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98

Xingfa Aluminium Holdings SEHK:98 Stock Report

Last Price

HK$8.20

Market Cap

HK$3.4b

7D

-0.7%

1Y

-36.9%

Updated

16 Aug, 2022

Data

Company Financials
98 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

98 Stock Overview

Xingfa Aluminium Holdings Limited, an investment holding company, manufactures, sells, and trades in aluminium profiles used as construction and industrial materials in the People’s Republic of China.

Xingfa Aluminium Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Xingfa Aluminium Holdings
Historical stock prices
Current Share PriceHK$8.20
52 Week HighHK$13.36
52 Week LowHK$7.00
Beta0.33
1 Month Change-13.68%
3 Month Change-16.75%
1 Year Change-36.92%
3 Year Change10.66%
5 Year Change52.70%
Change since IPO288.63%

Recent News & Updates

Jul 28
Here's Why We Think Xingfa Aluminium Holdings (HKG:98) Might Deserve Your Attention Today

Here's Why We Think Xingfa Aluminium Holdings (HKG:98) Might Deserve Your Attention Today

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 02
These 4 Measures Indicate That Xingfa Aluminium Holdings (HKG:98) Is Using Debt Reasonably Well

These 4 Measures Indicate That Xingfa Aluminium Holdings (HKG:98) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 05
Xingfa Aluminium Holdings (HKG:98) Will Pay A Larger Dividend Than Last Year At HK$0.80

Xingfa Aluminium Holdings (HKG:98) Will Pay A Larger Dividend Than Last Year At HK$0.80

Xingfa Aluminium Holdings Limited's ( HKG:98 ) dividend will be increasing to HK$0.80 on 24th of June. This takes the...

Shareholder Returns

98HK Metals and MiningHK Market
7D-0.7%1.2%-0.5%
1Y-36.9%-29.8%-20.6%

Return vs Industry: 98 underperformed the Hong Kong Metals and Mining industry which returned -31.6% over the past year.

Return vs Market: 98 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 98's price volatile compared to industry and market?
98 volatility
98 Average Weekly Movement6.0%
Metals and Mining Industry Average Movement6.0%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 98 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 98's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19848,854Yuqing Liaohttps://www.xingfa.com

Xingfa Aluminium Holdings Limited, an investment holding company, manufactures, sells, and trades in aluminium profiles used as construction and industrial materials in the People’s Republic of China. It operates through Industrial Aluminium Profiles, Construction Aluminium Profiles, and All Other segments. The Industrial Aluminium Profiles segment manufactures and sells plain aluminium profiles for industrial usage.

Xingfa Aluminium Holdings Fundamentals Summary

How do Xingfa Aluminium Holdings's earnings and revenue compare to its market cap?
98 fundamental statistics
Market CapHK$3.44b
Earnings (TTM)HK$1.03b
Revenue (TTM)HK$17.86b

3.4x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
98 income statement (TTM)
RevenueCN¥15.43b
Cost of RevenueCN¥13.62b
Gross ProfitCN¥1.81b
Other ExpensesCN¥924.04m
EarningsCN¥887.80m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.11
Gross Margin11.74%
Net Profit Margin5.75%
Debt/Equity Ratio39.1%

How did 98 perform over the long term?

See historical performance and comparison

Dividends

9.1%

Current Dividend Yield

31%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 98 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 98?

Other financial metrics that can be useful for relative valuation.

98 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA2.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 98's PE Ratio compare to its peers?

98 PE Ratio vs Peers
The above table shows the PE ratio for 98 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.2x
486 United Company RUSAL International
2.1x-14.1%HK$48.5b
2600 Aluminum Corporation of China
7.6x13.1%HK$80.8b
1378 China Hongqiao Group
4x8.0%HK$74.0b
1091 South Manganese Investment
7.1xn/aHK$3.3b
98 Xingfa Aluminium Holdings
3.4xn/aHK$3.4b

Price-To-Earnings vs Peers: 98 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (5.2x).


Price to Earnings Ratio vs Industry

How does 98's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 98 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the Hong Kong Metals and Mining industry average (5.3x)


Price to Earnings Ratio vs Fair Ratio

What is 98's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

98 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 98's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 98 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 98 (HK$8.2) is trading below our estimate of fair value (HK$37.3)

Significantly Below Fair Value: 98 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Xingfa Aluminium Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.0%

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 Xingfa Aluminium Holdings 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.


Discover growth companies

  • Examine whether Xingfa Aluminium Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Xingfa Aluminium Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Xingfa Aluminium Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 98 has high quality earnings.

Growing Profit Margin: 98's current net profit margins (5.8%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 98's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: 98's earnings growth over the past year (16%) is below its 5-year average (22.7% per year).

Earnings vs Industry: 98 earnings growth over the past year (16%) underperformed the Metals and Mining industry 44.6%.


Return on Equity

High ROE: 98's Return on Equity (19.8%) is considered low.


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Financial Health

How is Xingfa Aluminium Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 98's short term assets (CN¥8.2B) exceed its short term liabilities (CN¥5.5B).

Long Term Liabilities: 98's short term assets (CN¥8.2B) exceed its long term liabilities (CN¥1.3B).


Debt to Equity History and Analysis

Debt Level: 98's net debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: 98's debt to equity ratio has reduced from 106.7% to 39.1% over the past 5 years.

Debt Coverage: 98's debt is well covered by operating cash flow (76.1%).

Interest Coverage: 98's interest payments on its debt are well covered by EBIT (47.1x coverage).


Balance Sheet


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Dividend

What is Xingfa Aluminium Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


9.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 98's dividend (9.14%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 98's dividend (9.14%) is in the top 25% of dividend payers in the Hong Kong market (8.31%)


Stability and Growth of Payments

Stable Dividend: 98 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 98's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.8%), 98's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.1%), 98's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Yuqing Liao (56 yo)

4.33yrs

Tenure

CN¥3,674,000

Compensation

Mr. Yuqing Liao serves as Chief Executive Officer of Xingfa Aluminium Holdings Ltd. Mr. Liao serves as an Executive Deputy General Manager of Xingfa Aluminum Industry Co. Ltd. Mr. Liao served as Supervisor...


CEO Compensation Analysis

Compensation vs Market: Yuqing's total compensation ($USD542.45K) is above average for companies of similar size in the Hong Kong market ($USD407.07K).

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


Leadership Team

Experienced Management: 98's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: 98's board of directors are considered experienced (4.3 years average tenure).


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

Xingfa Aluminium Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Xingfa Aluminium Holdings Limited
  • Ticker: 98
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Aluminum
  • Sector: Materials
  • Implied Market Cap: HK$3.444b
  • Shares outstanding: 420.06m
  • Website: https://www.xingfa.com

Number of Employees


Location

  • Xingfa Aluminium Holdings Limited
  • Central Science & Tech Ind. Park
  • No. 5, Zone D
  • Foshan
  • Guangdong Province
  • 528137
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.