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AVIC Electromechanical SystemsLtd

XSEC:002013
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
002013
XSEC
CN¥28B
Market Cap
  1. Home
  2. CN
  3. Capital Goods
Company description

AVIC Electromechanical Systems Co., Ltd. manufactures and sells aviation products in the People’s Republic of China. The last earnings update was 8 days ago. More info.


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002013 Share Price and Events
7 Day Returns
5.7%
XSEC:002013
0.1%
CN Aerospace & Defense
1.6%
CN Market
1 Year Returns
-8.7%
XSEC:002013
-13%
CN Aerospace & Defense
-8.9%
CN Market
002013 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AVIC Electromechanical SystemsLtd (002013) 5.7% -2.6% 2.8% -8.7% -8.4% -
CN Aerospace & Defense 0.1% -12.9% -6% -13% -29.6% -33.1%
CN Market 1.6% -10.6% -7.3% -8.9% -15.5% -28%
1 Year Return vs Industry and Market
  • 002013 outperformed the Aerospace & Defense industry which returned -13% over the past year.
  • 002013 matched the China Market (-8.9%) over the past year.
Price Volatility
002013
Industry
5yr Volatility vs Market

Value

 Is AVIC Electromechanical SystemsLtd undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AVIC Electromechanical SystemsLtd to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AVIC Electromechanical SystemsLtd.

XSEC:002013 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year CN Government Bond Rate 3.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for XSEC:002013
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CN Govt Bond Rate 3.2%
Equity Risk Premium S&P Global 6.3%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 25%) (21.79%))
0.989
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.2% + (0.989 * 6.33%)
9.46%

Discounted Cash Flow Calculation for XSEC:002013 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AVIC Electromechanical SystemsLtd is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

XSEC:002013 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.46%)
2020 1,442.00 Analyst x1 1,317.35
2021 1,292.00 Analyst x1 1,078.28
2022 1,067.00 Analyst x1 813.52
2023 946.09 Est @ -11.33% 658.98
2024 880.12 Est @ -6.97% 560.03
2025 845.61 Est @ -3.92% 491.56
2026 830.52 Est @ -1.78% 441.06
2027 828.12 Est @ -0.29% 401.76
2028 834.39 Est @ 0.76% 369.81
2029 846.83 Est @ 1.49% 342.88
Present value of next 10 years cash flows CN¥6,475.00
XSEC:002013 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥846.83 × (1 + 3.2%) ÷ (9.46% – 3.2%)
CN¥13,954.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥13,954.92 ÷ (1 + 9.46%)10
CN¥5,650.33
XSEC:002013 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥6,475.00 + CN¥5,650.33
CN¥12,125.33
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥12,125.33 / 3,586.09
CN¥3.38
XSEC:002013 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in XSEC:002013 represents 0.9707x of SZSE:002013
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9707x
Value per Share
(Listing Adjusted, CNY)
= Value per Share (CNY) x Listing Adjustment Factor
= CN¥ 3.38 x 0.9707
CN¥3.28
Value per share (CNY) From above. CN¥3.28
Current discount Discount to share price of CN¥7.62
= -1 x (CN¥7.62 - CN¥3.28) / CN¥3.28
-132.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AVIC Electromechanical SystemsLtd is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 AVIC Electromechanical SystemsLtd's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AVIC Electromechanical SystemsLtd's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XSEC:002013 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.27
SZSE:002013 Share Price ** SZSE (2020-04-03) in CNY CN¥7.85
China Aerospace & Defense Industry PE Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 49.05x
China Market PE Ratio Median Figure of 3,200 Publicly-Listed Companies 32.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AVIC Electromechanical SystemsLtd.

XSEC:002013 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SZSE:002013 Share Price ÷ EPS (both in CNY)

= 7.85 ÷ 0.27

29.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVIC Electromechanical SystemsLtd is good value based on earnings compared to the CN Aerospace & Defense industry average.
  • AVIC Electromechanical SystemsLtd is good value based on earnings compared to the China market.
Price based on expected Growth
Does AVIC Electromechanical SystemsLtd's expected growth come at a high price?
Raw Data
XSEC:002013 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
14.7%per year
China Aerospace & Defense Industry PEG Ratio Median Figure of 14 Publicly-Listed Aerospace & Defense Companies 2.34x
China Market PEG Ratio Median Figure of 1,274 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

XSEC:002013 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.07x ÷ 14.7%

1.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVIC Electromechanical SystemsLtd is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AVIC Electromechanical SystemsLtd's assets?
Raw Data
XSEC:002013 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥2.72
SZSE:002013 Share Price * SZSE (2020-04-03) in CNY CN¥7.85
China Aerospace & Defense Industry PB Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 3.07x
China Market PB Ratio Median Figure of 3,691 Publicly-Listed Companies 2.26x
XSEC:002013 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SZSE:002013 Share Price ÷ Book Value per Share (both in CNY)

= 7.85 ÷ 2.72

2.89x

* Primary Listing of AVIC Electromechanical SystemsLtd.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AVIC Electromechanical SystemsLtd is good value based on assets compared to the CN Aerospace & Defense industry average.
X
Value checks
We assess AVIC Electromechanical SystemsLtd's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. AVIC Electromechanical SystemsLtd has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AVIC Electromechanical SystemsLtd expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AVIC Electromechanical SystemsLtd expected to grow at an attractive rate?
  • AVIC Electromechanical SystemsLtd's earnings growth is expected to exceed the low risk savings rate of 3.2%.
Growth vs Market Checks
  • AVIC Electromechanical SystemsLtd's earnings growth is positive but not above the China market average.
  • AVIC Electromechanical SystemsLtd's revenue growth is positive but not above the China market average.
Annual Growth Rates Comparison
Raw Data
XSEC:002013 Future Growth Rates Data Sources
Data Point Source Value (per year)
XSEC:002013 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 14.7%
XSEC:002013 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 10.4%
China Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
China Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 12%
China Market Earnings Growth Rate Market Cap Weighted Average 20.8%
China Market Revenue Growth Rate Market Cap Weighted Average 15.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
XSEC:002013 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XSEC:002013 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 16,511 1,163 1,505 3
2021-12-31 14,940 2,295 1,270 7
2020-12-31 13,095 2,505 1,068 6
2020-04-07
XSEC:002013 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 12,131 1,560 961
2019-09-30 11,967 -46 900
2019-06-30 11,527 -621 873
2019-03-31 11,692 -827 848
2018-12-31 11,781 -876 855
2018-09-30 11,831 1,155 831
2018-06-30 11,876 2,047 753
2018-03-31 11,949 2,002 760
2017-12-31 11,181 2,248 718
2017-09-30 10,358 1,623 703
2017-06-30 9,638 1,040 685
2017-03-31 8,621 995 611

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AVIC Electromechanical SystemsLtd's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).
  • AVIC Electromechanical SystemsLtd's revenue is expected to grow by 10.4% 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.
Raw Data
XSEC:002013 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from AVIC Electromechanical SystemsLtd Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XSEC:002013 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.41 0.49 0.37 3.00
2021-12-31 0.35 0.41 0.32 7.00
2020-12-31 0.29 0.31 0.28 6.00
2020-04-07
XSEC:002013 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.27
2019-09-30 0.25
2019-06-30 0.24
2019-03-31 0.67
2018-12-31 0.24
2018-09-30 0.23
2018-06-30 0.21
2018-03-31 0.13
2017-12-31 0.20
2017-09-30 0.21
2017-06-30 0.20
2017-03-31 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AVIC Electromechanical SystemsLtd is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AVIC Electromechanical SystemsLtd's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the China market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the China market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AVIC Electromechanical SystemsLtd has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AVIC Electromechanical SystemsLtd performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AVIC Electromechanical SystemsLtd's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AVIC Electromechanical SystemsLtd's year on year earnings growth rate has been positive over the past 5 years.
  • AVIC Electromechanical SystemsLtd's 1-year earnings growth is less than its 5-year average (12.4% vs 19.3%)
  • AVIC Electromechanical SystemsLtd's earnings growth has exceeded the CN Aerospace & Defense industry average in the past year (12.4% vs 12%).
Earnings and Revenue History
AVIC Electromechanical SystemsLtd's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AVIC Electromechanical SystemsLtd Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XSEC:002013 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12,131.38 960.86 1,323.25 550.09
2019-09-30 11,966.79 900.09 1,306.30 473.56
2019-06-30 11,526.92 872.55 1,271.90 460.27
2019-03-31 11,692.23 847.84 1,302.50 430.73
2018-12-31 11,780.57 854.59 1,334.32 420.73
2018-09-30 11,830.89 831.26 1,085.83 633.42
2018-06-30 11,876.25 752.72 1,134.44 556.68
2018-03-31 11,949.08 760.09 1,275.79 473.15
2017-12-31 11,180.62 718.24 1,246.41 410.64
2017-09-30 10,358.43 702.68 1,479.84
2017-06-30 9,638.45 685.11 1,389.06
2017-03-31 8,620.98 611.39 1,221.21
2016-12-31 8,512.48 583.14 1,214.82
2016-09-30 8,909.29 602.09 1,209.11
2016-06-30 8,611.61 652.28 1,178.26
2016-03-31 8,347.05 568.46 1,116.79
2015-12-31 7,941.64 519.34 1,103.09
2015-09-30 7,106.44 337.09 1,083.43
2015-06-30 7,074.32 219.53 1,031.28
2015-03-31 7,452.80 334.63 1,073.96
2014-12-31 7,562.19 381.91 1,059.17
2014-09-30 7,399.64 382.14 1,003.23
2014-06-30 7,251.38 398.93 1,031.01
2014-03-31 6,755.37 376.59 1,001.78
2013-12-31 6,729.59 418.59 1,002.06
2013-09-30 6,284.93 408.90 865.35
2013-06-30 6,316.52 386.81 841.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AVIC Electromechanical SystemsLtd has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AVIC Electromechanical SystemsLtd used its assets less efficiently than the CN Aerospace & Defense industry average last year based on Return on Assets.
  • AVIC Electromechanical SystemsLtd has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AVIC Electromechanical SystemsLtd's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
AVIC Electromechanical SystemsLtd has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AVIC Electromechanical SystemsLtd's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AVIC Electromechanical SystemsLtd's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AVIC Electromechanical SystemsLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AVIC Electromechanical SystemsLtd's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AVIC Electromechanical SystemsLtd'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 checks below.
Assets
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 covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, 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.
Raw Data

All data from AVIC Electromechanical SystemsLtd Company Filings, last reported 3 months ago.

XSEC:002013 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 12,685.51 6,124.17 4,902.33
2019-09-30 12,307.79 6,684.02 3,278.49
2019-06-30 12,002.02 6,406.39 3,244.94
2019-03-31 11,973.07 6,068.00 3,175.89
2018-12-31 11,913.37 5,875.56 3,530.02
2018-09-30 11,389.83 7,357.18 4,501.68
2018-06-30 10,816.03 4,378.17 2,833.14
2018-03-31 10,603.50 3,219.17 2,297.47
2017-12-31 11,363.60 4,659.17 4,226.24
2017-09-30 8,998.64 4,508.83 1,849.91
2017-06-30 8,866.68 4,052.47 1,533.59
2017-03-31 8,754.36 3,933.37 1,771.74
2016-12-31 8,720.67 3,945.75 2,796.06
2016-09-30 8,030.96 3,929.35 1,033.69
2016-06-30 7,918.94 5,571.05 3,126.59
2016-03-31 7,907.36 5,522.77 3,407.72
2015-12-31 6,331.17 5,704.72 2,109.51
2015-09-30 5,467.73 5,698.00 1,153.17
2015-06-30 5,314.01 5,617.30 1,376.14
2015-03-31 5,281.32 5,071.94 1,037.94
2014-12-31 5,348.15 5,114.64 1,853.62
2014-09-30 5,146.59 5,281.77 855.08
2014-06-30 5,085.67 5,016.19 926.82
2014-03-31 4,918.07 5,291.64 1,699.77
2013-12-31 4,949.76 4,771.87 1,748.99
2013-09-30 4,619.24 4,720.39 897.33
2013-06-30 4,544.24 4,250.05 846.51
  • AVIC Electromechanical SystemsLtd's level of debt (48.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (95.5% vs 48.2% today).
  • Debt is well covered by operating cash flow (25.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess AVIC Electromechanical SystemsLtd's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AVIC Electromechanical SystemsLtd has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is AVIC Electromechanical SystemsLtd's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.76%
Current annual income from AVIC Electromechanical SystemsLtd dividends. Estimated to be 0.74% next year.
If you bought CN¥2,000 of AVIC Electromechanical SystemsLtd shares you are expected to receive CN¥15 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AVIC Electromechanical SystemsLtd's pays a higher dividend yield than the bottom 25% of dividend payers in China (0.46%).
  • AVIC Electromechanical SystemsLtd's dividend is below the markets top 25% of dividend payers in China (2.03%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
XSEC:002013 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
China Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 0.6%
China Market Average Dividend Yield Market Cap Weighted Average of 2587 Stocks 1.9%
China Minimum Threshold Dividend Yield 10th Percentile 0.2%
China Bottom 25% Dividend Yield 25th Percentile 0.5%
China Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

XSEC:002013 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.07 2.00
2021-12-31 0.06 4.00
2020-12-31 0.05 4.00
2020-04-07
XSEC:002013 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-03-31 0.060 0.798
2019-04-10 0.030 0.433
2018-04-13 0.017 0.216
2017-04-27 0.016 0.217
2016-04-08 0.015 0.210
2015-05-20 0.014 0.209
2014-07-01 0.014 0.269
2013-07-12 0.011 0.343
2012-03-29 0.004 0.122
2011-05-11 0.004 0.123
2010-02-26 0.003 0.124

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of AVIC Electromechanical SystemsLtd's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess AVIC Electromechanical SystemsLtd's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AVIC Electromechanical SystemsLtd afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AVIC Electromechanical SystemsLtd has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AVIC Electromechanical SystemsLtd's salary, the management and board of directors tenure and is there insider trading?

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.
CEO
Jun Meng
COMPENSATION CN¥535,200
CEO Bio

Mr. Jun Meng serves as General Manager at AVIC Electromechanical Systems Co., Ltd. and has been its Director since April 21, 2013. Mr. Meng served as President of AVIC Electromechanical Systems Co., Ltd. since May 28, 2013. Mr. Jun Meng served as General Manager of AVIC Electromechanical Systems Co., Ltd.

CEO Compensation
  • Jun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jun's remuneration is lower than average for companies of similar size in China.
Management Team

Jun Meng

TITLE
General Manager and Director
COMPENSATION
CN¥535K

Kai Sheng Li

TITLE
Deputy General Manager
COMPENSATION
CN¥432K

Wei Wang

TITLE
Deputy General Manager
COMPENSATION
CN¥434K

Bing Li

TITLE
Deputy General Manager and Secretary of the Board of Directors
COMPENSATION
CN¥434K

Chun Zhou

TITLE
Chief Financial Officer and Deputy General Manager
AGE
53
Board of Directors Tenure

Average tenure and age of the AVIC Electromechanical SystemsLtd board of directors in years:

6.9
Average Tenure
55.5
Average Age
  • The tenure for the AVIC Electromechanical SystemsLtd board of directors is about average.
Board of Directors

Jian Wang

TITLE
Chairman of the Board
AGE
57
TENURE
9.5 yrs

Jun Meng

TITLE
General Manager and Director
COMPENSATION
CN¥535K
TENURE
6.9 yrs

Yuan Yuan Zhang

TITLE
Chairman of the Supervisory Board

Jun Min Liu

TITLE
Independent Director
COMPENSATION
CN¥62K
TENURE
7.2 yrs

Xiu Wang

TITLE
Independent Director
AGE
54
TENURE
7.2 yrs

Xue Jun Liu

TITLE
Independent Director
COMPENSATION
CN¥62K
TENURE
7.2 yrs

Huaigen Cao

TITLE
Non-Independent Director
AGE
64
TENURE
5.8 yrs

Fanghui Wu

TITLE
Non-Independent Director
TENURE
5.8 yrs

Chang Fu Chen

TITLE
Non-Independent Director
AGE
53
TENURE
5.8 yrs

Dong Yan

TITLE
Non-Independent Director
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CN¥) Value (CN¥)
X
Management checks
We assess AVIC Electromechanical SystemsLtd's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AVIC Electromechanical SystemsLtd has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

AVIC Electromechanical Systems Co., Ltd. manufactures and sells aviation products in the People’s Republic of China. The company provides power, liquid energy, gas energy, and second power systems; equipment and personnel security subsystems; and special application task systems. It offers its products in aviation electromechanical, car carrier, refrigeration and medical device, and electric power equipment industries. The company was formerly known as Hubei Aviation Precision Machinery Technology Co., Ltd. and changed its name to AVIC Electromechanical Systems Co., Ltd. in February 2014. AVIC Electromechanical Systems Co., Ltd. was founded in 2000 and is based in Beijing, China.

Details
Name: AVIC Electromechanical Systems Co.,Ltd.
002013
Exchange: XSEC
Founded: 2000
CN¥28,150,841,448
3,586,094,452
Website: http://www.avicem.com
Address: AVIC Electromechanical Systems Co.,Ltd.
Building 20, Building E,
Room 610,
Beijing,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SZSE 002013 Domestic Shares Shenzhen Stock Exchange CN CNY 05. Jul 2004
XSEC 002013 Domestic Shares Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect CN CNY 05. Jul 2004
Number of employees
Current staff
Staff numbers
31,401
AVIC Electromechanical SystemsLtd employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 18:24
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/03/30
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.