SEHK:316

Stock Analysis Report

Orient Overseas (International)

Executive Summary

Orient Overseas (International) Limited, an investment holding company, provides container transport and logistics services in Asia, Europe, Australia, North America, and internationally.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Orient Overseas (International)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 316 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

316

-0.09%

HK Shipping

0.2%

HK Market


1 Year Return

-37.3%

316

-38.3%

HK Shipping

-22.0%

HK Market

Return vs Industry: 316 matched the Hong Kong Shipping industry which returned -38.3% over the past year.

Return vs Market: 316 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

316IndustryMarket
7 Day3.8%-0.09%0.2%
30 Day-8.0%-18.0%-10.8%
90 Day-14.1%-28.2%-16.5%
1 Year-17.6%-37.3%-34.5%-38.3%-19.1%-22.0%
3 Year1.8%-22.8%-33.5%-37.5%-3.7%-13.4%
5 Year-16.1%-38.3%-59.8%-62.5%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Orient Overseas (International)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Orient Overseas (International) undervalued compared to its fair value and its price relative to the market?

16.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 316 (HK$31.8) is trading above our estimate of fair value (HK$7.89)

Significantly Below Fair Value: 316 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 316 is poor value based on its PE Ratio (16.7x) compared to the Shipping industry average (10.7x).

PE vs Market: 316 is poor value based on its PE Ratio (16.7x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 316's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 316 is good value based on its PB Ratio (0.5x) compared to the HK Shipping industry average (0.6x).


Next Steps

Future Growth

How is Orient Overseas (International) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 316's earnings are forecast to decline over the next 3 years (-11.2% per year).

Earnings vs Market: 316's earnings are forecast to decline over the next 3 years (-11.2% per year).

High Growth Earnings: 316's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 316's revenue (2.4% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 316's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 316's Return on Equity is forecast to be low in 3 years time (2.2%).


Next Steps

Past Performance

How has Orient Overseas (International) performed over the past 5 years?

-11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 316 has high quality earnings.

Growing Profit Margin: 316's current net profit margins (2.2%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: 316's earnings have declined by -11.7% per year over the past 5 years.

Accelerating Growth: 316's earnings growth over the past year (104.1%) exceeds its 5-year average (-11.7% per year).

Earnings vs Industry: 316 earnings growth over the past year (104.1%) exceeded the Shipping industry 3%.


Return on Equity

High ROE: 316's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Orient Overseas (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: 316's short term assets ($4.4B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: 316's short term assets ($4.4B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: 316's debt to equity ratio (29%) is considered satisfactory.

Reducing Debt: 316's debt to equity ratio has reduced from 51.2% to 29% over the past 5 years.

Debt Coverage: 316's debt is well covered by operating cash flow (46.2%).

Interest Coverage: 316's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: 316 has a high level of physical assets or inventory.

Debt Coverage by Assets: 316's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is Orient Overseas (International)'s current dividend yield, its reliability and sustainability?

2.28%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 316's dividend (2.28%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 316's dividend (2.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


Stability and Growth of Payments

Stable Dividend: 316's dividend payments have been volatile in the past 10 years.

Growing Dividend: 316's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), 316's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 316's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Haimin Wang (47yo)

0.58

Tenure

Mr. Haimin Wang serves as Chief Executive Director at Orient Overseas (International) Limited since September 18,2019. He is Executive Director of Orient Overseas (International) Limited since August 3, 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Lirong Xu
Chairman of the Board1.67yrsno datano data
Haimin Wang
CEO & Executive Director0.58yrno datano data
Mingwen Zhang
Chief Financial Officer1.67yrsno datano data
Erxin Yao
Director of Corporate Planning10.25yrsno datano data
Chee Lee
Compliance Officer23.17yrsno datano data
Yee Chung Fung
Head of Internal Audit no datano datano data
Zhijian Yang
Executive Director0.58yrno datano data
Boming Feng
Executive Director0.58yrno datano data
Yun Lee Mok
Group Financial Controller11.83yrsno datano data
Kenny Ye
Chief Executive Officer of OOCL Logistics4.42yrsno datano data

3.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 316's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lirong Xu
Chairman of the Board1.67yrsno datano data
Haimin Wang
CEO & Executive Director0.58yrno datano data
Erxin Yao
Director of Corporate Planning10.25yrsno datano data
Zhijian Yang
Executive Director0.58yrno datano data
Boming Feng
Executive Director0.58yrno datano data
Lieh Cheung Tung
Non-Executive Director8.42yrsUS$629.00kno data
Shui Ming Chung
Independent Non-Executive Director1.67yrsUS$27.00kno data
Yiu Chow
Independent Non-Executive Director5.25yrsUS$97.00kno data
Jun Yan
Non-Executive Director1.67yrsUS$19.00kno data
Dan Wang
Non-Executive Director1.67yrsUS$13.00kno data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Board: 316's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Orient Overseas (International) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Orient Overseas (International) Limited
  • Ticker: 316
  • Exchange: SEHK
  • Founded:
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: HK$19.900b
  • Shares outstanding: 625.79m
  • Website: https://www.ooilgroup.com

Number of Employees


Location

  • Orient Overseas (International) Limited
  • Harbour Centre
  • 31st Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OROV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1992
316SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 1992
ORI1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1992
316SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1992
316SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 1992
OROV.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Orient Overseas (International) Limited, an investment holding company, provides container transport and logistics services in Asia, Europe, Australia, North America, and internationally. The company offers trunk and intermodal services; freight management services and IT solutions; supply-chain management and distribution services; and containerized shipping services in various trade lanes comprising Trans-Pacific, Trans-Atlantic, Asia/Europe, Asia/Australia, and Intra-Asia trades. The company is also involved in equipment owning and leasing, container depot and warehousing, portfolio investment, terminal operating, ship owning, cargo consolidation and forwarding, liner and freight agency, property owning, and ship management businesses; maintaining union office workers; providing corporate, labor, and trucking services; and operating vessels. It operates two container terminals, including Long Beach Container Terminal in California and Kaohsiung Container Terminal in Taiwan. The company is based in Wanchai, Hong Kong. As of July 27, 2018, Orient Overseas (International) Limited operates as a subsidiary of COSCO SHIPPING Holdings Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:42
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.