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Dongfang Electric

DB:DEU
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DEU
DB
HK$27B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Dongfang Electric Corporation Limited manufactures and sells hydro, thermal, nuclear, wind, gas, and solar power generating equipment in China and internationally. The last earnings update was 4 days ago. More info.


Add to Portfolio Compare Print
  • Dongfang Electric has significant price volatility in the past 3 months.
DEU Share Price and Events
7 Day Returns
3%
DB:DEU
9.2%
DE Electrical
9.9%
DE Market
1 Year Returns
-47%
DB:DEU
-8.2%
DE Electrical
-17.5%
DE Market
DEU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dongfang Electric (DEU) 3% -11.1% -21.9% -47% -52.7% -76.9%
DE Electrical 9.2% -20.6% -35.2% -8.2% -43.7% -44.1%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • DEU underperformed the Electrical industry which returned -8.2% over the past year.
  • DEU underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
DEU
Industry
5yr Volatility vs Market

DEU Value

 Is Dongfang Electric 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 Dongfang Electric 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 Dongfang Electric.

DB:DEU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

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 DB:DEU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.3%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.118 (1 + (1- 25%) (4.4%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.104 * 6.33%)
6.6%

Discounted Cash Flow Calculation for DB:DEU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dongfang Electric 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.

DB:DEU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.6%)
2020 3,048.00 Analyst x1 2,859.33
2021 2,510.00 Analyst x1 2,208.88
2022 2,132.00 Analyst x1 1,760.08
2023 1,905.76 Est @ -10.61% 1,475.92
2024 1,761.97 Est @ -7.55% 1,280.10
2025 1,666.85 Est @ -5.4% 1,136.03
2026 1,601.91 Est @ -3.9% 1,024.19
2027 1,556.35 Est @ -2.84% 933.46
2028 1,523.54 Est @ -2.11% 857.22
2029 1,499.28 Est @ -1.59% 791.35
Present value of next 10 years cash flows CN¥14,326.00
DB:DEU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,499.28 × (1 + -0.39%) ÷ (6.6% – -0.39%)
CN¥21,369.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥21,369.80 ÷ (1 + 6.6%)10
CN¥11,279.47
DB:DEU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥14,326.00 + CN¥11,279.47
CN¥25,605.47
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥25,605.47 / 3,118.79
CN¥8.21
DB:DEU Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1072)
1.092
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥8.21 x 1.092
HK$8.97
Non-primary Listing Adjustment Factor 1 share in DB:DEU represents 0.10914x of SEHK:1072
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.10914x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 8.97 x 0.10914
€0.98
Value per share (EUR) From above. €0.98
Current discount Discount to share price of €0.42
= -1 x (€0.42 - €0.98) / €0.98
57.3%

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

Current Discount
Amount off the current price Dongfang Electric is available for.
Intrinsic value
>50%
Share price is €0.418 vs Future cash flow value of €0.97874
Current Discount Checks
For Dongfang Electric to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Dongfang Electric's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Dongfang Electric'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 Dongfang Electric's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dongfang Electric's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:DEU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.41
SEHK:1072 Share Price ** SEHK (2020-03-31) in HKD HK$3.83
SEHK:1072 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥3.51
Germany Electrical Industry PE Ratio Median Figure of 6 Publicly-Listed Electrical Companies 22.57x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

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

** Primary Listing of Dongfang Electric.

DB:DEU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1072 Share Price ÷ EPS (both in CNY)

= 3.51 ÷ 0.41

8.48x

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

  • Dongfang Electric is good value based on earnings compared to the DE Electrical industry average.
  • Dongfang Electric is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Dongfang Electric's expected growth come at a high price?
Raw Data
DB:DEU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
8.8%per year
Germany Electrical Industry PEG Ratio Median Figure of 5 Publicly-Listed Electrical Companies 1x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:DEU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.48x ÷ 8.8%

0.96x

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

  • Dongfang Electric is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Dongfang Electric's assets?
Raw Data
DB:DEU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥9.53
SEHK:1072 Share Price * SEHK (2020-03-31) in HKD HK$3.83
SEHK:1072 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥3.51
Germany Electrical Industry PB Ratio Median Figure of 14 Publicly-Listed Electrical Companies 1.69x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:DEU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1072 Share Price ÷ Book Value per Share (both in CNY)

= 3.51 ÷ 9.53

0.37x

* Primary Listing of Dongfang Electric.

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

  • Dongfang Electric is good value based on assets compared to the DE Electrical industry average.
X
Value checks
We assess Dongfang Electric'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 Electrical 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 Electrical industry average (and greater than 0)? (1 check)
  5. Dongfang Electric has a total score of 6/6, 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.

DEU Future Performance

 How is Dongfang Electric expected to perform in the next 1 to 3 years based on estimates from 5 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
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dongfang Electric expected to grow at an attractive rate?
  • Dongfang Electric's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Dongfang Electric's earnings growth is positive but not above the Germany market average.
  • Dongfang Electric's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:DEU Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:DEU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 8.8%
DB:DEU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -1%
Germany Electrical Industry Earnings Growth Rate Market Cap Weighted Average 69.2%
Germany Electrical Industry Revenue Growth Rate Market Cap Weighted Average 12.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*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
DB:DEU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:DEU Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 29,850 2,302 1,299 2
2021-12-31 32,328 2,677 1,750 4
2020-12-31 31,381 3,228 1,174 3
2020-03-31
DB:DEU Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 31,778 202 1,278
2019-09-30 30,428 -6,303 1,252
2019-06-30 28,906 -4,549 1,324
2019-03-31 30,335 -3,186 1,233
2018-12-31 29,737 -552 1,129
2018-09-30 32,780 5,655 1,361
2018-06-30 33,850 3,535 1,106
2018-03-31 34,187 1,186 1,154
2018-01-01 32,785 1,839 1,057
2017-09-30 31,144 2,760 -111
2017-06-30 30,143 4,870 -957
2017-03-31 29,584 8,047 -1,636

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dongfang Electric's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Dongfang Electric's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
DB:DEU 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 5 Analyst Estimates (S&P Global) See Below

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

DB:DEU Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.38 0.42 0.33 2.00
2021-12-31 0.49 0.65 0.35 4.00
2020-12-31 0.39 0.39 0.38 2.00
2020-03-31
DB:DEU Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.41
2019-09-30 0.41
2019-06-30 0.44
2019-03-31 0.40
2018-12-31 0.37
2018-09-30 0.44
2018-06-30 0.35
2018-03-31 0.35
2018-01-01 0.34
2017-09-30 -0.04
2017-06-30 -0.35
2017-03-31 -0.70

*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.
  • Dongfang Electric is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Dongfang Electric'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 Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany 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.
Dongfang Electric 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.

DEU Past Performance

  How has Dongfang Electric 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 Dongfang Electric's growth in the last year to its industry (Electrical).
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.
  • Dongfang Electric has delivered over 20% year on year earnings growth in the past 5 years.
  • Dongfang Electric's 1-year earnings growth is less than its 5-year average (13.2% vs 22%)
  • Dongfang Electric's earnings growth has not exceeded the DE Electrical industry average in the past year (13.2% vs 17.2%).
Earnings and Revenue History
Dongfang Electric'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 Dongfang Electric Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DEU 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 31,778.11 1,277.67 3,142.05 1,888.39
2019-09-30 30,428.28 1,252.32 3,718.42 2,246.22
2019-06-30 28,905.80 1,323.81 3,670.59 2,043.40
2019-03-31 30,334.84 1,232.77 3,962.97 1,950.38
2018-12-31 29,736.87 1,128.83 3,717.84 1,689.01
2018-09-30 32,780.09 1,360.89 3,300.63 1,547.09
2018-06-30 33,849.78 1,105.98 2,896.97 1,511.42
2018-03-31 34,186.57 1,154.17 2,987.07 1,620.74
2018-01-01 32,785.35 1,057.30 3,102.73 1,435.22
2017-09-30 31,143.88 -111.01 4,545.43 538.55
2017-06-30 30,142.64 -956.62 4,548.96 355.34
2017-03-31 29,584.50 -1,635.73 5,013.70
2016-12-31 33,285.72 -1,784.31 5,069.37
2016-09-30 33,656.86 -871.91 4,679.61
2016-06-30 36,032.62 -70.95 5,197.76
2016-03-31 37,619.59 335.75 4,420.83
2015-12-31 36,017.94 439.07 4,378.50
2015-09-30 36,563.42 434.95 4,177.44
2015-06-30 38,256.94 607.33 3,808.87
2015-03-31 38,462.12 968.11 4,282.06
2014-12-31 39,036.16 1,278.26 4,245.14
2014-09-30 40,476.06 1,550.29 4,911.61
2014-06-30 40,907.86 2,002.57 4,729.82
2014-03-31 42,304.07 2,292.90 5,022.37
2013-12-31 42,390.80 2,349.43 5,121.11
2013-09-30 38,768.52 2,254.58 4,853.95
2013-06-30 38,534.82 2,133.32 4,872.16

*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.
  • Dongfang Electric has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if Dongfang Electric has efficiently used its assets last year compared to the DE Electrical industry average (Return on Assets) as it is loss-making.
  • Dongfang Electric has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Dongfang Electric'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 Electrical 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.
Dongfang Electric has a total score of 2/6, 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.

DEU Health

 How is Dongfang Electric'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 Dongfang Electric's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dongfang Electric is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dongfang Electric's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Dongfang Electric'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 105.4x 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 Dongfang Electric Company Filings, last reported 3 months ago.

DB:DEU Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 31,798.43 658.13 32,175.57
2019-09-30 31,470.34 481.29 27,765.71
2019-06-30 31,144.25 701.96 26,896.76
2019-03-31 31,064.51 693.80 27,398.57
2018-12-31 30,693.91 724.75 32,543.17
2018-09-30 28,962.15 934.88 33,710.34
2018-06-30 28,529.72 718.98 33,421.38
2018-03-31 23,055.46 1,146.71 26,597.25
2018-01-01 28,430.55 1,073.15 32,915.84
2017-09-30 22,562.34 902.82 25,828.65
2017-06-30 22,521.70 1,076.63 26,789.12
2017-03-31 22,282.77 1,228.37 27,218.90
2016-12-31 22,085.75 1,544.58 28,468.44
2016-09-30 22,787.30 1,544.58 25,079.28
2016-06-30 23,503.23 1,638.58 23,166.25
2016-03-31 24,000.34 1,925.08 20,323.83
2015-12-31 23,977.59 2,715.14 21,123.62
2015-09-30 23,779.01 2,417.23 16,468.71
2015-06-30 23,718.14 2,804.23 16,315.72
2015-03-31 23,850.60 3,106.63 15,359.78
2014-12-31 20,469.27 6,337.17 17,879.37
2014-09-30 20,259.79 6,258.08 15,812.34
2014-06-30 19,132.45 3,005.95 10,943.63
2014-03-31 19,052.71 3,309.46 10,926.63
2013-12-31 18,593.39 3,579.48 12,158.26
2013-09-30 18,121.23 3,434.82 9,959.69
2013-06-30 17,438.97 2,728.94 9,985.53
  • Dongfang Electric's level of debt (2.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (30.7% vs 2.1% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Dongfang Electric earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Dongfang Electric'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. Dongfang Electric has a total score of 6/6, 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.

DEU Dividends

 What is Dongfang Electric'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
5.85%
Current annual income from Dongfang Electric dividends. Estimated to be 6.06% next year.
If you bought €2,000 of Dongfang Electric shares you are expected to receive €117 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?
  • Dongfang Electric's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • Dongfang Electric's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
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
DB:DEU 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 5 Analyst Estimates (S&P Global) See Below
Germany Electrical Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

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

DB:DEU Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.25 2.00
2021-12-31 0.20 5.00
2020-12-31 0.21 2.00
2020-03-31
DB:DEU Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-03-27 0.205 5.903
2019-06-26 0.110 2.758
2017-10-27 0.000 0.000
2017-08-30 0.000 0.000
2017-04-28 0.000 0.000
2017-03-24 0.000 0.000
2016-07-14 0.060 1.024
2015-08-17 0.090 1.542
2014-03-11 0.180 1.641
2013-04-02 0.110 1.190
2012-03-29 0.160 1.373
2011-03-31 0.130 0.650
2010-04-16 0.080 0.308
2009-04-08 0.010 0.065

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Dongfang Electric's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Dongfang Electric's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Dongfang Electric afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dongfang Electric has a total score of 5/6, see the detailed checks below.


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

DEU Management

 What is the CEO of Dongfang Electric'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
Peigen Yu
AGE 57
TENURE AS CEO 0.8 years
CEO Bio

Mr. Peigen Yu has been President of Dongfang Electric Corp. Ltd. since May 8, 2019 and its Non-Independent Director since June 26, 2019. Mr. Yu successively served as a senior operator, shift chief-operator, the technical manager, deputy dean, dean, assistant to general manager and dean of the production division of Qinshan Nuclear Power Company; the deputy general manager and the general manager of Qinshan Nuclear Power Company; the dean of the nuclear power department of China National Nuclear Corporation; the manager of the nuclear power department of China Power Investment Corporation, the chief engineer on nuclear power of China Power Investment Corporation and the general manager of Shandong Nuclear Power Company, Liaoning Nuclear Power Company and CPI Investment Nuclear Power Company; a member of the Party Committee and the chief engineer on nuclear power of China Power Investment Corporation; and the chairman of Shandong Nuclear Power Company and Jiangxi Nuclear Power Company; the deputy general manager and a member of the Party Committee of China National Nuclear Corporation; the deputy general manager and a member of the Party Committee of China National Nuclear Corporation. Since April 2019, he has been serving as a director, the general manager and the deputy secretary of the Party Committee of Dongfang Electric Corporation. Mr. Yu holds the title of senior engineer at the researcher level. He served as Vice President of China National Nuclear Corporation until April 2019. Mr. Yu served as Deputy General Manager of China National Nuclear Corporation since September 2011. He is a Senior Engineer. He started his employment in August 1984. He served as Chief Engineer of China Power Investment Group. He has been Chairman of Sanmen Nuclear Power Co., Ltd. since August 2014. He served as Chairman of Qinshan Nuclear Power Co., Ltd., Nuclear Power Qinshan Joint Venture Company Limited and Third Qinshan Nuclear Power Co., Ltd. from April 2013 to April 2016. He serves as Vice Chairman of China National Nuclear Power Co., Ltd. He served as Director of the Nuclear Power Department at China National Nuclear Corporation and China Power Investment Group. He is a director, the general manager and the deputy secretary of the Party Committee of Dongfang Electric Corporation. He graduated from the Thermophysical Engineering Department of Zhejiang University, majoring in thermal power with a bachelor’s degree in engineering. He completed his postgraduate study from Renmin University of China and received a master’s degree in Business Administration of Senior Management (EMBA).

CEO Compensation
  • Insufficient data for Peigen to compare compensation growth.
  • Insufficient data for Peigen to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Dongfang Electric management team in years:

2
Average Tenure
56
Average Age
  • The tenure for the Dongfang Electric management team is about average.
Management Team

Yong Bai

TITLE
Chief Accountant & Non-Independent Director
AGE
48
TENURE
1.4 yrs

Zhiying Zhang

TITLE
Executive Vice President
COMPENSATION
CN¥570K
AGE
59
TENURE
9.7 yrs

Peng Xu

TITLE
Senior VP & Non Independent Director
AGE
54
TENURE
2 yrs

Dan Gong

TITLE
Company Secretary
COMPENSATION
CN¥566K
AGE
56
TENURE
12.4 yrs

Peigen Yu

TITLE
President & Non Independent Director
AGE
57
TENURE
0.8 yrs

Yong Feng

TITLE
Head of the Audit Department & Staff Representative Supervisor
AGE
52

Shuiquan Xiao

TITLE
Officer of Disciplinary Office of Dfew
COMPENSATION
CN¥109K
AGE
68
Board of Directors Tenure

Average tenure and age of the Dongfang Electric board of directors in years:

2
Average Tenure
54
Average Age
  • The average tenure for the Dongfang Electric board of directors is less than 3 years, this suggests a new board.
Board of Directors

Lei Zou

TITLE
Chairman
AGE
53
TENURE
3.4 yrs

Yong Bai

TITLE
Chief Accountant & Non-Independent Director
AGE
48
TENURE
1.3 yrs

Peng Xu

TITLE
Senior VP & Non Independent Director
AGE
54
TENURE
2.3 yrs

Peigen Yu

TITLE
President & Non Independent Director
AGE
57
TENURE
0.7 yrs

Yong Feng

TITLE
Head of the Audit Department & Staff Representative Supervisor
AGE
52
TENURE
0.4 yrs

Jilie Zhang

TITLE
Chairman of Supervisory Committee
AGE
56
TENURE
1.3 yrs

Dake Gu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥116K
AGE
65
TENURE
4.7 yrs

Haihe Xu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥119K
AGE
64
TENURE
4.7 yrs

Dengqing Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥58K
AGE
49
TENURE
1.7 yrs

Wei Huang

TITLE
Non-Independent Director
AGE
54
TENURE
10.7 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 (€) Value (€)
X
Management checks
We assess Dongfang Electric'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. Dongfang Electric 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.

DEU News

Simply Wall St News

DEU Company Info

Description

Dongfang Electric Corporation Limited manufactures and sells hydro, thermal, nuclear, wind, gas, and solar power generating equipment in China and internationally. It operates through five segments: Clean and Efficient Power Generation Equipment, Renewable Energy Equipment, Engineering and Trade, Modern Manufacturing Services, and Emerging Growth Industry. The company also manufactures power station steam turbines and power station boilers, as well as offers engineering contracting and services. It produced power generation equipment with a total capacity of 22.7602 million kilowatt, including 22 hydroelectric generating units with a total capacity of 1.4902 million kilowatt, 87 steam turbine generator with capacity of 20.736 million kilowatt, 225 wind turbine generators with a total capacity of 534,000 kilowatt, 50 power station boilers with a total capacity of 21.32 million kilowatt, and 110 power station steam turbines with a total capacity of 23.33 million kilowatt. The company was formerly known as Dongfang Electric Machinery Co., Ltd. and changed its name to Dongfang Electric Corporation Limited in October 2007. The company was founded in 1993 and is headquartered in Chengdu, the People’s Republic of China. Dongfang Electric Corporation Limited is a subsidiary of Dongfang Electric Corporation.

Details
Name: Dongfang Electric Corporation Limited
DEU
Exchange: DB
Founded: 1993
HK$3,152,854,960
3,118,792,130
Website: http://www.dec-ltd.cn
Address: Dongfang Electric Corporation Limited
No.333 Shuhan Road,
Chengdu,
Sichuan Province, 610036,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1072 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 07. Jun 1994
OTCPK DNGF.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 07. Jun 1994
DB DEU Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 07. Jun 1994
SHSC 1072 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. Jun 1994
SZSC 1072 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 07. Jun 1994
SHSE 600875 Domestic Shares Shanghai Stock Exchange CN CNY 28. Jun 1996
XSSC 600875 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 28. Jun 1996
Number of employees
Current staff
Staff numbers
17,360
Dongfang Electric employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 21:40
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/03/27
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.