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

Trading at 11.4% below its fair value

Earnings are forecast to grow 28.26% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Flat Glass Group

SEHK:6865

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

3.6%

968

8.2%

HK Semiconductor

1.0%

HK Market


1 Year Return

89.3%

968

73.3%

HK Semiconductor

6.5%

HK Market

Return vs Industry: 968 exceeded the Hong Kong Semiconductor industry which returned 68.2% over the past year.

Return vs Market: 968 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

968IndustryMarket
7 Day3.6%8.2%1.0%
30 Day12.2%17.5%3.7%
90 Day34.5%33.1%8.0%
1 Year93.6%89.3%75.9%73.3%10.4%6.5%
3 Year165.4%129.0%51.5%44.1%25.9%13.1%
5 Year254.4%188.5%59.0%43.3%22.2%1.8%

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?

9.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 968 (HK$5.87) is trading below our estimate of fair value (HK$6.62)

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 (28.3x) compared to the Semiconductor industry average (17.2x).

PE vs Market: 968 is poor value based on its PE Ratio (28.3x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 968 is overvalued based on its PB Ratio (3.5x) 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?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 968's forecast earnings growth (28.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 968's earnings (28.3% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 968's revenue (19.5% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 968's revenue (19.5% 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 (21.9%)


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?

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.2%markettop25%6.1%industryaverage1.9%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: 968's dividend (2.08%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 968's dividend (2.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


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 (47.4% 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?

9.2yrs

Average management tenure


CEO

Yau Ching Lee (43yo)

9.2yrs

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 ($USD2.34M) is above average for companies of similar size in the Hong Kong market ($USD547.05K).

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


Management Age and Tenure

9.2yrs

Average Tenure

59yo

Average Age

Experienced Management: 968's management team is seasoned and experienced (9.2 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: 968 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellHK$768,749,87013 Jan 20
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares150,000,000
Max PriceHK$5.12
SellHK$186,318,61113 Jan 20
Yau Ching Lee
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares36,354,857
Max PriceHK$5.12
SellHK$15,374,99713 Jan 20
Ching Leung Li
EntityIndividual
Shares3,000,000
Max PriceHK$5.12
SellHK$741,603,09313 Jan 20
Yin Yee Lee
EntityIndividual
Role
Chairman of the Board
Chairman
Shares144,703,067
Max PriceHK$5.12
SellHK$10,249,99813 Jan 20
Man Li
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,000,000
Max PriceHK$5.12
SellHK$20,499,99713 Jan 20
Ching Wai Li
EntityIndividual
Shares4,000,000
Max PriceHK$5.12
SellHK$10,249,99813 Jan 20
Ngan Ho Ng
EntityIndividual
Shares2,000,000
Max PriceHK$5.12
SellHK$40,703,13313 Jan 20
Nang Sze Sze
EntityIndividual
Shares7,942,076
Max PriceHK$5.12
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

    • Man Li (64yo)

      Executive Director

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

      Chairman

      • Yau Ching Lee (43yo)

        CEO & Executive Director

        • Tenure: 9.2yrs
        • Compensation: HK$18.21m
      • Xi Chen (61yo)

        Executive Director

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

        General Manager of Sales

        • Tenure: 10.7yrs

      Board Members

      • Ching Sai Tung (53yo)

        Vice Chairman

        • Man Li (64yo)

          Executive Director

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

          Chairman

          • Yau Ching Lee (43yo)

            CEO & Executive Director

            • Tenure: 9.2yrs
            • 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: 6.2yrs
            • Compensation: HK$250.00k
          • Paul Cheng (68yo)

            Independent Non-Executive Director

            • Tenure: 6.2yrs
            • Compensation: HK$300.00k
          • Martin Kan (36yo)

            Independent Non-Executive Director

            • Tenure: 6.2yrs
            • 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$47.360b
          • 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 Analysis2020/01/17 12:48
          End of Day Share Price2020/01/17 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.