SEHK:691

Stock Analysis Report

China Shanshui Cement Group

Executive Summary

China Shanshui Cement Group Limited manufactures and sells cement, clinker, and concrete products in the People’s Republic of China.


Snowflake Analysis

Outstanding track record and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 691 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

691

-2.0%

HK Basic Materials

-3.3%

HK Market


1 Year Return

46.1%

691

18.1%

HK Basic Materials

-9.6%

HK Market

Return vs Industry: 691 exceeded the Hong Kong Basic Materials industry which returned 15.8% over the past year.

Return vs Market: 691 exceeded the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

691IndustryMarket
7 Day2.2%-2.0%-3.3%
30 Day-3.4%0.2%-3.8%
90 Day6.4%5.8%-0.2%
1 Year46.1%46.1%23.2%18.1%-6.3%-9.6%
3 Yearn/a88.0%72.6%11.2%-0.05%
5 Year-39.2%-39.2%81.4%61.0%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Shanshui Cement 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: 691 (HK$2.82) is trading below our estimate of fair value (HK$5.94)

Significantly Below Fair Value: 691 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 691 is good value based on its PE Ratio (3.9x) compared to the Basic Materials industry average (5.4x).

PE vs Market: 691 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 691's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 691 is good value based on its PB Ratio (1x) compared to the HK Basic Materials industry average (1.1x).


Next Steps

Future Growth

How is China Shanshui Cement Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.1%

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 China Shanshui Cement Group 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 China Shanshui Cement Group performed over the past 5 years?

42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 691 has high quality earnings.

Growing Profit Margin: 691's current net profit margins (13%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: 691 has become profitable over the past 5 years, growing earnings by 42% per year.

Accelerating Growth: 691's earnings growth over the past year (89.2%) exceeds its 5-year average (42% per year).

Earnings vs Industry: 691 earnings growth over the past year (89.2%) exceeded the Basic Materials industry 30.8%.


Return on Equity

High ROE: 691's Return on Equity (24.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Shanshui Cement Group's financial position?


Financial Position Analysis

Short Term Liabilities: 691's short term assets (CN¥6.6B) do not cover its short term liabilities (CN¥11.8B).

Long Term Liabilities: 691's short term assets (CN¥6.6B) exceed its long term liabilities (CN¥4.3B).


Debt to Equity History and Analysis

Debt Level: 691's debt to equity ratio (78.3%) is considered high.

Reducing Debt: 691's debt to equity ratio has reduced from 178.6% to 78.3% over the past 5 years.


Balance Sheet

Inventory Level: 691 has a high level of physical assets or inventory.

Debt Coverage by Assets: 691's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 691 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 691 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is China Shanshui Cement Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 691's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 691's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 691's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 691's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 691 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 691's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

China Shanshui Cement Group has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Zhangli Chang
Executive Chairman1.8yrsno datano data
Ling-Ling Wu
Executive Director1.8yrsCN¥2.51mno data
Mingbo Wang
VP & Director of Shandong Shanshui1.6yrsno datano data
You-yuan Hsu
Independent Non-Executive Director1.4yrsCN¥264.00kno data
Aizhen Su
Director of Shandong Shanshui1.9yrsno datano data
Ming-Cheng Chang
Independent Non-Executive Director1.8yrsCN¥493.00kno data
Jianwei Li
Independent Non Executive Director1.8yrsCN¥493.00kno data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 691's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Company Information

China Shanshui Cement Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Shanshui Cement Group Limited
  • Ticker: 691
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$12.191b
  • Shares outstanding: 4.35b
  • Website: https://www.shanshuicement.com

Number of Employees


Location

  • China Shanshui Cement Group Limited
  • Shanshui Industrial Park
  • Gushan Town
  • Jinan
  • Shandong Province
  • 250307
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
691SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2008
C95DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2008
CCGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2008
691SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2008
691SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2008

Biography

China Shanshui Cement Group Limited manufactures and sells cement, clinker, and concrete products in the People’s Republic of China. It operates through four segments: Shandong Province, Northeastern China, Shanxi Province, and Xinjiang Region. The company is also involved in the mining, production, and sale of limestone; production and sale of concrete aggregates and building materials; installation of equipment and spare parts of cement machines; sale of coal; development and maintenance of special railway-lines, as well as wash and repair of steam locomotive; and provision of logistics services. In addition, it imports and exports cement, clinker, and related products; and provides mineral water and finance leasing services. China Shanshui Cement Group Limited was incorporated in 2006 and is headquartered in Jinan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:02
End of Day Share Price2020/02/26 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.