SHSE:600612

Stock Analysis Report

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Executive Summary

Lao Feng Xiang Co., Ltd. operates in the jewelry industry in the People's Republic of China and internationally. More Details


Snowflake Analysis

Solid track record established dividend payer.

Share Price & News

How has Lao Feng Xiang's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600612 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 600612's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

600612

-1.1%

CN Luxury

-1.3%

CN Market


1 Year Return

-4.7%

600612

-10.6%

CN Luxury

25.5%

CN Market

Return vs Industry: 600612 exceeded the CN Luxury industry which returned -10.6% over the past year.

Return vs Market: 600612 underperformed the CN Market which returned 25.5% over the past year.


Shareholder returns

600612IndustryMarket
7 Day3.4%-1.1%-1.3%
30 Day0.7%-7.5%5.4%
90 Day3.1%-14.8%5.8%
1 Year-2.8%-4.7%-8.6%-10.6%27.6%25.5%
3 Year20.9%12.8%-25.9%-29.9%23.6%17.5%
5 Year42.0%27.0%-36.5%-41.2%39.6%30.2%

Long-Term Price Volatility Vs. Market

How volatile is Lao Feng Xiang's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lao Feng Xiang undervalued compared to its fair value and its price relative to the market?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600612 (CN¥47.92) is trading below our estimate of fair value (CN¥59.78)

Significantly Below Fair Value: 600612 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 600612 is good value based on its PE Ratio (17x) compared to the CN Luxury industry average (25.3x).

PE vs Market: 600612 is good value based on its PE Ratio (17x) compared to the CN market (35x).


Price to Earnings Growth Ratio

PEG Ratio: 600612 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 600612 is overvalued based on its PB Ratio (3.3x) compared to the CN Luxury industry average (1.8x).


Next Steps

Future Growth

How is Lao Feng Xiang forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600612's forecast earnings growth (15.7% per year) is above the savings rate (3.3%).

Earnings vs Market: 600612's earnings (15.7% per year) are forecast to grow slower than the CN market (24.2% per year).

High Growth Earnings: 600612's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600612's revenue (11.3% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 600612's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600612's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has Lao Feng Xiang performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600612 has high quality earnings.

Growing Profit Margin: 600612's current net profit margins (2.9%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 600612's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: 600612's earnings growth over the past year (6.7%) is below its 5-year average (6.8% per year).

Earnings vs Industry: 600612 earnings growth over the past year (6.7%) exceeded the Luxury industry -10.3%.


Return on Equity

High ROE: 600612's Return on Equity (21.1%) is considered high.


Next Steps

Financial Health

How is Lao Feng Xiang's financial position?


Financial Position Analysis

Short Term Liabilities: 600612's short term assets (CN¥18.6B) exceed its short term liabilities (CN¥9.2B).

Long Term Liabilities: 600612's short term assets (CN¥18.6B) exceed its long term liabilities (CN¥1.1B).


Debt to Equity History and Analysis

Debt Level: 600612's debt to equity ratio (95%) is considered high.

Reducing Debt: 600612's debt to equity ratio has increased from 55.5% to 95% over the past 5 years.

Debt Coverage: 600612's debt is not well covered by operating cash flow (12.3%).

Interest Coverage: 600612's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Lao Feng Xiang current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600612's dividend (2.4%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 600612's dividend (2.4%) is in the top 25% of dividend payers in the CN market (1.81%)


Stability and Growth of Payments

Stable Dividend: 600612's dividend payments have been volatile in the past 10 years.

Growing Dividend: 600612's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.8%), 600612's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600612's dividends in 3 years are forecast to be well covered by earnings (36.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Hua Huang (49 yo)

4.75yrs

Tenure

CN¥925,896

Compensation

Mr. Hua Huang serves as Deputy General Manager and Chief Financial Officer of Lao Feng Xiang Co., Ltd. and is its General Manager since April 26, 2016. Mr. Huang serves as General Manager of China First Pe...


Leadership Team

NamePositionTenureCompensationOwnership
Hua Huang
GM, CFO & Director4.75yrsCN¥925.90kno data
Xin Yi Zhang
Chief Technologist5.75yrsCN¥1.84mno data
Zhi Hong Xin
Deputy GM & Marketing Director6.58yrsCN¥1.87mno data
Gang Chang Li
Director of Human Resources & Director4.58yrsCN¥1.87mno data
Yong Zhong Wang
Deputy General Managerno dataCN¥887.56kno data
Fu Liang Zhou
Director of the Office of Directors & Board Secretaryno dataCN¥478.36kno data
Jun Li
Deputy General Manager4.75yrsno datano data
Jianmin Qiu
Secretary to Directorate0.58yrno datano data

4.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 600612's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Huang
GM, CFO & Director4.75yrsCN¥925.90kno data
Gang Chang Li
Director of Human Resources & Director4.58yrsCN¥1.87mno data
Li Hua Shi
Chairman of the Board of Directors6.58yrsCN¥928.36kno data
Liang Shi
Vice Chairman of the Supervisory Board9.58yrsCN¥1.40mno data
Wei Zhu
Supervisor9.58yrsCN¥159.98kno data
Dong Ming Cao
Employee Supervisor9.58yrsCN¥262.50kno data
Hua Zu Tao
Independent Director6.58yrsCN¥60.00kno data
Wei Mao Zheng
Independent Director6.58yrsCN¥60.00kno data
Wei Ming Chen
Employee Supervisor6.58yrsno datano data
Wei Yang
Vice Chairman4.58yrsno datano data
Yi Yang
Vice Chairno datano datano data

6.6yrs

Average Tenure

56yo

Average Age

Experienced Board: 600612's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lao Feng Xiang Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lao Feng Xiang Co., Ltd.
  • Ticker: 600612
  • Exchange: SHSE
  • Founded: 1848
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: CN¥19.066b
  • Shares outstanding: 523.12m
  • Website: https://www.laofengxiang.com

Number of Employees


Location

  • Lao Feng Xiang Co., Ltd.
  • Building 1
  • 6th Floor
  • Shanghai
  • 200235
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
900905SHSE (Shanghai Stock Exchange)Foreign Shares-Domestically ListedCNUSDSep 1992
600612SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYFeb 1994
600612XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYFeb 1994

Biography

Lao Feng Xiang Co., Ltd. operates in the jewelry industry in the People's Republic of China and internationally. It researches, develops, designs, produces, and sells gold, silver, platinum, diamonds, jade...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 09:18
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.