SEHK:1308

Stock Analysis Report

SITC International Holdings

Executive Summary

SITC International Holdings Company Limited, a shipping logistics company, provides integrated transportation and logistics solutions in Mainland China, Hong Kong, Taiwan, Japan, Southeast Asia, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has SITC International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1308's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.8%

1308

-0.09%

HK Shipping

0.2%

HK Market


1 Year Return

-17.1%

1308

-38.3%

HK Shipping

-22.0%

HK Market

Return vs Industry: 1308 exceeded the Hong Kong Shipping industry which returned -37.4% over the past year.

Return vs Market: 1308 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

1308IndustryMarket
7 Day-6.8%-0.09%0.2%
30 Day-24.2%-18.0%-10.8%
90 Day-28.1%-28.2%-16.5%
1 Year-9.5%-17.1%-34.5%-38.3%-19.1%-22.0%
3 Year52.9%26.4%-33.5%-37.5%-3.7%-13.4%
5 Year97.9%46.8%-59.8%-62.5%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is SITC International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SITC International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1308 (HK$6.9) is trading below our estimate of fair value (HK$23.72)

Significantly Below Fair Value: 1308 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1308 is good value based on its PE Ratio (10.7x) compared to the Shipping industry average (10.9x).

PE vs Market: 1308 is poor value based on its PE Ratio (10.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1308 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 1308 is overvalued based on its PB Ratio (2.4x) compared to the HK Shipping industry average (0.5x).


Next Steps

Future Growth

How is SITC International Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1308's forecast earnings growth (11% per year) is above the savings rate (1.6%).

Earnings vs Market: 1308's earnings (11% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Earnings: 1308's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1308's revenue (4.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1308's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1308's Return on Equity is forecast to be high in 3 years time (26.1%)


Next Steps

Past Performance

How has SITC International Holdings performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1308 has high quality earnings.

Growing Profit Margin: 1308's current net profit margins (14.2%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: 1308's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 1308's earnings growth over the past year (11.4%) is below its 5-year average (12.5% per year).

Earnings vs Industry: 1308 earnings growth over the past year (11.4%) exceeded the Shipping industry 3%.


Return on Equity

High ROE: 1308's Return on Equity (21.7%) is considered high.


Next Steps

Financial Health

How is SITC International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1308's short term assets ($518.5M) exceed its short term liabilities ($396.3M).

Long Term Liabilities: 1308's short term assets ($518.5M) exceed its long term liabilities ($333.7M).


Debt to Equity History and Analysis

Debt Level: 1308's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: 1308's debt to equity ratio has reduced from 50.5% to 27.7% over the past 5 years.

Debt Coverage: 1308's debt is well covered by operating cash flow (116.9%).

Interest Coverage: 1308's interest payments on its debt are well covered by EBIT (955.3x coverage).


Balance Sheet

Inventory Level: 1308 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1308's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is SITC International Holdings's current dividend yield, its reliability and sustainability?

6.48%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1308's dividend (6.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 1308's dividend (6.48%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 1308 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1308's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.6%), 1308's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1308's dividends in 3 years are forecast to be covered by earnings (73.2% payout ratio).


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Xianxiang Yang (52yo)

12.25s

Tenure

US$1,588,000

Compensation

Mr. Xianxiang Yang serves as Independent Non-Executive Director at JS Global Lifestyle Company Limited since October 11, 2019. He has been the Chief Executive Officer of SITC International Holdings Co., Lt ...


CEO Compensation Analysis

Compensation vs Market: Xianxiang's total compensation ($USD1.59M) is above average for companies of similar size in the Hong Kong market ($USD512.84K).

Compensation vs Earnings: Xianxiang's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shaopeng Yang
Executive Chairman of the Board14yrsUS$2.00m0.40% $73.3m
Xianxiang Yang
Vice Chairman & CEO12.25yrsUS$1.59m0.31% $57.5m
Kecheng Liu
CFO, GM of Finance Center & Executive Director13.33yrsUS$571.00k0.041% $7.6m
Peng Xue
GM of Operations Management Center12.25yrsUS$531.00k0.53% $98.5m
Ming Xue
Executive Director7.08yrsUS$810.00k0.16% $28.9m
Zhi Lai
Executive Director7.08yrsUS$354.00k0.16% $28.8m
Weili Xu
Chief Officer of Safety Operation Centre11.5yrsno datano data
Bin Ji
President of SITC Logistics10yrsno datano data
Senyuan Xiao
Vice President of SITC Shipping Group Co.no datano datano data
Wenguang Ji
President Assistant of SITC Shipping Groupno datano datano data

10.0yrs

Average Tenure

47yo

Average Age

Experienced Management: 1308's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shaopeng Yang
Executive Chairman of the Board14yrsUS$2.00m0.40% $73.3m
Xianxiang Yang
Vice Chairman & CEO12.25yrsUS$1.59m0.31% $57.5m
Kecheng Liu
CFO, GM of Finance Center & Executive Director13.33yrsUS$571.00k0.041% $7.6m
Peng Xue
GM of Operations Management Center12.25yrsUS$531.00k0.53% $98.5m
Ming Xue
Executive Director7.08yrsUS$810.00k0.16% $28.9m
Zhi Lai
Executive Director7.08yrsUS$354.00k0.16% $28.8m
Wai Fung Ngai
Independent Non-Executive Director9.58yrsUS$45.00k0.030% $5.6m
Wing Yan Lo
Independent Non-Executive Director9.58yrsUS$42.00k0.0041% $763.2k
Kwok On Yeung
Independent Non-Executive Director9.58yrsUS$42.00k0.0042% $770.5k
Yung Kwok Tsui
Independent Non-Executive Director9.58yrsUS$42.00k0.030% $5.6m

9.6yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1308's board of directors are considered experienced (9.6 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.


Top Shareholders

Company Information

SITC International Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SITC International Holdings Company Limited
  • Ticker: 1308
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: HK$18.478b
  • Shares outstanding: 2.68b
  • Website: https://www.sitc.com

Number of Employees


Location

  • SITC International Holdings Company Limited
  • World Trade Centre
  • 21st Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1308SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2010
7S8DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2010
1308SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
1308SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
SITI.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDAug 2018

Biography

SITC International Holdings Company Limited, a shipping logistics company, provides integrated transportation and logistics solutions in Mainland China, Hong Kong, Taiwan, Japan, Southeast Asia, and internationally. It operates in two segments, Container Shipping and Logistics; and Dry Bulk and Others. The Container Shipping and Logistics segment offers container transportation, freight forwarding, shipping agency, depot and warehousing, etc. The Dry Bulk and Others segment provides dry bulk vessel and land leasing, as well as air-freight forwarding services. As of December 31, 2019, the company operated a fleet of 82 vessels with a total capacity of 117,578 TEU, including 57 self-owned vessels with a capacity of 76,705 TEU and 25 chartered vessels with a capacity of 40,873 TEU. It also offers container and vessel holding, and chartering; and technology support services. The company was founded in 1991 and is headquartered in Causeway Bay, Hong Kong. SITC International Holdings Company Limited is a subsidiary of Resourceful Link Management Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:56
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.