Binhai Investment Company Limited, an investment holding company, engages in the construction of gas pipeline networks, provision of connection services, and sale of liquefied petroleum gas (LPG) and piped gas in Hong Kong.
The last earnings update was 63 days ago.
Discounted Cash Flow Calculation for OTCPK:BINH.F using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
OTCPK:BINH.F DCF 1st Stage: Next 5 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Binhai Investment's share price is below the future cash flow value, and at a moderate discount (> 20%).
Binhai Investment's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Binhai Investment's earnings available for a low price, and how does
this compare to other companies in the same industry?
Binhai Investment's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
Binhai Investment's revenue is expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Binhai Investment's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Binhai Investment's finances.
The net worth of a company is the difference between its assets and liabilities.
Binhai Investment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Binhai Investment's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Binhai Investment's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.7x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Liang Gao has been Compliance Officer of Binhai Investment Company Limited since February 9, 2010 and serves as its Chief Executive. Mr. Gao has been General Manager and Executive Director of Binhai Investment Company Limited since August 04, 2009. He served as deputy director of the Science Promotion Center of Urban and Rural Development Administrative Committee of Tianjin Municipal for the period from 1993 to 1995 and the deputy director of the Tianjin Municipal Environmental and Hygienic Engineering Design Council for the period from 1995 to 2001. He graduated from Wuhan Urban Construction Institute with a major in environmental hygiene engineering in 1988 and obtained a master of business administration from Nankai University in 2005.
Liang's compensation has been consistent with company performance over the past year.
Liang's remuneration is lower than average for companies of similar size in United States of America.
Chief Financial Officer
Deputy GM & Joint Company Secretary
Deputy General Manager
Deputy General Manager
Wai Yin Yip
Joint Company Secretary
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Binhai Investment board of directors is about average.
Binhai Investment Company Limited, an investment holding company, engages in the construction of gas pipeline networks, provision of connection services, and sale of liquefied petroleum gas (LPG) and piped gas in Hong Kong. The company operates through Sales of Piped Gas, Gas Connection Service, Pipeline Transportation, and Bottled Gas Sales segments. It also sells piped and bottled gas through its pipeline networks to residential and industrial users. In addition, the company is involved in the construction of gas pipelines and installation of appliances to connect customers to pipeline networks under connection contracts to industrial and commercial customers, property developers, and property management companies. As of December 31, 2017, it had a gas pipeline network of approximately 2,299 kilometers. The company was founded in 1994 and is headquartered in Causeway Bay, Hong Kong. Binhai Investment Company Limited is a subsidiary of Teda Hong Kong Property Company Limited.
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