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

Fundamentals

Outstanding track record with excellent balance sheet.

Risks

  • Henan Jinma Energy has significant price volatility in the past 3 months.
  • Henan Jinma Energy is not covered by any analysts.

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


Market Performance


7 Day Return

2.6%

SEHK:6885

0.5%

HK Metals and Mining

2.2%

HK Market


1 Year Return

-26.3%

SEHK:6885

-19.8%

HK Metals and Mining

-11.1%

HK Market

6885 underperformed the Metals and Mining industry which returned -20.1% over the past year.

6885 underperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

6885IndustryMarket
7 Day2.6%0.5%2.2%
30 Day-4.0%-8.9%-7.3%
90 Day-13.9%-4.9%-4.8%
1 Year-18.2%-26.3%-17.0%-19.8%-7.9%-11.1%
3 Yearn/a-0.8%-3.5%15.5%4.1%
5 Yearn/a-5.0%-15.3%10.0%-8.2%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Henan Jinma Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).

Henan Jinma Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Henan Jinma Energy is good value based on earnings compared to the HK Metals and Mining industry average.

Henan Jinma Energy is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Henan Jinma Energy, we can't assess if its growth is good value.


Price Based on Value of Assets

Henan Jinma Energy is overvalued based on assets compared to the HK Metals and Mining industry average.


Next Steps

Future Growth

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

-12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Henan Jinma Energy is high growth as no revenue estimate data is available.

Henan Jinma Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Henan Jinma Energy's revenue growth to the Hong Kong market average as no estimate data is available.

Henan Jinma Energy's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Henan Jinma Energy'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

Unable to establish if Henan Jinma Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

42.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Henan Jinma Energy has delivered over 20% year on year earnings growth in the past 5 years.

Henan Jinma Energy's 1-year earnings growth exceeds its 5-year average (56.4% vs 42.8%)

Henan Jinma Energy's earnings growth has exceeded the HK Metals and Mining industry average in the past year (56.4% vs 1.8%).


Return on Equity

Henan Jinma Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Henan Jinma Energy used its assets more efficiently than the HK Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

Henan Jinma Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Henan Jinma Energy's financial position?


Financial Position Analysis

Henan Jinma Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Henan Jinma Energy's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Henan Jinma Energy's level of debt (35.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Henan Jinma Energy's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (63.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 27x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

12.41%

Current Dividend Yield


Dividend Yield and Payments Analysis

Henan Jinma Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Henan Jinma Energy's dividend is above the markets top 25% of dividend payers in Hong Kong (6.12%).

It is too early to tell whether Henan Jinma Energy has stable dividend payments.

Henan Jinma Energy only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Henan Jinma Energy's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Mingzhong Wang (56yo)

3.1yrs

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

Mingzhong's remuneration is lower than average for companies of similar size in Hong Kong.

Mingzhong's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

55.5yo

Average Age

The tenure for the Henan Jinma Energy management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Henan Jinma Energy board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Henan Jinma Energy individual insiders in the past 3 months.


Recent Insider Transactions

BuyCN¥635,70117 Jun 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares163,000
Max PriceCN¥3.90
BuyCN¥142,73114 Jun 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares37,000
Max PriceCN¥3.86
BuyCN¥238,60017 Apr 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares50,000
Max PriceCN¥4.77
SellCN¥4,777,16110 Apr 19
Suhua Huang
EntityIndividual
Shares994,000
Max PriceCN¥4.81
SellCN¥1,968,37101 Apr 19
Suhua Huang
EntityIndividual
Shares410,000
Max PriceCN¥4.80
BuyCN¥489,85021 Mar 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares101,000
Max PriceCN¥4.85
BuyCN¥130,95020 Mar 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares27,000
Max PriceCN¥4.85
BuyCN¥349,20020 Mar 19
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares72,000
Max PriceCN¥4.85
SellCN¥96,06126 Nov 18
ICBC International Asset Management Limited
EntityCompany
Shares22,000
Max PriceCN¥4.37
BuyCN¥8,20031 Oct 18
Chiu Fai Yiu
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,000
Max PriceCN¥4.10

Ownership Breakdown


Management Team

  • Chiu Fai Yiu (51yo)

    Chairman of the Board

    • Tenure: 3.1yrs
  • Paul Wong (66yo)

    Head of Capital Markets & Company Secretary

    • Tenure: 2.6yrs
  • Mingzhong Wang (56yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥664.00k
  • Tianxi Li (55yo)

    Executive Deputy GM & Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥537.00k
  • Daoqiang Jin (62yo)

    Chief Investment Officer & Deputy GM

    • Tenure: 1.4yrs
  • Deming Kong (56yo)

    Chairman of Labor Union

    • Tenure: 9.7yrs
  • Zhaofeng Wang (42yo)

    Secretary to the Board

    • Tenure: 2.7yrs
  • Jianfa Tang (53yo)

    CFO & Deputy GM

    • Tenure: 1.4yrs

Board Members

  • Chiu Fai Yiu (51yo)

    Chairman of the Board

    • Tenure: 3.1yrs
  • Bernard Wu (54yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥241.00k
  • Yuhui Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥120.00k
  • Tsz Leung Wong (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 3.1yrs
  • Mingzhong Wang (56yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥664.00k
  • Tianxi Li (55yo)

    Executive Deputy GM & Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥537.00k
  • Xiayu Hu (57yo)

    Deputy Chairman

    • Tenure: 1.2yrs
  • Zhiming Wang (46yo)

    Non-Executive Director

    • Tenure: 3.1yrs
  • Wenhua Zheng (77yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: CN¥120.00k
  • Quanshan Qiu (47yo)

    Non-executive Director

    • Tenure: 0.8yrs

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$1.863b
  • 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 Refin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:58
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
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.