Board Change • May 20
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). MD & Director Rajiv Sethi was the last director to join the board, commencing their role in 2007. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • May 23
Third quarter 2024 earnings released: EPS: ৳0.11 (vs ৳0.05 in 3Q 2023) Third quarter 2024 results: EPS: ৳0.11 (up from ৳0.05 in 3Q 2023). Revenue: ৳1.31b (down 30% from 3Q 2023). Net income: ৳54.4m (up 136% from 3Q 2023). Profit margin: 4.2% (up from 1.2% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 5% per year. 공시 • Apr 23
Generation Next Fashions Limited to Report Q3, 2024 Results on Apr 29, 2024 Generation Next Fashions Limited announced that they will report Q3, 2024 results on Apr 29, 2024 Reported Earnings • Mar 05
First quarter 2024 earnings released: ৳0.27 loss per share (vs ৳0.01 loss in 1Q 2023) First quarter 2024 results: ৳0.27 loss per share (further deteriorated from ৳0.01 loss in 1Q 2023). Revenue: ৳524.3m (down 62% from 1Q 2023). Net loss: ৳131.6m (loss widened ৳127.8m from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. 공시 • Jan 26
Generation Next Fashions Limited to Report Q2, 2024 Results on Jan 30, 2024 Generation Next Fashions Limited announced that they will report Q2, 2024 results on Jan 30, 2024 New Risk • Jan 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bangladeshi stocks, typically moving 5.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.4x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 145% Cash payout ratio: 128% Earnings have declined by 60% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (5.0% average weekly change). Market cap is less than US$100m (৳2.97b market cap, or US$27.1m). Reported Earnings • Dec 13
Full year 2023 earnings released: EPS: ৳0.07 (vs ৳0.01 in FY 2022) Full year 2023 results: EPS: ৳0.07 (up from ৳0.01 in FY 2022). Revenue: ৳5.96b (up 45% from FY 2022). Net income: ৳34.1m (up ৳29.3m from FY 2022). Profit margin: 0.6% (up from 0.1% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Nov 14
Upcoming dividend of ৳0.10 per share at 1.7% yield Eligible shareholders must have bought the stock before 21 November 2023. Payment date: 22 January 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.7%. Lower than top quartile of Bangladeshi dividend payers (3.3%). Lower than average of industry peers (2.6%). 공시 • Oct 31
Generation Next Fashions Limited Recommends Cash Dividend for the Year Ended June 30, 2023 Generation Next Fashions Limited announced that it has recommended 1% Cash Dividend for the year ended June 30, 2023. 공시 • Oct 30
Generation Next Fashions Limited, Annual General Meeting, Dec 23, 2023 Generation Next Fashions Limited, Annual General Meeting, Dec 23, 2023, at 11:30 Bangladesh Standard Time. 공시 • Oct 20
Generation Next Fashions Limited to Report Fiscal Year 2023 Results on Oct 28, 2023 Generation Next Fashions Limited announced that they will report fiscal year 2023 results on Oct 28, 2023 New Risk • Jul 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bangladeshi stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Earnings have declined by 61% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 10x earnings per share). Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (৳3.37b market cap, or US$31.0m). Reported Earnings • Jul 26
Third quarter 2023 earnings released: EPS: ৳0.05 (vs ৳0.04 in 3Q 2022) Third quarter 2023 results: EPS: ৳0.05 (up from ৳0.04 in 3Q 2022). Revenue: ৳1.87b (up 50% from 3Q 2022). Net income: ৳23.1m (up 19% from 3Q 2022). Profit margin: 1.2% (down from 1.6% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 46% per year and the company’s share price has also increased by 46% per year. Reported Earnings • Mar 21
Second quarter 2023 earnings released: EPS: ৳0.03 (vs ৳0.04 in 2Q 2022) Second quarter 2023 results: EPS: ৳0.03 (down from ৳0.04 in 2Q 2022). Revenue: ৳1.74b (up 112% from 2Q 2022). Net income: ৳15.7m (down 29% from 2Q 2022). Profit margin: 0.9% (down from 2.7% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 40% per year, which means it is well ahead of earnings. 공시 • Dec 20
Generation Next Fashions Limited Approves Cash Dividend for the Year Ended June 30, 2022 Generation Next Fashions Limited has approved 1% cash dividend instead of earlier declared No Dividend for the year ended June 30, 2022 in their 18th AGM held on December 12, 2022. Reported Earnings • Dec 03
Full year 2022 earnings released: EPS: ৳0.01 (vs ৳0.007 in FY 2021) Full year 2022 results: EPS: ৳0.01 (up from ৳0.007 in FY 2021). Revenue: ৳4.12b (up 41% from FY 2021). Net income: ৳4.73m (up 42% from FY 2021). Profit margin: 0.1% (in line with FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. 1 independent director (4 non-independent directors). MD & Director Rajiv Sethi was the last director to join the board, commencing their role in 2007. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • May 28
Third quarter 2022 earnings released: EPS: ৳0.04 (vs ৳0.03 in 3Q 2021) Third quarter 2022 results: EPS: ৳0.04 (up from ৳0.03 in 3Q 2021). Revenue: ৳1.25b (up 67% from 3Q 2021). Net income: ৳19.5m (up 30% from 3Q 2021). Profit margin: 1.6% (down from 2.0% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. 1 independent director (4 non-independent directors). MD & Director Rajiv Sethi was the last director to join the board, commencing their role in 2007. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Jun 02
Third quarter 2021 earnings released: EPS ৳0.03 (vs ৳0.12 loss in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: ৳745.9m (down 15% from 3Q 2020). Net income: ৳15.0m (up ৳75.5m from 3Q 2020). Profit margin: 2.0% (up from net loss in 3Q 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 17% share price gain to ৳4.10, the stock is trading at a trailing P/E ratio of 12.3x, up from the previous P/E ratio of 10.5x. This compares to an average P/E of 24x in the Luxury industry in Bangladesh. Total return to shareholders over the past three years is a loss of 54%. Is New 90 Day High Low • Nov 25
New 90-day low: ৳3.00 The company is down 25% from its price of ৳4.00 on 27 August 2020. The Bangladeshi market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is down 4.0% over the same period. Valuation Update With 7 Day Price Move • Nov 04
Market bids up stock over the past week After last week's 23% share price gain to ৳3.80, the stock is trading at a trailing P/E ratio of 11.4x, up from the previous P/E ratio of 9.3x. This compares to an average P/E of 20x in the Luxury industry in Bangladesh. Total return to shareholders over the past three years is a loss of 54%. Valuation Update With 7 Day Price Move • Oct 28
Market pulls back on stock over the past week After last week's 19% share price decline to ৳3.90, the stock is trading at a trailing P/E ratio of 11.7x, down from the previous P/E ratio of 14.4x. This compares to an average P/E of 20x in the Luxury industry in Bangladesh. Total return to shareholders over the past three years is a loss of 54%. 공시 • Sep 07
Generation Next Fashions Limited to Report Q3, 2020 Results on Jul 30, 2020 Generation Next Fashions Limited announced that they will report Q3, 2020 results on Jul 30, 2020