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Shanghai Electric Group

DB:USR
Snowflake Description

Undervalued with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
USR
DB
HK$68B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy equipment, new energy and environmental protection equipment, industrial equipment, and modern services in the People’s Republic of China. The last earnings update was 154 days ago. More info.


Add to Portfolio Compare Print
  • Shanghai Electric Group has significant price volatility in the past 3 months.
USR Share Price and Events
7 Day Returns
4.7%
DB:USR
9.2%
DE Electrical
9.9%
DE Market
1 Year Returns
-30.4%
DB:USR
-8.2%
DE Electrical
-17.5%
DE Market
USR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shanghai Electric Group (USR) 4.7% -8.2% -20% -30.4% -50.8% -70.5%
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
  • USR underperformed the Electrical industry which returned -8.2% over the past year.
  • USR underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
USR
Industry
5yr Volatility vs Market

USR Value

 Is Shanghai Electric Group 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 Shanghai Electric Group 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 Shanghai Electric Group.

DB:USR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
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:USR
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%) (57.35%))
1.402
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.4
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.402 * 6.33%)
8.48%

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

The calculations below outline how an intrinsic value for Shanghai Electric Group 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:USR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.48%)
2020 -337.00 Analyst x1 -310.65
2021 6,991.00 Analyst x1 5,940.49
2022 13,186.68 Est @ 88.62% 10,329.03
2023 21,351.82 Est @ 61.92% 15,417.02
2024 30,581.51 Est @ 43.23% 20,354.75
2025 39,799.29 Est @ 30.14% 24,418.76
2026 48,150.06 Est @ 20.98% 27,232.43
2027 55,165.77 Est @ 14.57% 28,760.78
2028 60,727.79 Est @ 10.08% 29,185.00
2029 64,942.70 Est @ 6.94% 28,770.27
Present value of next 10 years cash flows CN¥190,097.00
DB:USR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥64,942.70 × (1 + -0.39%) ÷ (8.48% – -0.39%)
CN¥729,121.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥729,121.78 ÷ (1 + 8.48%)10
CN¥323,008.30
DB:USR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥190,097.00 + CN¥323,008.30
CN¥513,105.30
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥513,105.30 / 15,152.46
CN¥33.86
DB:USR Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2727)
1.095
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥33.86 x 1.095
HK$37.06
Non-primary Listing Adjustment Factor 1 share in DB:USR represents 0.10927x of SEHK:2727
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.10927x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 37.06 x 0.10927
€4.05
Value per share (EUR) From above. €4.05
Current discount Discount to share price of €0.22
= -1 x (€0.22 - €4.05) / €4.05
94.5%

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

Current Discount
Amount off the current price Shanghai Electric Group is available for.
Intrinsic value
>50%
Share price is €0.22 vs Future cash flow value of €4.05
Current Discount Checks
For Shanghai Electric Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Shanghai Electric Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Shanghai Electric Group'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 Shanghai Electric Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shanghai Electric Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:USR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥0.20
SEHK:2727 Share Price ** SEHK (2020-03-31) in HKD HK$2.05
SEHK:2727 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.914 CN¥1.87
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 Shanghai Electric Group.

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

= SEHK:2727 Share Price ÷ EPS (both in CNY)

= 1.87 ÷ 0.20

9.14x

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

  • Shanghai Electric Group is good value based on earnings compared to the DE Electrical industry average.
  • Shanghai Electric Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Shanghai Electric Group's expected growth come at a high price?
Raw Data
DB:USR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
5%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:USR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.14x ÷ 5%

1.82x

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

  • Shanghai Electric Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Shanghai Electric Group's assets?
Raw Data
DB:USR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥4.07
SEHK:2727 Share Price * SEHK (2020-03-31) in HKD HK$2.05
SEHK:2727 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.914 CN¥1.87
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:USR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2727 Share Price ÷ Book Value per Share (both in CNY)

= 1.87 ÷ 4.07

0.46x

* Primary Listing of Shanghai Electric Group.

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

  • Shanghai Electric Group is good value based on assets compared to the DE Electrical industry average.
X
Value checks
We assess Shanghai Electric Group'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. Shanghai Electric Group has a total score of 5/6, 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.

USR Future Performance

 How is Shanghai Electric Group expected to perform in the next 1 to 3 years based on estimates from 6 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
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shanghai Electric Group expected to grow at an attractive rate?
  • Shanghai Electric Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Shanghai Electric Group's earnings growth is positive but not above the Germany market average.
  • Shanghai Electric Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:USR Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:USR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 5%
DB:USR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 3.2%
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:USR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:USR Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 114,304 7,837 3,181 4
2020-12-31 106,571 7,680 3,019 6
2020-03-31
2019-12-31 106,394 7,556 2,829 5
DB:USR Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 106,472 -276 3,059
2019-06-30 102,840 2,454 3,097
2019-03-31 103,252 1,248 3,121
2018-12-31 101,158 949 3,017
2018-09-30 90,802 -11,296 2,951
2018-06-30 89,553 -12,080 2,863
2018-03-31 82,619 -11,750 2,781
2017-12-31 79,544 -7,525 2,660
2017-09-30 84,501 -527 2,230
2017-06-30 87,972 4,068 2,632
2017-03-31 87,613 7,417 2,428
2016-12-31 87,725 10,716 2,397

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shanghai Electric Group's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Shanghai Electric Group's revenue is expected to grow by 3.2% 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
DB:USR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Shanghai Electric Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:USR Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.21 0.25 0.18 6.00
2020-12-31 0.19 0.23 0.15 8.00
2020-03-31
2019-12-31 0.19 0.21 0.18 6.00
DB:USR Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 0.20
2019-06-30 0.21
2019-03-31 0.21
2018-12-31 0.20
2018-09-30 0.20
2018-06-30 0.19
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.16
2017-06-30 0.19
2017-03-31 0.17
2016-12-31 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.
  • Shanghai Electric Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Shanghai Electric Group'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.
Shanghai Electric Group 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.

USR Past Performance

  How has Shanghai Electric Group 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 Shanghai Electric Group'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.
  • Shanghai Electric Group's year on year earnings growth rate has been positive over the past 5 years.
  • Shanghai Electric Group's 1-year earnings growth is less than its 5-year average (3.7% vs 6.3%)
  • Shanghai Electric Group's earnings growth has not exceeded the DE Electrical industry average in the past year (3.7% vs 17.2%).
Earnings and Revenue History
Shanghai Electric Group'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 Shanghai Electric Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:USR Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 106,471.52 3,059.25 10,051.65 3,940.94
2019-06-30 102,839.98 3,096.96 9,343.36 3,850.81
2019-03-31 103,251.86 3,121.40 9,675.09 3,783.13
2018-12-31 101,157.53 3,016.53 9,622.21 3,720.43
2018-09-30 90,801.64 2,951.24 11,012.00 3,396.90
2018-06-30 89,552.75 2,863.09 11,440.99 3,332.29
2018-03-31 82,618.91 2,780.54 10,329.04 3,505.91
2017-12-31 79,543.79 2,659.58 10,731.88 3,004.29
2017-09-30 84,500.69 2,230.43 11,433.90 1,764.55
2017-06-30 87,971.89 2,631.52 12,202.56 1,132.52
2017-03-31 87,613.20 2,428.43 13,450.92
2016-12-31 87,725.12 2,396.85 12,846.10
2016-09-30 86,170.73 2,287.98 12,547.27
2016-06-30 83,353.87 2,051.14 11,724.18
2016-03-31 78,808.93 1,996.29 11,475.91
2015-12-31 79,460.61 2,142.62 11,824.98
2015-09-30 77,482.91 2,664.18 10,400.95
2015-06-30 77,822.43 2,677.88 10,647.60
2015-03-31 77,168.25 2,535.91 10,437.19
2014-12-31 76,784.52 2,554.49 10,458.79
2014-09-30 77,182.80 2,161.68 10,426.93
2014-06-30 76,736.91 2,299.11 10,446.58
2014-03-31 77,959.46 2,467.86 10,328.23
2013-12-31 79,214.93 2,462.79 10,267.32
2013-09-30 76,858.40 1,895.91 9,608.25
2013-06-30 76,961.10 2,306.63 9,295.05

*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.
  • Shanghai Electric Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shanghai Electric Group used its assets less efficiently than the DE Electrical industry average last year based on Return on Assets.
  • Shanghai Electric Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Shanghai Electric Group'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.
Shanghai Electric Group 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.

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

USR Health

 How is Shanghai Electric Group'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 Shanghai Electric Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shanghai Electric Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shanghai Electric Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shanghai Electric Group'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 5.4x 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 Shanghai Electric Group Company Filings, last reported 6 months ago.

DB:USR Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 88,772.97 34,899.52 41,689.88
2019-06-30 88,103.23 37,853.03 33,887.09
2019-03-31 77,826.53 39,809.86 42,064.89
2018-12-31 73,636.62 33,740.37 52,682.99
2018-09-30 72,530.30 26,643.99 36,346.36
2018-06-30 71,449.43 26,002.06 39,271.75
2018-03-31 72,058.59 18,621.92 31,336.18
2017-12-31 70,721.59 19,059.75 46,611.08
2017-09-30 67,226.41 16,433.98 33,180.00
2017-06-30 58,676.70 15,142.97 40,367.19
2017-03-31 58,495.21 13,051.01 38,261.97
2016-12-31 62,418.83 17,601.33 49,103.25
2016-09-30 57,762.59 13,349.88 39,043.62
2016-06-30 53,372.12 14,119.53 35,023.85
2016-03-31 50,439.66 12,384.71 34,867.32
2015-12-31 51,988.05 13,905.05 44,805.87
2015-09-30 48,530.51 14,070.62 38,137.83
2015-06-30 47,622.52 15,380.55 35,057.50
2015-03-31 48,036.80 12,007.67 32,423.12
2014-12-31 45,425.07 8,140.86 34,172.38
2014-09-30 43,927.08 4,943.97 26,217.55
2014-06-30 42,957.45 5,957.34 29,883.21
2014-03-31 43,691.51 6,489.04 23,889.85
2013-12-31 42,708.57 6,138.06 29,700.26
2013-09-30 41,926.39 5,820.20 24,822.59
2013-06-30 40,452.19 6,113.12 28,912.21
  • Shanghai Electric Group's level of debt (39%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (11.3% vs 39% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).
X
Financial health checks
We assess Shanghai Electric Group'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. Shanghai Electric Group has a total score of 4/6, 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.

USR Dividends

 What is Shanghai Electric Group'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
3.28%
Current annual income from Shanghai Electric Group dividends. Estimated to be 3.44% next year.
If you bought €2,000 of Shanghai Electric Group shares you are expected to receive €66 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?
  • Shanghai Electric Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • Shanghai Electric Group's dividend is below 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:USR 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 6 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:USR Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.07 6.00
2020-12-31 0.06 8.00
2020-03-31
2019-12-31 0.06 7.00
DB:USR Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.061 2.726
2018-03-29 0.092 3.976
2016-10-28 0.000 0.000
2016-08-26 0.000 0.000
2016-03-30 0.000 0.000
2015-03-17 0.059 1.533
2014-08-14 0.075 2.288
2013-06-25 0.064 2.856
2012-05-29 0.076 3.071
2011-10-21 0.000 0.000
2011-08-22 0.000 0.000
2011-05-25 0.130 4.020
2010-10-27 0.118 2.962
2010-04-12 0.059 1.810
2009-05-08 0.061 1.900

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 Shanghai Electric Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Shanghai Electric Group'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 Shanghai Electric Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shanghai Electric Group 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.

USR Management

 What is the CEO of Shanghai Electric Group'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
Jianhua Zheng
COMPENSATION CN¥1,241,000
AGE 59
TENURE AS CEO 2.4 years
CEO Bio

Mr. Jianhua Zheng has been Chairman and Chief Executive Officer of Shanghai Electric Group Company Limited since September 1, 2017. Mr. Zheng served as the President of Shanghai Electric Group Company Limited since July 31, 2013 until September 1, 2017. Mr. Zheng serves as the President of Shanghai Electric Power Generation Group. Mr. Zheng is a Senior Economist. Mr. Zheng has over 30 years of experience in equipment manufacturing business. Mr. Zheng served as the President of Shanghai Turbine Generators Co., Ltd., Factory Director of Shanghai Electric Group Shanghai Electric Machinery Co., Ltd. and the Vice President of Shanghai Electric (Group) Corporation. He serves as Chairman of Shanghai Electric Power Generation Equipment Co., Ltd. He has been an Executive Director of Shanghai Electric Group Company Limited since September 30, 2013. Mr. Zheng has obtained a Master Degree of Business Administration from China Europe International Business School.

CEO Compensation
  • Jianhua's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Jianhua's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

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

2.4
Average Tenure
56
Average Age
  • The tenure for the Shanghai Electric Group management team is about average.
Management Team

Jianhua Zheng

TITLE
Chairman & CEO
COMPENSATION
CN¥1M
AGE
59
TENURE
2.4 yrs

Ou Huang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
48
TENURE
1.6 yrs

Kang Hu

TITLE
CFO & Finance Director
COMPENSATION
CN¥1M
AGE
56

Mingjie Zhang

TITLE
Chief Investment Officer
COMPENSATION
CN¥106K
AGE
56
TENURE
1.6 yrs

Andrew Li

TITLE
Head of the Investor Relations Department & Company Secretary
COMPENSATION
CN¥1M
AGE
59

Liping Tong

TITLE
Chief Legal Officer & Head of the Legal Affair Department
COMPENSATION
CN¥1M
AGE
47
TENURE
8.7 yrs

Bin Zhu

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
58

Zhaokai Zhu

TITLE
Executive Director
COMPENSATION
CN¥661K
AGE
50

Rong Fu

TITLE
Director of Secretariat Office & Secretary to the Board
COMPENSATION
CN¥1M
AGE
36
TENURE
15.2 yrs
Board of Directors Tenure

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

1.4
Average Tenure
58
Average Age
  • The average tenure for the Shanghai Electric Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ou Huang

TITLE
President & Executive Director
COMPENSATION
CN¥1M
AGE
48
TENURE
1.4 yrs

Bin Zhu

TITLE
Executive Director
COMPENSATION
CN¥2M
AGE
58
TENURE
1.4 yrs

Zhaokai Zhu

TITLE
Executive Director
COMPENSATION
CN¥661K
AGE
50
TENURE
1.4 yrs

Junhao Chu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥250K
AGE
74
TENURE
5.7 yrs

Jianhua Zheng

TITLE
Chairman & CEO
COMPENSATION
CN¥1M
AGE
59
TENURE
2.4 yrs

Guoxiong Zhou

TITLE
Chairman of Supervisory Committee
AGE
62

Xingsheng Hua

TITLE
Vice Chairman of Supervisory Committee
AGE
58

Yifang Yao

TITLE
Non-Executive Director
AGE
51
TENURE
12.3 yrs

An Li

TITLE
Non-Executive Director
AGE
58
TENURE
1.4 yrs

Juntong Xi

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥83K
AGE
66
TENURE
1.4 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 (€)
30. Aug 19 Sell BlackRock, Inc. Company 28. Aug 19 28. Aug 19 -5,400,000 €0.28 €-1,513,820
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Management checks
We assess Shanghai Electric Group'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. Shanghai Electric Group 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.

USR News

Simply Wall St News

USR Company Info

Description

Shanghai Electric Group Company Limited, an equipment manufacturing conglomerate, provides clean energy equipment, new energy and environmental protection equipment, industrial equipment, and modern services in the People’s Republic of China. The company designs, manufactures, and sells nuclear island equipment, wind power equipment, and heavy machinery, including large forging components; and provides solution package for utilization of solid waste, sewage treatment, power generation environment protection, and distributed energy systems. It also offers thermal power equipment and corollary equipment; and power transmission and distribution equipment. In addition, the company provides elevators, automation equipment, electrical motors, machine tools, components, and other electromechanical equipment. Further, it offers integrated engineering services for power station projects and other industries; financial products and services; and international trading, financial lease and related consulting, and insurance brokerage services. Additionally, the company manufactures turbine generators and spare parts; desulphurization, civil nuclear bearing, and electrical and mechanical equipment; power generation equipment and auxiliary products; printing and packing machinery, artificial boards, air-conditioners, welding materials, and engineering machinery; electrical switchgears; oil immersed power transformers; equipment for aircraft assembly lines; wires and cables; industrial blades, precision bearings, and fasteners; and escalators, electronic ramps, and building automation management and safety systems. It also sells power station boilers and equipment, and industry boilers; provides technical consulting, and after-sales service; and import and export of products. The company was founded in 2004 and is based in Shanghai, the People’s Republic of China. Shanghai Electric Group Company Limited is a subsidiary of Shanghai Electric (Group) Corporation.

Details
Name: Shanghai Electric Group Company Limited
USR
Exchange: DB
Founded: 2004
HK$7,974,550,595
15,152,462,418
Website: http://www.shanghai-electric.com
Address: Shanghai Electric Group Company Limited
No. 212, Qinjiang Road,
Shanghai,
200233,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2727 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 28. Apr 2005
DB USR Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 28. Apr 2005
SHSC 2727 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 28. Apr 2005
SZSC 2727 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 28. Apr 2005
OTCPK SIEL.Y UNSPONSORED ADR Pink Sheets LLC US USD 14. Jan 2009
SHSE 601727 Domestic Shares Shanghai Stock Exchange CN CNY 05. Dec 2008
XSSC 601727 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 05. Dec 2008
Number of employees
Current staff
Staff numbers
0
Shanghai Electric Group employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 22:26
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2019/10/29
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.