SEHK:8331

Stock Analysis Report

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Executive Summary

HangKan Group Limited, an investment holding company, engages in the bentonite mining, and production and sale of drilling mud and pelletizing clay in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8331's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.9%

8331

-7.6%

HK Metals and Mining

0.8%

HK Market


1 Year Return

0%

8331

4.3%

HK Metals and Mining

6.9%

HK Market

Return vs Industry: 8331 underperformed the Hong Kong Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: 8331 underperformed the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

8331IndustryMarket
7 Day-6.9%-7.6%0.8%
30 Day98.5%-1.5%-0.5%
90 Day110.9%24.1%9.8%
1 Year0%0%7.0%4.3%11.3%6.9%
3 Year-91.3%-91.3%-23.6%-28.5%3.3%-7.7%
5 Yearn/a23.2%10.0%22.6%1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HangKan Group undervalued compared to its fair value and its price relative to the market?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8331 (HK$0.14) is trading below our estimate of fair value (HK$0.21)

Significantly Below Fair Value: 8331 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8331 is poor value based on its PE Ratio (21.9x) compared to the HK Metals and Mining industry average (10.3x).

PE vs Market: 8331 is poor value based on its PE Ratio (21.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8331's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8331 is overvalued based on its PB Ratio (1x) compared to the HK Metals and Mining industry average (0.6x).


Next Steps

Future Growth

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

26.4%

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 HangKan 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 HangKan Group performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8331 has high quality earnings.

Growing Profit Margin: 8331 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8331 has become profitable over the past 5 years, growing earnings by -25.3% per year.

Accelerating Growth: 8331 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8331 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-22.6%).


Return on Equity

High ROE: 8331's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is HangKan Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8331's short term assets (CN¥70.6M) exceed its short term liabilities (CN¥20.1M).

Long Term Liabilities: 8331's short term assets (CN¥70.6M) exceed its long term liabilities (CN¥8.7M).


Debt to Equity History and Analysis

Debt Level: 8331 is debt free.

Reducing Debt: 8331 has no debt compared to 5 years ago when its debt to equity ratio was 10.7%.

Debt Coverage: 8331 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8331 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is HangKan Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8331's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8331'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 8331's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8331'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 8331'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?

1.3yrs

Average management tenure


CEO

HangKan Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Chun Xiang Su
Compliance Officer & Executive Director2.58yrsCN¥107.00kno data
Ho Pang
Executive Director1.25yrsCN¥68.00kno data
Jiayang Chen
Deputy General Manager of Financeno datano datano data
Wai Chun Chik
Company Secretary1yrno datano data

1.3yrs

Average Tenure

40yo

Average Age

Experienced Management: 8331's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chun Xiang Su
Compliance Officer & Executive Director2.58yrsCN¥107.00kno data
Ho Pang
Executive Director1.25yrsCN¥68.00kno data
Chi Hang Chow
Independent Non-Executive Director2.58yrsCN¥107.00kno data
Kun Zhang
Independent Non-Executive Director0.33yrno datano data
Ming Tung Lee
Independent Non-Executive Director1.17yrsCN¥56.00kno data

1.3yrs

Average Tenure

33yo

Average Age

Experienced Board: 8331's board of directors are not considered experienced ( 1.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HangKan Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HangKan Group Limited
  • Ticker: 8331
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: HK$90.527m
  • Shares outstanding: 670.57m
  • Website: https://www.ourhkg.com

Number of Employees


Location

  • HangKan Group Limited
  • Xiao Keshan
  • Xingang Town
  • Wuhu
  • Anhui Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8331SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2015

Biography

HangKan Group Limited, an investment holding company, engages in the bentonite mining, and production and sale of drilling mud and pelletizing clay in the People’s Republic of China. Its primary products a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:42
End of Day Share Price2020/08/14 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.