SEHK:968

Stock Analysis Report

Executive Summary

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People’s Republic of China, Malaysia, and internationally.

Rewards

Earnings are forecast to grow 26.81% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 968 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

968

2.9%

HK Semiconductor

3.5%

HK Market


1 Year Return

90.1%

968

41.2%

HK Semiconductor

2.3%

HK Market

Return vs Industry: 968 exceeded the Hong Kong Semiconductor industry which returned 41.2% over the past year.

Return vs Market: 968 exceeded the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

968IndustryMarket
7 Day-0.7%2.9%3.5%
30 Day18.2%12.9%3.1%
90 Day8.9%8.2%1.1%
1 Year94.5%90.1%43.2%41.2%6.0%2.3%
3 Year157.5%122.2%34.8%28.5%25.4%12.7%
5 Year228.5%167.3%13.6%4.4%23.0%2.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Xinyi Solar Holdings undervalued compared to its fair value and its price relative to the market?

26.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 968 (HK$5.4) is trading above our estimate of fair value (HK$4.57)

Significantly Below Fair Value: 968 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 968 is poor value based on its PE Ratio (26x) compared to the Semiconductor industry average (15x).

PE vs Market: 968 is poor value based on its PE Ratio (26x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 968 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 968 is overvalued based on its PB Ratio (3.2x) compared to the HK Semiconductor industry average (1.4x).


Next Steps

Future Growth

How is Xinyi Solar Holdings forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 968's forecast earnings growth (26.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 968's earnings (26.8% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 968's revenue (20.3% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 968's revenue (20.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 968's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Xinyi Solar Holdings performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 968 has high quality earnings.

Growing Profit Margin: 968's current net profit margins (21.4%) are lower than last year (27.3%).


Past Earnings Growth Analysis

Earnings Trend: 968's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: 968's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 968 had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Semiconductor industry average (5.3%).


Return on Equity

High ROE: 968's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Xinyi Solar Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 968's short term assets (HK$11.3B) exceed its short term liabilities (HK$6.7B).

Long Term Liabilities: 968's short term assets (HK$11.3B) exceed its long term liabilities (HK$5.4B).


Debt to Equity History and Analysis

Debt Level: 968's debt to equity ratio (44.7%) is considered high.

Reducing Debt: 968's debt to equity ratio has increased from 17.3% to 44.7% over the past 5 years.

Debt Coverage: 968's debt is well covered by operating cash flow (25.2%).

Interest Coverage: 968's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: 968 has a high level of physical assets or inventory.

Debt Coverage by Assets: 968's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Xinyi Solar Holdings's current dividend yield, its reliability and sustainability?

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.2%markettop25%6.2%industryaverage2.1%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: 968's dividend (2.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.21%).

High Dividend: 968's dividend (2.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.15%).


Stability and Growth of Payments

Stable Dividend: 968 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 968's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), 968's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 968's dividends in 3 years are forecast to be well covered by earnings (47.8% payout ratio).


Next Steps

Management

What is the CEO of Xinyi Solar Holdings's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Yau Ching Lee (43yo)

9.1yrs

Tenure

HK$18,207,000

Compensation

Mr. Yau Ching Lee is an Executive Director at Xinyi Energy Holdings Limited since June 26, 2015. He serves as the General Manager of both YiDe Glass (Shenzhen) Co., Ltd. and Xinyi Glass Technology (Shenzhe ...


CEO Compensation Analysis

Compensation vs Market: Yau Ching's total compensation ($USD2.34M) is above average for companies of similar size in the Hong Kong market ($USD611.85K).

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


Management Age and Tenure

9.1yrs

Average Tenure

59yo

Average Age

Experienced Management: 968's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

61yo

Average Age

Experienced Board: 968's board of directors are considered experienced (6.3 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

SellHK$18,242,49921 Aug 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,446,675
Max PriceHK$4.10
BuyHK$209,336,41220 Aug 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares51,441,601
Max PriceHK$4.07
SellHK$1,177,499,58721 Jun 19
Xinyi Glass Holdings Limited
EntityCompany
Shares314,000,000
Max PriceHK$3.75
SellHK$26,066,98905 Jun 19
Full Guang Holdings Limited
EntityCompany
Shares6,000,000
Max PriceHK$4.34
SellHK$37,635,72705 Jun 19
Full Guang Holdings Limited
EntityCompany
Shares8,936,000
Max PriceHK$4.21
SellHK$16,712,27005 Jun 19
Full Guang Holdings Limited
EntityCompany
Shares3,900,000
Max PriceHK$4.29
BuyHK$1,318,599,90415 Mar 19
Xinyi Glass Holdings Limited
EntityCompany
Shares380,000,000
Max PriceHK$3.47
SellHK$1,318,599,90412 Mar 19
Xinyi Glass Holdings Limited
EntityCompany
Shares380,000,000
Max PriceHK$3.47

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Daniel Chu (49yo)

    Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Man Li (64yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$7.41m
  • Yin Yee Lee (66yo)

    Chairman

    • Tenure: 0yrs
  • Yau Ching Lee (43yo)

    CEO & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$18.21m
  • Xi Chen (61yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$2.51m
  • Jie Wen (57yo)

    General Manager of Sales

    • Tenure: 10.6yrs

Board Members

  • Ching Sai Tung (53yo)

    Vice Chairman

    • Tenure: 0yrs
  • Man Li (64yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$7.41m
  • Yin Yee Lee (66yo)

    Chairman

    • Tenure: 0yrs
  • Yau Ching Lee (43yo)

    CEO & Executive Director

    • Tenure: 9.1yrs
    • Compensation: HK$18.21m
  • Shing Lee (42yo)

    Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$250.00k
  • Xi Chen (61yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$2.51m
  • Vincent Lo (72yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$250.00k
  • Paul Cheng (68yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$300.00k
  • Martin Kan (36yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: HK$250.00k

Company Information

Xinyi Solar Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xinyi Solar Holdings Limited
  • Ticker: 968
  • Exchange: SEHK
  • Founded: 2008
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: HK$43.640b
  • Shares outstanding: 8.08b
  • Website: https://www.xinyisolar.com

Number of Employees


Location

  • Xinyi Solar Holdings Limited
  • Xinyi PV Glass Industrial Zone
  • 2 Xinyi Road
  • Wuhu
  • Anhui Province
  • 241009
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
968SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013
13XDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
968SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013
968SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013
XNYI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2013

Biography

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People’s Republic of China, Malaysia, and internationally. It operates through three segments: Sa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 12:51
End of Day Share Price2019/12/13 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.