SGX:BQO

Stock Analysis Report

Executive Summary

Delong Holdings Limited, an investment holding company, manufactures and sells hot-rolled steel coils and billets in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

How has Delong Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

BQO

-0.2%

SG Metals and Mining

-0.002%

SG Market


1 Year Return

1.6%

BQO

-3.3%

SG Metals and Mining

0.7%

SG Market

Return vs Industry: BQO exceeded the SG Metals and Mining industry which returned -3.3% over the past year.

Return vs Market: BQO exceeded the SG Market which returned 0.7% over the past year.


Shareholder returns

BQOIndustryMarket
7 Day0%-0.2%-0.002%
30 Day-0.1%-1.2%-1.4%
90 Day18.7%-4.3%-7.3%
1 Year1.6%1.6%-2.3%-3.3%4.7%0.7%
3 Year2311.2%2115.9%37.6%30.2%15.1%2.8%
5 Year532.9%481.7%5.7%-2.2%10.1%-8.2%

Price Volatility Vs. Market

How volatile is Delong Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Delong Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BQO (SGD6.98) is trading below our estimate of fair value (SGD35.13)

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


Price To Earnings Ratio

PE vs Industry: BQO is good value based on its PE Ratio (2.9x) compared to the Metals and Mining industry average (12.7x).

PE vs Market: BQO is good value based on its PE Ratio (2.9x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BQO is good value based on its PB Ratio (0.6x) compared to the SG Metals and Mining industry average (0.7x).


Next Steps

Future Growth

How is Delong Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BQO's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: BQO's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: BQO's earnings are forecast to decline over the next 3 years.

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

High Growth Revenue: Insufficient data to determine if BQO'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 BQO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Delong Holdings performed over the past 5 years?

59.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BQO has become profitable over the past 5 years, growing earnings by 59.7% per year.

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

Earnings vs Industry: BQO had negative earnings growth (-32.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (16.5%).


Return on Equity

High ROE: BQO's Return on Equity (21.2%) is considered high.


Return on Assets

ROA vs Industry: BQO has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Delong Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BQO's short term assets (CN¥10.8B) exceeds its short term liabilities (CN¥7.8B)

Long Term Liabilities: BQO's short term assets (10.8B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: BQO's debt to equity ratio (89.7%) is considered high

Reducing Debt: BQO's debt to equity ratio has reduced from 123.6% to 89.7% over the past 5 years.

Debt Coverage: BQO's debt is well covered by operating cash flow (52.4%).

Interest Coverage: BQO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: BQO's debt is covered by short term assets (assets are 1.847650x debt).


Next Steps

Dividend

What is Delong Holdings's current dividend yield, its reliability and sustainability?

7.68%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.6%markettop25%5.7%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BQO's dividend (7.68%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: BQO's dividend (7.68%) is in the top 25% of dividend payers in the SG market (5.71%)

Stable Dividend: Too early to tell whether BQO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BQO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (0.8%), BQO's dividend payments are thoroughly 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 Delong Holdings's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average board tenure


CEO

Liguo Ding (49yo)

0yrs

Tenure

0

Mr. Liguo Ding serves as Founder at Delong Capital. He serves as the Chief Executive Officer of Delong Holdings Limited and is in charge of its overall management and direction. Mr. Ding worked at Shenzhen ...


Board Age and Tenure

6.1yrs

Average Tenure

56yo

Average Age

Experienced Board: BQO's board of directors are considered experienced (6.1 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

BuyCN¥35,909,99326 Oct 18
Liguo Ding
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares5,130,000
Max PriceCN¥7.00

Ownership Breakdown


Management Team

  • Lee Luang Yeo

    Accounts Manager

    • Tenure: 0yrs
  • Lester Tan

    Chief Executive Officer of Fine Components (Thailand) Co Ltd

    • Tenure: 0yrs
  • Liguo Ding (49yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
  • Jihong Lan (50yo)

    Chief Financial Officer

    • Tenure: 14.1yrs
  • Yujie Wu (56yo)

    Executive Director

    • Tenure: 2.2yrs
  • Jianxun Sun (51yo)

    General Manager of Xingtai Delong Machinery & Mill Roll Co Ltd

    • Tenure: 0yrs
  • Guoqi Liu

    General Manager of Delong Steel Limited

    • Tenure: 0yrs

Board Members

  • Peter Lai (63yo)

    Lead Independent Director

    • Tenure: 6.5yrs
    • Compensation: CN¥75.00k
  • Liguo Ding (49yo)

    Executive Chairman & CEO

    • Tenure: 0yrs
  • Yujie Wu (56yo)

    Executive Director

    • Tenure: 2.2yrs
  • Tianyi Wang (72yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: CN¥65.00k
  • Geng Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥65.00k

Company Information

Delong Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Delong Holdings Limited
  • Ticker: BQO
  • Exchange: SGX
  • Founded:
  • Industry: Steel
  • Sector: Materials
  • Market Cap: S$769.075m
  • Shares outstanding: 110.18m
  • Website: https://www.dlholdings.com

Location

  • Delong Holdings Limited
  • Building 5
  • Advanced Business Park
  • Beijing
  • 100070
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BQOSGX (Singapore Exchange)YesOrdinary SharesSGSGDMar 2005
D8HNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2005

Biography

Delong Holdings Limited, an investment holding company, manufactures and sells hot-rolled steel coils and billets in the People’s Republic of China. Its hot-rolled steel coils are used in infrastructure, p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/25 12:45
End of Day Share Price2019/09/09 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.