SEHK:916

Stock Analysis Report

China Longyuan Power Group

Executive Summary

China Longyuan Power Group Corporation Limited generates and sells wind and coal power in the People’s Republic of China.

Snowflake

Fundamentals

Very undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has China Longyuan Power Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

SEHK:916

1.7%

HK Renewable Energy

2.2%

HK Market


1 Year Return

-34.5%

SEHK:916

-14.8%

HK Renewable Energy

-11.1%

HK Market

916 underperformed the Renewable Energy industry which returned -14.6% over the past year.

916 underperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

916IndustryMarket
7 Day-2.1%1.7%2.2%
30 Day-9.6%-4.2%-7.3%
90 Day-11.5%-3.2%-4.8%
1 Year-32.9%-34.5%-12.2%-14.8%-7.9%-11.1%
3 Year-33.8%-37.4%-13.1%-21.1%15.5%4.1%
5 Year-45.5%-49.6%-43.0%-53.2%10.0%-8.2%

Price Volatility Vs. Market

How volatile is China Longyuan Power Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Longyuan Power Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Longyuan Power Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Longyuan Power Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Longyuan Power Group is good value based on earnings compared to the HK Renewable Energy industry average.

China Longyuan Power Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Longyuan Power Group is good value based on expected growth next year.


Price Based on Value of Assets

China Longyuan Power Group is good value based on assets compared to the HK Renewable Energy industry average.


Next Steps

Future Growth

How is China Longyuan Power Group expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Longyuan Power Group's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

China Longyuan Power Group's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

China Longyuan Power Group's revenue growth is positive but not above the Hong Kong market average.

China Longyuan Power Group's earnings growth is positive but not above the Hong Kong market average.

China Longyuan Power Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Longyuan Power Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has China Longyuan Power Group performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Longyuan Power Group's year on year earnings growth rate has been positive over the past 5 years.

China Longyuan Power Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

China Longyuan Power Group's 1-year earnings growth is negative, it can't be compared to the HK Renewable Energy industry average.


Return on Equity

China Longyuan Power Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Longyuan Power Group used its assets less efficiently than the HK Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

China Longyuan Power Group's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is China Longyuan Power Group's financial position?


Financial Position Analysis

China Longyuan Power Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Longyuan Power Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Longyuan Power Group's level of debt (132.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (161.4% vs 132.1% today).

Debt is not well covered by operating cash flow (18.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is China Longyuan Power Group's current dividend yield, its reliability and sustainability?

3.53%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Longyuan Power Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

China Longyuan Power Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

China Longyuan Power Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but China Longyuan Power Group only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).


Next Steps

Management

What is the CEO of China Longyuan Power Group's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Yanbing Jia (52yo)

0.7yrs

Tenure

0

Mr. Yanbing Jia is a General Manager and President at China Longyuan Power Group Corporation Ltd since December 12, 2018 and serves as its Executive Director since February 28, 2019. Mr. Jia Yanbing consec ...


Management Age and Tenure

5.7yrs

Average Tenure

52yo

Average Age

The average tenure for the China Longyuan Power Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

57.5yo

Average Age

The tenure for the China Longyuan Power Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Qun Huang (55yo)

    VP & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥1.25m
  • Nansong Jia (56yo)

    VP, Board Secretary & Joint Company Secretary

    • Tenure: 10.1yrs
  • Sau Ling Chan (49yo)

    Joint Company Secretary

    • Tenure: 1.8yrs
  • Shihong Chang (44yo)

    Chief Accountant

    • Tenure: 5.7yrs
  • Yanbing Jia (52yo)

    President

    • Tenure: 0.7yrs

Board Members

  • Songyi Zhang (63yo)

    Independent Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥143.00k
  • Yan Meng (63yo)

    Independent Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: CN¥143.00k
  • Bin Chen (59yo)

    Chairman of the Supervisory Board

    • Tenure: 1.3yrs
  • Baoping Qiao (61yo)

    Chairman

    • Tenure: 6.1yrs
  • Qun Huang (55yo)

    VP & Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥1.25m
  • Baoxing Luan (52yo)

    Non-Executive Director

    • Tenure: 3.0yrs
  • Xiangbin Yang (53yo)

    Non-Executive Director

    • Tenure: 3.0yrs
  • Dechang Han (61yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥143.00k
  • Jinhuan Liu (56yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Yanbing Jia (52yo)

    President

    • Tenure: 0.7yrs

Company Information

China Longyuan Power Group Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Longyuan Power Group Corporation Limited
  • Ticker: 916
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: HK$35.521b
  • Shares outstanding: 8.04b
  • Website: https://www.clypg.com.cn

Number of Employees


Location

  • China Longyuan Power Group Corporation Limited
  • 6 Fuchengmen North Street
  • Block C
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
916SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2009
6WXDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2009
CLPX.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2009
916SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2009
916SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2009
CLPX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2010

Biography

China Longyuan Power Group Corporation Limited generates and sells wind and coal power in the People’s Republic of China. It operates in two segments, Wind Power and Coal Power. The company designs, develo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 12:49
End of Day Share Price2019/08/22 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.