SEHK:1430

Stock Analysis Report

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Executive Summary

Suchuang Gas Corporation Limited, an investment holding company, engages in the distribution and sale of piped natural gas to industrial, commercial, and residential users in Mainland China and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1430 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

1430

5.8%

HK Gas Utilities

3.4%

HK Market


1 Year Return

-10.3%

1430

-8.2%

HK Gas Utilities

-7.8%

HK Market

Return vs Industry: 1430 underperformed the Hong Kong Gas Utilities industry which returned -8.2% over the past year.

Return vs Market: 1430 underperformed the Hong Kong Market which returned -7.8% over the past year.


Shareholder returns

1430IndustryMarket
7 Day0.5%5.8%3.4%
30 Day0.5%-2.0%-1.4%
90 Day0%-5.5%-5.8%
1 Year-8.8%-10.3%-6.5%-8.2%-4.8%-7.8%
3 Year-23.8%-26.8%37.8%29.7%-2.6%-12.4%
5 Year-19.2%-24.8%31.3%19.8%-13.6%-27.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1430 (HK$1.91) is trading above our estimate of fair value (HK$0.55)

Significantly Below Fair Value: 1430 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1430 is poor value based on its PE Ratio (22.6x) compared to the Gas Utilities industry average (16.3x).

PE vs Market: 1430 is poor value based on its PE Ratio (22.6x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1430's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1430 is good value based on its PB Ratio (1.1x) compared to the HK Gas Utilities industry average (1.1x).


Next Steps

Future Growth

How is Suchuang Gas forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Suchuang Gas has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Suchuang Gas performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1430 has high quality earnings.

Growing Profit Margin: 1430's current net profit margins (5.3%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: 1430's earnings have declined by -11.4% per year over the past 5 years.

Accelerating Growth: 1430's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1430 had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Gas Utilities industry average (6.9%).


Return on Equity

High ROE: 1430's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Suchuang Gas's financial position?


Financial Position Analysis

Short Term Liabilities: 1430's short term assets (CN¥955.5M) exceed its short term liabilities (CN¥513.8M).

Long Term Liabilities: 1430's short term assets (CN¥955.5M) exceed its long term liabilities (CN¥239.3M).


Debt to Equity History and Analysis

Debt Level: 1430's debt to equity ratio (22.7%) is considered satisfactory.

Reducing Debt: 1430's debt to equity ratio has reduced from 25.8% to 22.7% over the past 5 years.

Debt Coverage: 1430's debt is well covered by operating cash flow (39.1%).

Interest Coverage: 1430's interest payments on its debt are well covered by EBIT (40.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1430's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.55%).

High Dividend: 1430's dividend (1.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.26%).


Stability and Growth of Payments

Stable Dividend: 1430 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1430's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), 1430's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Shaozhou Du (66yo)

5.75yrs

Tenure

CN¥1,339,000

Compensation

Mr. Shaozhou Du is the Chief Executive Officer of Suchuang Gas Corporation Limited and Executive Director since September 12, 2014 Mr. Du has over 45 years of experience in the oil and gas industry. He has ...


CEO Compensation Analysis

Compensation vs Market: Shaozhou's total compensation ($USD187.88K) is below average for companies of similar size in the Hong Kong market ($USD277.58K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yi Su
Chairman0.83yrCN¥1.76mno data
Shaozhou Du
CEO & Executive Director5.75yrsCN¥1.34m0.011% CN¥191.1k
Jianyi Li
Executive Director0.83yrCN¥355.00k0.011% CN¥183.3k
Wen Su
Executive Director0.83yrCN¥140.00kno data
Chi Kit Ng
CFO & Company Secretaryno datano datano data
Guangyou Lian
Chief Engineer of Taicang Natural Gas18.08yrsno datano data
Hui Huang
Chief Financial Officer of Taicang Natural Gasno datano datano data

0.8yrs

Average Tenure

46yo

Average Age

Experienced Management: 1430's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yi Su
Chairman0.83yrCN¥1.76mno data
Shaozhou Du
CEO & Executive Director5.75yrsCN¥1.34m0.011% CN¥191.1k
Jianyi Li
Executive Director0.83yrCN¥355.00k0.011% CN¥183.3k
Wen Su
Executive Director0.83yrCN¥140.00kno data
Wai Keung Luk
Independent Non-Executive Director5.33yrsCN¥174.00kno data
Lei Xu
Non-Executive Director6.33yrsCN¥174.00kno data
Bo Jin
Non-Executive Director1.75yrsCN¥149.00kno data
Qingzu Zhou
Independent Non-Executive Director5.33yrsCN¥174.00kno data
Tong Zhu
Independent Non-Executive Director2.92yrsCN¥149.00kno data

2.9yrs

Average Tenure

50yo

Average Age

Experienced Board: 1430's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Suchuang Gas Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suchuang Gas Corporation Limited
  • Ticker: 1430
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: HK$1.725b
  • Shares outstanding: 902.92m
  • Website: https://www.suchuanggas.com

Number of Employees


Location

  • Suchuang Gas Corporation Limited
  • 116 Loujiang South Road
  • Taicang City
  • Suzhou
  • Jiangsu Province
  • 215400
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1430SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2015

Biography

Suchuang Gas Corporation Limited, an investment holding company, engages in the distribution and sale of piped natural gas to industrial, commercial, and residential users in Mainland China and internationally. It also provides natural gas transmission services; operates as a contractor for the construction and installation of gas pipelines; and constructs and operates natural gas filling stations. As of December 31, 2019, the company operated 5 compressed natural gas (CNG) /liquefied natural gas (LNG) refueling stations, including three stations in Guangyuan; 1 station in Taicang; and 1 station in Suzho; and served 595 commercial and industrial customers, and 250,000 residential customers. In addition, it promotes technologies for nitrogen and carbon dioxide; invests in the upstream asset; and offers technical, consulting, transfer, and development services, as well as sells chemicals. Further, the company is involved in the port facilities, contract energy management, project construction, and industrial investment businesses. Suchuang Gas Corporation Limited was founded in 2002 and is headquartered in Suzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 13:32
End of Day Share Price2020/06/02 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.