China Rare Earth Holdings (SEHK:769) - Share price, News & Analysis

Q: What is the Fair Price of 769 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

769 (HK$0.5) is trading above our estimate of [[fair value]] (HK$0.24)

769 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

769 Stock Overview

Rewards

Earnings have grown 68.8% per year over the past 5 years

Risk Analysis

No risks detected for 769 from our risk checks.

China Rare Earth Holdings Competitors

Ximei Resources Holding

SEHK:9936

HK$1.7b

China Graphite Group

SEHK:2237

HK$1.2b

Xinjiang Xinxin Mining Industry

SEHK:3833

HK$2.7b

South Manganese Investment

SEHK:1091

HK$3.3b

Price History & Performance

Summary of all time highs, changes and price drops for China Rare Earth Holdings
Historical stock prices
Current Share Price	HK$0.50
52 Week High	HK$1.04
52 Week Low	HK$0.48
Beta	0.32
1 Month Change	-12.28%
3 Month Change	-13.79%
1 Year Change	-46.81%
3 Year Change	-1.96%
5 Year Change	-10.71%
Change since IPO	-15.25%

Recent News & Updates

May 23

Investors Will Want China Rare Earth Holdings' (HKG:769) Growth In ROCE To Persist

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Nov 05

China Rare Earth Holdings (HKG:769) Might Have The Makings Of A Multi-Bagger

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Shareholder Returns

	769	HK Metals and Mining	HK Market
7D	-2.0%	4.6%	0.3%
1Y	-46.8%	-32.2%	-21.6%

Return vs Industry: 769 underperformed the Hong Kong Metals and Mining industry which returned -33.6% over the past year.

Return vs Market: 769 underperformed the Hong Kong Market which returned -22% over the past year.

Price Volatility

Is 769's price volatile compared to industry and market?
769 volatility
769 Average Weekly Movement	5.0%
Metals and Mining Industry Average Movement	6.1%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 769 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 769's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	360	Jiang DW Jiang	https://www.creh.com.hk

China Rare Earth Holdings Limited, an investment holding company, engages in manufacturing and selling rare earth products and refractory products in the People’s Republic of China, Japan, Europe, and internationally. It offers rare earth products for use in electronic devices, computers, electronic motors, LCDs, DVDs, magnetic materials, magnetic memory chips, fiber optics, superconductors, mobile phone batteries, precision optics, and various energy-saving environmental protection products. The company also provides refractory products, such as high temperature ceramics products for use in heat-treatment facilities for the petrochemical, steel metallurgy, non-ferrous metallurgy, glass, construction material, chemical fertilizer, and ceramics industries.

China Rare Earth Holdings Fundamentals Summary

How do China Rare Earth Holdings's earnings and revenue compare to its market cap?
769 fundamental statistics
Market Cap	HK$1.17b
Earnings (TTM)	HK$24.27m
Revenue (TTM)	HK$1.21b

48.3x

P/E Ratio

1.0x

P/S Ratio

Is 769 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
769 income statement (TTM)
Revenue	HK$1.21b
Cost of Revenue	HK$1.13b
Gross Profit	HK$85.98m
Other Expenses	HK$61.71m
Earnings	HK$24.27m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.01
Gross Margin	7.09%
Net Profit Margin	2.00%
Debt/Equity Ratio	0%

How did 769 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 769 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 769?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 769. This is calculated by dividing 769's market cap by their current preferred multiple.
What is 769's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$1.17b

769 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 769's PE Ratio compare to its peers?

769 PE Ratio vs Peers

The above table shows the PE ratio for 769 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.2x
9936 Ximei Resources Holding	14x	n/a	HK$1.7b
2237 China Graphite Group	19.4x	n/a	HK$1.2b
3833 Xinjiang Xinxin Mining Industry	4.5x	n/a	HK$2.7b
1091 South Manganese Investment	7.1x	n/a	HK$3.3b
769 China Rare Earth Holdings	48.3x	n/a	HK$1.2b

Price-To-Earnings vs Peers: 769 is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the peer average (11.2x).

Price to Earnings Ratio vs Industry

How does 769's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 769 is expensive based on its Price-To-Earnings Ratio (48.3x) compared to the Hong Kong Metals and Mining industry average (5.5x)

Price to Earnings Ratio vs Fair Ratio

What is 769's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

769 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	48.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 769's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 769 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 769 (HK$0.5) is trading above our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 769 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is China Rare Earth Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.0%

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 Rare Earth Holdings 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.

Discover growth companies

Examine China Rare Earth Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
China Rare Earth Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has China Rare Earth Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

68.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 769 has high quality earnings.

Growing Profit Margin: 769's current net profit margins (2%) are higher than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: 769 has become profitable over the past 5 years, growing earnings by 68.8% per year.

Accelerating Growth: 769's earnings growth over the past year (23.2%) is below its 5-year average (68.8% per year).

Earnings vs Industry: 769 earnings growth over the past year (23.2%) underperformed the Metals and Mining industry 45%.

Return on Equity

High ROE: 769's Return on Equity (0.9%) is considered low.

Discover strong past performing companies

Financial Health

How is China Rare Earth Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 769's short term assets (HK$2.7B) exceed its short term liabilities (HK$155.4M).

Long Term Liabilities: 769's short term assets (HK$2.7B) exceed its long term liabilities (HK$1.4M).

Debt to Equity History and Analysis

Debt Level: 769 is debt free.

Reducing Debt: 769 has no debt compared to 5 years ago when its debt to equity ratio was 2.9%.

Debt Coverage: 769 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 769 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is China Rare Earth Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 769's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 769's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 769's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 769's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 769 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 769 has not reported any payouts.

Discover strong dividend paying companies

Management

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

10.6yrs

Average management tenure

CEO

Jiang DW Jiang (38 yo)

4.92yrs

Tenure

HK$213,000

Compensation

Mr. Jiang Dawei, also known as Jiang DW has been Chief Executive Officer and Executive Director of China Rare Earth Holdings Limited since September 7, 2017. Mr. Jiang joined China Rare Earth Group as an o...

CEO Compensation Analysis

Compensation vs Market: Jiang DW's total compensation ($USD27.15K) is below average for companies of similar size in the Hong Kong market ($USD246.27K).

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

Leadership Team

Experienced Management: 769's management team is seasoned and experienced (10.6 years average tenure).

Board Members

Experienced Board: 769's board of directors are seasoned and experienced ( 11 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31