SEHK:987

Stock Analysis Report

China Renewable Energy Investment

Executive Summary

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

Snowflake

Fundamentals

Fair value with acceptable track record.

Risks

  • China Renewable Energy Investment is not covered by any analysts.

Share Price & News

How has China Renewable Energy Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:987

-2.9%

HK Renewable Energy

-0.6%

HK Market


1 Year Return

-11.7%

SEHK:987

-15.8%

HK Renewable Energy

-9.8%

HK Market

987 outperformed the Renewable Energy industry which returned -15.8% over the past year.

987 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

987IndustryMarket
7 Day0%-2.9%-0.6%
30 Day-5.1%-6.0%-8.8%
90 Day-1.6%-4.9%-8.4%
1 Year-8.4%-11.7%-13.2%-15.8%-6.5%-9.8%
3 Year-0.5%-7.8%-16.7%-24.5%12.8%1.6%
5 Year-33.9%-39.4%-42.8%-53.1%7.2%-10.6%

Price Volatility Vs. Market

How volatile is China Renewable Energy Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Renewable Energy Investment undervalued based on future cash flows and its price relative to the stock market?

7.4x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

China Renewable Energy Investment's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

China Renewable Energy Investment's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

China Renewable Energy Investment is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Renewable Energy Investment, we can't assess if its growth is good value.


Price Based on Value of Assets

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


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if China Renewable Energy Investment is high growth as no revenue estimate data is available.

China Renewable Energy Investment's earnings are expected to grow by 19.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare China Renewable Energy Investment's revenue growth to the Hong Kong market average as no estimate data is available.

China Renewable Energy Investment's earnings growth is expected to exceed the Hong Kong market average.

China Renewable Energy Investment's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Renewable Energy Investment will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

25.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Renewable Energy Investment has delivered over 20% year on year earnings growth in the past 5 years.

China Renewable Energy Investment's 1-year earnings growth is less than its 5-year average (3.2% vs 25.5%)

China Renewable Energy Investment's earnings growth has exceeded the HK Renewable Energy industry average in the past year (3.2% vs 2%).


Return on Equity

China Renewable Energy Investment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

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


Return on Capital Employed

China Renewable Energy Investment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Renewable Energy Investment's financial position?


Financial Position Analysis

China Renewable Energy Investment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Renewable Energy Investment's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Renewable Energy Investment's level of debt (40.7%) 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 (41.1% vs 40.7% today).

Debt is not well covered by operating cash flow (7.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

4.26%

Current Dividend Yield


Dividend Yield and Payments Analysis

China Renewable Energy Investment's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.29%).

China Renewable Energy Investment's dividend is below the markets top 25% of dividend payers in Hong Kong (6.26%).

Whilst dividend payments have been stable, China Renewable Energy Investment has been paying a dividend for less than 10 years.

Dividend payments have increased, but China Renewable Energy Investment only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of China Renewable Energy Investment's salary, the management and board of directors tenure and is there insider trading?

11.0yrs

Average management tenure


CEO

Eric Oei (48yo)

11.3yrs

Tenure

HK$1,515,000

Compensation

Mr. Kang Oei, also known as Eric, has been the Chief Executive Officer of HKC (Holdings) Limited since January 1, 2014. Mr. Oei has been the Chairman and Chief Executive Officer at China Renewable Energy I ...


CEO Compensation Analysis

Eric's remuneration is about average for companies of similar size in Hong Kong.

Eric's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.0yrs

Average Tenure

49yo

Average Age

The average tenure for the China Renewable Energy Investment management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.5yrs

Average Tenure

56.5yo

Average Age

The tenure for the China Renewable Energy Investment board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$171,38017 Dec 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares866,000
Max PriceHK$0.20
BuyHK$96,92604 Dec 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares492,000
Max PriceHK$0.20
BuyHK$58,00002 Nov 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares290,000
Max PriceHK$0.20
BuyHK$40,63731 Oct 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares204,000
Max PriceHK$0.20
BuyHK$38430 Oct 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,000
Max PriceHK$0.19
BuyHK$203,53013 Sep 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares888,000
Max PriceHK$0.23
BuyHK$23,52112 Sep 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares106,000
Max PriceHK$0.22
BuyHK$39,32410 Sep 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares174,000
Max PriceHK$0.23
BuyHK$45,85405 Sep 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares202,000
Max PriceHK$0.23
BuyHK$41,73630 Aug 18
Kang Oei
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares188,000
Max PriceHK$0.22

Ownership Breakdown


Management Team

  • Eric Oei (48yo)

    Chairman & CEO

    • Tenure: 11.3yrs
    • Compensation: HK$1.52m
  • Yik Piow Tay (49yo)

    Financial Controller

    • Tenure: 0.0yrs
  • Vijay Trivedi (45yo)

    President of Business Development

    • Tenure: 12.9yrs
  • Samuel Leung (55yo)

    CFO & Executive Director

    • Tenure: 10.7yrs
    • Compensation: HK$966.00k
  • Sammy Wong (58yo)

    Investor Relations Director & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$950.00k
  • Ricky Lai

    Company Secretary

    • Tenure: 5.3yrs

Board Members

  • David Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: HK$180.00k
  • Songyi Zhang (63yo)

    Independent Non Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$180.00k
  • Yuchuan Tian (55yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$180.00k
  • Eric Oei (48yo)

    Chairman & CEO

    • Tenure: 11.3yrs
    • Compensation: HK$1.52m
  • Samuel Leung (55yo)

    CFO & Executive Director

    • Tenure: 10.7yrs
    • Compensation: HK$966.00k
  • Sammy Wong (58yo)

    Investor Relations Director & Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$950.00k

Company Information

China Renewable Energy Investment Limited's company bio, 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
  • Market Cap: HK$471.158m
  • Shares outstanding: 2.51b
  • Website: https://www.cre987.com

Number of Employees


Location

  • China Renewable Energy Investment Limited
  • Tower 1
  • 9th Floor
  • Tsimshatsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
987SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2002

Biography

China Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People’s Republic of China. The company operates 7 operating wind farms and 1 distr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 12:42
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.