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987

China Renewable Energy Investment SEHK:987 Stock Report

Last Price

HK$0.25

Market Cap

HK$626.5m

7D

-3.8%

1Y

19.0%

Updated

23 Jun, 2022

Data

Company Financials
987 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health3/6
Dividends3/6

987 Stock Overview

China Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People’s Republic of China.

China Renewable Energy Investment Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for China Renewable Energy Investment
Historical stock prices
Current Share PriceHK$0.25
52 Week HighHK$0.43
52 Week LowHK$0.20
Beta0.65
1 Month Change1.21%
3 Month Change-9.09%
1 Year Change19.05%
3 Year Change28.87%
5 Year Change11.11%
Change since IPO-86.59%

Recent News & Updates

Apr 20
We Think China Renewable Energy Investment's (HKG:987) Robust Earnings Are Conservative

We Think China Renewable Energy Investment's (HKG:987) Robust Earnings Are Conservative

The subdued stock price reaction suggests that China Renewable Energy Investment Limited's ( HKG:987 ) strong earnings...

Dec 31
China Renewable Energy Investment (HKG:987) Is Doing The Right Things To Multiply Its Share Price

China Renewable Energy Investment (HKG:987) Is Doing The Right Things To Multiply Its Share Price

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

987HK Renewable EnergyHK Market
7D-3.8%1.3%-1.2%
1Y19.0%17.5%-23.8%

Return vs Industry: 987 exceeded the Hong Kong Renewable Energy industry which returned 17.5% over the past year.

Return vs Market: 987 exceeded the Hong Kong Market which returned -23.8% over the past year.

Price Volatility

Is 987's price volatile compared to industry and market?
987 volatility
987 Average Weekly Movement6.3%
Renewable Energy Industry Average Movement6.5%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.6%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 987 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 987's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200294Eric Oeihttps://www.cre987.com

China Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People’s Republic of China. As of December 31, 2021, the company operated eight wind farms and one distributed solar project with the power generating capacity of 738 megawatts in Hebei, Heilongjiang, Gansu, Inner Mongolia, Henan, and Zhejiang provinces. It also offers human resources management services.

China Renewable Energy Investment Fundamentals Summary

How do China Renewable Energy Investment's earnings and revenue compare to its market cap?
987 fundamental statistics
Market CapHK$626.54m
Earnings (TTM)HK$113.35m
Revenue (TTM)HK$250.26m

5.5x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
987 income statement (TTM)
RevenueHK$250.26m
Cost of RevenueHK$138.16m
Gross ProfitHK$112.10m
Other Expenses-HK$1.26m
EarningsHK$113.35m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.045
Gross Margin44.79%
Net Profit Margin45.30%
Debt/Equity Ratio36.8%

How did 987 perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 987 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 987?

Other financial metrics that can be useful for relative valuation.

987 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA5.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 987's PE Ratio compare to its peers?

987 PE Ratio vs Peers
The above table shows the PE ratio for 987 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.6x

Price-To-Earnings vs Peers: 987 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (6.6x).


Price to Earnings Ratio vs Industry

How does 987's PE Ratio compare vs other companies in the Renewable Energy Industry?

Price-To-Earnings vs Industry: 987 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Hong Kong Renewable Energy industry average (7.9x)


Price to Earnings Ratio vs Fair Ratio

What is 987's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

987 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 987's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 987 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 987 (HK$0.25) is trading below our estimate of fair value (HK$0.25)

Significantly Below Fair Value: 987 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 987's PEG Ratio to determine if it is good value.


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Future Growth

How is China Renewable Energy Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.1%

Forecasted Utilities industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Renewable Energy Investment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether China Renewable Energy Investment is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • China Renewable Energy Investment competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has China Renewable Energy Investment performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 987 has high quality earnings.

Growing Profit Margin: 987's current net profit margins (45.3%) are higher than last year (41.8%).


Past Earnings Growth Analysis

Earnings Trend: 987's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: 987's earnings growth over the past year (31.6%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: 987 earnings growth over the past year (31.6%) exceeded the Renewable Energy industry 14%.


Return on Equity

High ROE: 987's Return on Equity (5.5%) is considered low.


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Financial Health

How is China Renewable Energy Investment's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 987's short term assets (HK$714.1M) exceed its short term liabilities (HK$408.2M).

Long Term Liabilities: 987's short term assets (HK$714.1M) exceed its long term liabilities (HK$456.5M).


Debt to Equity History and Analysis

Debt Level: 987's net debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: 987's debt to equity ratio has increased from 29.9% to 36.8% over the past 5 years.

Debt Coverage: 987's debt is not well covered by operating cash flow (15%).

Interest Coverage: 987's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is China Renewable Energy Investment current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 987's dividend (4%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.78%).

High Dividend: 987's dividend (4%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.91%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 987 has been paying a dividend for less than 10 years.

Growing Dividend: 987's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.1%), 987's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.3%), 987's dividend payments are well covered by cash flows.


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Management

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

10.8yrs

Average management tenure


CEO

Eric Oei (50 yo)

14.17yrs

Tenure

HK$2,064,000

Compensation

Mr. Kang Oei, also known as Eric, has been the Chief Executive Officer of HKC (Holdings) Limited since January 1, 2014 and serves as its Chairman since December 03, 2019. Mr. Oei has been the Chairman and...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD262.93K) is about average for companies of similar size in the Hong Kong market ($USD232.87K).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 987's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: 987's board of directors are considered experienced (8.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Renewable Energy Investment Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Renewable Energy Investment Limited
  • Ticker: 987
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Implied Market Cap: HK$626.539m
  • Shares outstanding: 2.51b
  • Website: https://www.cre987.com

Number of Employees


Location

  • China Renewable Energy Investment Limited
  • Tower 1
  • 9th Floor
  • Tsim Sha Tsui
  • 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 Analysis2022/06/23 00:00
End of Day Share Price2022/06/23 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.