SEHK:3868

Stock Analysis Report

Xinyi Energy Holdings

Executive Summary

Xinyi Energy Holdings Limited, an investment holding company, owns, operates, and manages solar farms in China.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Xinyi Energy Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

3868

-1.1%

HK Renewable Energy

0.3%

HK Market


1 Year Return

n/a

3868

-10.7%

HK Renewable Energy

-1.5%

HK Market

Return vs Industry: Insufficient data to determine how 3868 performed against the Hong Kong Renewable Energy industry.

Return vs Market: Insufficient data to determine how 3868 performed against the Hong Kong Market.


Shareholder returns

3868IndustryMarket
7 Day-0.5%-1.1%0.3%
30 Day-10.9%-5.8%0.5%
90 Day-10.9%-9.3%-4.4%
1 Yearn/a-7.7%-10.7%2.1%-1.5%
3 Yearn/a-17.0%-24.9%14.7%3.2%
5 Yearn/a-44.3%-54.2%21.5%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Xinyi Energy Holdings undervalued compared to its fair value and its price relative to the market?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3868 (HK$1.96) is trading below our estimate of fair value (HK$2.95)

Significantly Below Fair Value: 3868 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3868 is poor value based on its PE Ratio (13x) compared to the Renewable Energy industry average (8.9x).

PE vs Market: 3868 is poor value based on its PE Ratio (13x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 3868 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3868 is overvalued based on its PB Ratio (1.3x) compared to the HK Renewable Energy industry average (0.5x).


Next Steps

Future Growth

How is Xinyi Energy Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3868's forecast earnings growth (21.6% per year) is above the savings rate (2%).

Earnings vs Market: 3868's earnings (21.6% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3868's revenue (14.9% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 3868's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3868's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Xinyi Energy Holdings performed over the past 5 years?

7.4%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 3868's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 3868's past year earnings growth to its 5-year average.

Earnings vs Industry: 3868 earnings growth over the past year (7.4%) exceeded the Renewable Energy industry 5.6%.


Return on Equity

High ROE: 3868's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: 3868 has a higher Return on Assets than the Renewable Energy industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 3868's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Xinyi Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3868's short term assets (HK$5.1B) exceeds its short term liabilities (HK$3.3B)

Long Term Liabilities: 3868's short term assets (5.1B) exceeds its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: 3868's debt to equity ratio (26.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 3868's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3868's debt is well covered by operating cash flow (42.5%).

Interest Coverage: 3868's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet

Inventory Level: 3868 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3868's debt is covered by short term assets (assets are 1.920190x debt).


Next Steps

Dividend

What is Xinyi Energy Holdings's current dividend yield, its reliability and sustainability?

5.10%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.8%forecastin3Years7.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3868's dividend (5.1%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3868's dividend (5.1%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Too early to tell whether 3868's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3868'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 (33.2%), 3868's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3868's dividends in 3 years are not forecast to be well covered by earnings (100.3% payout ratio).


Next Steps

Management

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

1.2yrs

Average board tenure


CEO

Fong Tung (31yo)

0yrs

Tenure

0

Mr. Fong Ngai Tung is an Executive Director at Xinyi Energy Holdings Limited since March 15, 2016 and serves as its CEO. 


Board Age and Tenure

1.2yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 3868's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 3868 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,137,71402 Sep 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares542,000
Max PriceHK$2.10
BuyHK$522,28523 Aug 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares242,000
Max PriceHK$2.16
BuyHK$6,584,40023 Aug 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,000,000
Max PriceHK$2.19
BuyHK$6,599,09823 Aug 19
Ching Bor Tung
EntityIndividual
Shares3,000,000
Max PriceHK$2.20
BuyHK$178,92021 Aug 19
Ching Bor Tung
EntityIndividual
Shares84,000
Max PriceHK$2.13
BuyHK$1,628,15921 Aug 19
Ching Bor Tung
EntityIndividual
Shares768,000
Max PriceHK$2.12
BuyHK$4,376,40220 Aug 19
Ching Bor Tung
EntityIndividual
Shares2,000,000
Max PriceHK$2.19
BuyHK$1,362,25814 Aug 19
Ching Bor Tung
EntityIndividual
Shares642,000
Max PriceHK$2.12
BuyHK$839,51914 Aug 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares396,000
Max PriceHK$2.12
BuyHK$6,591,17413 Aug 19
Ching Bor Tung
EntityIndividual
Shares3,016,000
Max PriceHK$2.19
BuyHK$5,015,42713 Aug 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares2,332,000
Max PriceHK$2.15
BuyHK$4,24012 Aug 19
Ching Sai Tung
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares2,000
Max PriceHK$2.12
BuyHK$1,429,02112 Aug 19
Ching Bor Tung
EntityIndividual
Shares678,000
Max PriceHK$2.11
BuyHK$26,221,04913 Jun 19
HSBC Global Asset Management (UK) Limited
EntityCompany
Shares13,516,000
Max PriceHK$1.94

Ownership Breakdown


Management Team

  • Ching Sai Tung (53yo)

    Vice Chairman

    • Tenure: 0yrs
  • Yau Ching Lee (43yo)

    Executive Director

    • Tenure: 4.3yrs
  • Fong Tung (31yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Shu Cheng (60yo)

    GM & Executive Director

    • Tenure: 1.4yrs
  • Ling Tuen (38yo)

    Financial Controller & Company Secretary

    • Tenure: 2.8yrs

Board Members

  • Kwok Ip (68yo)

    Independent Non Executive Director

    • Tenure: 0.9yrs
  • Ching Sai Tung (53yo)

    Vice Chairman

    • Tenure: 0yrs
  • Yin Yee Lee (66yo)

    Chairman

    • Tenure: 0yrs
  • Yau Ching Lee (43yo)

    Executive Director

    • Tenure: 4.3yrs
  • Ting Yuk Leung (44yo)

    Independent Non Executive Director

    • Tenure: 0.9yrs
  • Fong Tung (31yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Shu Cheng (60yo)

    GM & Executive Director

    • Tenure: 1.4yrs
  • Fang Lyu (40yo)

    Independent Non Executive Director

    • Tenure: 0.9yrs

Company Information

Xinyi Energy Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xinyi Energy Holdings Limited
  • Ticker: 3868
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: HK$13.235b
  • Shares outstanding: 6.75b
  • Website: https://www.xinyienergy.com

Number of Employees


Location

  • Xinyi Energy Holdings Limited
  • No. 102, Meidiya Road
  • E Qiao Town
  • Wuhu
  • Anhui Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3868SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2019
3868SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2019

Biography

Xinyi Energy Holdings Limited, an investment holding company, owns, operates, and manages solar farms in China. As of December 31, 2017, the company operated 954 megawatts capacity of the grid connected ut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:01
End of Day Share Price2019/10/22 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.