SEHK:144

Stock Analysis Report

China Merchants Port Holdings

Executive Summary

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Hong Kong, Taiwan, and internationally.


Snowflake Analysis

Undervalued established dividend payer.

Share Price & News

How has China Merchants Port Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 144's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.4%

144

-1.0%

HK Infrastructure

3.0%

HK Market


1 Year Return

-46.0%

144

-34.4%

HK Infrastructure

-21.1%

HK Market

Return vs Industry: 144 underperformed the Hong Kong Infrastructure industry which returned -34.5% over the past year.

Return vs Market: 144 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

144IndustryMarket
7 Day1.4%-1.0%3.0%
30 Day-20.5%-16.8%-9.1%
90 Day-32.1%-28.0%-14.7%
1 Year-42.0%-46.0%-30.5%-34.4%-18.2%-21.1%
3 Year-50.7%-59.9%-29.5%-38.7%-2.0%-11.8%
5 Year-64.6%-73.0%-39.4%-51.5%-16.4%-29.8%

Price Volatility Vs. Market

How volatile is China Merchants Port Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Merchants Port Holdings undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 144 (HK$8.63) is trading below our estimate of fair value (HK$17.11)

Significantly Below Fair Value: 144 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 144 is good value based on its PE Ratio (3.5x) compared to the Infrastructure industry average (6.3x).

PE vs Market: 144 is good value based on its PE Ratio (3.5x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 144's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 144 is good value based on its PB Ratio (0.4x) compared to the HK Infrastructure industry average (0.6x).


Next Steps

Future Growth

How is China Merchants Port Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 144's earnings are forecast to decline over the next 3 years (-30.5% per year).

Earnings vs Market: 144's earnings are forecast to decline over the next 3 years (-30.5% per year).

High Growth Earnings: 144's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 144's revenue (4.4% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 144's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 144's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has China Merchants Port Holdings performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 144 has a large one-off gain of HK$6.6B impacting its December 31 2019 financial results.

Growing Profit Margin: 144's current net profit margins (94%) are higher than last year (71.3%).


Past Earnings Growth Analysis

Earnings Trend: 144's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: 144's earnings growth over the past year (15.4%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: 144 earnings growth over the past year (15.4%) exceeded the Infrastructure industry 6.6%.


Return on Equity

High ROE: 144's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is China Merchants Port Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 144's short term assets (HK$12.5B) do not cover its short term liabilities (HK$15.5B).

Long Term Liabilities: 144's short term assets (HK$12.5B) do not cover its long term liabilities (HK$39.4B).


Debt to Equity History and Analysis

Debt Level: 144's debt to equity ratio (40.8%) is considered high.

Reducing Debt: 144's debt to equity ratio has increased from 26.5% to 40.8% over the past 5 years.

Debt Coverage: 144's debt is not well covered by operating cash flow (17.1%).

Interest Coverage: 144's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Next Steps

Dividend

What is China Merchants Port Holdings's current dividend yield, its reliability and sustainability?

10.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 144's dividend (11.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 144's dividend (11.01%) is in the top 25% of dividend payers in the Hong Kong market (7.27%)


Stability and Growth of Payments

Stable Dividend: 144's dividend payments have been volatile in the past 10 years.

Growing Dividend: 144's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), 144's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 144's dividends in 3 years are forecast to be well covered by earnings (44.9% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Jingtao Bai (54yo)

4.83s

Tenure

HK$2,840,000

Compensation

Mr. Jingtao Bai serves as Chief Executive Officer at China Merchants Port Group Co., Ltd. since December 2018 & served as Chairman of the Board at China Merchants Port Group Co., Ltd. until December 06, 20 ...


CEO Compensation Analysis

Compensation vs Market: Jingtao's total compensation ($USD366.32K) is about average for companies of similar size in the Hong Kong market ($USD508.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jingtao Bai
MD & Executive Director4.83yrsHK$2.84mno data
Shaoping Zheng
Deputy GM & Executive Director8.17yrsHK$2.35mno data
Zhixian Wang
Executive Director4.17yrsHK$2.31mno data
Jian Su
Executive Director2.5yrsno datano data
Xianliang Xiong
Executive Director1.83yrsno datano data
Renjie Deng
Executive Chairman0.17yrno datano data
Ling Wen
Chief Financial Officer1.42yrsno datano data
Man Kuen Luk
Deputy Chief Legal Counsel and GM of Board of Directors & Legal Departmentno datano datano data
Carol Cheng
General Manager of Corporate Communications Departmentno datano datano data
Lefu Ge
Executive Director0.83yrno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Management: 144's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jingtao Bai
MD & Executive Director4.83yrsHK$2.84mno data
Shaoping Zheng
Deputy GM & Executive Director8.17yrsHK$2.35mno data
Zhixian Wang
Executive Director4.17yrsHK$2.31mno data
Jian Su
Executive Director2.5yrsno datano data
Xianliang Xiong
Executive Director1.83yrsno datano data
Renjie Deng
Executive Chairman0.17yrno datano data
Lefu Ge
Executive Director0.83yrno datano data
Yip Wah Lee
Independent Non-Executive Director18.83yrsHK$280.00k0.0065% HK$2.0m
Ying Hay Kut
Independent Non-Executive Director27.83yrsHK$280.00kno data
Ka Fai Li
Independent Non-Executive Director12.83yrsHK$280.00kno data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 144's board of directors are considered experienced (4.5 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

China Merchants Port Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Merchants Port Holdings Company Limited
  • Ticker: 144
  • Exchange: SEHK
  • Founded: 1872
  • Industry: Marine Ports and Services
  • Sector: Transportation
  • Market Cap: HK$30.972b
  • Shares outstanding: 3.45b
  • Website: https://www.cmport.com.hk

Number of Employees


Location

  • China Merchants Port Holdings Company Limited
  • China Merchants Tower
  • 38th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMHH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1995
CPMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1995
144SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 1995
144SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1995
144SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1995
CMHH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

China Merchants Port Holdings Company Limited, an investment holding company, operates as a port operator in Mainland China, Hong Kong, Taiwan, and internationally. It operates through Ports operation, Bonded Logistics Operation, Port-Related Manufacturing, and Other. The company engages in the container, and bulk and general cargo terminals; and logistic park operation, ports transportation, and airport cargo handling activities. It also invests in and develops properties; constructs modular housings; trades in securities; and provides container terminal services, as well as computer network services. In addition, the company engages in port construction and development; operation of berths; operation of tugboats; and holding of various pieces of land. The company was formerly known as China Merchants Holdings (International) Company Limited and changed its name to China Merchants Port Holdings Company Limited in June 2016. The company was founded in 1872 and is headquartered in Central, Hong Kong. China Merchants Port Holdings Company Limited is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Merchants Port Holdings Company Limited is a subsidiary of China Merchants Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 14:05
End of Day Share Price2020/04/07 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.