SEHK:98

Stock Analysis Report

Xingfa Aluminium Holdings

Executive Summary

Xingfa Aluminium Holdings Limited, an investment holding company, manufactures, sells, trades in, and exports aluminum profiles that are applied as construction and industrial materials in the People’s Republic of China, Hong Kong, and internationally.


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

How has Xingfa Aluminium Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 98 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

98

5.3%

HK Metals and Mining

0.6%

HK Market


1 Year Return

25.6%

98

-7.3%

HK Metals and Mining

-4.5%

HK Market

Return vs Industry: 98 exceeded the Hong Kong Metals and Mining industry which returned -6.5% over the past year.

Return vs Market: 98 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

98IndustryMarket
7 Day3.4%5.3%0.6%
30 Day-14.9%-4.3%-5.2%
90 Day-4.6%15.0%2.3%
1 Year29.3%25.6%-4.2%-7.3%-1.0%-4.5%
3 Year125.3%112.8%-8.3%-14.2%14.4%2.9%
5 Year402.5%345.1%9.8%-1.8%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Xingfa Aluminium Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Xingfa Aluminium 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: 98 (HK$7.3) is trading below our estimate of fair value (HK$220.11)

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


Price To Earnings Ratio

PE vs Industry: 98 is good value based on its PE Ratio (5x) compared to the Metals and Mining industry average (10.4x).

PE vs Market: 98 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 98's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 98 is overvalued based on its PB Ratio (1x) compared to the HK Metals and Mining industry average (0.7x).


Next Steps

Future Growth

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

23.4%

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 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.


Next Steps

Past Performance

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

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 98 has high quality earnings.

Growing Profit Margin: 98's current net profit margins (5.1%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 98's earnings have grown significantly by 20.3% per year over the past 5 years.

Accelerating Growth: 98's earnings growth over the past year (32.4%) exceeds its 5-year average (20.3% per year).

Earnings vs Industry: 98 earnings growth over the past year (32.4%) exceeded the Metals and Mining industry -25%.


Return on Equity

High ROE: 98's Return on Equity (20.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Xingfa Aluminium Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 98's short term assets (CN¥5.0B) exceed its short term liabilities (CN¥4.3B).

Long Term Liabilities: 98's short term assets (CN¥5.0B) exceed its long term liabilities (CN¥545.7M).


Debt to Equity History and Analysis

Debt Level: 98's debt to equity ratio (74.4%) is considered high.

Reducing Debt: 98's debt to equity ratio has reduced from 223.9% to 74.4% over the past 5 years.

Debt Coverage: 98's debt is well covered by operating cash flow (71.3%).

Interest Coverage: 98's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

Inventory Level: 98 has a high level of physical assets or inventory.

Debt Coverage by Assets: 98's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.4%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 98's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 98's dividend (2.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 98's dividend payments have been volatile in the past 10 years.

Growing Dividend: 98's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), 98's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Yuqing Liao (53yo)

1.8yrs

Tenure

CN¥2,302,000

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 ($USD329.74K) is about average for companies of similar size in the Hong Kong market ($USD338.66K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Libin Liu
Chairman8.4yrsCN¥2.38mno data
Yuqing Liao
CEO & Executive Director1.8yrsCN¥2.30m11.53% CN¥364.4m
Li Zhang
CFO & Executive Director1.8yrsCN¥638.29kno data
Zhihua Wang
Executive Director0yrsCN¥1.66mno data
Yung Law
Executive Director10.8yrsCN¥1.49m4.97% CN¥157.0m
Jianfeng Luo
Executive Director1.8yrsCN¥291.00kno data
Su Luo
Honourable Adviser1.8yrsCN¥2.14mno data
Jinhong Du
Head of Internal Audit Department & Deputy GM0yrsno datano data
Tik Wong
Company Secretary1.9yrsno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 98's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Libin Liu
Chairman8.4yrsCN¥2.38mno data
Yuqing Liao
CEO & Executive Director1.8yrsCN¥2.30m11.53% CN¥364.4m
Li Zhang
CFO & Executive Director1.8yrsCN¥638.29kno data
Zhihua Wang
Executive Director0yrsCN¥1.66mno data
Yung Law
Executive Director10.8yrsCN¥1.49m4.97% CN¥157.0m
Jianfeng Luo
Executive Director1.8yrsCN¥291.00kno data
Ying Hung Lam
Independent Non-Executive Director12yrsCN¥180.00kno data
Mo Chen
Independent Non-Executive Director12yrsCN¥150.00kno data
Kwan Ho
Independent Non-Executive Director12yrsCN¥150.00kno data
Shibin Liang
Independent Non-Executive Director6.2yrsCN¥249.00kno data

8.4yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 98's board of directors are considered experienced (8.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Xingfa Aluminium Holdings Limited
  • Ticker: 98
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: HK$3.160b
  • Shares outstanding: 418.00m
  • Website: https://www.xingfa.com

Number of Employees


Location

  • Xingfa Aluminium Holdings Limited
  • Central Science and Technology Industrial Park
  • No. 5, Zone D
  • Foshan
  • Guangdong Province
  • 528137
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
98SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2008

Biography

Xingfa Aluminium Holdings Limited, an investment holding company, manufactures, sells, trades in, and exports aluminum profiles that are applied as construction and industrial materials in the People’s Republic of China, Hong Kong, and internationally. The company operates in Industrial Aluminum Profiles and Construction Aluminum Profiles segments. It offers aluminum alloy profile products, including heat sink profiles, rigid suspension conductive converge-wires, motor casing profiles, and alloys; aluminum profiles for elevators; hollow profiles and bar materials for aerospace; plate profiles for subway carriage; cylindrical casing aluminum profiles for light products; light tube outer shells; stiffened plate profiles for shipping; and laptop outer shells. The company also manufactures and sells aluminum profiles with surface finishing, including anodic oxidation, electrophoresis coating, powder coating, and PVDF coating aluminum profiles, which are used in architecture decoration. In addition, it provides door and window systems, building curtain wall systems; and lift/fixed windows, railing aluminum alloy profiles, angel pipes, and flat tubes. Further, the company engages in the development, sale, and management of properties. It also manufactures and sells precision and architecture products. The company was founded in 1984 and is headquartered in Foshan, 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 Analysis2020/02/18 12:56
End of Day Share Price2020/02/18 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.