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 the People’s Republic of China.
The last earnings update was 21 days ago.
Discounted Cash Flow Calculation for SEHK:1430 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:1430 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Suchuang Gas's earnings available for a low price, and how does
this compare to other companies in the same industry?
Suchuang Gas's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Suchuang Gas is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Suchuang Gas's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 been a director of Taicang Natural Gas since 12 February 2015, responsible for the management of its operation. From September 2008 to August 2012, he served at PetroChina Kunlun Natural Gas Usage Company Limited as Deputy General Manager, Deputy Secretary to the Communist Party Committee, secretary to the Disciplinary Committee and chairman of the labour union. From April 1995 to September 2008, Mr. Du held various senior positions in Shenzhen Petroleum Industrial Co., Ltd.
Shaozhou's compensation has been consistent with company performance over the past year, both up more than 20%.
Shaozhou's remuneration is about average for companies of similar size in Hong Kong.
Chairman of the Board
CEO & Executive Director
Executive Vice Chairman
CFO & Company Secretary
Chief Engineer of Taicang Natural Gas
Chief Financial Officer of Taicang Natural Gas
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Suchuang Gas board of directors is about average.
Suchuang Gas Corporation Limited (HKG:1430): Commentary On Fundamentals
Suchuang Gas Corporation Limited (HKG:1430) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … is a company that has been able to sustain great financial health, trading at an attractive share price
Is Suchuang Gas Corporation Limited (HKG:1430) Investing Effectively In Its Business?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:
Don't Sell Suchuang Gas Corporation Limited (HKG:1430) Before You Read This
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 18.89 = CN¥1.94 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.10
Should You Buy Suchuang Gas Corporation Limited (HKG:1430) For Its Dividend?
Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Suchuang Gas Corporation Limited (HKG:1430) has recently paid dividends to shareholders, and currently yields 1.0%. … Let's take a look at Suchuang Gas in more detail.
Is Suchuang Gas Corporation Limited's (HKG:1430) 7.2% ROE Worse Than Average?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every HK$1 worth of equity in the company, it was able to earn HK$0.072. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Suchuang Gas Corporation Limited (HKG:1430) Struggling With Its 8.7% Return On Capital Employed?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:
Is Suchuang Gas Corporation Limited's (HKG:1430) CEO Paid At A Competitive Rate?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Shaozhou Du's Compensation Compare With Similar Sized Companies. … According to our data, Suchuang Gas Corporation Limited has a market capitalization of HK$2.6b, and pays its CEO total annual compensation worth CN¥1.6m
Read This Before Judging Suchuang Gas Corporation Limited's (HKG:1430) ROE
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.072 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Suchuang Gas Corporation Limited's (HKG:1430) PE Ratio A Signal To Sell For Investors?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While this makes 1430 appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio. … I will explain what the P/E ratio is as well as what you should look out for when using it
With An ROE Of 7.39%, Can Suchuang Gas Corporation Limited (HKG:1430) Catch Up To The Industry?
and want to begin learning the link between Suchuang Gas Corporation Limited (HKG:1430)’s return fundamentals and stock market performance. … Suchuang Gas Corporation Limited’s (HKG:1430) most recent return on equity was a substandard 7.39% relative to its industry performance of 13.31% over the past year. … Though 1430's recent performance is underwhelming, it is useful to understand what ROE is made up of and how it should be interpreted.
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 the People’s Republic of China. 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, 2017, the company operated five compressed natural gas (CNG) filling stations, including three CNG filling stations in Guangyuan and Sichuan; and two CNG filling stations in Taicang and Suzhou. It serves 585 commercial and industrial customers, and 220,000 residential customers. The company has a strategic cooperation framework agreement with China Railway Real Estate Group Co., Ltd. for urban development and operation. Suchuang Gas Corporation Limited was incorporated in 2013 and is headquartered in Taicang, the People’s Republic of China.
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