OTCPK:SPKO.Y

Stock Analysis Report

Sinopec Kantons Holdings

Executive Summary

Sinopec Kantons Holdings Limited, an investment holding company, engages in petrochemical storage and logistics businesses primarily in the People’s Republic of China.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SPKO.Y

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

n/a

SPKO.Y

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: Insufficient data to determine how SPKO.Y performed against the US Oil and Gas industry.

Return vs Market: Insufficient data to determine how SPKO.Y performed against the US Market.


Shareholder returns

SPKO.YIndustryMarket
7 Day0%4.2%5.3%
30 Day0%-35.5%-13.6%
90 Dayn/a-51.4%-19.8%
1 Yearn/a-54.3%-56.1%-8.9%-10.7%
3 Year-18.1%-25.7%-51.6%-56.3%15.5%8.0%
5 Yearn/a-54.7%-61.7%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sinopec Kantons 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

Below Fair Value: SPKO.Y ($16.34) is trading below our estimate of fair value ($40.55)

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


Price To Earnings Ratio

PE vs Industry: SPKO.Y is good value based on its PE Ratio (5.5x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: SPKO.Y is good value based on its PE Ratio (5.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SPKO.Y is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SPKO.Y is overvalued based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Sinopec Kantons Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPKO.Y's forecast earnings growth (3.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SPKO.Y's earnings (3.2% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: SPKO.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: SPKO.Y's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: SPKO.Y's revenue is forecast to decline over the next 3 years (-4.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPKO.Y's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Sinopec Kantons Holdings performed over the past 5 years?

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPKO.Y has high quality earnings.

Growing Profit Margin: SPKO.Y's current net profit margins (88.8%) are higher than last year (76.2%).


Past Earnings Growth Analysis

Earnings Trend: SPKO.Y's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: SPKO.Y's earnings growth over the past year (1.8%) is below its 5-year average (4.7% per year).

Earnings vs Industry: SPKO.Y earnings growth over the past year (1.8%) exceeded the Oil and Gas industry -11.4%.


Return on Equity

High ROE: SPKO.Y's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Sinopec Kantons Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SPKO.Y's short term assets (HK$1.4B) do not cover its short term liabilities (HK$3.3B).

Long Term Liabilities: SPKO.Y's short term assets (HK$1.4B) exceed its long term liabilities (HK$176.8M).


Debt to Equity History and Analysis

Debt Level: SPKO.Y's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: SPKO.Y's debt to equity ratio has reduced from 33.1% to 20.6% over the past 5 years.

Debt Coverage: SPKO.Y's debt is well covered by operating cash flow (49.7%).

Interest Coverage: SPKO.Y's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SPKO.Y's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

7.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPKO.Y's dividend (7.07%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: SPKO.Y's dividend (7.07%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

Stable Dividend: SPKO.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: SPKO.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), SPKO.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SPKO.Y's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Zhijun Ye (53yo)

18.17s

Tenure

HK$2,340,000

Compensation

Mr. Zhijun Ye serves as Managing Director and Executive Director of Sinopec Yu Ji Pipeline Company Limited. Mr. Ye has been the Managing Director of Sinopec Kantons Holdings Limited since January 2002 and  ...


CEO Compensation Analysis

Compensation vs Market: Zhijun's total compensation ($USD301.78K) is below average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhijun Ye
MD & Executive Director18.17yrsHK$2.34mno data
Yaohuan Chen
Executive Chairman0.25yrno datano data
Hong Chen
Chief Financial Officer8yrsno datano data
Guotao Wang
Executive Director4.25yrsno datano data
Fuliang Zhong
Executive Directorno datano datano data
Zhenglin Mo
Executive Directorno datano datano data
Yanfei Yang
Executive Directorno datano datano data
Wenzhi Zou
Executive Directorno datano datano data
Yang Chau Lai
Joint Company Secretaryno datano datano data
Wenping Li
Joint Company Secretary12yrsno datano data

10.0yrs

Average Tenure

53yo

Average Age

Experienced Management: SPKO.Y's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhijun Ye
MD & Executive Director18.17yrsHK$2.34mno data
Yaohuan Chen
Executive Chairman0.25yrno datano data
Guotao Wang
Executive Director4.25yrsno datano data
Fuliang Zhong
Executive Directorno datano datano data
Zhenglin Mo
Executive Directorno datano datano data
Yanfei Yang
Executive Directorno datano datano data
Wenzhi Zou
Executive Directorno datano datano data
Wai Chu Tam
Independent Non-Executive Director20.67yrsHK$360.00kno data
Yau Kar Wong
Independent Non-Executive Director6yrsHK$360.00kno data
Chung Fong
Independent Non-Executive Director15.42yrsHK$360.00kno data

6.0yrs

Average Tenure

54.5yo

Average Age

Experienced Board: SPKO.Y's board of directors are considered experienced (6 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

Company Information

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


Key Information

  • Name: Sinopec Kantons Holdings Limited
  • Ticker: SPKO.Y
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: HK$7.036b
  • Listing Market Cap: HK$907.376m
  • Shares outstanding: 2.49b
  • Website: https://www.sinopec.com.hk

Number of Employees


Location

  • Sinopec Kantons Holdings Limited
  • Citicorp Centre
  • 34th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
934SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1999
SNPK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
934SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
934SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
SPKO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

Sinopec Kantons Holdings Limited, an investment holding company, engages in petrochemical storage and logistics businesses primarily in the People’s Republic of China. The company operates through Crude Oil Jetty and Storage Services; Vessel Chartering and Logistics Services; and Natural Gas Pipeline Transmission Services segments. It operates crude oil and oil products terminals, and ancillary facilities; and provides logistics services, including storage, transportation, and terminal services, as well as trades in crude oil. The company also provides crude oil transportation, unloading, storage, and other jetty services for oil tankers, as well as oil supporting services; and natural gas pipeline transmission services. In addition, it offers vessel chartering services for liquefied natural gas transportation. The company was founded in 1998 and is based in Causeway Bay, Hong Kong. Sinopec Kantons Holdings Limited is a subsidiary of Sinopec Kantons International Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:02
End of Day Share Price2020/02/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.