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1378

China Hongqiao Group SHSC:1378 Stock Report

Last Price

HK$8.30

Market Cap

HK$77.5b

7D

5.9%

1Y

-28.7%

Updated

14 Aug, 2022

Data

Company Financials +
1378 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

1378 Stock Overview

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia.

China Hongqiao Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Hongqiao Group
Historical stock prices
Current Share PriceHK$8.30
52 Week HighHK$14.34
52 Week LowHK$6.88
Beta1.14
1 Month Change7.23%
3 Month Change-6.53%
1 Year Change-28.69%
3 Year Change64.68%
5 Year Changen/a
Change since IPO44.10%

Recent News & Updates

Shareholder Returns

1378HK Metals and MiningHK Market
7D5.9%4.6%0.3%
1Y-28.7%-33.2%-21.8%

Return vs Industry: 1378 exceeded the Hong Kong Metals and Mining industry which returned -33.2% over the past year.

Return vs Market: 1378 underperformed the Hong Kong Market which returned -21.8% over the past year.

Price Volatility

Is 1378's price volatile compared to industry and market?
1378 volatility
1378 Average Weekly Movement5.3%
Metals and Mining Industry Average Movement6.1%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1378 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1378's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199442,650Bo Zhanghttps://www.hongqiaochina.com

China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People's Republic of China and Indonesia. The company’s products include molten aluminum alloys, aluminum alloy ingots, aluminum busbars, aluminum alloy processing, and alumina products. It also engages in the research, development, manufacture, trading, and sale of bauxite; production and sale of electricity; port operation; trading of carbons, iron ores, and light alloy materials; railway design and construction; and provision of financial leasing and business advisory services.

China Hongqiao Group Fundamentals Summary

How do China Hongqiao Group's earnings and revenue compare to its market cap?
1378 fundamental statistics
Market CapCN¥66.64b
Earnings (TTM)CN¥16.07b
Revenue (TTM)CN¥114.49b

4.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1378 income statement (TTM)
RevenueCN¥114.49b
Cost of RevenueCN¥84.13b
Gross ProfitCN¥30.36b
Other ExpensesCN¥14.29b
EarningsCN¥16.07b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.72
Gross Margin26.52%
Net Profit Margin14.04%
Debt/Equity Ratio65.3%

How did 1378 perform over the long term?

See historical performance and comparison

Dividends

11.9%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1378 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 1378?

Other financial metrics that can be useful for relative valuation.

1378 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/Revenue0.8x
Enterprise Value/EBITDA2.9x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does 1378's PE Ratio compare to its peers?

1378 PE Ratio vs Peers
The above table shows the PE ratio for 1378 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average4.5x
2600 Aluminum Corporation of China
7.9x13.1%HK$83.0b
486 United Company RUSAL International
2.1x-14.1%HK$47.9b
98 Xingfa Aluminium Holdings
3.4xn/aHK$3.5b
358 Jiangxi Copper
4.9x6.6%HK$56.0b
1378 China Hongqiao Group
4.1x8.0%HK$77.5b

Price-To-Earnings vs Peers: 1378 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (4.5x).


Price to Earnings Ratio vs Industry

How does 1378's PE Ratio compare vs other companies in the HK Metals and Mining Industry?

Price-To-Earnings vs Industry: 1378 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the Hong Kong Metals and Mining industry average (5.4x)


Price to Earnings Ratio vs Fair Ratio

What is 1378'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.

1378 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio7.7x

Price-To-Earnings vs Fair Ratio: 1378 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).


Share Price vs Fair Value

What is the Fair Price of 1378 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1378 (HK$8.3) is trading below our estimate of fair value (HK$38.42)

Significantly Below Fair Value: 1378 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: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is China Hongqiao Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1378's forecast earnings growth (8% per year) is above the savings rate (1.6%).

Earnings vs Market: 1378's earnings (8% per year) are forecast to grow slower than the Hong Kong market (16.8% per year).

High Growth Earnings: 1378's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1378's revenue (4.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1378's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1378's Return on Equity is forecast to be low in 3 years time (19.9%).


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Past Performance

How has China Hongqiao Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


25.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1378 has high quality earnings.

Growing Profit Margin: 1378's current net profit margins (14%) are higher than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: 1378's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 1378's earnings growth over the past year (53.1%) exceeds its 5-year average (25% per year).

Earnings vs Industry: 1378 earnings growth over the past year (53.1%) exceeded the Metals and Mining industry 45.2%.


Return on Equity

High ROE: 1378's Return on Equity (18.2%) is considered low.


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Financial Health

How is China Hongqiao Group'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: 1378's short term assets (CN¥103.5B) exceed its short term liabilities (CN¥63.1B).

Long Term Liabilities: 1378's short term assets (CN¥103.5B) exceed its long term liabilities (CN¥32.9B).


Debt to Equity History and Analysis

Debt Level: 1378's net debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: 1378's debt to equity ratio has reduced from 164.8% to 65.3% over the past 5 years.

Debt Coverage: 1378's debt is well covered by operating cash flow (47.5%).

Interest Coverage: 1378's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1378's dividend (11.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.86%).

High Dividend: 1378's dividend (11.9%) is in the top 25% of dividend payers in the Hong Kong market (8.26%)


Stability and Growth of Payments

Stable Dividend: 1378's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1378's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.3%), 1378's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35%), 1378's dividend payments are well covered by cash flows.


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Management

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

9.8yrs

Average management tenure


CEO

Bo Zhang (53 yo)

11.58yrs

Tenure

CN¥981,000

Compensation

Mr. Bo Zhang has been Executive Director and Chief Executive Officer of Shandong Weiqiao Aluminum and Power Co., Ltd. since January 16, 2011 and its Chairman since May 31, 2019. He has been the Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Bo's total compensation ($USD145.49K) is below average for companies of similar size in the Hong Kong market ($USD998.10K).

Compensation vs Earnings: Bo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1378's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: 1378's board of directors are considered experienced (8.1 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

China Hongqiao Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Hongqiao Group Limited
  • Ticker: 1378
  • Exchange: SHSC
  • Founded: 1994
  • Industry: Aluminum
  • Sector: Materials
  • Implied Market Cap: HK$77.473b
  • Shares outstanding: 9.33b
  • Website: https://www.hongqiaochina.com

Number of Employees


Location

  • China Hongqiao Group Limited
  • Huixian One Road
  • Zouping Economic Development District
  • Zouping
  • Shandong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 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.