OTCPK:CEVI.F

Stock Analysis Report

Executive Summary

China Everbright Limited, through its subsidiaries, engages in the investment activities and provision of financial services in Hong Kong and Mainland China.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CEVI.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CEVI.F

0.4%

US Capital Markets

0.06%

US Market


1 Year Return

-8.9%

CEVI.F

17.9%

US Capital Markets

19.3%

US Market

Return vs Industry: CEVI.F underperformed the US Capital Markets industry which returned 17.9% over the past year.

Return vs Market: CEVI.F underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

CEVI.FIndustryMarket
7 Day0%0.4%0.06%
30 Day0%0.7%1.7%
90 Dayn/a6.9%9.0%
1 Year-8.9%-8.9%20.2%17.9%21.8%19.3%
3 Year-4.8%-4.8%40.2%32.4%49.5%39.9%
5 Year-26.1%-26.1%84.5%67.4%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Everbright undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CEVI.F ($1.78) is trading below our estimate of fair value ($3.66)

Significantly Below Fair Value: CEVI.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CEVI.F is good value based on its PE Ratio (9.8x) compared to the Capital Markets industry average (35.3x).

PE vs Market: CEVI.F is good value based on its PE Ratio (9.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CEVI.F is good value based on its PB Ratio (0.6x) compared to the US Capital Markets industry average (6.8x).


Next Steps

Future Growth

How is China Everbright forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

26.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CEVI.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CEVI.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: CEVI.F's revenue (26.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CEVI.F's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has China Everbright performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEVI.F has high quality earnings.

Growing Profit Margin: CEVI.F's current net profit margins (64.7%) are lower than last year (70.6%).


Past Earnings Growth Analysis

Earnings Trend: CEVI.F's earnings have grown by 1.5% per year over the past 5 years.

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

Earnings vs Industry: CEVI.F had negative earnings growth (-44.4%) over the past year, making it difficult to compare to the Capital Markets industry average (8.4%).


Return on Equity

High ROE: CEVI.F's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Everbright's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CEVI.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: CEVI.F's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: CEVI.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CEVI.F has a sufficient allowance for bad loans.

Low Risk Liabilities: CEVI.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CEVI.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CEVI.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CEVI.F has an appropriate level of bad loans.


Next Steps

Dividend

What is China Everbright's current dividend yield, its reliability and sustainability?

4.66%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: CEVI.F's dividend (4.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CEVI.F's dividend (4.66%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

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

Growing Dividend: CEVI.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.8%), CEVI.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CEVI.F's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Wei Zhao (48yo)

0.8yrs

Tenure

0

Dr. Wei Zhao has been the Chief Executive Officer and Executive Director of China Everbright Ltd. since May 3, 2019. Prior to joining the Group, Dr. Zhao served as Vice President of China Reinsurance (Grou ...


Leadership Team

NamePositionTenureCompensationOwnership
Yunge Cai
Executive Chairman3.2yrsno datano data
Chi Chun Tang
CFO & Executive Director12.6yrsHK$7.49m0.055% HK$1.7m
Lianchen Yin
Chief Investment Officer2.7yrsHK$6.03m0.0085% HK$259.7k
Mingao Zhang
Chief Investment Officer & Executive Director2.2yrsHK$6.07m0.012% HK$379.6k
Wei Zhao
CEO & Executive Director0.8yrsno data0.025% HK$758.8k
Ping Yang
Chief Investment Officer0yrsno datano data
Ying Pan
Chief Investment Officer3.2yrsno datano data
Zhao Zehui
Senior Investment Director2.1yrsno datano data
Tung Hung Wong
Chief Administration Officer0yrsno datano data
Ming Kin Chan
General Counsel & Company Secretary0yrsno datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: CEVI.F's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yunge Cai
Executive Chairman3.2yrsno datano data
Chi Chun Tang
CFO & Executive Director12.6yrsHK$7.49m0.055% HK$1.7m
Lianchen Yin
Chief Investment Officer2.7yrsHK$6.03m0.0085% HK$259.7k
Mingao Zhang
Chief Investment Officer & Executive Director2.2yrsHK$6.07m0.012% HK$379.6k
Wei Zhao
CEO & Executive Director0.8yrsno data0.025% HK$758.8k
Hongfei Chen
President of Everbright Jiabao & Chairman and CEO of EBA Investments0yrsno datano data
Shui Ming Chung
Independent Non-Executive Director7.5yrsHK$483.00k0.0030% HK$91.1k
Zhijun Lin
Independent Non-Executive Director14.4yrsHK$445.00kno data
Cheuk Kin Law
Independent Non-Executive Director1.8yrsHK$316.00kno data

2.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: CEVI.F's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CEVI.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China Everbright Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Everbright Limited
  • Ticker: CEVI.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: HK$23.863b
  • Listing Market Cap: HK$3.066b
  • Shares outstanding: 1.69b
  • Website: https://www.everbright.com

Number of Employees


Location

  • China Everbright Limited
  • Far East Finance Centre
  • 46th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEVI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
165SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
EVIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
165SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
165SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
CEVI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

China Everbright Limited, through its subsidiaries, engages in the investment activities and provision of financial services in Hong Kong and Mainland China. The company invests in unlisted equity securities and/or equity derivatives, as well as in the start-up and development stage companies. It also focuses on long term equity investment in real estate, infrastructure, medical and healthcare, resources assets, manufacturing, technology, media, and telecom sectors. In addition, the company is involved in the private equity investment, pre-IPO financing, and structured financing for listed companies; and treasury management operations. Further, it provides a range of financial services, including asset management, investment management, and investment advisory services related to absolute return funds, bond funds, and equity funds, as well as offers secretarial, money lending, fund management, venture capital, leasing, and consultancy services. The company was founded in 1997 and is headquartered in Hong Kong. China Everbright Limited is a subsidiary of Honorich Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:01
End of Day Share Price2020/01/03 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.