SEHK:581

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China Oriental Group

Executive Summary

China Oriental Group Company Limited, an investment holding company, manufactures and sells iron and steel products for downstream steel manufacturers in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 581's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

581

-1.8%

HK Metals and Mining

-0.7%

HK Market


1 Year Return

-34.7%

581

8.9%

HK Metals and Mining

0.5%

HK Market

Return vs Industry: 581 underperformed the Hong Kong Metals and Mining industry which returned 8.5% over the past year.

Return vs Market: 581 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

581IndustryMarket
7 Day-3.8%-1.8%-0.7%
30 Day1.7%7.9%5.8%
90 Day-20.1%2.4%1.4%
1 Year-29.6%-34.7%11.5%8.9%4.6%0.5%
3 Year-61.0%-69.7%-28.2%-33.9%-6.8%-16.9%
5 Yearn/a29.5%16.9%15.8%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Oriental Group 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: 581 (HK$1.79) is trading below our estimate of fair value (HK$19.55)

Significantly Below Fair Value: 581 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 581 is good value based on its PE Ratio (2.5x) compared to the HK Metals and Mining industry average (9.5x).

PE vs Market: 581 is good value based on its PE Ratio (2.5x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 581 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 581 is good value based on its PB Ratio (0.3x) compared to the HK Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is China Oriental Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 581's forecast earnings growth (6.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 581's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (22.1% per year).

High Growth Earnings: 581's earnings are forecast to grow, but not significantly.

Revenue vs Market: 581's revenue (1.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 581's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 581's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has China Oriental Group performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 581 has a high level of non-cash earnings.

Growing Profit Margin: 581's current net profit margins (5.9%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 581's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: 581's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 581 had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (-11.8%).


Return on Equity

High ROE: 581's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is China Oriental Group's financial position?


Financial Position Analysis

Short Term Liabilities: 581's short term assets (CN¥25.5B) exceed its short term liabilities (CN¥19.7B).

Long Term Liabilities: 581's short term assets (CN¥25.5B) exceed its long term liabilities (CN¥3.2B).


Debt to Equity History and Analysis

Debt Level: 581's debt to equity ratio (61.2%) is considered high.

Reducing Debt: 581's debt to equity ratio has reduced from 67.8% to 61.2% over the past 5 years.

Debt Coverage: 581's debt is not well covered by operating cash flow (4%).

Interest Coverage: 581 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China Oriental Group current dividend yield, its reliability and sustainability?

8.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 581's dividend (8.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 581's dividend (8.83%) is in the top 25% of dividend payers in the Hong Kong market (6.96%)


Stability and Growth of Payments

Stable Dividend: 581's dividend payments have been volatile in the past 10 years.

Growing Dividend: 581's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.5%), 581's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 581's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Jingyuan Han (63 yo)

16.92yrs

Tenure

CN¥10,755,000

Compensation

Mr. Jingyuan Han has been the Chairman and Chief Executive Officer of China Oriental Group Co. Ltd. since November 13, 2003. Mr. Han serves as the Chairman of Hebei Jinxi Iron and Steel Group Company (form ...


CEO Compensation Analysis

Compensation vs Market: Jingyuan's total compensation ($USD1.60M) is above average for companies of similar size in the Hong Kong market ($USD474.69K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jingyuan Han
Chairman & CEO16.92yrsCN¥10.76m2.34%
CN¥ 158.3m
Li Han
CFO, Deputy GM & Executive Director8.67yrsCN¥2.50m0.15%
CN¥ 9.8m
Jun Zhu
COO, Executive Deputy GM & Executive Director16.83yrsCN¥3.56m0.27%
CN¥ 18.6m
Xiaoling Shen
Executive Director15.25yrsCN¥2.14m0.27%
CN¥ 18.6m
Sanjay Sharma
Executive Director1.08yrsCN¥94.00kno data
Lifeng Yu
Deputy Chairman of Legal Representative & GM of Jinxi Limitedno datano datano data
Pak Kan Lam
Financial Controller & Company Secretary4.83yrsno datano data
Jianshui Yu
GM of Hebei Jinxi Iron & Steel Group Special Steel Company Limitedno dataCN¥488.00kno data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: 581's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jingyuan Han
Chairman & CEO16.92yrsCN¥10.76m2.34%
CN¥ 158.3m
Li Han
CFO, Deputy GM & Executive Director8.67yrsCN¥2.50m0.15%
CN¥ 9.8m
Jun Zhu
COO, Executive Deputy GM & Executive Director16.83yrsCN¥3.56m0.27%
CN¥ 18.6m
Xiaoling Shen
Executive Director15.25yrsCN¥2.14m0.27%
CN¥ 18.6m
Sanjay Sharma
Executive Director1.08yrsCN¥94.00kno data
Man Chung Wong
Independent Non-Executive Director16.17yrsCN¥709.00kno data
Hao Zhu
Non-Executive Director12.92yrsCN¥725.00kno data
Ondra Otradovec
Non-Executive Director5.75yrsCN¥354.00kno data
Tianyi Wang
Independent Non-Executive Director8.67yrsCN¥354.00kno data
Cho Che Tse
Independent Non-Executive Director0.92yrCN¥53.00kno data
Bing Wang
Independent Non-Executive Director4.25yrsCN¥354.00kno data

8.7yrs

Average Tenure

55yo

Average Age

Experienced Board: 581's board of directors are considered experienced (8.7 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

China Oriental Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Oriental Group Company Limited
  • Ticker: 581
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$6.775b
  • Shares outstanding: 3.72b
  • Website: https://www.chinaorientalgroup.com

Number of Employees


Location

  • China Oriental Group Company Limited
  • Great Eagle Centre
  • 9th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUGC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
581SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2004
ORGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
581SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2004
581SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2004
CUGC.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 2008

Biography

China Oriental Group Company Limited, an investment holding company, manufactures and sells iron and steel products for downstream steel manufacturers in the People’s Republic of China. The company operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:34
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.