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HENG

Hengyuan Refining Company Berhad KLSE:HENGYUAN Stock Report

Last Price

RM4.34

Market Cap

RM1.3b

7D

-6.1%

1Y

8.0%

Updated

25 Sep, 2022

Data

Company Financials
HENGYUAN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends2/6

HENGYUAN Stock Overview

Hengyuan Refining Company Berhad refines, manufactures, and sells petroleum products in Malaysia and Southeast Asia.

Hengyuan Refining Company Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hengyuan Refining Company Berhad
Historical stock prices
Current Share PriceRM4.34
52 Week HighRM7.70
52 Week LowRM3.65
Beta1.3
1 Month Change-18.73%
3 Month Change-10.88%
1 Year Change7.96%
3 Year Change-1.14%
5 Year Change-45.20%
Change since IPO-40.55%

Recent News & Updates

Aug 23
Hengyuan Refining Company Berhad (KLSE:HENGYUAN) Takes On Some Risk With Its Use Of Debt

Hengyuan Refining Company Berhad (KLSE:HENGYUAN) Takes On Some Risk With Its Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

HENGYUANMY Oil and GasMY Market
7D-6.1%-2.3%-2.6%
1Y8.0%12.3%-10.2%

Return vs Industry: HENGYUAN underperformed the MY Oil and Gas industry which returned 12.3% over the past year.

Return vs Market: HENGYUAN exceeded the MY Market which returned -10.2% over the past year.

Price Volatility

Is HENGYUAN's price volatile compared to industry and market?
HENGYUAN volatility
HENGYUAN Average Weekly Movement11.3%
Oil and Gas Industry Average Movement6.9%
Market Average Movement5.2%
10% most volatile stocks in MY Market11.3%
10% least volatile stocks in MY Market2.4%

Stable Share Price: HENGYUAN is more volatile than 90% of MY stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: HENGYUAN's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

FoundedEmployeesCEOWebsite
1960343Grant Gaohttps://www.hrc.com.my

Hengyuan Refining Company Berhad refines, manufactures, and sells petroleum products in Malaysia and Southeast Asia. Its petroleum products include liquefied petroleum gas, petrol, jet fuel, diesel, fuel oil components, sulphur, and chemical feedstock comprises light naphtha and propylene. The company was formerly known as Shell Refining Company (Federation of Malaya) Berhad and changed its name to Hengyuan Refining Company Berhad in March 2017.

Hengyuan Refining Company Berhad Fundamentals Summary

How do Hengyuan Refining Company Berhad's earnings and revenue compare to its market cap?
HENGYUAN fundamental statistics
Market CapRM1.30b
Earnings (TTM)RM840.68m
Revenue (TTM)RM19.15b

1.5x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HENGYUAN income statement (TTM)
RevenueRM19.15b
Cost of RevenueRM17.49b
Gross ProfitRM1.66b
Other ExpensesRM820.35m
EarningsRM840.68m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.80
Gross Margin8.67%
Net Profit Margin4.39%
Debt/Equity Ratio95.2%

How did HENGYUAN perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

4%

Payout Ratio

Does HENGYUAN pay a reliable dividends?

See HENGYUAN dividend history and benchmarks
When do you need to buy HENGYUAN by to receive an upcoming dividend?
Hengyuan Refining Company Berhad dividend dates
Ex Dividend DateSep 30 2022
Dividend Pay DateOct 25 2022
Days until Ex dividend4 days
Days until Dividend pay date29 days

Does HENGYUAN pay a reliable dividends?

See HENGYUAN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HENGYUAN 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/Revenue0.1x
Enterprise Value/EBITDA1.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

HENGYUAN PE Ratio vs Peers
The above table shows the PE ratio for HENGYUAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.3x
PETRONM Petron Malaysia Refining & Marketing Bhd
3.3xn/aRM1.3b
PETDAG PETRONAS Dagangan Berhad
34.1x14.1%RM20.9b
HIBISCS Hibiscus Petroleum Berhad
3x-10.2%RM1.8b
KUB KUB Malaysia Berhad
16.7xn/aRM306.1m
HENGYUAN Hengyuan Refining Company Berhad
1.5xn/aRM1.3b

Price-To-Earnings vs Peers: HENGYUAN is good value based on its Price-To-Earnings Ratio (1.5x) compared to the peer average (14.3x).


Price to Earnings Ratio vs Industry

How does HENGYUAN's PE Ratio compare vs other companies in the Asian Oil and Gas Industry?

Price-To-Earnings vs Industry: HENGYUAN is good value based on its Price-To-Earnings Ratio (1.5x) compared to the Asian Oil and Gas industry average (8.6x)


Price to Earnings Ratio vs Fair Ratio

What is HENGYUAN'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.

HENGYUAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.5x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: HENGYUAN (MYR4.34) is trading above our estimate of fair value (MYR2.39)

Significantly Below Fair Value: HENGYUAN is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Hengyuan Refining Company Berhad 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


-5.4%

Forecasted Energy 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 Hengyuan Refining Company Berhad 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

Past Performance

How has Hengyuan Refining Company Berhad performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HENGYUAN has a high level of non-cash earnings.

Growing Profit Margin: HENGYUAN's current net profit margins (4.4%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: HENGYUAN's earnings have declined by 26.4% per year over the past 5 years.

Accelerating Growth: HENGYUAN's earnings growth over the past year (196.7%) exceeds its 5-year average (-26.4% per year).

Earnings vs Industry: HENGYUAN earnings growth over the past year (196.7%) exceeded the Oil and Gas industry 90.9%.


Return on Equity

High ROE: HENGYUAN's Return on Equity (53.3%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Hengyuan Refining Company Berhad'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: HENGYUAN's short term assets (MYR6.7B) do not cover its short term liabilities (MYR6.9B).

Long Term Liabilities: HENGYUAN's short term assets (MYR6.7B) exceed its long term liabilities (MYR484.9M).


Debt to Equity History and Analysis

Debt Level: HENGYUAN's net debt to equity ratio (65.7%) is considered high.

Reducing Debt: HENGYUAN's debt to equity ratio has reduced from 99.1% to 95.2% over the past 5 years.

Debt Coverage: HENGYUAN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HENGYUAN's interest payments on its debt are well covered by EBIT (72.7x coverage).


Balance Sheet


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Dividend

What is Hengyuan Refining Company Berhad 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

  • Cash Flow Coverage


4.61%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateSep 30 2022Dividend Pay DateOct 25 202225 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HENGYUAN's dividend (4.61%) is higher than the bottom 25% of dividend payers in the MY market (2.05%).

High Dividend: HENGYUAN's dividend (4.61%) is low compared to the top 25% of dividend payers in the MY market (5.08%).


Stability and Growth of Payments

Stable Dividend: HENGYUAN's dividend payments have been volatile in the past 10 years.

Growing Dividend: HENGYUAN's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (3.6%), HENGYUAN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: HENGYUAN is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.1yrs

Average management tenure


CEO

Grant Gao (46 yo)

1.08yrs

Tenure

Mr. Jin Liang Gao, also known as Grant, is Chief Executive Officer of Hengyuan Refining Company Berhad from August 04, 2021. He has experience from primary level to plant general manager in multinational c...


Leadership Team

Experienced Management: HENGYUAN's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: HENGYUAN's board of directors are considered experienced (5.3 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

Top 22 shareholders own 63.06% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
51.02%
Shandong Hengyuan Petrochemical Company Limited
153,069,002MYR664.3m0%no data
2.67%
Khen Ling Foo
8,000,000MYR34.7m0%no data
2.53%
Employees Provident Fund of Malaysia
7,590,647MYR32.9m0%0.02%
2.13%
Kam Loong Mining Sdn Bhd
6,380,000MYR27.7m0%no data
0.91%
Ching Mun Goh
2,731,900MYR11.9m0%no data
0.67%
Kah Hock Tan
2,000,000MYR8.7m0%no data
0.4%
Eastspring Investments (Singapore) Limited
1,207,200MYR5.2m0%0.01%
0.3%
Siew Fah Wong
910,000MYR3.9m0%no data
0.27%
Eletechnics Sdn Bhd
800,000MYR3.5m0%no data
0.26%
Lee Foundation States Of Malaya, Endowment Arm
790,000MYR3.4m0%0.04%
0.23%
Ewe Seong Tan
703,000MYR3.1m0%no data
0.23%
Deva Solomon
677,500MYR2.9m0%no data
0.19%
Ka Kian Lim
582,300MYR2.5m0%no data
0.19%
Dimensional Fund Advisors LP
575,089MYR2.5m0%no data
0.17%
Hup Khoo
501,000MYR2.2m0%no data
0.16%
Lee Min Bong
485,000MYR2.1m0%no data
0.16%
Bee Hua How
477,400MYR2.1m0%no data
0.15%
Chuan Thai Yap
440,000MYR1.9m0%no data
0.14%
Ah Cheng Lim
410,000MYR1.8m0%no data
0.13%
Bank of Singapore Limited, Asset Management Arm
400,000MYR1.7m0%0.03%
0.13%
Bank Julius Bär & Co Ltd., Asset Management Arm
382,400MYR1.7m0%no data
0.021%
American Century Investment Management Inc
64,200MYR278.6k0.63%no data

Company Information

Hengyuan Refining Company Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Hengyuan Refining Company Berhad
  • Ticker: HENGYUAN
  • Exchange: KLSE
  • Founded: 1960
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Implied Market Cap: RM1.302b
  • Shares outstanding: 300.00m
  • Website: https://www.hrc.com.my

Number of Employees


Location

  • Hengyuan Refining Company Berhad
  • Batu 1
  • Jalan Pantai
  • Port Dickson
  • Negeri Sembilan
  • 71000
  • Malaysia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HENGYUANKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
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.