3%) is considered high

Reducing Debt: 3788's debt to equity ratio has increased from 122.2% to 184.3% over the past 5 years.

Debt Coverage: 3788's debt is well covered by operating cash flow (81.7%).

Interest Coverage: 3788's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 3788 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3788's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is China Hanking Holdings's current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.3%markettop25%6.4%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 3788's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3788's dividend (1.1%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


Stability and Growth of Payments

Stable Dividend: 3788 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 3788 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 3788 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3788'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 China Hanking Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Jiye Yang (41yo)

1.7yrs

Tenure

CN¥2,024,000

Compensation

Mr. Yang Jiye is a Non-Executive Director at Primary Gold Limited since April 10, 2018. Mr. Yang has been the Executive Chairman of China Hanking Holdings Limited since March 18, 2016. He serves as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Jiye's total compensation ($USD288.82K) is about average for companies of similar size in the Hong Kong market ($USD327.74K).

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


Management Age and Tenure

1.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 3788's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

7.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 3788's board of directors are considered experienced (7.8 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.


Ownership Breakdown

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


Management Team

  • Mark Qiu (56yo)

    VP & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥9.16m
  • Xuezhi Zheng (49yo)

    CFO, VP & Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥1.27m
  • Jinfu Huang (62yo)

    VP & President of Aoniu Mining

    • Tenure: 2.2yrs
    • Compensation: CN¥63.00k
  • Jiye Yang (41yo)

    Chairman of the Board

    • Tenure: 1.7yrs
    • Compensation: CN¥2.02m
  • Lai Shan So

    Joint Company Secretary

    • Tenure: 1.3yrs
  • Jing Zhang

    Joint Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Mark Qiu (56yo)

    VP & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥9.16m
  • Kenneth Lee (51yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥171.00k
  • Xuezhi Zheng (49yo)

    CFO, VP & Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥1.27m
  • Zhuo Xia (53yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: CN¥1.05m
  • Jiye Yang (41yo)

    Chairman of the Board

    • Tenure: 1.7yrs
    • Compensation: CN¥2.02m
  • Anjian Wang (65yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥171.00k
  • Ping Wang (48yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: CN¥214.00k
  • Qingshan Ma (40yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥156.00k

Company Information

China Hanking Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Hanking Holdings Limited
  • Ticker: 3788
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$3.240b
  • Shares outstanding: 1.82b
  • Website: https://www.hankingmining.com

Number of Employees


Location

  • China Hanking Holdings Limited
  • Hanking Tower
  • 22nd Floor
  • Shenyang
  • Liaoning Province
  • 110016
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3788SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2011
6CHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2011

Biography

China Hanking Holdings Limited, together with its subsidiaries, engages in the exploration, mining, processing, smelting, and marketing of mineral resources in the People's Republic of China, Indonesia, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:49
End of Day Share Price2019/11/15 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.