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

Moderate growth potential and slightly overvalued.

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

8.0%

987

2.1%

HK Renewable Energy

2.2%

HK Market


1 Year Return

-10.0%

987

-9.4%

HK Renewable Energy

-1.3%

HK Market

Return vs Industry: 987 matched the Hong Kong Renewable Energy industry which returned -9.4% over the past year.

Return vs Market: 987 underperformed the Hong Kong Market which returned -1.3% over the past year.


Shareholder returns

987IndustryMarket
7 Day8.0%2.1%2.2%
30 Day1.1%-6.2%-2.9%
90 Day-4.1%-9.3%-5.8%
1 Year-6.1%-10.0%-6.3%-9.4%2.3%-1.3%
3 Year-8.6%-16.4%-15.8%-23.8%15.6%3.9%
5 Year-27.4%-34.8%-42.9%-53.1%20.1%0.06%

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 compared to its fair value and its price relative to the market?

9.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 987 (HK$0.19) is trading above our estimate of fair value (HK$0.14)

Significantly Undervalued: 987 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 987 is poor value based on its PE Ratio (9.8x) compared to the Renewable Energy industry average (8.9x).

PE vs Market: 987 is good value based on its PE Ratio (9.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 987 is good value based on its PB Ratio (0.3x) compared to the HK Renewable Energy industry average (0.6x).


Next Steps

Future Growth

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

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 987's forecast earnings growth (21.9% per year) is above the savings rate (2%).

Earnings vs Market: 987's earnings (21.9% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 987's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 987's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 987's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

20.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 987's earnings have grown significantly by 20% per year over the past 5 years.

Accelerating Growth: 987's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 987 had negative earnings growth (-40.8%) over the past year, making it difficult to compare to the Renewable Energy industry average (-3.9%).


Return on Equity

High ROE: 987's Return on Equity (2.8%) is considered low.


Return on Assets

ROA vs Industry: 987's Return on Assets is below or equal to the Renewable Energy industry average last year.


Return on Capital Employed

ROCE Improving: 987 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Renewable Energy Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 987's short term assets (HK$532.1M) exceeds its short term liabilities (HK$523.0M)

Long Term Liabilities: 987's short term assets (532.1M) exceeds its long term liabilities (452.5M)


Debt to Equity History and Analysis

Debt Level: 987's debt to equity ratio (42.1%) is considered high

Reducing Debt: 987's debt to equity ratio has increased from 37.8% to 42.1% over the past 5 years.

Debt Coverage: 987's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: 987's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: 987 has a high level of physical assets or inventory.

Debt Coverage by Assets: 987's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

4.23%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.3%markettop25%6.3%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 987's dividend (4.23%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 987's dividend (4.23%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.6%), 987's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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?

10.8yrs

Average management tenure


CEO

Eric Oei (48yo)

11.5yrs

Tenure

HK$1,365,000

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

Compensation vs. Market: Eric's total compensation ($USD174.02K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.8yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

8.7yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 987's board of directors are considered experienced (8.7 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

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

Ownership Breakdown


Management Team

  • Eric Oei (48yo)

    Chairman & CEO

    • Tenure: 11.5yrs
    • Compensation: HK$1.37m
  • Samuel Leung (55yo)

    CFO & Executive Director

    • Tenure: 10.8yrs
    • Compensation: HK$816.00k
  • Sammy Wong (58yo)

    Investor Relations Director & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$800.00k
  • Ricky Lai

    Company Secretary

    • Tenure: 5.5yrs

Board Members

  • David Yu (71yo)

    Independent Non-Executive Director

    • Tenure: 11.5yrs
    • Compensation: HK$180.00k
  • Songyi Zhang (63yo)

    Independent Non Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$180.00k
  • Yuchuan Tian (55yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: HK$180.00k
  • Eric Oei (48yo)

    Chairman & CEO

    • Tenure: 11.5yrs
    • Compensation: HK$1.37m
  • Samuel Leung (55yo)

    CFO & Executive Director

    • Tenure: 10.8yrs
    • Compensation: HK$816.00k
  • Sammy Wong (58yo)

    Investor Relations Director & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$800.00k

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$466.145m
  • 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 Analysis2019/10/14 12:39
End of Day Share Price2019/10/14 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.