SEHK:914

Stock Analysis Report

Executive Summary

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products in the People’s Republic of China and internationally.

Rewards

Trading at 32.8% below its fair value

Earnings have grown 32% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -5.4% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Anhui Conch Cement's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 914 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

914

-4.0%

HK Basic Materials

-3.1%

HK Market


1 Year Return

42.2%

914

35.4%

HK Basic Materials

2.3%

HK Market

Return vs Industry: 914 exceeded the Hong Kong Basic Materials industry which returned 35.4% over the past year.

Return vs Market: 914 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

914IndustryMarket
7 Day-2.3%-4.0%-3.1%
30 Day3.5%4.5%0.5%
90 Day19.2%15.6%5.3%
1 Year48.4%42.2%41.2%35.4%6.1%2.3%
3 Year141.7%119.6%106.8%89.8%22.2%9.8%
5 Year142.6%108.9%77.7%57.6%18.0%-1.7%

Price Volatility Vs. Market

How volatile is Anhui Conch Cement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Anhui Conch Cement undervalued compared to its fair value and its price relative to the market?

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 914 (HK$57.4) is trading below our estimate of fair value (HK$85.48)

Significantly Below Fair Value: 914 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 914 is poor value based on its PE Ratio (8.2x) compared to the Basic Materials industry average (5.9x).

PE vs Market: 914 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 914's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 914 is overvalued based on its PB Ratio (2.1x) compared to the HK Basic Materials industry average (1.2x).


Next Steps

Future Growth

How is Anhui Conch Cement forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 914's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: 914's earnings are forecast to decline over the next 3 years (-5.4% per year).

High Growth Earnings: 914's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 914's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: 914's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 914's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has Anhui Conch Cement performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 914 has high quality earnings.

Growing Profit Margin: 914's current net profit margins (20.4%) are lower than last year (26%).


Past Earnings Growth Analysis

Earnings Trend: 914's earnings have grown significantly by 32% per year over the past 5 years.

Accelerating Growth: 914's earnings growth over the past year (23%) is below its 5-year average (32% per year).

Earnings vs Industry: 914 earnings growth over the past year (23%) underperformed the Basic Materials industry 30.8%.


Return on Equity

High ROE: 914's Return on Equity (25.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Anhui Conch Cement's financial position?


Financial Position Analysis

Short Term Liabilities: 914's short term assets (CN¥85.4B) exceed its short term liabilities (CN¥25.7B).

Long Term Liabilities: 914's short term assets (CN¥85.4B) exceed its long term liabilities (CN¥8.5B).


Debt to Equity History and Analysis

Debt Level: 914's debt to equity ratio (8.2%) is considered satisfactory.

Reducing Debt: 914's debt to equity ratio has reduced from 30.7% to 8.2% over the past 5 years.

Debt Coverage: 914's debt is well covered by operating cash flow (383.3%).

Interest Coverage: 914 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 914 has a high level of physical assets or inventory.

Debt Coverage by Assets: 914's debt is covered by short term assets (assets are 7.9x debt).


Next Steps

Dividend

What is Anhui Conch Cement's current dividend yield, its reliability and sustainability?

3.39%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.2%markettop25%6.2%industryaverage3.6%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: 914's dividend (3.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 914's dividend (3.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 914's dividend payments have been volatile in the past 10 years.

Growing Dividend: 914's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.2%), 914's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 914's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).


Next Steps

Management

What is the CEO of Anhui Conch Cement's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Bin Wu (54yo)

4.4yrs

Tenure

CN¥1,867,000

Compensation

Mr. Bin Wu has been the General Manager of Anhui Conch Cement Co. Ltd. since August 21, 2015 and serves as its Executive Director since June 2, 2016. He joined the Anhui Conch Cement Co. Ltd. in 1983. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Bin's total compensation ($USD270.98K) is below average for companies of similar size in the Hong Kong market ($USD1.00M).

Compensation vs Earnings: Bin's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 914's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 914's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jianchao Wang (55yo)

    Deputy Chairman

    • Tenure: 4.4yrs
    • Compensation: CN¥847.00k
  • Feng Ding (47yo)

    Executive Director

    • Tenure: 3.6yrs
  • Bin Wu (54yo)

    GM & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥1.87m
  • Leyi Li (57yo)

    Chief Engineer of Technical Art

    • Tenure: 7.8yrs
  • Qiubi Ke (56yo)

    Deputy general manager

    • Tenure: 2.6yrs
  • Qunfeng Li (48yo)

    Deputy GM & Executive Director

    • Tenure: 0.7yrs
  • Xiaobo Li (49yo)

    Deputy General Manager

    • Tenure: 4.8yrs
  • Gao Dengbang (58yo)

    Chairman

    • Tenure: 3.6yrs
  • Shui Yu (43yo)

    Assistant to General Manager

    • Tenure: 1.4yrs
  • Tiejun Wu (39yo)

    Assistant to General Manager

    • Tenure: 2.3yrs

Board Members

  • Pengfei Wang (57yo)

    Supervisor

    • Tenure: 4.6yrs
    • Compensation: CN¥993.15k
  • Jianchao Wang (55yo)

    Deputy Chairman

    • Tenure: 4.4yrs
    • Compensation: CN¥847.00k
  • Feng Ding (47yo)

    Executive Director

    • Tenure: 3.6yrs
  • Bin Wu (54yo)

    GM & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥1.87m
  • Simon Leung (59yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: CN¥132.00k
  • Mianzhi Yang (50yo)

    Independent Non Executive Director

    • Tenure: 3.6yrs
    • Compensation: CN¥134.00k
  • Qunfeng Li (48yo)

    Deputy GM & Executive Director

    • Tenure: 0.7yrs
  • Gao Dengbang (58yo)

    Chairman

    • Tenure: 3.6yrs
  • Xiaoming Wu (56yo)

    Chairman of Supervisory Committee

    • Tenure: 2.3yrs
  • Yunyan Zhang (44yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs

Company Information

Anhui Conch Cement Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Anhui Conch Cement Company Limited
  • Ticker: 914
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$296.700b
  • Shares outstanding: 5.30b
  • Website: https://www.conch.cn

Number of Employees


Location

  • Anhui Conch Cement Company Limited
  • No. 39 Wenhua Road
  • Wuhu
  • Anhui Province
  • 241000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHCH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 1997
914SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 1997
AQEDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 1997
914SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 1997
914SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 1997
600585SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYFeb 2002
600585XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYFeb 2002
AHCH.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 2008

Biography

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products in the People’s Republic of China and internationally. The company primarily offers Portland cement, ordinary Portland cement, slag Portland cement, composite Portland cement under the CONCH brand. It also provides sulfate resistance cement, moderate Portland cement, low heat slag Portland cement, highway Portland cement, oil well Portland cement, non-maglev Portland cement, nuclear station Portland cement, white cement, etc. It also provides construction and installation services for industrial purposes; logistic services; and mining and related services. In addition, the company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. Additionally, it engages in investment and trading; and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 12:37
End of Day Share Price2020/01/22 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.