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451

GCL New Energy HoldingsSEHK:451 Stock Report

Market Cap

HK$7.3b

7D

6.2%

1Y

171.7%

Updated

21 Oct, 2021

Data

Company Financials +
451 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health4/6
Dividends0/6

451 Overview

GCL New Energy Holdings Limited, an investment holding company, develops, constructs, operates, and manages solar power plants in the People’s Republic of China, Japan, the United States, and internationally.

GCL New Energy Holdings Competitors

Xinyi Energy Holdings

SEHK:3868

HK$31.1b

JinkoSolar Holding

NYSE:JKS

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for GCL New Energy Holdings
Historical stock prices
Current Share PriceHK$0.34
52 Week HighHK$0.11
52 Week LowHK$0.56
Beta1.82
1 Month Change6.15%
3 Month Change-2.82%
1 Year Change171.65%
3 Year Change35.29%
5 Year Change-28.13%
Change since IPO-73.46%

Recent News & Updates

Sep 04
Is GCL New Energy Holdings (HKG:451) Using Too Much Debt?

Is GCL New Energy Holdings (HKG:451) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

451HK Renewable EnergyHK Market
7D6.2%0.1%1.8%
1Y171.7%69.9%5.7%

Return vs Industry: 451 exceeded the Hong Kong Renewable Energy industry which returned 73.1% over the past year.

Return vs Market: 451 exceeded the Hong Kong Market which returned 6.2% over the past year.

Price Volatility

Is 451's price volatile compared to industry and market?
451 volatility
451 Beta1.82
Industry Beta0.61
Market Beta1

Stable Share Price: 451 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 451's weekly volatility has decreased from 16% to 9% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1982958Yufeng Zhuhttps://www.gclnewenergy.com

GCL New Energy Holdings Limited, an investment holding company, develops, constructs, operates, and manages solar power plants in the People’s Republic of China, Japan, the United States, and internationally. The company is also involved in the research and development of hydrogen and related businesses. As of December 31, 2020, it owned and operated 157 solar power plants with an aggregate installed capacity of 4,830 megawatts.

GCL New Energy Holdings Fundamentals Summary

How do GCL New Energy Holdings's earnings and revenue compare to its market cap?
451 fundamental statistics
Market CapCN¥5.98b
Earnings (TTM)-CN¥1.36b
Revenue (TTM)CN¥4.08b

1.5x

P/S Ratio

-4.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
451 income statement (TTM)
RevenueCN¥4.08b
Cost of RevenueCN¥1.60b
Gross ProfitCN¥2.48b
ExpensesCN¥3.84b
Earnings-CN¥1.36b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.064
Gross Margin60.71%
Net Profit Margin-33.24%
Debt/Equity Ratio139.5%

How did 451 perform over the long term?

See historical performance and comparison

Valuation

Is GCL New Energy Holdings 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: 451 (HK$0.35) is trading below our estimate of fair value (HK$16.08)

Significantly Below Fair Value: 451 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 451 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Renewable Energy industry average.

PE vs Market: 451 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 451's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 451 is overvalued based on its PB Ratio (1x) compared to the HK Renewable Energy industry average (0.8x).


Future Growth

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

79.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 451 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: 451 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 451's is expected to become profitable in the next 3 years.

Revenue vs Market: 451's revenue is expected to decline over the next 3 years (-30.5% per year).

High Growth Revenue: 451's revenue is forecast to decline over the next 3 years (-30.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 451's Return on Equity is forecast to be low in 3 years time (4.2%).


Past Performance

How has GCL New Energy Holdings performed over the past 5 years?

-57.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 451 is currently unprofitable.

Growing Profit Margin: 451 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 451 is unprofitable, and losses have increased over the past 5 years at a rate of 57.2% per year.

Accelerating Growth: Unable to compare 451's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 451 is unprofitable, making it difficult to compare its past year earnings growth to the Renewable Energy industry (23.1%).


Return on Equity

High ROE: 451 has a negative Return on Equity (-13.28%), as it is currently unprofitable.


Financial Health

How is GCL New Energy Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 451's short term assets (CN¥17.6B) exceed its short term liabilities (CN¥14.7B).

Long Term Liabilities: 451's short term assets (CN¥17.6B) exceed its long term liabilities (CN¥8.1B).


Debt to Equity History and Analysis

Debt Level: 451's debt to equity ratio (139.5%) is considered high.

Reducing Debt: 451's debt to equity ratio has reduced from 384.9% to 139.5% over the past 5 years.

Debt Coverage: 451's debt is well covered by operating cash flow (35.7%).

Interest Coverage: 451's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 451's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 451's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 451's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 451's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 451's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Yufeng Zhu (40 yo)

0.83

Tenure

CN¥6,559,000

Compensation

Mr. Yufeng Zhu serves as Senior Executive President of Golden Concord Holdings Limited. Mr. Zhu has been an Executive Director of GCL-Poly Energy Holdings Ltd., since September 21, 2009. He serves as Chair...


CEO Compensation Analysis

Compensation vs Market: Yufeng's total compensation ($USD1.03M) is above average for companies of similar size in the Hong Kong market ($USD449.34K).

Compensation vs Earnings: Yufeng's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 451's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 451's board of directors are considered experienced (6.6 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 10.5%.


Top Shareholders

Company Information

GCL New Energy Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GCL New Energy Holdings Limited
  • Ticker: 451
  • Exchange: SEHK
  • Founded: 1982
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: HK$7.270b
  • Shares outstanding: 21.07b
  • Website: https://www.gclnewenergy.com

Number of Employees


Location

  • GCL New Energy Holdings Limited
  • International Commerce Centre
  • Unit 1707A, Level 17
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:03
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.