SEHK:1743

Stock Analysis Report

Zhejiang Cangnan Instrument Group

Executive Summary

Zhejiang Cangnan Instrument Group Company Limited develops software and hardware technologies; and manufactures and sells intelligent instruments and meters in China.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

How has Zhejiang Cangnan Instrument Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.9%

1743

0.6%

HK Electronic

2.9%

HK Market


1 Year Return

n/a

1743

-1.6%

HK Electronic

0.7%

HK Market

Return vs Industry: Insufficient data to determine how 1743 performed against the Hong Kong Electronic industry.

Return vs Market: Insufficient data to determine how 1743 performed against the Hong Kong Market.


Shareholder returns

1743IndustryMarket
7 Day-1.9%0.6%2.9%
30 Day-7.0%-1.6%-2.5%
90 Day-11.4%3.7%-5.4%
1 Yearn/a1.8%-1.6%4.4%0.7%
3 Yearn/a0.3%-7.6%17.0%5.2%
5 Yearn/a54.2%34.3%20.2%0.2%

Price Volatility Vs. Market

How volatile is Zhejiang Cangnan Instrument Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhejiang Cangnan Instrument Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1743 (HK$13.54) is trading below our estimate of fair value (HK$62)

Significantly Undervalued: 1743 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1743 is good value based on its PE Ratio (3.5x) compared to the Electronic industry average (8.7x).

PE vs Market: 1743 is good value based on its PE Ratio (3.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1743's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1743 is good value based on its PB Ratio (0.9x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Zhejiang Cangnan Instrument Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1743's earnings are forecast to decline over the next 3 years (-2.2% per year).

Earnings vs Market: 1743's earnings are forecast to decline over the next 3 years (-2.2% per year).

High Growth Earnings: 1743's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1743's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1743's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1743's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zhejiang Cangnan Instrument Group performed over the past 5 years?

26.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1743's earnings have grown significantly by 26.2% per year over the past 5 years.

Accelerating Growth: 1743's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1743 had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Electronic industry average (-12.9%).


Return on Equity

High ROE: 1743's Return on Equity (22.1%) is considered high.


Return on Assets

ROA vs Industry: 1743 has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 1743 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Zhejiang Cangnan Instrument Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1743's short term assets (CN¥1.2B) exceeds its short term liabilities (CN¥376.1M)

Long Term Liabilities: 1743's short term assets (1.2B) exceeds its long term liabilities (395.0K)


Debt to Equity History and Analysis

Debt Level: 1743's debt to equity ratio (7.2%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1743's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1743's debt is well covered by operating cash flow (263.2%).

Interest Coverage: 1743 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1743 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1743's debt is covered by short term assets (assets are 17.663730x debt).


Next Steps

Dividend

What is Zhejiang Cangnan Instrument Group's current dividend yield, its reliability and sustainability?

6.54%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.2%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1743's dividend (6.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1743's dividend (6.54%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)

Stable Dividend: Too early to tell whether 1743's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1743's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), 1743's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Zhejiang Cangnan Instrument Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Youliang Huang (54yo)

16.8yrs

Tenure

0

Mr. Huang Youliang serves as an Executive Director at Zhejiang Cangnan Instrument Group Company Limited since June 13, 2017 and serves as its General Manager since January 2003. Mr. Huang served as a stati ...


Management Age and Tenure

2.3yrs

Average Tenure

45yo

Average Age

Experienced Management: 1743's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 1743's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

BuyCN¥41,996,39408 Feb 19
Yanjie Qiu
EntityIndividual
Shares2,658,000
Max PriceCN¥15.80
BuyCN¥77,796,02808 Feb 19
ZS Capital Fund SPC
EntityCompany
Shares4,923,800
Max PriceCN¥15.80

Ownership Breakdown


Management Team

  • Jingdian Lin (44yo)

    Executive Director & Deputy Chief Engineer

    • Tenure: 2.3yrs
  • Zhongzhu Lin (40yo)

    Deputy GM & Executive Director

    • Tenure: 2.3yrs
  • Youliang Huang (54yo)

    GM & Executive Director

    • Tenure: 16.8yrs
  • Shengyi Zhang (51yo)

    Executive Director & Chief Engineer

    • Tenure: 2.3yrs
  • Xingjing Yin (46yo)

    Executive Director & Vice GM

    • Tenure: 2.3yrs
  • Zichan Lin (41yo)

    Vice GM

    • Tenure: 2.3yrs
  • Qihui Chen (41yo)

    Financial Controller

    • Tenure: 0yrs
  • Liyun Huang (67yo)

    Head of Finance Department

    • Tenure: 0yrs
  • Chun Wai Chan

    Join Company Secretary

    • Tenure: 2.1yrs

Board Members

  • Hak Kun Wong (62yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Jingdian Lin (44yo)

    Executive Director & Deputy Chief Engineer

    • Tenure: 2.3yrs
  • Zuobin Hong (71yo)

    Chairman of the Board

    • Tenure: 2.3yrs
  • Zhongzhu Lin (40yo)

    Deputy GM & Executive Director

    • Tenure: 2.3yrs
  • Youliang Huang (54yo)

    GM & Executive Director

    • Tenure: 16.8yrs
  • Shengyi Zhang (51yo)

    Executive Director & Chief Engineer

    • Tenure: 2.3yrs
  • Xingjing Yin (46yo)

    Executive Director & Vice GM

    • Tenure: 2.3yrs
  • Zichan Lin (41yo)

    Vice GM

    • Tenure: 2.3yrs
  • Xijun Huang (42yo)

    Chairman of Supervisory Committee

    • Tenure: 0yrs
  • Zhongdi Su (62yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs

Company Information

Zhejiang Cangnan Instrument Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Cangnan Instrument Group Company Limited
  • Ticker: 1743
  • Exchange: SEHK
  • Founded: 1977
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: HK$950.556m
  • Shares outstanding: 69.79m
  • Website: https://www.zjcnyb.com

Number of Employees


Location

  • Zhejiang Cangnan Instrument Group Company Limited
  • Industrial Demonstrative Park
  • Lingxi Town
  • Wenzhou
  • Zhejiang Province
  • 325800
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1743SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 2019

Biography

Zhejiang Cangnan Instrument Group Company Limited develops software and hardware technologies; and manufactures and sells intelligent instruments and meters in China. The company offers gas flowmeters, gas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:55
End of Day Share Price2019/10/14 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.