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.


Snowflake Analysis

High 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

968

-3.8%

HK Semiconductor

-3.2%

HK Market


1 Year Return

65.9%

968

37.3%

HK Semiconductor

-10.2%

HK Market

Return vs Industry: 968 exceeded the Hong Kong Semiconductor industry which returned 39.7% over the past year.

Return vs Market: 968 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

968IndustryMarket
7 Day-2.2%-3.8%-3.2%
30 Day7.4%-1.1%-3.3%
90 Day37.3%33.1%0.2%
1 Year69.7%65.9%39.3%37.3%-6.9%-10.2%
3 Year176.8%138.8%43.7%36.7%11.7%0.4%
5 Year215.4%156.7%24.2%13.6%11.1%-7.3%

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?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 968 (HK$6.61) is trading below our estimate of fair value (HK$6.75)

Significantly Below Fair Value: 968 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 968 is poor value based on its PE Ratio (31.9x) compared to the Semiconductor industry average (19.3x).

PE vs Market: 968 is poor value based on its PE Ratio (31.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 968 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 968 is overvalued based on its PB Ratio (4x) compared to the HK Semiconductor industry average (1.5x).


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?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 968's forecast earnings growth (28.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 968's earnings (28.6% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).

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

Revenue vs Market: 968's revenue (19.6% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).

High Growth Revenue: 968's revenue (19.6% per year) is forecast to grow slower 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 (22.2%)


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 (4.2%).


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?

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.3%markettop25%6.4%industryaverage1.9%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: 968's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 968's dividend (1.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


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 (47.3% payout ratio).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Yau Ching Lee (43yo)

9.3yrs

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 ($USD2.34M) is above average for companies of similar size in the Hong Kong market ($USD610.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yin Yee Lee
Chairman0yrsno data14.26% HK$7.6b
Yau Ching Lee
CEO & Executive Director9.3yrsHK$18.21m4.05% HK$2.2b
Xi Chen
Executive Director6.4yrsHK$2.51m0.0029% HK$1.5m
Man Li
Executive Director6.4yrsHK$7.41m1.17% HK$627.7m
Charn Chu
Financial Controller & Company Secretary0yrsno datano data
Jie Wen
General Manager of Sales10.8yrsno datano data

9.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 968's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yin Yee Lee
Chairman0yrsno data14.26% HK$7.6b
Yau Ching Lee
CEO & Executive Director9.3yrsHK$18.21m4.05% HK$2.2b
Xi Chen
Executive Director6.4yrsHK$2.51m0.0029% HK$1.5m
Man Li
Executive Director6.4yrsHK$7.41m1.17% HK$627.7m
Ching Sai Tung
Vice Chairman0yrsno data2.83% HK$1.5b
Shing Lee
Non-Executive Director6.4yrsHK$250.00kno data
Wan Sing Lo
Independent Non-Executive Director6.3yrsHK$250.00kno data
Kwok Kin Cheng
Independent Non-Executive Director6.3yrsHK$300.00kno data
E-Ting Kan
Independent Non-Executive Director6.3yrsHK$250.00kno data

6.4yrs

Average Tenure

61yo

Average Age

Experienced Board: 968's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 968 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$53.422b
  • 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: Sales of Solar Glass; Solar Farm Business; and Engineering, Procurement and Construction (EPC) Services. The company offers double glass modules, ultraclear patterned glasses, back glasses, and AR photovoltaic glasses. It also develops and operates solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2008 and is headquartered in Wuhu, 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 Analysis2020/02/25 13:07
End of Day Share Price2020/02/25 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.