SEHK:6198

Stock Analysis Report

Qingdao Port International

Executive Summary

Qingdao Port International Co., Ltd. operates the Port of Qingdao.

Rewards

PE ratio (8.2x) is below the Hong Kong market (10.5x)

Earnings are forecast to grow 7.66% per year

Earnings grew by 6.9% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6198 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

6198

0.4%

HK Infrastructure

1.6%

HK Market


1 Year Return

12.0%

6198

-1.3%

HK Infrastructure

6.0%

HK Market

Return vs Industry: 6198 exceeded the Hong Kong Infrastructure industry which returned -0.1% over the past year.

Return vs Market: 6198 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

6198IndustryMarket
7 Day-1.8%0.4%1.6%
30 Day1.3%1.5%4.4%
90 Day18.1%6.4%8.6%
1 Year21.5%12.0%4.5%-1.3%9.9%6.0%
3 Year44.9%29.2%12.7%-2.0%27.7%14.7%
5 Year93.1%62.4%7.2%-14.8%21.7%1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Qingdao Port International undervalued compared to its fair value and its price relative to the market?

8.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6198 (HK$5.45) is trading above our estimate of fair value (HK$3.09)

Significantly Below Fair Value: 6198 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6198 is good value based on its PE Ratio (8.2x) compared to the Infrastructure industry average (8.5x).

PE vs Market: 6198 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 6198 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 6198 is overvalued based on its PB Ratio (1.1x) compared to the HK Infrastructure industry average (0.7x).


Next Steps

Future Growth

How is Qingdao Port International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6198's forecast earnings growth (7.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 6198's earnings (7.7% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 6198's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6198's revenue (7.2% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 6198's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6198's Return on Equity is forecast to be low in 3 years time (12.3%).


Next Steps

Past Performance

How has Qingdao Port International performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6198 has high quality earnings.

Growing Profit Margin: 6198's current net profit margins (30.6%) are lower than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: 6198's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: 6198's earnings growth over the past year (6.9%) is below its 5-year average (19.1% per year).

Earnings vs Industry: 6198 earnings growth over the past year (6.9%) exceeded the Infrastructure industry 1.1%.


Return on Equity

High ROE: 6198's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Qingdao Port International's financial position?


Financial Position Analysis

Short Term Liabilities: 6198's short term assets (CN¥21.1B) exceed its short term liabilities (CN¥11.6B).

Long Term Liabilities: 6198's short term assets (CN¥21.1B) exceed its long term liabilities (CN¥8.2B).


Debt to Equity History and Analysis

Debt Level: 6198's debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: 6198's debt to equity ratio has increased from 1.5% to 8.7% over the past 5 years.

Debt Coverage: 6198's debt is well covered by operating cash flow (79.2%).

Interest Coverage: 6198 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 6198 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6198's debt is covered by short term assets (assets are 7.5x debt).


Next Steps

Dividend

What is Qingdao Port International's current dividend yield, its reliability and sustainability?

7.83%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%2.2%markettop25%6.0%industryaverage5.1%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: 6198's dividend (7.86%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 6198's dividend (7.86%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)


Stability and Growth of Payments

Stable Dividend: 6198 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6198's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.3%), 6198's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6198's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

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

1.0yrs

Average board tenure


CEO

Xinze Wang (56yo)

0yrs

Tenure

0

Mr. Xinze Wang has been President at Qingdao Port International Co., Ltd. since January 10, 2020 and served as its Vice President and Director of the Human Resources Department since April 2018 until Janua ...


Board Age and Tenure

1.0yrs

Average Tenure

53yo

Average Age

Experienced Board: 6198's board of directors are not considered experienced ( 1 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

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


Management Team

  • Fuxiang Chen (53yo)

    Company Secretary

    • Tenure: 6.2yrs
  • Xinze Wang (56yo)

    President


    Board Members

    • Wei Zhang (45yo)

      Non-Executive Director

      • Tenure: 2.6yrs
    • Yaping Wang (55yo)

      Independent Supervisor

      • Tenure: 0.7yrs
      • Compensation: CN¥207.10k
    • Chunfeng Jiang (43yo)

      Non Executive Director

      • Tenure: 4.6yrs
      • Compensation: CN¥1.14m
    • Qingcai Zhang (59yo)

      Chairman of Board of Supervisors

      • Tenure: 1.6yrs
    • Jiangnan Zhang (52yo)

      Non Executive Director

      • Tenure: 1.6yrs
      • Compensation: CN¥265.78k
    • Xiaozhong CHU (58yo)

      Employee Representative Director

      • Tenure: 1.4yrs
      • Compensation: CN¥532.67k
    • Fengli Li (52yo)

      Non-Executive Chairman

      • Tenure: 0.7yrs
    • Yan Li (62yo)

      Independent Non-Executive Director

      • Tenure: 0.7yrs
    • Min Jiang (54yo)

      Independent Non-Executive Director

      • Tenure: 0.7yrs
    • Kwok Lai (42yo)

      Independent Non-Executive Director

      • Tenure: 0.7yrs

    Company Information

    Qingdao Port International Co., Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Qingdao Port International Co., Ltd.
    • Ticker: 6198
    • Exchange: SEHK
    • Founded: 2013
    • Industry: Marine Ports and Services
    • Sector: Transportation
    • Market Cap: HK$47.762b
    • Shares outstanding: 6.49b
    • Website: https://www.qingdao-port.com

    Number of Employees


    Location

    • Qingdao Port International Co., Ltd.
    • No. 12 Jingba Road
    • Huangdao District
    • Qingdao
    • Shandong Province
    • 266011
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    6198SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDJun 2014
    0QPDB (Deutsche Boerse AG)YesForeign Shares Foreign ListedDEEURJun 2014
    6198SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDJun 2014
    6198SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDJun 2014
    601298SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJan 2019
    601298XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJan 2019

    Biography

    Qingdao Port International Co., Ltd. operates the Port of Qingdao. It operates through six segments: Container Handling and Ancillary Services; Metal Ore, Coal and Other Cargo Handling and Ancillary Services; Liquid Bulk Handling and Ancillary Services; Logistics and Port Value-Added Services; Port Ancillary Services; and Financial Services. The company engages in the loading and discharging of containers, metal ore, coal, grains, and break bulk and liquid bulk cargos, as well as other general cargo, including iron and steel, vehicles, machinery and equipment, fertilizer, chemicals, timber, pulp, and frozen goods. It also provides storage services, including fuel storage; and port management, container freight station, stevedoring, towing, facilities construction, logistics, trucking, agency and clearance, bonded area, dry port, and trade facilitation services. In addition, the company manufactures port related equipment; and supplies electricity power, fuel, and other products. Further, it offers other value-added services consisting of tallying, tugging, and barging; container-related services consisting of container vanning and de-vanning; processing services comprising sifting, washing, and blending of metal ore and coal; and sorting and re-packing of other general cargo, as well as sells merchandise. Additionally, the company provides financial products and services comprising deposit taking, guarantee, and insurance agency services, as well as corporate loans, and other products and services; and shipping repair and agency, engineering, trade agency, engineering design, software and hardware maintenance, media, property management, investment management, cargo agency, and lightering services. As of December 31, 2018, it operated 84 berths at the Port of Qingdao. The company was founded in 2013 and is headquartered in Qingdao, the People’s Republic of China. Qingdao Port International Co., Ltd. is a subsidiary of Qingdao Port (Group) Co., Ltd. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 13:10
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    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.