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Beijing Enterprises Holdings

SEHK:392
Snowflake Description

Very undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
392
SEHK
HK$54B
Market Cap
  1. Home
  2. HK
  3. Utilities
Company description

Beijing Enterprises Holdings Limited, an investment holding company, engages in piped gas, brewery, water and environmental, solid waste treatment, and other businesses primarily in Mainland China. The last earnings update was 21 days ago. More info.


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392 Share Price and Events
7 Day Returns
-0.2%
SEHK:392
-2.6%
HK Gas Utilities
-0.2%
HK Market
1 Year Returns
4.8%
SEHK:392
9.7%
HK Gas Utilities
-3.9%
HK Market
392 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Beijing Enterprises Holdings (392) -0.2% -7.8% -4.7% 4.8% -0.6% -39.2%
HK Gas Utilities -2.6% -5.3% 4.2% 9.7% 65.1% 37.2%
HK Market -0.2% 1.9% 13% -3.9% 28.2% 20.5%
1 Year Return vs Industry and Market
  • 392 underperformed the Gas Utilities industry which returned 9.7% over the past year.
  • 392 outperformed the Market in Hong Kong which returned -3.9% over the past year.
Price Volatility
392
Industry
5yr Volatility vs Market

392 Value

 Is Beijing Enterprises Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Beijing Enterprises Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Beijing Enterprises Holdings.

SEHK:392 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:392
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.372 (1 + (1- 25%) (110.97%))
0.786
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.8 * 6.65%)
7.32%

Discounted Cash Flow Calculation for SEHK:392 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Beijing Enterprises Holdings 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:392 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 7.32%)
2019 4,602.20 Analyst x5 4,288.18
2020 4,469.67 Analyst x6 3,880.52
2021 6,450.00 Analyst x4 5,217.73
2022 7,497.00 Analyst x1 5,650.88
2023 7,789.00 Analyst x1 5,470.38
2024 8,044.25 Est @ 3.28% 5,264.15
2025 8,277.11 Est @ 2.89% 5,046.95
2026 8,494.57 Est @ 2.63% 4,826.13
2027 8,701.84 Est @ 2.44% 4,606.55
2028 8,902.76 Est @ 2.31% 4,391.33
Present value of next 10 years cash flows HK$48,642.81
SEHK:392 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$8,902.76 × (1 + 2%) ÷ (7.32% – 2%)
HK$170,696.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$170,696.99 ÷ (1 + 7.32%)10
HK$84,197.23
SEHK:392 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$48,642.81 + HK$84,197.23
HK$132,840.04
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$132,840.04 / 1,262.05
HK$105.26
SEHK:392 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$105.26
Current discount Discount to share price of HK$42.30
= -1 x (HK$42.30 - HK$105.26) / HK$105.26
59.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Beijing Enterprises Holdings is available for.
Intrinsic value
>50%
Share price is HK$42.3 vs Future cash flow value of HK$105.26
Current Discount Checks
For Beijing Enterprises Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Beijing Enterprises Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Beijing Enterprises Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Beijing Enterprises Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Beijing Enterprises Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:392 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$6.00
SEHK:392 Share Price ** SEHK (2019-04-18) in HKD HK$42.3
Hong Kong Gas Utilities Industry PE Ratio Median Figure of 13 Publicly-Listed Gas Utilities Companies 17.24x
Hong Kong Market PE Ratio Median Figure of 1,475 Publicly-Listed Companies 11.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Beijing Enterprises Holdings.

SEHK:392 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:392 Share Price ÷ EPS (both in HKD)

= 42.3 ÷ 6.00

7.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Beijing Enterprises Holdings is good value based on earnings compared to the HK Gas Utilities industry average.
  • Beijing Enterprises Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Beijing Enterprises Holdings's expected growth come at a high price?
Raw Data
SEHK:392 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
8.5%per year
Hong Kong Gas Utilities Industry PEG Ratio Median Figure of 7 Publicly-Listed Gas Utilities Companies 1.25x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

SEHK:392 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.05x ÷ 8.5%

0.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Beijing Enterprises Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Beijing Enterprises Holdings's assets?
Raw Data
SEHK:392 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$55.21
SEHK:392 Share Price * SEHK (2019-04-18) in HKD HK$42.3
Hong Kong Gas Utilities Industry PB Ratio Median Figure of 14 Publicly-Listed Gas Utilities Companies 1.45x
Hong Kong Market PB Ratio Median Figure of 2,150 Publicly-Listed Companies 1.03x
SEHK:392 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:392 Share Price ÷ Book Value per Share (both in HKD)

= 42.3 ÷ 55.21

0.77x

* Primary Listing of Beijing Enterprises Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Beijing Enterprises Holdings is good value based on assets compared to the HK Gas Utilities industry average.
X
Value checks
We assess Beijing Enterprises Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. Beijing Enterprises Holdings has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

392 Future Performance

 How is Beijing Enterprises Holdings expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Beijing Enterprises Holdings expected to grow at an attractive rate?
  • Beijing Enterprises Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Beijing Enterprises Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Beijing Enterprises Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:392 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:392 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 8.5%
SEHK:392 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 4.4%
Hong Kong Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 10%
Hong Kong Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 11.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:392 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:392 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 86,918 14,311 11,587 1
2022-12-31 83,099 14,018 11,152 1
2021-12-31 76,110 12,448 9,957 7
2020-12-31 73,717 10,400 9,291 14
2019-12-31 69,557 10,981 8,411 14
SEHK:392 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 67,765 7,577
2018-09-30 66,010 7,474
2018-06-30 64,256 7,833 7,371
2018-03-31 60,882 8,080 7,126
2017-12-31 57,508 8,327 6,880
2017-09-30 56,323 8,076 6,735
2017-06-30 55,139 10,343 6,589
2017-03-31 55,549 10,943 6,412
2016-12-31 55,959 11,543 6,236
2016-09-30 57,608 10,946 6,111
2016-06-30 59,258 10,350 5,987
2016-03-31 59,704 12,469 5,827

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Beijing Enterprises Holdings's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).
  • Beijing Enterprises Holdings's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
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.
Raw Data
SEHK:392 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Beijing Enterprises Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:392 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 9.18 9.18 9.18 1.00
2022-12-31 8.84 8.84 8.84 1.00
2021-12-31 7.84 9.08 6.27 7.00
2020-12-31 7.36 8.06 6.33 14.00
2019-12-31 6.66 7.06 6.24 14.00
SEHK:392 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 6.00
2018-09-30 5.92
2018-06-30 5.84
2018-03-31 5.65
2017-12-31 5.45
2017-09-30 5.34
2017-06-30 5.22
2017-03-31 5.07
2016-12-31 4.92
2016-09-30 4.80
2016-06-30 4.69
2016-03-31 4.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Beijing Enterprises Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Beijing Enterprises Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Beijing Enterprises Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

392 Past Performance

  How has Beijing Enterprises Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Beijing Enterprises Holdings's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Beijing Enterprises Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Beijing Enterprises Holdings's 1-year earnings growth is less than its 5-year average (10.1% vs 11.1%)
  • Beijing Enterprises Holdings's earnings growth has not exceeded the HK Gas Utilities industry average in the past year (10.1% vs 10.7%).
Earnings and Revenue History
Beijing Enterprises Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Beijing Enterprises Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:392 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 67,764.77 7,577.38 7,022.65
2018-09-30 66,010.49 7,474.38 7,166.49
2018-06-30 64,256.21 7,371.38 7,310.33
2018-03-31 60,882.12 7,125.88 6,988.28
2017-12-31 57,508.03 6,880.38 6,666.23
2017-09-30 56,323.31 6,734.65 6,609.51
2017-06-30 55,138.59 6,588.92 6,552.78
2017-03-31 55,548.71 6,412.40 6,598.62
2016-12-31 55,958.83 6,235.88 6,644.46
2016-09-30 57,608.47 6,111.41 6,469.39
2016-06-30 59,258.11 5,986.94 6,294.31
2016-03-31 59,704.03 5,827.16 6,403.07
2015-12-31 60,149.95 5,667.38 6,511.84
2015-09-30 57,482.39 5,394.48 6,370.92
2015-06-30 54,814.83 5,121.57 6,230.01
2015-03-31 51,375.31 4,976.63 6,116.95
2014-12-31 47,935.80 4,831.68 6,003.89
2014-09-30 46,088.14 4,883.68 6,056.45
2014-06-30 44,240.49 4,935.68 6,109.02
2014-03-31 43,300.51 4,559.78 6,033.13
2013-12-31 42,360.53 4,183.88 5,957.25
2013-09-30 40,162.69 3,832.92 5,860.31
2013-06-30 37,964.85 3,481.96 5,763.37
2013-03-31 36,767.25 3,358.47 5,601.78
2012-12-31 35,569.65 3,234.99 5,440.20
2012-09-30 34,277.73 3,103.16 5,174.99
2012-06-30 32,985.81 2,940.11 4,951.42

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Beijing Enterprises Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Beijing Enterprises Holdings used its assets more efficiently than the HK Gas Utilities industry average last year based on Return on Assets.
  • Beijing Enterprises Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Beijing Enterprises Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Beijing Enterprises Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

392 Health

 How is Beijing Enterprises Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Beijing Enterprises Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Beijing Enterprises Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Beijing Enterprises Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Beijing Enterprises Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Beijing Enterprises Holdings Company Filings, last reported 3 months ago.

SEHK:392 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 81,015.37 59,522.72 17,935.50
2018-09-30 81,015.37 59,522.72 17,935.50
2018-06-30 82,703.31 60,779.60 16,474.26
2018-03-31 82,703.31 60,779.60 16,474.26
2017-12-31 79,173.01 60,487.11 17,841.61
2017-09-30 79,173.01 60,487.11 17,841.61
2017-06-30 72,887.54 59,990.18 17,148.94
2017-03-31 72,887.54 59,990.18 17,148.94
2016-12-31 68,038.93 50,629.09 15,971.55
2016-09-30 68,038.93 50,629.09 15,971.55
2016-06-30 69,491.56 50,722.37 12,657.15
2016-03-31 69,491.56 50,722.37 12,657.15
2015-12-31 68,652.17 34,755.61 13,693.80
2015-09-30 68,652.17 34,755.61 13,693.80
2015-06-30 70,361.39 36,179.88 14,168.79
2015-03-31 70,361.39 36,179.88 14,168.79
2014-12-31 68,095.98 37,215.16 11,207.71
2014-09-30 68,095.98 37,215.16 11,207.71
2014-06-30 66,223.17 25,874.64 13,007.22
2014-03-31 66,223.17 25,874.64 13,007.22
2013-12-31 64,068.08 25,769.30 10,795.47
2013-09-30 64,068.08 25,769.30 10,795.47
2013-06-30 53,388.21 25,036.24 13,063.36
2013-03-31 53,388.21 25,036.24 13,063.36
2012-12-31 47,667.68 26,614.54 12,236.96
2012-09-30 47,639.69 26,614.54 12,236.96
2012-06-30 46,739.16 25,670.45 15,330.69
  • Beijing Enterprises Holdings's level of debt (73.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.2% vs 73.5% today).
  • Debt is not well covered by operating cash flow (13.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Beijing Enterprises Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Beijing Enterprises Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

392 Dividends

 What is Beijing Enterprises Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.48%
Current annual income from Beijing Enterprises Holdings dividends. Estimated to be 3.39% next year.
If you bought HK$2,000 of Beijing Enterprises Holdings shares you are expected to receive HK$50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Beijing Enterprises Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.95%).
  • Beijing Enterprises Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.27%).
Upcoming dividend payment

Purchase Beijing Enterprises Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:392 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
Hong Kong Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 965 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 1.9%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:392 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.84 1.00
2022-12-31 1.77 1.00
2021-12-31 1.62 6.00
2020-12-31 1.50 14.00
2019-12-31 1.22 13.00
SEHK:392 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-28 1.050 2.396
2018-08-30 1.000 2.309
2018-03-29 0.980 2.493
2017-03-31 0.950 2.260
2016-08-31 0.950 2.458
2016-04-28 0.950 2.228
2016-03-31 0.950 2.313
2015-08-28 0.920 2.107
2015-04-29 0.900 1.536
2015-03-31 0.900 1.345
2014-04-01 0.850 1.312
2013-03-28 0.750 1.215
2012-03-30 0.700 1.408
2011-08-31 0.700 1.600
2011-03-31 0.700 1.764
2010-08-31 0.700 1.433
2010-03-31 0.650 1.282
2009-09-16 0.600 1.204
2009-04-27 0.650 1.744
2009-04-20 0.600 1.782

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Beijing Enterprises Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
X
Income/ dividend checks
We assess Beijing Enterprises Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Beijing Enterprises Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Beijing Enterprises Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

392 Management

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

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.
CEO
Zibo Hou
COMPENSATION HK$2,978,000
AGE 52
TENURE AS CEO 1.6 years
CEO Bio

Mr. Zibo Hou has been the Chairman of the Board and Chief Executive Officer of Beijing Enterprises Holdings Limited since September 1, 2017. Mr. Hou serves as Vice Chairman and General Manager of Beijing Enterprises Group Company Limited. Mr. Hou was Deputy Director of Institute 702 of Ministry of Aerospace Industry and participated in many science and research projects of the state. He served as Deputy General Manager of Beijing Jingcheng Machinery Electric Holding Co., Ltd. From 2005 to 2010, he served as Deputy Director of the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality. He has extensive experience in state-owned assets management, corporate assets management and capital operations. He serves as Chairman of Beijing Instrument Industry Group Co., Ltd. He served has Vice Chairman at Beijing Enterprises Holdings Ltd. since March 31, 2014 until September 1, 2017. He has been Executive Director at Beijing Enterprises Holdings Ltd. since March 30, 2012. He served as a Director of Beijing Jingcheng Machinery Electric Holding Co., Ltd. Mr. Hou graduated from the School One of Ministry of Aerospace Industry with the specialty in Structural Mechanics and China Europe International Business School with the specialty in Business Administration; possesses a master degree in engineering, an MBA degree and the title of Professor-grade Senior Engineer.

CEO Compensation
  • Zibo's compensation has been consistent with company performance over the past year.
  • Zibo's remuneration is about average for companies of similar size in Hong Kong.
Management Team

Zibo Hou

TITLE
Chairman & CEO
COMPENSATION
HK$3M
AGE
52
TENURE
1.6 yrs

Yongcheng Li

TITLE
Vice Chairman
COMPENSATION
HK$2M
AGE
56

Xiaodong Zhao

TITLE
Vice Chairman
COMPENSATION
HK$60K
AGE
46

Chun Tam

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$2M
AGE
56

Meng E

TITLE
Executive VP & Executive Director
COMPENSATION
HK$3M
AGE
59

Xinhao Jiang

TITLE
VP & Executive Director
COMPENSATION
HK$2M
AGE
53
TENURE
14.2 yrs
Board of Directors Tenure

Average tenure and age of the Beijing Enterprises Holdings board of directors in years:

8.6
Average Tenure
57.5
Average Age
  • The tenure for the Beijing Enterprises Holdings board of directors is about average.
Board of Directors

Zibo Hou

TITLE
Chairman & CEO
COMPENSATION
HK$3M
AGE
52
TENURE
1.6 yrs

Yongcheng Li

TITLE
Vice Chairman
COMPENSATION
HK$2M
AGE
56
TENURE
3.1 yrs

Xiaodong Zhao

TITLE
Vice Chairman
COMPENSATION
HK$60K
AGE
46
TENURE
1.6 yrs

Chun Tam

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$2M
AGE
56
TENURE
11.9 yrs

Meng E

TITLE
Executive VP & Executive Director
COMPENSATION
HK$3M
AGE
59
TENURE
13.8 yrs

Xinhao Jiang

TITLE
VP & Executive Director
COMPENSATION
HK$2M
AGE
53
TENURE
11.9 yrs

Jiesi Wu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$294K
AGE
67
TENURE
14.8 yrs

Hoi Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$294K
AGE
79
TENURE
11.1 yrs

Chi Sze

TITLE
Independent Non-Executive Director
COMPENSATION
HK$294K
AGE
78
TENURE
6.1 yrs

Sun Say Yu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$294K
AGE
79
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
03. Oct 18 Sell Meng E Individual 03. Oct 18 03. Oct 18 -10,000 HK$42.80 HK$-428,000
04. Sep 18 Buy Meng E Individual 31. Aug 18 31. Aug 18 10,000 HK$37.95 HK$379,500
X
Management checks
We assess Beijing Enterprises Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Beijing Enterprises Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

392 News

Simply Wall St News

How Many Insiders Sold Beijing Enterprises Holdings Limited (HKG:392) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Beijing Enterprises Holdings Limited (HKG:392). … The Last 12 Months Of Insider Transactions At Beijing Enterprises Holdings. … In the last twelve months, the biggest single sale by an insider was when Executive VP & Executive Director Meng E sold HK$428k worth of shares at a price of HK$42.80 per share.

Simply Wall St -

Should Investors Be Happy About Beijing Enterprises Holdings Limited’s (HKG:392) Cash Levels?

Today we will examine Beijing Enterprises Holdings’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Beijing Enterprises Holdings’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Beijing Enterprises Holdings’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Beijing Enterprises Holdings Limited (HKG:392) Might Not Be A Great Investment

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Investors Are Undervaluing Beijing Enterprises Holdings Limited (HKG:392) By 25.65%

In this article I am going to calculate the intrinsic value of Beijing Enterprises Holdings Limited (HKG:392). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

What Should You Know About Beijing Enterprises Holdings Limited's (HKG:392) Growth?

In June 2018, Beijing Enterprises Holdings Limited (HKG:392) announced its earnings update. … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 12%

Simply Wall St -

Do You Know What Beijing Enterprises Holdings Limited's (HKG:392) P/E Ratio Means?

We'll look at Beijing Enterprises Holdings Limited's (HKG:392) P/E ratio and reflect on what it tells us about the company's share price. … Beijing Enterprises Holdings has a P/E ratio of 6.85, based on the last twelve months. … How Do You Calculate Beijing Enterprises Holdings's P/E Ratio

Simply Wall St -

Have Insiders Been Selling Beijing Enterprises Holdings Limited (HKG:392) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Beijing Enterprises Holdings Limited (HKG:392). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In the last twelve months, the biggest single sale by an insider was when Executive VP & Executive Director Meng E sold HK$428k worth of shares at a price of HK$42.80 per share.

Simply Wall St -

Why Beijing Enterprises Holdings Limited’s (HKG:392) Cash Is A Factor You Need To Consider

I will take you through Beijing Enterprises Holdings’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Beijing Enterprises Holdings has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing Beijing Enterprises Holdings’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Beijing Enterprises Holdings Limited (HKG:392): Assessing Capital Returns

and looking to gauge the potential return on investment in Beijing Enterprises Holdings Limited (HKG:392). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand Beijing Enterprises Holdings’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

What Investors Should Know About Beijing Enterprises Holdings Limited's (HKG:392) Financial Strength

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Beijing Enterprises Holdings Limited (HKG:392), with a market cap of HK$57b, are often out of the spotlight. … Today we will look at 392’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … See our latest analysis for Beijing Enterprises Holdings

Simply Wall St -

392 Company Info

Description

Beijing Enterprises Holdings Limited, an investment holding company, engages in piped gas, brewery, water and environmental, solid waste treatment, and other businesses primarily in Mainland China. Its Piped Gas Operation segment distributes and sells piped natural gas; provides natural gas transmission, and gas technology consultation and development services, as well as repair and maintenance services; surveys and plots underground construction projects; and constructs and installs gas pipelines and related equipment. The company’s Brewery Operation segment produces, distributes, and sells brewery products. Its Water and Environmental segment constructs sewage and water treatment plants and other infrastructural facilities; provides construction services for renovation projects; offers sewage treatment, and water treatment and distribution services, as well as consultancy services; and licenses technical know-how related to sewage treatment. The company’s Solid Waste Treatment segment is involved in the construction and operation of waste incineration plants; waste treatment; sale of electricity; generation of heat and stream from waste incineration. Its Corporate and Others segment offers consultation and property investment services. Beijing Enterprises Holdings Limited was founded in 1997, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. The company is based in Wan Chai, Hong Kong. Beijing Enterprises Holdings Limited is a subsidiary of Beijing Enterprises Group (BVI) Company Limited.

Details
Name: Beijing Enterprises Holdings Limited
392
Exchange: SEHK
Founded: 1997
HK$53,637,263,890
1,262,053,268
Website: http://www.behl.com.hk
Address: Beijing Enterprises Holdings Limited
Central Plaza,
66th Floor,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 392 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 29. May 1997
OTCPK BJIN.F Ordinary Shares Pink Sheets LLC US USD 29. May 1997
DB BJEB Ordinary Shares Deutsche Boerse AG DE EUR 29. May 1997
SHSC 392 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 29. May 1997
SZSC 392 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 29. May 1997
Number of employees
Current staff
Staff numbers
43,000
Beijing Enterprises Holdings employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:35
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/03/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.