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

Fundamentals

Flawless balance sheet, good value and pays a dividend.

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


Market Performance


7 Day Return

-0.1%

316

5.3%

HK Shipping

2.9%

HK Market


1 Year Return

-23.8%

316

1.0%

HK Shipping

0.7%

HK Market

Return vs Industry: 316 underperformed the Hong Kong Shipping industry which returned 1% over the past year.

Return vs Market: 316 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

316IndustryMarket
7 Day-0.1%5.3%2.9%
30 Day-0.1%-1.8%-2.5%
90 Day-16.4%-5.0%-5.4%
1 Year-21.8%-23.8%3.0%1.0%4.4%0.7%
3 Year27.6%24.0%7.7%4.3%17.0%5.2%
5 Year-9.8%-15.0%-13.9%-19.5%20.2%0.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 316 (HK$35.95) is trading below our estimate of fair value (HK$115.45)

Significantly Undervalued: 316 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 316 is good value based on its PE Ratio (12.1x) compared to the Shipping industry average (13.5x).

PE vs Market: 316 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low 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 (0.6x) compared to the HK Shipping industry average (0.8x).


Next Steps

Future Growth

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

-50.9%

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 (-50.9% per year).

Earnings vs Market: 316's earnings are forecast to decline over the next 3 years (-50.9% per year).

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

Revenue vs Market: 316's revenue (3.8% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 316's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 316's Return on Equity is forecast to be low in 3 years time (2.6%).


Next Steps

Past Performance

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

-24.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 316's earnings have declined by -24.5% per year over the past 5 years.

Accelerating Growth: 316's earnings growth over the past year (389.3%) exceeds its 5-year average (-24.5% per year).

Earnings vs Industry: 316 earnings growth over the past year (389.3%) exceeded the Shipping industry 7.4%.


Return on Equity

High ROE: 316's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: 316's Return on Assets is below or equal to the Shipping industry average last year.


Return on Capital Employed

ROCE Improving: 316's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 316's short term assets ($3.9B) exceeds its short term liabilities ($2.5B)

Long Term Liabilities: 316's short term assets (3.9B) exceeds its long term liabilities (3.4B)


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 43.9% to 29% over the past 5 years.

Debt Coverage: 316's debt is well covered by operating cash flow (45.4%).

Interest Coverage: 316's interest payments on its debt are well covered by EBIT (4.6x 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 2.791980x debt).


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.2%markettop25%6.3%industryaverage3.7%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 316's dividend (2.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 316's dividend (2.91%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), 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 (39.2% payout ratio).


Next Steps

Management

What is the CEO of Orient Overseas (International)'s salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Haimin Wang (47yo)

0.08yrs

Tenure

0

Mr. Haimin Wang erves as Chief Executive Director at Orient Overseas (International) Limited from September 18,2019. He is Executive Director of Orient Overseas (International) Limited since August 3, 2018 ...


Management Age and Tenure

4.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 316's management team is considered experienced (4 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: 316's board of directors are not considered experienced ( 1.2 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.


Ownership Breakdown


Management Team

  • Andrew Tung (54yo)

    Executive Director

    • Tenure: 7.9yrs
    • Compensation: US$629.00k
  • Lirong Xu (62yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Lammy Lee (57yo)

    Compliance Officer

    • Tenure: 22.7yrs
  • Vincent Fung

    Head of Internal Audit

    • Tenure: 0yrs
  • Paul Mok

    Group Financial Controller

    • Tenure: 11.3yrs
  • Erxin Yao (61yo)

    Director of Corporate Planning

    • Tenure: 9.8yrs
  • Mingwen Zhang (41yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
  • Boming Feng (50yo)

    Executive Director

    • Tenure: 0.08yrs
  • Haimin Wang (47yo)

    CEO & Executive Director

    • Tenure: 0.08yrs
  • Zhijian Yang (55yo)

    Executive Director

    • Tenure: 0.08yrs

Board Members

  • Andrew Tung (54yo)

    Executive Director

    • Tenure: 7.9yrs
    • Compensation: US$629.00k
  • Lirong Xu (62yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Timpson Chung (68yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$27.00k
  • Philip Chow (71yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: US$97.00k
  • Ying Chen (48yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$24.00k
  • Erxin Yao (61yo)

    Director of Corporate Planning

    • Tenure: 9.8yrs
  • Philip Yang (71yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$27.00k
  • Boming Feng (50yo)

    Executive Director

    • Tenure: 0.08yrs
  • Haimin Wang (47yo)

    CEO & Executive Director

    • Tenure: 0.08yrs
  • Zhijian Yang (55yo)

    Executive Director

    • Tenure: 0.08yrs

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$22.497b
  • 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 offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:38
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.