SEHK:1713

Stock Analysis Report

Sichuan Energy Investment Development

Executive Summary

Sichuan Energy Investment Development Co., Ltd., a vertically integrated power supplier and service provider, generates, distributes, and sells electricity for the city of Yibin, Sichuan province.

Rewards

Trading at 65.9% below its fair value

Earnings grew by 12.5% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Sichuan Energy Investment Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1713 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

1713

0.1%

HK Electric Utilities

0.9%

HK Market


1 Year Return

n/a

1713

-5.6%

HK Electric Utilities

-1.5%

HK Market

Return vs Industry: Insufficient data to determine how 1713 performed against the Hong Kong Electric Utilities industry.

Return vs Market: Insufficient data to determine how 1713 performed against the Hong Kong Market.


Shareholder returns

1713IndustryMarket
7 Day0.6%0.1%0.9%
30 Day9.4%-4.0%-3.7%
90 Day13.0%1.1%-0.1%
1 Yearn/a-1.6%-5.6%2.0%-1.5%
3 Yearn/a10.6%-7.9%17.3%5.4%
5 Yearn/a31.3%0.6%17.1%-2.2%

Price Volatility Vs. Market

How volatile is Sichuan Energy Investment Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sichuan Energy Investment Development undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1713 (HK$1.74) is trading below our estimate of fair value (HK$5.11)

Significantly Below Fair Value: 1713 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1713 is good value based on its PE Ratio (8.5x) compared to the Electric Utilities industry average (14.6x).

PE vs Market: 1713 is good value based on its PE Ratio (8.5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1713's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1713 is good value based on its PB Ratio (0.6x) compared to the HK Electric Utilities industry average (1.3x).


Next Steps

Future Growth

How is Sichuan Energy Investment Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

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 Sichuan Energy Investment Development 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 Sichuan Energy Investment Development performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1713 has a large one-off gain of CN¥39.5M impacting its June 30 2019 financial results.

Growing Profit Margin: 1713's current net profit margins (7.9%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 1713's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: 1713's earnings growth over the past year (12.5%) is below its 5-year average (16.2% per year).

Earnings vs Industry: 1713 earnings growth over the past year (12.5%) exceeded the Electric Utilities industry -14.7%.


Return on Equity

High ROE: 1713's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sichuan Energy Investment Development's financial position?


Financial Position Analysis

Short Term Liabilities: 1713's short term assets (CN¥1.3B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 1713's short term assets (CN¥1.3B) exceed its long term liabilities (CN¥609.3M).


Debt to Equity History and Analysis

Debt Level: 1713's debt to equity ratio (28.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1713's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1713's debt is well covered by operating cash flow (52.4%).

Interest Coverage: 1713's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: 1713 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1713's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Sichuan Energy Investment Development's current dividend yield, its reliability and sustainability?

5.42%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.2%markettop25%6.3%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1713's dividend (5.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1713's dividend (5.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1713's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1713's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.9%), 1713'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

What is the CEO of Sichuan Energy Investment Development's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average board tenure


CEO

Hui Li (55yo)

0yrs

Tenure

CN¥530,000

Compensation

Mr. Li Hui serves as General Manager, Vice Chairman of Board at Sichuan Energy Investment Development Co., Ltd. since 2019. He served as General Manager, Deputy Chairman of Board and Secretary of Sichuan E ...


CEO Compensation Analysis

Compensation vs Market: Hui's total compensation ($USD75.18K) is below average for companies of similar size in the Hong Kong market ($USD282.41K).

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


Board Age and Tenure

1.0yrs

Average Tenure

45yo

Average Age

Experienced Board: 1713'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.


Ownership Breakdown

Dilution of Shares: 1713 only recently listed within the past 12 months, with total shares outstanding growing by 17% in the past year..


Management Team

  • Yong Zeng (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥699.00k
  • Hui Li (55yo)

    GM & Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥530.00k
  • Peixi Xie (37yo)

    Executive Director

    • Tenure: 0.5yrs
  • Yuanchun Wang (43yo)

    Deputy General Manager

    • Tenure: 0yrs
  • Daijun Ding (50yo)

    Deputy General Manager

    • Tenure: 0yrs
  • Rui Li (40yo)

    Deputy GM & Secretary of the board

    • Tenure: 0.9yrs
  • Bi Li (40yo)

    CFO and Head of Finance & Assets Department

    • Tenure: 0yrs
    • Compensation: CN¥479.00k
  • Huiling Huang

    Joint Company Secretary

    • Tenure: 0yrs

Board Members

  • Yanbin Zhou (52yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Yu Li (33yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Wei Fan (34yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Yong Zeng (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥699.00k
  • Chengke Wang (52yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Peng Wang (45yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
  • Hui Li (55yo)

    GM & Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥530.00k
  • Peixi Xie (37yo)

    Executive Director

    • Tenure: 0.5yrs
  • Zhiwei Zeng (37yo)

    Chairman of the Supervisory Committee

    • Tenure: 0yrs
  • Jianjiang Guo

    Independent Non-executive Director

    • Tenure: 0yrs

Company Information

Sichuan Energy Investment Development Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sichuan Energy Investment Development Co., Ltd.
  • Ticker: 1713
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: HK$1.880b
  • Shares outstanding: 1.07b
  • Website: https://www.scntgf.com

Number of Employees


Location

  • Sichuan Energy Investment Development Co., Ltd.
  • No. 789, Renhe Road
  • Wenjiang District
  • Chengdu
  • Sichuan Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1713SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Share Foreign ListedHKHKDDec 2018

Biography

Sichuan Energy Investment Development Co., Ltd., a vertically integrated power supplier and service provider, generates, distributes, and sells electricity for the city of Yibin, Sichuan province. It gener ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:59
End of Day Share Price2019/12/09 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.