Shanghai Electric Group Co Ltd equity, debt and subsidiaries

Accuracy score :
97%

Summary (from latest annual report 2017 and quarterly report 2018)

  • Total equity: 8.4 billion USD
  • Market Cap is 8.7 billion USD ( the last price of the stock is 2.47 HKD)
  • Shanghai Electric Group, or SEG, is a state-owned conglomerate that specializes in the manufacturing of power equipment, industrial equipment, and construction services. SEG generates over 80% of its revenue from power and industrial equipment manufacturing segments. The company is among the few domestic firms capable of manufacturing supercritical high-capacity power-generation units
  • Total equity has increased from 8.25 billion USD in 2017 to 8.4 billion in 2018
  • The company has 4.35 billion USD in cash on the account (from the latest quarterly report)
  •  Total equity – cash on account = 8.4 billion USD – 4.35 billion USD = 4.05 billion USD
  • In 2018 the company has 2.34 billion USD long-term debt, short-term debt is 1.68 billion USD                                                
  • (In 2017 the company had 1.93 billion USD short-term debt, long-term debt was 2.13 billion USD)
  • Company's revenue increased in 2017 to 11.93 billion USD from 11.86 billion in 2016
  • Net income in 2017 was 399 million USD, Net income in 2016 was 309 million USD
  • In 2017 company paid 61.5 million USD dividend to its shareholders

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is 4.02 billion USD, company has 4.35 billion USD in cash on account, ROE is around 5 %).

Shanghai Electric (SEHK: 2727, SSE: 601727) (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. On April 28, 2005, Shanghai Electric listed on the Hong Kong Stock Exchange. On December 5, 2008, the group was listed on the Shanghai Stock Exchange.

During the year, the Company and its subsidiaries (together the “Group”) are engaged in the following principal activities:

  • design, manufacture and sale of nuclear power nuclear island equipment products, wind power equipment products and heavy machinery including large forging components, and provision of solution package for comprehensive utilisation of solid waste, sewage treatment, power generation environment protection and distributed energy systems;
  • design, manufacture and sale of thermal power equipment products and corollary equipment, nuclear power conventional island equipment products and power transmission and distribution equipment products;
  • design, manufacture and sale of elevators, electrical motors, machine tools, marine crankshafts and other electromechanical equipment products; and
  • provision of integrated engineering services for power station projects and other industries, financial products and services, international trading services, financial lease and related consulting services and insurance brokerage services.

Major Business Segments are : New Energy and Environmental Protection Equipment ( represents 15% of total revenue), High Efficiency and Clean Energy Equipment (represents 35% of total revenue), Industrial Equipment ( represents 30% of total revenue) and Modern Services (represents 20% of total revenue)

  • China division is worth 12 billion USD
  • Other countries and regions divisions are worth 2 billion USD

 

Shanghai Electric Group  standalone subsidiaries and acquisitions :

  • In August 2018, GCL-Poly Energy Holdings Ltd (3800.HK) said it would sell a 51 percent stake in a photovoltaic developing unit to Shanghai Electric Group for 25 billion yuan (3.9 billion USD). Shanghai Electric would settle the deal 50 percent in cash and 50 percent by the issue of A shares
  • In August 2016, Shanghai Electric Group Corp acquired K-Electric for an undisclosed amount (worth around 1.5 billion USD)
  • In 2016 Shanghai Electric Group has acquired a 100-percent stake in German aviation equipment manufacturer Broetje-Automation GmbH (BAW) for HK$1.7 billion (219.19 million USD). Through this acquisition, the company is able to enter into automated manufacturing equipment and systems for the aerospace sector
  • In 2014 Shanghai Electric has agreed to buy a 40 percent stake in Italian power engineering company Ansaldo Energia for 554 million USD. The deal will give Shanghai Electric access to some key technology in gas turbines while helping Ansaldo Energia boost sales in Asia, which represents half of the world's gas turbine market
  • In 2012 has agreed to buy a 25% stake of German technology group Manz for 50 million USD
  • Standalone subsidiaries : Shanghai Boiler Works, SEC Power Generation Environment, Shanghai Heavy Machinery Plant Co, Shanghai No.1 Machine Tool Works Co, Shanghai Mitsubishi Elevator and Goss Graphic Systems are worth 650 million USD

Total = 6.87 billion USD