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.

Snowflake

Fundamentals

Excellent balance sheet with acceptable 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


Market Performance


7 Day Return

-2.1%

8258

1.0%

HK Chemicals

3.1%

HK Market


1 Year Return

-42.9%

8258

-28.5%

HK Chemicals

0.5%

HK Market

Return vs Industry: 8258 underperformed the Hong Kong Chemicals industry which returned -28.5% over the past year.

Return vs Market: 8258 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

8258IndustryMarket
7 Day-2.1%1.0%3.1%
30 Day-27.6%-6.9%-1.8%
90 Day-16.4%-14.7%-4.8%
1 Year-42.9%-42.9%-23.1%-28.5%4.1%0.5%
3 Year-68.3%-68.3%-15.0%-28.1%15.8%4.2%
5 Year-58.2%-58.2%-11.7%-27.5%18.9%-0.9%

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?

8.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 8258 (HK$0.09) is trading above our estimate of fair value (HK$0.01)

Significantly Undervalued: 8258 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8258 is poor value based on its PE Ratio (8.5x) compared to the Chemicals industry average (7x).

PE vs Market: 8258 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8258's forecast earnings growth (18.3% per year) is above the savings rate (2%).

Earnings vs Market: 8258's earnings (18.3% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 8258's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 8258's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8258'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 8258's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

72.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8258 has become profitable over the past 5 years, growing earnings by 72.8% per year.

Accelerating Growth: 8258's earnings growth over the past year (48.6%) is below its 5-year average (72.8% per year).

Earnings vs Industry: 8258 earnings growth over the past year (48.6%) exceeded the Chemicals industry 17.6%.


Return on Equity

High ROE: 8258's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: 8258's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: 8258 has significantly improved its Return on Capital Employed over the past 3 years.


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) exceeds 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 0.01% 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 44.862720x 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%2.3%markettop25%6.3%industryaverage8.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

7.8yrs

Average board tenure


CEO

Cong Wang (61yo)

13.3yrs

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 ($USD18.05K) is too low to compare against companies of similar size in the Hong Kong market ($USD212.13K).

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


Board Age and Tenure

7.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 8258's board of directors are considered experienced (7.8 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


Management Team

  • Yuanyang Zheng (79yo)

    Deputy Chief Engineer

    • Tenure: 0yrs
  • Jun Feng (46yo)

    Manager of Human Resources Department & Administration Department

    • Tenure: 0yrs
  • Feng Wang (59yo)

    VP, Compliance Officer

    • Tenure: 16.3yrs
    • Compensation: CN¥68.00k
  • Cong Wang (61yo)

    Chairman & President

    • Tenure: 13.3yrs
    • Compensation: CN¥128.00k
  • Xi Yan (52yo)

    Chief Engineer

    • Tenure: 0yrs
  • Lingling Tian (58yo)

    VP & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥68.00k
  • Yinglin Zeng (67yo)

    Chairman of the Supervisory Committee

    • Tenure: 0yrs
    • Compensation: CN¥68.00k
  • Yan Xu (43yo)

    Head of the President Office

    • Tenure: 0yrs
  • Jian Zhou (48yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥37.00k
  • Man Leung

    Company Secretary

    • Tenure: 4.9yrs

Board Members

  • Gangjian Li (55yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: CN¥50.00k
  • Feng Wang (59yo)

    VP, Compliance Officer

    • Tenure: 16.3yrs
    • Compensation: CN¥68.00k
  • Cong Wang (61yo)

    Chairman & President

    • Tenure: 13.3yrs
    • Compensation: CN¥128.00k
  • Xiaoping Zhang (47yo)

    Independent Supervisor

    • Tenure: 13.3yrs
    • Compensation: CN¥29.00k
  • Boxiang Zhao (74yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥50.00k
  • Lingling Tian (58yo)

    VP & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥68.00k
  • Yinglin Zeng (67yo)

    Chairman of the Supervisory Committee

    • Tenure: 0yrs
    • Compensation: CN¥68.00k
  • Xiaoning Zhao (64yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: CN¥50.00k
  • Jian Zhou (48yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥37.00k
  • Dandan Shi (40yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • 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$120.060m
  • 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, petrole ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:40
End of Day Share Price2019/10/16 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.