Xinyi Solar Holdings (SEHK:968) - Share price, News & Analysis

Q: What is the Fair Price of 968 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

968 (HK$12.32) is trading above our estimate of [[fair value]] (HK$10.05)

968 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	2/6
Financial Health	6/6
Dividends	1/6

968 Stock Overview

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

Rewards

Earnings are forecast to grow 18.13% per year

Earnings have grown 24.6% per year over the past 5 years

Risk Analysis

No risks detected for 968 from our risk checks.

Xinyi Solar Holdings Competitors

Flat Glass Group

SEHK:6865

HK$95.5b

GCL Technology Holdings

SEHK:3800

HK$101.4b

ASMPT

SEHK:522

HK$28.3b

Semiconductor Manufacturing International

SEHK:981

HK$141.8b

Price History & Performance

Summary of all time highs, changes and price drops for Xinyi Solar Holdings
Historical stock prices
Current Share Price	HK$12.32
52 Week High	HK$19.36
52 Week Low	HK$10.84
Beta	1.08
1 Month Change	-7.23%
3 Month Change	-9.81%
1 Year Change	-24.69%
3 Year Change	220.00%
5 Year Change	457.47%
Change since IPO	980.70%

Recent News & Updates

Jun 16

Is Xinyi Solar Holdings Limited (HKG:968) Worth HK$12.7 Based On Its Intrinsic Value?

Does the June share price for Xinyi Solar Holdings Limited ( HKG:968 ) reflect what it's really worth? Today, we will...

Jun 03

Xinyi Solar Holdings' (HKG:968) Dividend Is Being Reduced To HK$0.10

Xinyi Solar Holdings Limited ( HKG:968 ) is reducing its dividend to HK$0.10 on the 6th of July. The dividend yield...

Shareholder Returns

	968	HK Semiconductor	HK Market
7D	-3.1%	4.6%	2.1%
1Y	-24.7%	-16.4%	-23.3%

Return vs Industry: 968 underperformed the Hong Kong Semiconductor industry which returned -16.4% over the past year.

Return vs Market: 968 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 968's price volatile compared to industry and market?
968 volatility
968 Average Weekly Movement	6.8%
Semiconductor Industry Average Movement	8.1%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 968 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 968's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	7,072	Yau Ching Lee	https://www.xinyisolar.com

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People’s Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers photovoltaic power station, ultraclear patterned glasses, back glasses, and AR photovoltaic glasses.

Xinyi Solar Holdings Fundamentals Summary

How do Xinyi Solar Holdings's earnings and revenue compare to its market cap?
968 fundamental statistics
Market Cap	HK$116.65b
Earnings (TTM)	HK$4.92b
Revenue (TTM)	HK$16.06b

22.2x

P/E Ratio

6.8x

P/S Ratio

Is 968 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
968 income statement (TTM)
Revenue	HK$16.06b
Cost of Revenue	HK$8.52b
Gross Profit	HK$7.55b
Other Expenses	HK$2.62b
Earnings	HK$4.92b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.55
Gross Margin	46.99%
Net Profit Margin	30.65%
Debt/Equity Ratio	22.3%

How did 968 perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

49%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 968 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 968?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 968. This is calculated by dividing 968's market cap by their current preferred multiple.
What is 968's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$116.65b

968 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/Revenue	7.7x
Enterprise Value/EBITDA	16x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 968's PE Ratio compare to its peers?

968 PE Ratio vs Peers

The above table shows the PE ratio for 968 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.3x
6865 Flat Glass Group	30.3x	28.7%	HK$95.5b
3800 GCL Technology Holdings	17.2x	6.9%	HK$101.4b
522 ASMPT	8.2x	-0.9%	HK$28.3b
981 Semiconductor Manufacturing International	9.4x	-3.1%	HK$141.8b
968 Xinyi Solar Holdings	22.2x	18.1%	HK$116.6b

Forward PE

Price-To-Earnings vs Peers: 968 is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does 968's PE Ratio compare vs other companies in the Asian Semiconductor Industry?

Price-To-Earnings vs Industry: 968 is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the Hong Kong Semiconductor industry average (12.8x)

Price to Earnings Ratio vs Fair Ratio

What is 968'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.

968 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.2x
Fair PE Ratio	23x

Price-To-Earnings vs Fair Ratio: 968 is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (23x).

Share Price vs Fair Value

What is the Fair Price of 968 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 968 (HK$12.32) is trading above our estimate of fair value (HK$10.05)

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

Price to Earnings Growth Ratio

PEG Ratio: 968 is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is Xinyi Solar Holdings forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 968's forecast earnings growth (18.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 968's earnings (18.1% per year) are forecast to grow faster than the Hong Kong market (16.9% per year).

High Growth Earnings: 968's earnings are forecast to grow, but not significantly.

Revenue vs Market: 968's revenue (23% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 968's revenue (23% 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 (20.7%)

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Past Performance

How has Xinyi Solar 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

24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 968 has high quality earnings.

Growing Profit Margin: 968's current net profit margins (30.7%) are lower than last year (37%).

Past Earnings Growth Analysis

Earnings Trend: 968's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: 968's earnings growth over the past year (8%) is below its 5-year average (24.6% per year).

Earnings vs Industry: 968 earnings growth over the past year (8%) underperformed the Semiconductor industry 84.6%.

Return on Equity

High ROE: 968's Return on Equity (15.5%) is considered low.

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Financial Health

How is Xinyi Solar 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: 968's short term assets (HK$20.8B) exceed its short term liabilities (HK$7.7B).

Long Term Liabilities: 968's short term assets (HK$20.8B) exceed its long term liabilities (HK$5.5B).

Debt to Equity History and Analysis

Debt Level: 968's net debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: 968's debt to equity ratio has reduced from 89.5% to 22.3% over the past 5 years.

Debt Coverage: 968's debt is well covered by operating cash flow (45.3%).

Interest Coverage: 968 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 968's dividend (2.19%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.75%).

High Dividend: 968's dividend (2.19%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.9%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.5%), 968's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 968 is paying a dividend but the company has no free cash flows.

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Management

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

11.6yrs

Average management tenure

CEO

Yau Ching Lee (45 yo)

11.58yrs

Tenure

HK$38,628,000

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...

Leadership Team

Experienced Management: 968's management team is seasoned and experienced (11.6 years average tenure).

Board Members

Experienced Board: 968's board of directors are considered experienced (8.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31