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

Undervalued with solid track record.

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

2.4%

6885

1.2%

HK Metals and Mining

2.9%

HK Market


1 Year Return

-22.9%

6885

-12.3%

HK Metals and Mining

0.7%

HK Market

Return vs Industry: 6885 underperformed the Hong Kong Metals and Mining industry which returned -12.3% over the past year.

Return vs Market: 6885 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

6885IndustryMarket
7 Day2.4%1.2%2.9%
30 Day0.6%-6.9%-2.5%
90 Day-11.1%-7.5%-5.4%
1 Year-15.5%-22.9%-9.2%-12.3%4.4%0.7%
3 Yearn/a0.2%-6.6%17.0%5.2%
5 Yearn/a-3.2%-14.2%20.2%0.2%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6885 (HK$3.37) is trading below our estimate of fair value (HK$70.26)

Significantly Undervalued: 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 (2x) compared to the Metals and Mining industry average (10.8x).

PE vs Market: 6885 is good value based on its PE Ratio (2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low 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 (0.7x) 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?

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6885's earnings are forecast to decline over the next 3 years (-12.6% per year).

Earnings vs Market: 6885's earnings are forecast to decline over the next 3 years (-12.6% per year).

High Growth Earnings: 6885's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 6885's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 6885's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 6885's Return on Equity is forecast to be high in 3 years time


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


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 -24.5%.


Return on Equity

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


Return on Assets

ROA vs Industry: 6885 has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 6885 has significantly improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (CN¥1.5B)

Long Term Liabilities: 6885's short term assets (2.4B) exceeds its long term liabilities (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 2.694790x debt).


Next Steps

Dividend

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

14.83%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Henan Jinma Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company14.8%marketbottom25%2.2%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 6885's dividend (14.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6885's dividend (14.83%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)

Stable Dividend: Too early to tell whether 6885's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6885's dividend payments are increasing as they only just started paying a dividend.


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

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

2.8yrs

Average management tenure


CEO

Mingzhong Wang (56yo)

3.3yrs

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: Insufficient data to establish whether Mingzhong's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

2.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 6885's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 6885's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: 3.3yrs
  • Paul Wong (66yo)

    Head of Capital Markets & Company Secretary

    • Tenure: 2.8yrs
  • Mingzhong Wang (56yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥664.00k
  • Tianxi Li (55yo)

    Executive Deputy GM & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥537.00k
  • Daoqiang Jin (62yo)

    Chief Investment Officer & Deputy GM

    • Tenure: 1.6yrs
  • Deming Kong (56yo)

    Chairman of Labor Union

    • Tenure: 9.8yrs
  • Zhaofeng Wang (42yo)

    Secretary to the Board

    • Tenure: 2.8yrs
  • Jianfa Tang (53yo)

    CFO & Deputy GM

    • Tenure: 1.6yrs

Board Members

  • Chiu Fai Yiu (51yo)

    Chairman of the Board

    • Tenure: 3.3yrs
  • Bernard Wu (54yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥241.00k
  • Yuhui Liu (49yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥120.00k
  • Tsz Leung Wong (55yo)

    Chairman of the Supervisory Committee

    • Tenure: 3.3yrs
  • Mingzhong Wang (56yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥664.00k
  • Tianxi Li (55yo)

    Executive Deputy GM & Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥537.00k
  • Xiayu Hu (57yo)

    Deputy Chairman

    • Tenure: 1.3yrs
  • Zhiming Wang (46yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Wenhua Zheng (77yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥120.00k
  • Quanshan Qiu (47yo)

    Non-executive Director

    • Tenure: 1yrs

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$1.804b
  • 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 Analysis2019/10/15 13:00
End of Day Share Price2019/10/15 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.