Executive Summary
CPMC Holdings Limited, an investment holding company, manufactures and sells packaging products for various consumer goods in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has CPMC Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 906 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: 906's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
3.7%
906
1.3%
HK Packaging
0.2%
HK Market
1 Year Return
73.0%
906
38.9%
HK Packaging
29.5%
HK Market
Return vs Industry: 906 exceeded the Hong Kong Packaging industry which returned 40.1% over the past year.
Return vs Market: 906 exceeded the Hong Kong Market which returned 32.2% over the past year.
Shareholder returns
| 906 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.7% | 1.3% | 0.2% |
| 30 Day | 4.2% | -2.9% | -0.9% |
| 90 Day | 12.6% | 4.7% | -3.7% |
| 1 Year | 84.6%73.0% | 46.1%38.9% | 34.4%29.5% |
| 3 Year | 5.2%-9.1% | -6.6%-20.0% | 6.5%-4.7% |
| 5 Year | 56.5%27.3% | 2.3%-17.2% | 51.6%26.0% |
Long-Term Price Volatility Vs. Market
How volatile is CPMC Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Here's Why CPMC Holdings (HKG:906) Has A Meaningful Debt Burden2 weeks ago | Simply Wall St
Wei Zhang Just Bought A Sprinkling of Shares In CPMC Holdings Limited (HKG:906)3 weeks ago | Simply Wall St
With EPS Growth And More, CPMC Holdings (HKG:906) Is InterestingValuation
Is CPMC Holdings 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: 906 (HK$4.48) is trading below our estimate of fair value (HK$67.78)
Significantly Below Fair Value: 906 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 906 is good value based on its PE Ratio (10.9x) compared to the HK Packaging industry average (11.1x).
PE vs Market: 906 is good value based on its PE Ratio (10.9x) compared to the Hong Kong market (12x).
Price to Earnings Growth Ratio
PEG Ratio: 906 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: 906's PB Ratio (0.8x) is in line with the HK Packaging industry average.
Future Growth
How is CPMC Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 906's forecast earnings growth (12.5% per year) is above the savings rate (1.5%).
Earnings vs Market: 906's earnings (12.5% per year) are forecast to grow slower than the Hong Kong market (18.6% per year).
High Growth Earnings: 906's earnings are forecast to grow, but not significantly.
Revenue vs Market: 906's revenue (12.5% per year) is forecast to grow slower than the Hong Kong market (13.1% per year).
High Growth Revenue: 906's revenue (12.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 906's Return on Equity is forecast to be low in 3 years time (9.2%).
Past Performance
How has CPMC Holdings performed over the past 5 years?
4.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 906 has high quality earnings.
Growing Profit Margin: 906's current net profit margins (5.3%) are higher than last year (4.1%).
Past Earnings Growth Analysis
Earnings Trend: 906's earnings have grown by 4.3% per year over the past 5 years.
Accelerating Growth: 906's earnings growth over the past year (28.9%) exceeds its 5-year average (4.3% per year).
Earnings vs Industry: 906 earnings growth over the past year (28.9%) exceeded the Packaging industry 1.4%.
Return on Equity
High ROE: 906's Return on Equity (7.2%) is considered low.
Financial Health
How is CPMC Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 906's short term assets (CN¥5.8B) exceed its short term liabilities (CN¥4.2B).
Long Term Liabilities: 906's short term assets (CN¥5.8B) exceed its long term liabilities (CN¥2.1B).
Debt to Equity History and Analysis
Debt Level: 906's debt to equity ratio (77.5%) is considered high.
Reducing Debt: 906's debt to equity ratio has increased from 60.1% to 77.5% over the past 5 years.
Debt Coverage: 906's debt is well covered by operating cash flow (22.7%).
Interest Coverage: 906's interest payments on its debt are well covered by EBIT (15.1x coverage).
Balance Sheet
Dividend
What is CPMC Holdings's current dividend yield, its reliability and sustainability?
4.64%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 906's dividend (4.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.93%).
High Dividend: 906's dividend (4.64%) is low compared to the top 25% of dividend payers in the Hong Kong market (6%).
Stability and Growth of Payments
Stable Dividend: 906's dividend payments have been volatile in the past 10 years.
Growing Dividend: 906's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.5%), 906's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 906's dividends in 3 years are forecast to be covered by earnings (61.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Ye Zhang (47 yo)
4.75yrs
Tenure
CN¥1,567,000
Compensation
Mr. Ye Zhang has been General Manager of CPMC Holdings Limited since July 19, 2016 and was its Managing Director and General Corporate Counsel and also served as its chief legal consultant from July 2011 t...
CEO Compensation Analysis
Compensation vs Market: Ye's total compensation ($USD241.11K) is about average for companies of similar size in the Hong Kong market ($USD313.72K).
Compensation vs Earnings: Ye's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: 906's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: 906's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 906 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CPMC Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: CPMC Holdings Limited
- Ticker: 906
- Exchange: SEHK
- Founded: 2009
- Industry: Metal and Glass Containers
- Sector: Materials
- Market Cap: HK$4.647b
- Shares outstanding: 1.07b
- Website: https://www.cofco-pack.com
Number of Employees
Location
- CPMC Holdings Limited
- No. 160, Weiken Street
- Hangzhou Eco & Technical Dev Zn
- Hangzhou
- Zhejiang Province
- China
Listings
Biography
CPMC Holdings Limited, an investment holding company, manufactures and sells packaging products for various consumer goods in the People’s Republic of China. The company operates through Tinplate Packaging...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/21 10:26 |
| End of Day Share Price | 2021/04/21 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.