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

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Xinyi Solar Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

4.8%

968

4.2%

HK Semiconductor

-2.7%

HK Market


1 Year Return

118.5%

968

32.8%

HK Semiconductor

-9.4%

HK Market

968 outperformed the Semiconductor industry which returned 31% over the past year.

968 outperformed the Market in Hong Kong which returned -7.5% over the past year.


Share holder returns

968IndustryMarket
7 Day4.8%4.2%-2.7%
30 Day7.9%10.4%1.8%
90 Day39.0%22.0%-5.6%
1 Year123.5%118.5%34.5%32.8%-6.2%-9.4%
3 Year87.2%61.5%30.5%23.6%14.3%2.7%
5 Year140.2%95.5%-20.5%-26.9%16.7%-2.8%

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

4 weeks ago | Simply Wall St

Do Insiders Own Lots Of Shares In Xinyi Solar Holdings Limited (HKG:968)?

Valuation

Is Xinyi Solar Holdings undervalued based on future cash flows and its price relative to the stock market?

25.08x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Xinyi Solar Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Xinyi Solar Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Xinyi Solar Holdings is overvalued based on earnings compared to the HK Semiconductor industry average.

Xinyi Solar Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Xinyi Solar Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Xinyi Solar Holdings is overvalued based on assets compared to the HK Semiconductor industry average.


Next Steps

Future Growth

How is Xinyi Solar Holdings expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Xinyi Solar Holdings's revenue is expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).

Xinyi Solar Holdings's earnings are expected to grow significantly at over 20% yearly.

Xinyi Solar Holdings's revenue growth is expected to exceed the Hong Kong market average.

Xinyi Solar Holdings's earnings growth is expected to exceed the Hong Kong market average.

Xinyi Solar Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Xinyi Solar Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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


Past Earnings Growth Analysis

Xinyi Solar Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Xinyi Solar Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Xinyi Solar Holdings's 1-year earnings growth is negative, it can't be compared to the HK Semiconductor industry average.


Return on Equity

Xinyi Solar Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Xinyi Solar Holdings used its assets more efficiently than the HK Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Xinyi Solar Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Xinyi Solar Holdings's financial position?


Financial Position Analysis

Xinyi Solar Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Xinyi Solar Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Xinyi Solar Holdings's level of debt (44.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (17.3% vs 44.7% today).

Debt is well covered by operating cash flow (25.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.37%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Xinyi Solar Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Xinyi Solar Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

Xinyi Solar Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Xinyi Solar Holdings only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


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?

8.8yrs

Average management tenure


CEO

Yau Ching Lee (43yo)

8.8yrs

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

Yau Ching's remuneration is higher than average for companies of similar size in Hong Kong.

Yau Ching's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.8yrs

Average Tenure

59yo

Average Age

The average tenure for the Xinyi Solar Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

The tenure for the Xinyi Solar Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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


Management Team

  • Daniel Chu (49yo)

    Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Man Li (64yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$7.41m
  • Yin Yee Lee (66yo)

    Chairman

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

    CEO & Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$18.21m
  • Xi Chen (61yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$2.51m
  • Jie Wen (57yo)

    General Manager of Sales

    • Tenure: 10.3yrs

Board Members

  • Ching Sai Tung (53yo)

    Vice Chairman

    • Tenure: 0yrs
  • Man Li (64yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$7.41m
  • Yin Yee Lee (66yo)

    Chairman

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

    CEO & Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$18.21m
  • Shing Lee (42yo)

    Non-Executive Director

    • Tenure: 6yrs
    • Compensation: HK$250.00k
  • Xi Chen (61yo)

    Executive Director

    • Tenure: 6yrs
    • Compensation: HK$2.51m
  • Vincent Lo (72yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$250.00k
  • Paul Cheng (68yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$300.00k
  • Martin Kan (36yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • 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$40.370b
  • Shares outstanding: 8.06b
  • 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

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 Analysis2019/09/20 12:55
End of Day Share Price2019/09/20 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.