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AviChina Industry & Technology

SEHK:2357
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2357
SEHK
HK$22B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

AviChina Industry & Technology Company Limited, through its subsidiaries, engages in the research, development, manufacture, and sale of civil aviation products and related engineering services in the People’s Republic of China and internationally. The last earnings update was 59 days ago. More info.


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2357 Share Price and Events
7 Day Returns
-7.2%
SEHK:2357
-1.7%
Asia Aerospace & Defense
-4.2%
HK Market
1 Year Returns
-40.1%
SEHK:2357
-2%
Asia Aerospace & Defense
-2.6%
HK Market
2357 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AviChina Industry & Technology (2357) -7.2% -5.9% -11.8% -40.1% -34.6% -37.7%
Asia Aerospace & Defense -1.7% -2.8% -0.9% -2% -25.5% -0.7%
HK Market -4.2% -1.4% 3.5% -2.6% 7.6% -1%
1 Year Return vs Industry and Market
  • 2357 underperformed the Aerospace & Defense industry which returned -2% over the past year.
  • 2357 underperformed the Market in Hong Kong which returned -2.6% over the past year.
Price Volatility
2357
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for AviChina Industry & Technology's competitors could be found in our database.

2357 Value

 Is AviChina Industry & Technology 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 AviChina Industry & Technology 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 AviChina Industry & Technology.

SEHK:2357 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 9.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 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 SEHK:2357
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.877 (1 + (1- 25%) (70.7%))
1.229
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.229 * 5.96%)
9.33%

Discounted Cash Flow Calculation for SEHK:2357 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AviChina Industry & Technology 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.

SEHK:2357 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.33%)
2020 1,055.00 Analyst x2 964.97
2021 821.50 Analyst x2 687.28
2022 694.70 Est @ -15.44% 531.60
2023 623.81 Est @ -10.2% 436.62
2024 583.00 Est @ -6.54% 373.23
2025 559.80 Est @ -3.98% 327.80
2026 547.58 Est @ -2.18% 293.28
2027 542.50 Est @ -0.93% 265.77
2028 542.23 Est @ -0.05% 242.97
2029 545.31 Est @ 0.57% 223.49
Present value of next 10 years cash flows CN¥4,347.00
SEHK:2357 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥545.31 × (1 + 2%) ÷ (9.33% – 2%)
CN¥7,592.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥7,592.01 ÷ (1 + 9.33%)10
CN¥3,111.59
SEHK:2357 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥4,347.00 + CN¥3,111.59
CN¥7,458.59
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥7,458.59 / 6,245.12
CN¥1.19
SEHK:2357 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2357)
1.117
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.19 x 1.117
HK$1.33
Value per share (HKD) From above. HK$1.33
Current discount Discount to share price of HK$3.50
= -1 x (HK$3.50 - HK$1.33) / HK$1.33
-162.4%

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

  • The current share price of AviChina Industry & Technology 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 AviChina Industry & Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AviChina Industry & Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2357 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CNY CN¥0.22
SEHK:2357 Share Price ** SEHK (2019-11-15) in HKD HK$3.5
SEHK:2357 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.895 CN¥3.13
Asia Aerospace & Defense Industry PE Ratio Median Figure of 62 Publicly-Listed Aerospace & Defense Companies 27.02x
Hong Kong Market PE Ratio Median Figure of 1,479 Publicly-Listed Companies 10.1x

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

** Primary Listing of AviChina Industry & Technology.

SEHK:2357 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2357 Share Price ÷ EPS (both in CNY)

= 3.13 ÷ 0.22

14.4x

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

  • AviChina Industry & Technology is good value based on earnings compared to the Asia Aerospace & Defense industry average.
  • AviChina Industry & Technology is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does AviChina Industry & Technology's expected growth come at a high price?
Raw Data
SEHK:2357 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
13.4%per year
Asia Aerospace & Defense Industry PEG Ratio Median Figure of 32 Publicly-Listed Aerospace & Defense Companies 2x
Hong Kong Market PEG Ratio Median Figure of 478 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

SEHK:2357 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.4x ÷ 13.4%

1.08x

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

  • AviChina Industry & Technology is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AviChina Industry & Technology's assets?
Raw Data
SEHK:2357 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CNY CN¥2.77
SEHK:2357 Share Price * SEHK (2019-11-15) in HKD HK$3.5
SEHK:2357 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.895 CN¥3.13
Asia Aerospace & Defense Industry PB Ratio Median Figure of 77 Publicly-Listed Aerospace & Defense Companies 2.41x
Hong Kong Market PB Ratio Median Figure of 2,196 Publicly-Listed Companies 0.85x
SEHK:2357 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2357 Share Price ÷ Book Value per Share (both in CNY)

= 3.13 ÷ 2.77

1.13x

* Primary Listing of AviChina Industry & Technology.

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

  • AviChina Industry & Technology is good value based on assets compared to the Asia Aerospace & Defense industry average.
X
Value checks
We assess AviChina Industry & Technology'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. AviChina Industry & Technology has a total score of 2/6, 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.

2357 Future Performance

 How is AviChina Industry & Technology 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
13.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AviChina Industry & Technology expected to grow at an attractive rate?
  • AviChina Industry & Technology's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • AviChina Industry & Technology's earnings growth is expected to exceed the Hong Kong market average.
  • AviChina Industry & Technology's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2357 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2357 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 13.4%
SEHK:2357 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 11.7%
Asia Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 15.1%
Asia Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 12.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.3%

*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
SEHK:2357 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 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.
SEHK:2357 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 50,793 2,506 1,908 7
2020-12-31 45,304 2,381 1,711 7
2019-12-31 40,344 4,165 1,493 6
2019-11-17
SEHK:2357 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-06-30 38,661 -1,026 1,332
2019-03-31 36,907 -259 1,310
2018-12-31 35,153 508 1,288
2018-09-30 34,125 1,310 1,278
2018-06-30 33,097 2,112 1,267
2018-03-31 32,847 1,850 1,245
2017-12-31 32,597 1,588 1,222
2017-09-30 33,994 1,007 1,215
2017-06-30 35,392 427 1,208
2017-03-31 36,113 -251 1,184
2016-12-31 36,834 -928 1,160
2016-09-30 35,754 397 1,168

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AviChina Industry & Technology's earnings are expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
  • AviChina Industry & Technology's revenue is expected to grow by 11.7% 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
SEHK:2357 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from AviChina Industry & Technology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2357 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.30 0.34 0.27 6.00
2020-12-31 0.28 0.36 0.25 8.00
2019-12-31 0.24 0.25 0.23 6.00
2019-11-17
SEHK:2357 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-06-30 0.22
2019-03-31 0.22
2018-12-31 0.22
2018-09-30 0.21
2018-06-30 0.21
2018-03-31 0.21
2017-12-31 0.20
2017-09-30 0.20
2017-06-30 0.20
2017-03-31 0.20
2016-12-31 0.19
2016-09-30 0.20

*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.
  • AviChina Industry & Technology is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AviChina Industry & Technology'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 Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia 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.
AviChina Industry & Technology has a total score of 3/6, 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.

2357 Past Performance

  How has AviChina Industry & Technology 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 AviChina Industry & Technology'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.
  • AviChina Industry & Technology's year on year earnings growth rate has been positive over the past 5 years.
  • AviChina Industry & Technology's 1-year earnings growth is less than its 5-year average (5.1% vs 10.5%)
  • AviChina Industry & Technology's earnings growth has not exceeded the Asia Aerospace & Defense industry average in the past year (5.1% vs 12.9%).
Earnings and Revenue History
AviChina Industry & Technology'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 AviChina Industry & Technology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2357 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 38,661.08 1,331.57 5,695.79
2019-03-31 36,907.17 1,309.76 5,512.64
2018-12-31 35,153.26 1,287.94 5,329.50
2018-09-30 34,124.95 1,277.69 5,274.55
2018-06-30 33,096.63 1,267.43 5,219.60
2018-03-31 32,846.67 1,244.86 5,075.43
2017-12-31 32,596.71 1,222.28 4,931.25
2017-09-30 33,994.47 1,215.27 4,804.45
2017-06-30 35,392.23 1,208.26 4,677.65
2017-03-31 36,112.89 1,184.17 4,621.27
2016-12-31 36,833.55 1,160.08 4,564.90
2016-09-30 35,753.65 1,167.74 4,315.75
2016-06-30 34,673.74 1,175.39 4,066.61
2016-03-31 34,548.89 1,159.14 4,167.25
2015-12-31 34,424.05 1,142.89 4,267.88
2015-09-30 32,438.69 1,010.33 4,035.05
2015-06-30 30,453.32 877.77 3,802.23
2015-03-31 28,081.85 829.54 3,511.14
2014-12-31 25,710.38 781.30 3,220.05
2014-09-30 24,497.80 748.15 3,055.45
2014-06-30 23,285.22 715.00 2,890.85
2014-03-31 22,738.98 713.81 2,845.95
2013-12-31 22,192.75 712.62 2,801.05
2013-09-30 21,277.76 718.56 2,808.33
2013-06-30 20,362.78 724.50 2,815.61
2013-03-31 19,365.49 694.33 2,674.55
2012-12-31 18,368.20 664.17 2,533.49

*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.
  • AviChina Industry & Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AviChina Industry & Technology used its assets less efficiently than the Asia Aerospace & Defense industry average last year based on Return on Assets.
  • AviChina Industry & Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AviChina Industry & Technology'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.
AviChina Industry & Technology 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.

2357 Health

 How is AviChina Industry & Technology'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 AviChina Industry & Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AviChina Industry & Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AviChina Industry & Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AviChina Industry & Technology'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 4.8x 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 AviChina Industry & Technology Company Filings, last reported 4 months ago.

SEHK:2357 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 35,891.38 13,206.74 10,400.04
2019-03-31 35,891.38 13,206.74 10,400.04
2018-12-31 34,972.64 13,246.63 13,797.76
2018-09-30 34,972.64 13,246.63 13,797.76
2018-06-30 31,999.27 12,503.09 11,782.91
2018-03-31 31,999.27 12,503.09 11,782.91
2017-12-31 31,159.73 11,920.10 12,394.36
2017-09-30 31,159.73 11,920.10 12,394.36
2017-06-30 29,186.51 10,109.49 9,740.69
2017-03-31 29,186.51 10,109.49 9,740.69
2016-12-31 28,962.85 9,741.72 9,628.69
2016-09-30 28,962.85 9,741.72 9,628.69
2016-06-30 27,135.91 9,471.57 9,383.20
2016-03-31 27,135.91 9,471.57 9,383.20
2015-12-31 26,419.56 7,901.67 10,425.13
2015-09-30 26,419.56 7,901.67 10,425.13
2015-06-30 24,369.89 8,363.46 7,373.73
2015-03-31 24,369.89 8,363.46 7,373.73
2014-12-31 23,301.36 7,418.09 8,660.78
2014-09-30 23,301.36 7,418.09 8,660.78
2014-06-30 22,525.80 6,331.37 7,359.05
2014-03-31 22,525.80 6,331.37 7,359.05
2013-12-31 21,806.90 6,117.88 10,104.46
2013-09-30 21,806.90 6,117.88 10,104.46
2013-06-30 17,700.22 3,635.19 7,645.40
2013-03-31 17,700.22 3,635.19 7,645.40
2012-12-31 19,208.28 4,596.54 9,000.42
  • AviChina Industry & Technology's level of debt (36.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.1% vs 36.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 8x coverage).
X
Financial health checks
We assess AviChina Industry & Technology'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. AviChina Industry & Technology 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.

2357 Dividends

 What is AviChina Industry & Technology'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
0.96%
Current annual income from AviChina Industry & Technology dividends. Estimated to be 1.35% next year.
If you bought HK$2,000 of AviChina Industry & Technology shares you are expected to receive HK$19 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?
  • AviChina Industry & Technology's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).
  • AviChina Industry & Technology's dividend is below the markets top 25% of dividend payers in Hong Kong (6.38%).
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
SEHK:2357 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
Asia Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 46 Stocks 1.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 971 Stocks 3.8%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.3%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.4%

Industry and Market average data is calculated daily.

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

SEHK:2357 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.05 7.00
2020-12-31 0.04 8.00
2019-12-31 0.03 5.00
2019-11-17
SEHK:2357 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-07-24 0.030 0.847
2018-07-13 0.030 0.708
2017-04-12 0.020 0.511
2016-04-21 0.020 0.420
2016-03-29 0.020 0.410
2015-06-26 0.020 0.406
2014-04-15 0.020 0.470
2013-03-25 0.020 0.608
2012-09-05 0.000 0.000
2012-08-28 0.000 0.000
2012-03-27 0.010 0.426
2011-03-29 0.010 0.320

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

  • AviChina Industry & Technology is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • AviChina Industry & Technology is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of AviChina Industry & Technology's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of AviChina Industry & Technology's dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.3x coverage).
X
Income/ dividend checks
We assess AviChina Industry & Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 AviChina Industry & Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AviChina Industry & Technology has a total score of 1/6, see the detailed checks below.


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

2357 Management

 What is the CEO of AviChina Industry & Technology'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
Yuanxian Chen
COMPENSATION CN¥658,000
AGE 59
TENURE AS CEO 1.7 years
CEO Bio

Mr. Yuan Xian Chen has been the President at AviChina Industry & Technology Company Ltd since March 25, 2014 and its General Manager since March 2018, Chairman since March 20, 2019 and Executive Director since June 29, 2018. He serves as Director of China Aviation Investment Holding Co., Ltd. since May 18, 2018. Mr. Chen serves as an Executive Vice President at Aviation Industry Corporation of China. Mr. Chen served as the Chief Financial Officer and General Manager of AviChina Industry & Technology Company Limited from March 25, 2014 to May 18, 2017 and August 2016 to May 18, 2017. He served as Deputy General Manager of AviChina Industry & Technology Company Limited Mr. Chen is an Economic Manager and Head of Strategic Planning Department of AVIC. Mr. Chen commenced his career in the aviation industry from 1982 and used to be a Technician, Vice Department Director, Deputy Chief Engineer and Chief Engineer of China Research Institute of Aero-Accessories. He served as Vice Chairman of the Board of Directors of Jincheng Group. He served as the Director of China Research Institute of Aero-Accessories since February 2000, Director-General of Airborne Equipment Department of AVIC I since February 2003 and Deputy Chief Engineer of AVIC I since June 2007. He served as a Director of AVIC Capital Co., Ltd. He served as a Non Executive Director of AviChina Industry & Technology Company Limited. from June 9, 2009 to May 25, 2012. He served as Director of China Aviation Accessories Institute. Mr. Chen graduated from Nanjing University of Aeronautics and Astronautics with a Bachelor Degree majoring in Man-Machine Engineering in 1982 and Doctorate from Beijing University of Aeronautics and Astronautics with a Master Degree and a Doctorate Degree majoring in Man-Machine Engineering in 1988 and 1998, respectively.

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

Average tenure and age of the AviChina Industry & Technology management team in years:

1.8
Average Tenure
54
Average Age
  • The average tenure for the AviChina Industry & Technology management team is less than 2 years, this suggests a new team.
Management Team

Yuanxian Chen

TITLE
Chairman
COMPENSATION
CN¥658K
AGE
59
TENURE
1.7 yrs

Wang Xuejun

TITLE
GM & Executive Director
AGE
46
TENURE
0.7 yrs

Guofei Tao

TITLE
Deputy GM & CFO
AGE
55
TENURE
1.6 yrs

Shiming Shi

TITLE
Head of Finance & Planning Department and Supervisor
AGE
39
TENURE
1.8 yrs

Bin Xu

TITLE
Company Secretary
TENURE
3.3 yrs

Liwei Gan

TITLE
Board Secretary
AGE
54
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the AviChina Industry & Technology board of directors in years:

1.4
Average Tenure
52
Average Age
  • The average tenure for the AviChina Industry & Technology board of directors is less than 3 years, this suggests a new board.
Board of Directors

Yuanxian Chen

TITLE
Chairman
COMPENSATION
CN¥658K
AGE
59
TENURE
0.7 yrs

Wang Xuejun

TITLE
GM & Executive Director
AGE
46
TENURE
1.4 yrs

Shiming Shi

TITLE
Head of Finance & Planning Department and Supervisor
AGE
39
TENURE
1.4 yrs

Qiang Zheng

TITLE
Chairman of Supervisory Committee
AGE
55
TENURE
3.1 yrs

Weiwu Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥80K
AGE
55
TENURE
1.4 yrs

Wang Jianxin

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥105K
AGE
45
TENURE
1.4 yrs

Lingxi Yan

TITLE
Non-Executive Director
AGE
49
TENURE
0.5 yrs

Renhuai Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥190K
AGE
78
TENURE
5.4 yrs

Dawei Lian

TITLE
Non-Executive Director
AGE
56
TENURE
0.5 yrs

Gang Xu

TITLE
Non-Executive Director
AGE
47
TENURE
0.5 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 (HK$) Value (HK$)
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Management checks
We assess AviChina Industry & Technology'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. AviChina Industry & Technology 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.

2357 News

Simply Wall St News

What Kind Of Shareholder Owns Most AviChina Industry & Technology Company Limited (HKG:2357) Stock?

The big shareholder groups in AviChina Industry & Technology Company Limited (HKG:2357) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … AviChina Industry & Technology has a market capitalization of HK$31b, so it's too big to fly under the radar.

Simply Wall St -

Does AviChina Industry & Technology Company Limited's (HKG:2357) 4.9% Earnings Growth Reflect The Long-Term Trend?

Examining AviChina Industry & Technology Company Limited's (HKG:2357) past track record of performance is a useful exercise for investors. … Below, I will assess 2357's latest performance announced on 30 June 2018 and weight these figures against its longer term trend and industry movements. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which 2357 is growing has slowed down

Simply Wall St -

AviChina Industry & Technology Company Limited (HKG:2357): Why Return On Capital Employed Is Important

and looking to gauge the potential return on investment in AviChina Industry & Technology Company Limited (HKG:2357). … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently AviChina Industry & Technology is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Is AviChina Industry & Technology Company Limited (HKG:2357) Attractive At Its Current PE Ratio?

AviChina Industry & Technology Company Limited (HKG:2357) is trading with a trailing P/E of 19x, which is higher than the industry average of 17.1x. … While 2357 might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … Check out our latest analysis for AviChina Industry & Technology

Simply Wall St -

Is AviChina Industry & Technology Company Limited’s (HKG:2357) Cash Outlook Optimistic?

I’ve analysed below, the health and outlook of AviChina Industry & Technology’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash AviChina Industry & Technology has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … There are two methods I will use to evaluate the quality of AviChina Industry & Technology’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Why AviChina Industry & Technology Company Limited (HKG:2357) Is A Financially Healthy Company

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as AviChina Industry & Technology Company Limited (HKG:2357), with a market cap of CN¥27.62b, often get neglected by retail investors. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Check out our latest analysis for AviChina Industry & Technology

Simply Wall St -

What Should Investors Know About AviChina Industry & Technology Company Limited's (HKG:2357) Earnings Trajectory?

AviChina Industry & Technology Company Limited's (HKG:2357) most recent earnings announcement in December 2017a

Simply Wall St -

Was AviChina Industry & Technology Company Limited's (HKG:2357) Earnings Growth Better Than The Industry's?

After looking at AviChina Industry & Technology Company Limited's (HKG:2357) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. … View out our latest analysis for AviChina Industry & Technology?

Simply Wall St -

With An ROE Of 7.75%, Can AviChina Industry & Technology Company Limited (HKG:2357) Catch Up To The Industry?

and want a simplistic look at the return on AviChina Industry & Technology Company Limited (HKG:2357) stock. … AviChina Industry & Technology Company Limited (HKG:2357) generated a below-average return on equity of 7.75% in the past 12 months, while its industry returned 17.19%. … Return on Equity (ROE) weighs AviChina Industry & Technology’s profit against the level of its shareholders’ equity.

Simply Wall St -

Companies Insiders Just Bought In March

AviChina Industry & Technology Company Limited (SEHK:2357) is one of China’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 6 million shares during this period. … In total, individual insiders own over 3 million shares in the business, which makes up around 0.05% of total shares outstanding. … (SEHK:3993) is one of China’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 60 million shares during this period.

Simply Wall St -

2357 Company Info

Description

AviChina Industry & Technology Company Limited, through its subsidiaries, engages in the research, development, manufacture, and sale of civil aviation products and related engineering services in the People’s Republic of China and internationally. The company operates through three segments: Aviation Entire Aircraft, Aviation Parts and Components, and Aviation Engineering Services. It is involved in the development, manufacture, sale, and upgrade of aviation products, such as helicopters, trainer and general-purpose aircrafts, and regional jets. The company also offers aviation parts and components, aviation electrical engineering products and accessories, electrical connectors, interconnection devices, fluid devices, optical components, and cable assemblies; aviation auto control equipment and instruments, and air data systems; sensors, autopilot, and related products; maintenance services; avionics and airborne equipment; aeronautic instruments, and other civil, mechanical, and electrical instruments; and aviation propellers, speed governors, feathering pumps, helicopter and tail rotors, and hovercrafts with propellers. In addition, it offers wires and cables, cable components, microwave components, optoelectronic devices, antennas, power supplies, instruments, and meters; optical fiber connectors, optical-module ceramic cores, optical fiber communicating devices, and ceramic materials; and marketing and project contracting services. Further, the company engages in finance and investment, information consulting, and training and house rental activities. Additionally, it offers aviation engineering services, such as planning, design, consultation, construction, and operation, as well as develops, manufactures, remodels, and sells unmanned aerial vehicle products. The company was founded in 2003 and is based in Beijing, the People’s Republic of China. AviChina Industry & Technology Company Limited is a subsidiary of Aviation Industry Corporation of China.

Details
Name: AviChina Industry & Technology Company Limited
2357
Exchange: SEHK
Founded: 2003
HK$21,857,926,426
6,245,121,836
Website: http://www.avichina.com
Address: AviChina Industry & Technology Company Limited
Tower 2,
8th Floor,
Beijing,
100029,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2357 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 30. Oct 2003
OTCPK AVIJ.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 30. Oct 2003
DB AVT Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 30. Oct 2003
SHSC 2357 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 30. Oct 2003
SZSC 2357 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 30. Oct 2003
Number of employees
Current staff
Staff numbers
47,607
AviChina Industry & Technology employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/17 12:33
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/08
Last earnings filing: 2019/09/19
Last earnings reported: 2019/06/30
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.