SEHK:598

Stock Analysis Report

Executive Summary

Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China.

Snowflake

Fundamentals

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Sinotrans's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

598

1.2%

HK Logistics

3.1%

HK Market


1 Year Return

-14.2%

598

-11.2%

HK Logistics

0.5%

HK Market

Return vs Industry: 598 underperformed the Hong Kong Logistics industry which returned -11.2% over the past year.

Return vs Market: 598 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

598IndustryMarket
7 Day1.6%1.2%3.1%
30 Day-0.8%-3.1%-1.8%
90 Day-9.3%-11.6%-4.8%
1 Year-9.3%-14.2%-7.0%-11.2%4.1%0.5%
3 Year-27.4%-35.1%-17.2%-25.1%15.8%4.2%
5 Year-52.2%-59.8%-40.9%-49.3%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sinotrans undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 598 (HK$2.53) is trading below our estimate of fair value (HK$2.94)

Significantly Undervalued: 598 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 598 is good value based on its PE Ratio (5.1x) compared to the Logistics industry average (9.4x).

PE vs Market: 598 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 598 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 598 is good value based on its PB Ratio (0.6x) compared to the HK Logistics industry average (0.9x).


Next Steps

Future Growth

How is Sinotrans forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 598's forecast earnings growth (4.9% per year) is above the savings rate (2%).

Earnings vs Market: 598's earnings (4.9% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 598's earnings are forecast to grow, but not significantly.

Revenue vs Market: 598's revenue (5.9% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 598's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 598's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Sinotrans performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 598's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: 598's earnings growth over the past year (23.3%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: 598 earnings growth over the past year (23.3%) exceeded the Logistics industry -24.5%.


Return on Equity

High ROE: 598's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: 598's Return on Assets is below or equal to the Logistics industry average last year.


Return on Capital Employed

ROCE Improving: 598's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sinotrans's financial position?


Financial Position Analysis

Short Term Liabilities: 598's short term assets (CN¥28.5B) exceeds its short term liabilities (CN¥20.8B)

Long Term Liabilities: 598's short term assets (28.5B) exceeds its long term liabilities (11.9B)


Debt to Equity History and Analysis

Debt Level: 598's debt to equity ratio (48%) is considered high

Reducing Debt: 598's debt to equity ratio has reduced from 49.2% to 48% over the past 5 years.

Debt Coverage: 598's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: 598 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 598 has a high level of physical assets or inventory.

Debt Coverage by Assets: 598's debt is covered by short term assets (assets are 2.094800x debt).


Next Steps

Dividend

What is Sinotrans's current dividend yield, its reliability and sustainability?

5.68%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.3%markettop25%6.3%industryaverage4.3%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 598's dividend (5.68%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 598's dividend (5.68%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 598's dividend payments have been volatile in the past 10 years.

Growing Dividend: 598's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.2%), 598's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 598's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

What is the CEO of Sinotrans's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Rong Song (47yo)

0.5yrs

Tenure

CN¥2,091,774

Compensation

Mr. Song Rong has been the Chairman of China Merchants Logistics Holding Co., Ltd., since 2018 and served as its General Manager until 2018. Mr. Song serves as President at Sinotrans Limited since April 22 ...


CEO Compensation Analysis

Compensation vs. Market: Rong has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Insufficient data to compare Rong's compensation with company performance.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: 598's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 598's board of directors are not considered experienced ( 1.3 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.


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Ownership Breakdown


Management Team

  • Jiuyun Wang (53yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Lei Tian (54yo)

    VP & Deputy GM

    • Tenure: 1.4yrs
  • Chen Xianmin

    Vice President

    • Tenure: 0yrs
  • Shirley Hui (51yo)

    Joint Company Secretary

    • Tenure: 2.8yrs
  • Rong Song (47yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: CN¥2.09m
  • Hairong Chen (56yo)

    Vice President

    • Tenure: 1.4yrs
  • Dexing Song (56yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Shichu Li (49yo)

    Joint Company Secretary

    • Tenure: 2.8yrs
  • Xiang Gao (47yo)

    Chief Information Officer

    • Tenure: 3.1yrs

Board Members

  • Jerry Hsu (68yo)

    Non-Executive Director

    • Tenure: 16.3yrs
  • Taiwen Wang (73yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥166.18k
  • Jiang Jian (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Guanpeng Li (53yo)

    Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: CN¥2.31m
  • Rong Song (47yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: CN¥2.09m
  • Dexing Song (56yo)

    Vice Chairman

    • Tenure: 1.3yrs
  • Yan Meng (64yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥92.65k
  • Haiqing Song (41yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥92.65k
  • Qian Li (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥92.65k
  • Yingjie Liu

    Chairman of Supervisory Board

    • Tenure: 0.3yrs

Company Information

Sinotrans Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sinotrans Limited
  • Ticker: 598
  • Exchange: SEHK
  • Founded: 1950
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: HK$30.917b
  • Shares outstanding: 7.40b
  • Website: https://www.sinotrans.com

Number of Employees


Location

  • Sinotrans Limited
  • Building 10/Sinotrans Tower B
  • 10th Floor
  • Beijing
  • 100029
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNOT.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDFeb 2003
598SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDFeb 2003
SIYDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURFeb 2003
598SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2003
598SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDFeb 2003
601598SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2019
601598XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2019

Biography

Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China. The company operates through Freight Forwarding, Logistics, Storage and Terminal Services, and Other Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:34
End of Day Share Price2019/10/17 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.