Zhejiang Shibao Co. Ltd.: Leads amongst peers with strong fundamentals

Zhejiang Shibao Co. Ltd. relative valuation is OVERVALUED and it has a fundamental analysis score of 69.

Our analysis is based on comparing Zhejiang Shibao Co. Ltd. with the following peers – Zhejiang Prospect Co. Ltd. Class H, Huazhong In-Vehicle Holdings Company Limited, Great Wall Motor Co., Ltd. Class H, China Vehicle Components Technology Holdings Ltd., Qingling Motors Co., Ltd. Class H, Guangzhou Automobile Group Co., Ltd. Class H, Steyr Motors Co., Ltd. Class A, Nexteer Automotive Group Limited, Right Way Industrial Co., Ltd. and Wanxiang Qianchao Co. Ltd. Class A (8273-HK, 6830-HK, 2333-HK, 1269-HK, 1122-HK, 2238-HK, 000760-CN, 1316-HK, 1506-TW and 000559-CN).

Zhejiang Shibao Co. Ltd. has shown good performance overall, both over the last one year (at 255.78%) as well as over the last month (at 42.40%). Share price performance over the last month, though has been lower than that over the last year. But Zhejiang Shibao Co. Ltd.’s stock has done better than its overall peer group whose performance was 7.35% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Zhejiang Shibao Co. Ltd. Class H trades at a lower Price/Book multiple (0.95) than its peer median (1.99).
  • The market expects 1057-HK to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • 1057-HK‘s relative asset efficiency and net profit margins are both around the median level.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • Over the last five years, 1057-HK‘s return on assets has declined from above median to about median among its peers, indicating declining relative operating performance.
  • The company’s relatively high gross margin suggests some differentiation with pricing advantages versus peers.
  • While 1057-HK‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • 1057-HK has some amount of debt capacity available.
  • Our analysis rates Zhejiang Shibao Co. Ltd. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

1057-HK‘s share price performance of 255.78% over the last 12 months is above peer median of 43.04%. The 30-day trend in its share price performance of 42.40% is also above the peer median of 7.35% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Zhejiang Shibao Co. Ltd.’s price of HKD 10.78 is greater than CapitalCube’s implied price of HKD 6.41. At this level, CapitalCube believes that Zhejiang Shibao Co. Ltd. is overvalued. Over the last 52 week period, the stock has fluctuated between HKD 2.94 and HKD 13.16.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

VimpelCom Ltd. is an integrated telecommunications service operator. The company provides voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada. It provides services under the following brands: Beeline, Kyivstar, djuice, Wind, Infostrada, Mobilink, Leo, banglalink, Telecel, and Djezzy. Its reporting structure is divided into five business units: Europe and North America, Russia, Ukraine, the Commonwealth of Independent States (CIS), and Africa and Asia. The company was founded by Dmitri B. Zimin and Augie K. Fabela II in 1992 and is headquartered in Hong Kong.

Disclaimer

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