SZSC:1812

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Shandong Chenming Paper Holdings

Executive Summary

Shandong Chenming Paper Holdings Limited engages in the pulp production and paper making in Mainland China and internationally.


Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

How has Shandong Chenming Paper Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1812 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

1812

2.7%

HK Forestry

5.8%

HK Market


1 Year Return

-18.7%

1812

0.4%

HK Forestry

-4.0%

HK Market

Return vs Industry: 1812 underperformed the Hong Kong Forestry industry which returned 0.4% over the past year.

Return vs Market: 1812 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

1812IndustryMarket
7 Day3.2%2.7%5.8%
30 Day-2.0%-3.0%4.0%
90 Day-9.9%-19.6%-2.6%
1 Year-12.2%-18.7%4.9%0.4%-0.6%-4.0%
3 Year-47.8%-54.1%-25.3%-34.5%1.3%-9.2%
5 Yearn/a-8.8%-22.6%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Shandong Chenming Paper Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shandong Chenming Paper 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: 1812 (HK$2.91) is trading below our estimate of fair value (HK$15.45)

Significantly Below Fair Value: 1812 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1812 is good value based on its PE Ratio (7.4x) compared to the Forestry industry average (12.1x).

PE vs Market: 1812 is good value based on its PE Ratio (7.4x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1812 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1812 is good value based on its PB Ratio (0.4x) compared to the HK Forestry industry average (0.7x).


Next Steps

Future Growth

How is Shandong Chenming Paper Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1812's forecast earnings growth (29.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1812's earnings (29.9% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1812's revenue (2.1% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 1812's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1812's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Shandong Chenming Paper Holdings performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1812 has a large one-off gain of CN¥664.9M impacting its March 31 2020 financial results.

Growing Profit Margin: 1812's current net profit margins (3.3%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 1812's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: 1812's earnings growth over the past year (35.4%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: 1812 earnings growth over the past year (35.4%) exceeded the Forestry industry 2.5%.


Return on Equity

High ROE: 1812's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Shandong Chenming Paper Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1812's short term assets (CN¥44.7B) do not cover its short term liabilities (CN¥52.0B).

Long Term Liabilities: 1812's short term assets (CN¥44.7B) exceed its long term liabilities (CN¥18.5B).


Debt to Equity History and Analysis

Debt Level: 1812's debt to equity ratio (193%) is considered high.

Reducing Debt: 1812's debt to equity ratio has reduced from 254.2% to 193% over the past 5 years.

Debt Coverage: 1812's debt is well covered by operating cash flow (22.6%).

Interest Coverage: 1812's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Shandong Chenming Paper Holdings's current dividend yield, its reliability and sustainability?

5.97%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1812's dividend (5.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 1812's dividend (5.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 1812's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1812's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.1%), 1812's dividend payments are well 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?

1.6yrs

Average management tenure


CEO

Feng Li (46yo)

0.58

Tenure

CN¥1,868,000

Compensation

Mr. Feng Li has been General Manager of Shandong Chenming Paper Holdings Ltd. since November 9, 2019. Mr. Li had been a Deputy General Manager of Shandong Chenming Paper Holdings Ltd. since April 2010 unti ...


CEO Compensation Analysis

Compensation vs Market: Feng's total compensation ($USD263.73K) is below average for companies of similar size in the Hong Kong market ($USD424.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hongguo Chen
Executive Chairman18.75yrsCN¥4.99m0.76% CN¥95.0m
Feng Li
General Manager0.58yrCN¥1.87m0.031% CN¥3.9m
Changqing Hu
Executive Vice Chairman2yrsCN¥3.04m0.0015% CN¥184.3k
Xingchun Li
Executive Vice Chairman1yrCN¥4.99mno data
Xueqin Li
Deputy General Manager17.25yrsCN¥2.19m0.030% CN¥3.7m
Guanglin Geng
Deputy General Manager1.58yrsCN¥1.62m0.049% CN¥6.1m
Zhenzhong Li
Deputy General Manager9.25yrsCN¥1.64m0.0039% CN¥484.4k
Weixian Li
Deputy General Manager0.58yrCN¥2.78m0.014% CN¥1.7m
Xuegang Zhao
Deputy General Manager1yrCN¥2.15mno data
Xikun Yuan
Secretary to the Board2.08yrsCN¥420.00k0.0015% CN¥191.8k

1.6yrs

Average Tenure

46yo

Average Age

Experienced Management: 1812's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hongguo Chen
Executive Chairman18.75yrsCN¥4.99m0.76% CN¥95.0m
Changqing Hu
Executive Vice Chairman2yrsCN¥3.04m0.0015% CN¥184.3k
Xingchun Li
Executive Vice Chairman1yrCN¥4.99mno data
Hong Zhang
Shareholders Representative Supervisor1yrCN¥112.00kno data
Dong Li
Chairman of Supervisory Committee3.5yrsCN¥972.00k0.0050% CN¥620.1k
Jianfei Sun
Independent Non-Executive Director1yrCN¥116.70kno data
Chuanxuan Li
Non-Executive Director1yrCN¥116.70kno data
Biao Yang
Independent Non-Executive Director1yrCN¥116.70kno data
Meiqun Yin
Independent Non-Executive Director1yrCN¥116.70kno data
Tingde Han
Non-Executive Director1yrCN¥116.70kno data

1.0yrs

Average Tenure

49yo

Average Age

Experienced Board: 1812's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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

Shandong Chenming Paper Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Chenming Paper Holdings Limited
  • Ticker: 1812
  • Exchange: SZSC
  • Founded: 1993
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: HK$12.451b
  • Shares outstanding: 2.90b
  • Website: https://www.chenmingpaper.com

Number of Employees


Location

  • Shandong Chenming Paper Holdings Limited
  • No. 2199 Nongsheng East Road
  • Shouguang
  • Shandong Province
  • 262705
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
200488SZSE (Shenzhen Stock Exchange)YesForeign Shares-Domestically ListedCNHKDJul 1997
488SZSE (Shenzhen Stock Exchange)Domestic SharesCNCNYOct 2000
488XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)Domestic SharesCNCNYOct 2000
1812SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDJun 2008
SCD1DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURJun 2008
1812SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDJun 2008

Biography

Shandong Chenming Paper Holdings Limited engages in the pulp production and paper making in Mainland China and internationally. It operates through five segments: Machine Paper, Financial Services, Magnesium Ore, Investment Real Estate, and Others. The company offers offset paper, white paper board, coated paper, lightweight coated paper, household paper, electrostatic copy paper and thermal paper, glassine paper; and paper making raw materials and machinery. It also generates and sells electric and thermal power; manufactures, processes, and sells wood products, laminated boards, and fortified wooden floorboards; provides cement, wall materials, panel, and coal; and purchases and sells waste, as well as offers financial leasing services. In addition, the company is involved in the provision of catering services; hotel services; forestry, saplings growing, and processing and sale of timber and paper products; and mining, transportation, logistics, arboriculture, customs declaration, property management, import and export trade, machinery manufacturing, printing and packaging, and investment management businesses. Shandong Chenming Paper Holdings Limited was incorporated in 1993 and is headquartered in Shouguang, 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 Analysis2020/06/06 18:58
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.