SEHK:8258

Stock Analysis Report

Shaanxi Northwest New Technology Industry

Executive Summary

Shaanxi Northwest New Technology Industry Company Limited engages in the research and development, production, and sale of environmental protection energy material and products, fuel oil additives, petroleum processing aids, and oil field chemicals in the People’s Republic of China.

Rewards

Trading at 32.7% below its fair value

Earnings grew by 95.4% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$117M)



Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

How has Shaanxi Northwest New Technology Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8258 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8258

-0.4%

HK Chemicals

1.5%

HK Market


1 Year Return

-49.4%

8258

-20.9%

HK Chemicals

5.9%

HK Market

Return vs Industry: 8258 underperformed the Hong Kong Chemicals industry which returned -20.8% over the past year.

Return vs Market: 8258 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8258IndustryMarket
7 Day0%-0.4%1.5%
30 Day7.1%2.4%4.2%
90 Day-2.2%2.0%8.7%
1 Year-49.4%-49.4%-15.1%-20.9%9.8%5.9%
3 Year-67.3%-67.3%-24.1%-36.0%27.7%14.7%
5 Year-56.1%-56.1%-6.9%-22.9%21.4%1.2%

Price Volatility Vs. Market

How volatile is Shaanxi Northwest New Technology Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shaanxi Northwest New Technology Industry undervalued compared to its fair value and its price relative to the market?

35.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8258 (HK$0.09) is trading below our estimate of fair value (HK$0.13)

Significantly Below Fair Value: 8258 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8258 is poor value based on its PE Ratio (7x) compared to the Chemicals industry average (6.8x).

PE vs Market: 8258 is good value based on its PE Ratio (7x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8258's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8258 is good value based on its PB Ratio (0.7x) compared to the HK Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Shaanxi Northwest New Technology Industry forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

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 Shaanxi Northwest New Technology Industry 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 Shaanxi Northwest New Technology Industry performed over the past 5 years?

61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8258 has high quality earnings.

Growing Profit Margin: 8258's current net profit margins (34.2%) are higher than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: 8258 has become profitable over the past 5 years, growing earnings by 61.3% per year.

Accelerating Growth: 8258's earnings growth over the past year (95.4%) exceeds its 5-year average (61.3% per year).

Earnings vs Industry: 8258 earnings growth over the past year (95.4%) exceeded the Chemicals industry 21.4%.


Return on Equity

High ROE: 8258's Return on Equity (8.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shaanxi Northwest New Technology Industry's financial position?


Financial Position Analysis

Short Term Liabilities: 8258's short term assets (CN¥138.9M) exceed its short term liabilities (CN¥11.3M).

Long Term Liabilities: 8258 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 8258's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: 8258's debt to equity ratio has increased from 1.5% to 1.9% over the past 5 years.

Debt Coverage: 8258's debt is well covered by operating cash flow (282.2%).

Interest Coverage: 8258 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8258 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8258's debt is covered by short term assets (assets are 44.9x debt).


Next Steps

Dividend

What is Shaanxi Northwest New Technology Industry's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.0%industryaverage8.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8258's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8258'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 8258's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8258's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8258's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Shaanxi Northwest New Technology Industry's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average board tenure


CEO

Cong Wang (61yo)

13.6yrs

Tenure

CN¥128,000

Compensation

Mr. Wang Cong has been President of Shaanxi Northwest New Technology Industry Company Ltd. since June 2006. Mr. Wang serves as the Chairman of Shaanxi Northwest New Technology Industry Company Limited. He  ...


CEO Compensation Analysis

Compensation vs Market: Cong's total compensation ($USD18.58K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

8.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 8258's board of directors are considered experienced (8 years average tenure).


Insider Trading

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 10.8%.


Management Team

  • Yuanyang Zheng (79yo)

    Deputy Chief Engineer

    • Jun Feng (46yo)

      Manager of Human Resources Department & Administration Department

      • Feng Wang (59yo)

        VP, Compliance Officer

        • Tenure: 16.6yrs
        • Compensation: CN¥68.00k
      • Cong Wang (61yo)

        Chairman & President

        • Tenure: 13.6yrs
        • Compensation: CN¥128.00k
      • Xi Yan (52yo)

        Chief Engineer

        • Lingling Tian (58yo)

          VP & Executive Director

          • Tenure: 8yrs
          • Compensation: CN¥68.00k
        • Yinglin Zeng (67yo)

          Chairman of the Supervisory Committee

          • Compensation: CN¥68.00k
        • Yan Xu (43yo)

          Head of the President Office

          • Jian Zhou (48yo)

            Executive Director

            • Tenure: 1.8yrs
            • Compensation: CN¥37.00k
          • Man Leung

            Company Secretary

            • Tenure: 5.2yrs

          Board Members

          • Gangjian Li (55yo)

            Independent Non-Executive Director

            • Tenure: 20yrs
            • Compensation: CN¥50.00k
          • Feng Wang (59yo)

            VP, Compliance Officer

            • Tenure: 16.6yrs
            • Compensation: CN¥68.00k
          • Cong Wang (61yo)

            Chairman & President

            • Tenure: 13.6yrs
            • Compensation: CN¥128.00k
          • Xiaoping Zhang (47yo)

            Independent Supervisor

            • Tenure: 13.6yrs
            • Compensation: CN¥29.00k
          • Boxiang Zhao (74yo)

            Independent Non-Executive Director

            • Tenure: 8yrs
            • Compensation: CN¥50.00k
          • Lingling Tian (58yo)

            VP & Executive Director

            • Tenure: 8yrs
            • Compensation: CN¥68.00k
          • Yinglin Zeng (67yo)

            Chairman of the Supervisory Committee

            • Compensation: CN¥68.00k
          • Xiaoning Zhao (64yo)

            Independent Non-Executive Director

            • Tenure: 6.8yrs
            • Compensation: CN¥50.00k
          • Jian Zhou (48yo)

            Executive Director

            • Tenure: 1.8yrs
            • Compensation: CN¥37.00k
          • Dandan Shi (40yo)

            Non-Executive Director

            • Tenure: 1.8yrs
            • Compensation: CN¥37.00k

          Company Information

          Shaanxi Northwest New Technology Industry Company Limited's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Shaanxi Northwest New Technology Industry Company Limited
          • Ticker: 8258
          • Exchange: SEHK
          • Founded: 1999
          • Industry: Specialty Chemicals
          • Sector: Materials
          • Market Cap: HK$117.450m
          • Shares outstanding: 1.31b
          • Website: https://null

          Number of Employees


          Location

          • Shaanxi Northwest New Technology Industry Company Limited
          • No. 6, Gao Xin Yi Road
          • Xi’an National Hi-tech Industrial Development Zone
          • Xi'an
          • Shaanxi Province
          • China

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          8258SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 2003

          Biography

          Shaanxi Northwest New Technology Industry Company Limited engages in the research and development, production, and sale of environmental protection energy material and products, fuel oil additives, petroleum processing aids, and oil field chemicals in the People’s Republic of China. The company operates through Unleaded Gasoline Additives and Mercaptoacetic Acid Isooctyl segments. Its principal products include FA-90 unleaded gasoline additive and 2-ethylhexyl thioglycolate (thiol products). The company was incorporated in 1999 and is based in Xi'an, the People's Republic of China. Shaanxi Northwest New Technology Industry Company Limited is a subsidiary of Xi’an Northwest Industry (Group) Company Limited. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/17 12:39
          End of Day Share Price2020/01/16 00:00
          Earnings2019/09/30
          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.