SEHK:6885

Stock Analysis Report

Executive Summary

Henan Jinma Energy Company Limited, together with its subsidiaries, operates in the coking chemical industry in the People’s Republic of China.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Henan Jinma Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6885 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

6885

5.3%

HK Metals and Mining

0.6%

HK Market


1 Year Return

-27.3%

6885

-7.3%

HK Metals and Mining

-4.5%

HK Market

Return vs Industry: 6885 underperformed the Hong Kong Metals and Mining industry which returned -6.5% over the past year.

Return vs Market: 6885 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

6885IndustryMarket
7 Day0.6%5.3%0.6%
30 Day-3.4%-4.3%-5.2%
90 Day1.0%15.0%2.3%
1 Year-17.6%-27.3%-4.2%-7.3%-1.0%-4.5%
3 Yearn/a-8.3%-14.2%14.4%2.9%
5 Yearn/a9.8%-1.8%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Henan Jinma Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Henan Jinma Energy 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: 6885 (HK$3.12) is trading below our estimate of fair value (HK$64.11)

Significantly Below Fair Value: 6885 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6885 is good value based on its PE Ratio (1.9x) compared to the Metals and Mining industry average (10.4x).

PE vs Market: 6885 is good value based on its PE Ratio (1.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6885's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6885 is good value based on its PB Ratio (0.6x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Henan Jinma Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

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 Henan Jinma Energy 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 Henan Jinma Energy performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6885 has high quality earnings.

Growing Profit Margin: 6885's current net profit margins (9.8%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: 6885's earnings have grown significantly by 36.7% per year over the past 5 years.

Accelerating Growth: 6885's earnings growth over the past year (21.9%) is below its 5-year average (36.7% per year).

Earnings vs Industry: 6885 earnings growth over the past year (21.9%) exceeded the Metals and Mining industry -25%.


Return on Equity

High ROE: 6885's Return on Equity (32.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Henan Jinma Energy's financial position?


Financial Position Analysis

Short Term Liabilities: 6885's short term assets (CN¥2.4B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: 6885's short term assets (CN¥2.4B) exceed its long term liabilities (CN¥287.5M).


Debt to Equity History and Analysis

Debt Level: 6885's debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6885's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6885's debt is well covered by operating cash flow (122.9%).

Interest Coverage: 6885's interest payments on its debt are well covered by EBIT (23x coverage).


Balance Sheet

Inventory Level: 6885 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6885's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Henan Jinma Energy's current dividend yield, its reliability and sustainability?

16.05%

Current Dividend Yield


Dividend Yield vs Market

company16.0%marketbottom25%2.3%markettop25%6.4%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 6885's dividend (16.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6885's dividend (16.05%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6885 has been paying a dividend for less than 10 years.

Growing Dividend: 6885's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.2%), 6885's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Mingzhong Wang (56yo)

3.6yrs

Tenure

CN¥664,000

Compensation

Mr. Mingzhong Wang has been Chief Executive Officer and Executive Director of Henan Jinma Energy Company Limited since July 2016. Mr. Wang serves as General Manager of Jinrui Gas. Mr. Wang has over 20 year ...


CEO Compensation Analysis

Compensation vs Market: Mingzhong's total compensation ($USD95.11K) is below average for companies of similar size in the Hong Kong market ($USD284.67K).

Compensation vs Earnings: Mingzhong's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mingzhong Wang
CEO & Executive Director3.6yrsCN¥664.00kno data
Tianxi Li
Executive Deputy GM & Executive Director3.2yrsCN¥537.00kno data
Chiu Fai Yiu
Chairman of the Board3.6yrsno data0.27% CN¥4.5m
Jianfa Tang
CFO & Deputy GM1.9yrsno datano data
Daoqiang Jin
Chief Investment Officer & Deputy GM1.9yrsno datano data
Deming Kong
Chairman of Labor Union10.2yrsno datano data
Zhaofeng Wang
Secretary to the Board3.2yrsno datano data
Hok Leung Wong
Head of Capital Markets & Company Secretary3.1yrsno datano data

3.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 6885's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mingzhong Wang
CEO & Executive Director3.6yrsCN¥664.00kno data
Tianxi Li
Executive Deputy GM & Executive Director3.2yrsCN¥537.00kno data
Chiu Fai Yiu
Chairman of the Board3.6yrsno data0.27% CN¥4.5m
Tak Lung Wu
Independent Non-Executive Director2.4yrsCN¥241.00kno data
Yuhui Liu
Independent Non-Executive Director2.4yrsCN¥120.00kno data
Tsz Leung Wong
Chairman of the Supervisory Committee3.6yrsno datano data
Xiayu Hu
Deputy Chairman1.7yrsno datano data
Wenhua Zheng
Independent Non-Executive Director2.4yrsCN¥120.00kno data
Quanshan Qiu
Non-executive Director1.3yrsno datano data
Ting Ye
Non-Executive Director0.3yrsno datano data

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 6885's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.4%.


Top Shareholders

Company Information

Henan Jinma Energy Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Henan Jinma Energy Company Limited
  • Ticker: 6885
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Market Cap: HK$1.654b
  • Shares outstanding: 535.42m
  • Website: https://www.hnjmny.com

Number of Employees


Location

  • Henan Jinma Energy Company Limited
  • The South of West 1st Belt Road
  • Jiyuan
  • Henan Province
  • 459000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6885SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2017

Biography

Henan Jinma Energy Company Limited, together with its subsidiaries, operates in the coking chemical industry in the People’s Republic of China. Its Coke segment produces and sells coke. The company’s Refined Chemicals segment processes and sells benzene based and coal tar based refined chemicals. Its Energy Products segment processes and sells coal gas and liquefied natural gas. The company’s Trading segment trades in coal, coal mining equipment, and nonferrous materials. Henan Jinma Energy Company Limited was founded in 2003 and is based in Jiyuan, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:17
End of Day Share Price2020/02/18 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.