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Producer Manufacturing

CITIC Ltd.

Company Background

Citic is China's largest state-run conglomerate. It is engaged in a wide variety of businesses, from property development to heavy industry to resources, though its primary focus is the financial sector, including banking and securities. It is affiliated with Japanese trading house Itochu and Thai conglomerate Charoen Pokphand Group.

Subsidiaries Citic Securities, China's largest securities company, and China Citic Bank, a second-tier bank, generate steady revenues.

One group business that has been struggling is Citic's iron ore mine development project in Western Australia.

In 2014, Citic transferred its assets, including shares in group companies, from its unlisted intermediary holding company to its Hong Kong-based listed company as part of reforms of state-run companies. State-run investment funds, such as Qatar Holding and Singapore's Temasek Holdings, invested in the Hong Kong company.

Citic got its start as China International Trust and Investment Corp., which was established in 1979 with the backing of Deng Xiaoping.

Citic founder Rong Yiren was dubbed the "Red Capitalist" and later served as vice president of China. Citic Chairman Chang Zhenming is known to have close ties with Chinese President Xi Jinping.

Business Summary

CITIC Ltd. is an investment holding company, which engages in finance, energy, engineering, manufacturing, and real estate businesses. It operates through the following segments: Financial Services, Resources and Energy, Manufacturing, Engineering Contracting, Real Estate, and Other Businesses. The Financial Services spans the banking, trust, asset management, securities and insurance services. The Resources and Energy segment comprises of the exploration, processing, and trading of resources and energy products, including crude oil, coal, and iron ore. The Manufacturing segment includes manufacturing of special steels, heavy machineries, aluminium wheels, and other products. The Engineering Contracting segment involves contracting and design services for infrastructure, real estate, and industrial projects, etc. The Real Estate segment manages the development, sale and holding of properties. The Other Businesses segment focuses on investment and operation of infrastructures, telecommunication services, motor and food and consumer products business, commercial aviation services, publication services, and others. The company was founded in 1979 and is headquartered in Hong Kong.

Financial Highlights

Dec 2019 HKDUSD
Revenue566,497M72,301.55M
Gross Profit283,349M36,163.60M
Operating income83,709M10,683.71M
Income before tax82,458M10,524.04M
Net income53,903M6,879.59M
EBITDA105,515M13,466.79M
Diluted EPS1.850.23
Dividends Per Share----
Total Assets8,289.92B1,063.92B
Total liabilities7,395.43B949,130.24M
Total equity591,526M75,916.47M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 395,310M 381,662M 450,536M 533,285M 566,497M
Gross Profit 236,964M 215,339M 227,667M 262,422M 283,349M
Operating income 146,750M 130,833M 137,256M 144,084M 83,709M
Income before tax 74,059M 65,592M 69,330M 83,269M 82,458M
Net income 40,501M 32,809M 43,902M 50,239M 53,903M
EBITDA 158,524M 143,125M 151,427M 159,175M 105,515M
Diluted EPS 1.57 0.93 1.51 1.72 1.85
Dividends Per Share 0.30 0.33 0.36 0.41 --
Total Assets 6,803.30B 7,239.48B 7,520.73B 7,660.71B 8,289.92B
Total liabilities 6,153.97B 6,550.68B 6,734.97B 6,850.05B 7,395.43B
Total equity 479,066M 483,129M 543,078M 558,545M 591,526M
Operating cash flow -51,024M 237,974M -74,070M 82,403M --
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 50,990.81M 49,167.67M 57,814.26M 68,042.35M 72,301.55M
Gross Profit 30,565.85M 27,741.08M 29,214.98M 33,482.67M 36,163.60M
Operating income 18,929.19M 16,854.58M 17,613.14M 18,383.81M 10,683.71M
Income before tax 9,552.82M 8,449.90M 8,896.65M 10,624.37M 10,524.04M
Net income 5,224.20M 4,226.62M 5,633.64M 6,410.04M 6,879.59M
EBITDA 20,447.92M 18,438.10M 19,431.61M 20,309.29M 13,466.79M
Diluted EPS 0.20 0.11 0.19 0.22 0.23
Dividends Per Share 0.03 0.04 0.04 0.05 --
Total Assets 877,829.26M 933,748.07M 962,063.48M 978,460.95M 1,063.92B
Total liabilities 794,045.98M 844,906.76M 861,546.93M 874,919.78M 949,130.24M
Total equity 61,813.76M 62,313.89M 69,471.29M 71,339.89M 75,916.47M
Operating cash flow -6,581.55M 30,657.04M -9,504.90M 10,513.87M --

Valuation Measures

Dec 2019
PER5.62
ROA0.67%
ROE9.37%
Operating margin14.77%
Profit margin9.51%

Key executives

  • Vice Chairman & President: Jiong Wang
  • Vice President: Zheng Jun Liu
  • Vice President & Member of the Executive Committee: Zhu Gaoming
  • Joint Secretary: Wing Kay Choy
  • Joint Secretary: Kang Wang

Shareholders

  • Government of China (58.1%)
  • Chia Tai Bright Investment Co. Ltd. (20%)
  • The Vanguard Group, Inc. (0.6%)
  • BlackRock Fund Advisors (0.5%)
  • Hang Seng Investment Management Ltd. (0.2%)
  • State Street Global Advisors Asia Ltd. (0.2%)
  • Norges Bank Investment Management (0.2%)
  • Tokio Marine Holdings, Inc. (0.1%)
  • Dimensional Fund Advisors LP (0.1%)
  • Robeco Institutional Asset Management BV (0.1%)

Contact Details

  • Website:http://www.citic.com
  • Address: 32nd floor, CITIC Tower, 1 Tim Mei Avenue Central, Hong Kong, Hong Kong
  • Phone: +852.2820.2111

Related Companies

  • CITIC Finance Co., Ltd.
  • CITIC Pacific Ltd.
  • Dynasty One Investments Ltd.
  • CITIC Pacific Trading Co. Ltd.
  • CITIC Dicastal (Europe) Investment Holdings GmbH & Co. KG
  • Pacific Resources Trading Pte Ltd.
  • Transshipment Leasing Pte Ltd.
  • CITIC Pacific Finance (2005) Ltd.
  • CITIC Construction Fund Management Co., Ltd.
  • CITIC (Jiangyin) Terminal Co., Ltd.
  • Affluent East Investments Ltd.
  • Talisgold Ltd.
  • Metal Link Ltd.
  • CITIC Pacific Ltd. (British Virgin Islands)
  • Goldon Investment Ltd.
  • Loreto Maritime Pte Ltd.
  • Palesto Holdings, Inc.
  • Cheng Xin Chartering Pte Ltd.
  • CITIC Environment Investment Group Co. Ltd.
  • China CITIC Ltd.
  • CITIC Pacific Special Steel International Trading Co. Ltd.
  • Harmony Glory Investment Ltd.
  • Newmarket Holdings Ltd.
  • Bao Tai Co. Ltd.
  • Lycopodium Asset Management Pty Ltd.
  • CITIC Corp. Ltd.
  • CITIC Pacific Special Steel Co., Ltd.
  • Way Trend Investments Ltd.
  • Jiangyin Ligang Electric Power Co. Ltd.
  • CITIC Heavy Industries Co., Ltd.

Competitors

  • Companhia Siderurgica Nacional
  • Le Belier SA
  • Vilmorin & Cie SA
  • Shiloh Industries, Inc.
  • MARTINREA International Inc.
  • Outotec Oyj
  • Champion Iron Ltd.
  • Superior Industries International, Inc.
  • Auryn Resources Inc.
  • Bear Creek Mining Corporation
  • Hudbay Minerals Inc
Last Updated on 3 Apr, 2020

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