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

-7.3%

916

2.1%

HK Renewable Energy

2.2%

HK Market


1 Year Return

-29.1%

916

-9.4%

HK Renewable Energy

-1.3%

HK Market

Return vs Industry: 916 underperformed the Hong Kong Renewable Energy industry which returned -9.4% over the past year.

Return vs Market: 916 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

916IndustryMarket
7 Day-7.3%2.1%2.2%
30 Day-9.1%-6.2%-2.9%
90 Day-13.8%-9.3%-5.8%
1 Year-27.5%-29.1%-6.3%-9.4%2.3%-1.3%
3 Year-30.2%-34.0%-15.8%-23.8%15.6%3.9%
5 Year-37.3%-42.0%-42.9%-53.1%20.1%0.06%

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

Undervalued: 916 (HK$4.19) is trading below our estimate of fair value (HK$24.32)

Significantly Undervalued: 916 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 916 is good value based on its PE Ratio (7.7x) compared to the Renewable Energy industry average (8.9x).

PE vs Market: 916 is good value based on its PE Ratio (7.7x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 916 is good value based on its PEG Ratio (0.7x)


Price Based on Value of Assets

PB vs Industry: 916 is good value based on its PB Ratio (0.6x) compared to the HK Renewable Energy industry average (0.6x).


Next Steps

Future Growth

How is China Longyuan Power Group expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 916's forecast earnings growth (11.2% per year) is above the savings rate (2%).

Earnings vs Market: 916's earnings (11.2% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 916's earnings are forecast to grow, but not significantly.

Revenue vs Market: 916's revenue (5.8% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 916's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 916's Return on Equity is forecast to be low in 3 years time (9.6%).


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

Earnings Trend: 916's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: 916's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 916 had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Renewable Energy industry average (-3.9%).


Return on Equity

High ROE: 916's Return on Equity (8.4%) is considered low.


Return on Assets

ROA vs Industry: 916 has a higher Return on Assets than the Renewable Energy industry average last year.


Return on Capital Employed

ROCE Improving: 916 has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Longyuan Power Group's financial position?


Financial Position Analysis

Short Term Liabilities: 916's short term assets (HK$24.4B) do not cover its short term liabilities (HK$39.9B)

Long Term Liabilities: 916's short term assets (HK$24.4B) do not cover its long term liabilities (HK$54.0B)


Debt to Equity History and Analysis

Debt Level: 916's debt to equity ratio (132.4%) is considered high

Reducing Debt: 916's debt to equity ratio has reduced from 161.4% to 132.4% over the past 5 years.

Debt Coverage: 916's debt is not well covered by operating cash flow (13.1%).

Interest Coverage: 916's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 916 has a high level of physical assets or inventory.

Debt Coverage by Assets: 916's 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?

3.47%

Expected Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Years3.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 916's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 916's dividend (2.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 916 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 916's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), 916's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 916's dividends in 3 years are forecast to be well covered by earnings (20.8% payout ratio).


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?

3.9yrs

Average management tenure


CEO

China Longyuan Power Group has no CEO, or we have no data on them.


Management Age and Tenure

3.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 916's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 916's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Qun Huang (55yo)

    VP & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥1.25m
  • Nansong Jia (56yo)

    VP, Board Secretary & Joint Company Secretary

    • Tenure: 10.3yrs
  • Sau Ling Chan (49yo)

    Joint Company Secretary

    • Tenure: 2yrs
  • Shihong Chang (44yo)

    Chief Accountant

    • Tenure: 5.8yrs
  • Yanbing Jia (52yo)

    Executive Chairman

    • Tenure: 0.7yrs
  • Jinbiao Sun (48yo)

    President

    • Tenure: 0.8yrs

Board Members

  • Songyi Zhang (63yo)

    Independent Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥143.00k
  • Yan Meng (63yo)

    Independent Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥143.00k
  • Bin Chen (59yo)

    Chairman of the Supervisory Board

    • Tenure: 1.4yrs
  • Qun Huang (55yo)

    VP & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥1.25m
  • Baoxing Luan (52yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Xiangbin Yang (53yo)

    Non-Executive Director

    • Tenure: 3.2yrs
  • Dechang Han (61yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: CN¥143.00k
  • Jinhuan Liu (56yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Yanbing Jia (52yo)

    Executive Chairman

    • Tenure: 0.7yrs
  • Jinbiao Sun (48yo)

    President

    • Tenure: 0.8yrs

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$33.672b
  • 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 Analysis2019/10/13 13:06
End of Day Share Price2019/10/11 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.

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