DB:8SY

Stock Analysis Report

Executive Summary

Sitoy Group Holdings Limited designs, researches, develops, manufactures, sells, wholesale, and retails handbags, small leather goods, travel goods, and footwear products under the TUSCAN’S, Fashion & Joy, Kenneth Cole, and Cole Haan brands.

Rewards

Trading at 76.9% below its fair value

Risk Analysis

Earnings have declined by -21.32% per year over past 5 years

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Sitoy Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8SY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

8SY

0.2%

DE Luxury

1.7%

DE Market


1 Year Return

-55.3%

8SY

40.6%

DE Luxury

15.0%

DE Market

Return vs Industry: 8SY underperformed the German Luxury industry which returned 40.6% over the past year.

Return vs Market: 8SY underperformed the German Market which returned 15% over the past year.


Shareholder returns

8SYIndustryMarket
7 Day7.9%0.2%1.7%
30 Day-4.0%-6.8%0.8%
90 Day-26.7%6.5%3.7%
1 Year-52.8%-55.3%42.8%40.6%18.5%15.0%
3 Year-42.7%-53.2%92.7%82.7%17.1%6.9%
5 Year-72.6%-81.9%222.0%184.9%24.3%7.3%

Price Volatility Vs. Market

How volatile is Sitoy Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sitoy Group Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8SY (€0.1) is trading below our estimate of fair value (€0.42)

Significantly Below Fair Value: 8SY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8SY is good value based on its PE Ratio (7.6x) compared to the Luxury industry average (26.9x).

PE vs Market: 8SY is good value based on its PE Ratio (7.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8SY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8SY is good value based on its PB Ratio (0.5x) compared to the DE Luxury industry average (1.8x).


Next Steps

Future Growth

How is Sitoy Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.4%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sitoy Group Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sitoy Group Holdings performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8SY has a large one-off gain of HK$33.1M impacting its June 30 2019 financial results.

Growing Profit Margin: 8SY's current net profit margins (5.1%) are lower than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: 8SY's earnings have declined by -21.3% per year over the past 5 years.

Accelerating Growth: 8SY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8SY had negative earnings growth (-51.1%) over the past year, making it difficult to compare to the Luxury industry average (-0.9%).


Return on Equity

High ROE: 8SY's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sitoy Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8SY's short term assets (HK$1.4B) exceed its short term liabilities (HK$566.9M).

Long Term Liabilities: 8SY's short term assets (HK$1.4B) exceed its long term liabilities (HK$5.1M).


Debt to Equity History and Analysis

Debt Level: 8SY's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8SY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8SY's debt is well covered by operating cash flow (122.2%).

Interest Coverage: 8SY earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8SY has a high level of physical assets or inventory.

Debt Coverage by Assets: 8SY's debt is covered by short term assets (assets are 8.4x debt).


Next Steps

Dividend

What is Sitoy Group Holdings's current dividend yield, its reliability and sustainability?

8.16%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%1.3%markettop25%3.6%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8SY's dividend (8.16%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 8SY's dividend (8.16%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: 8SY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8SY has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.7%), 8SY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.3yrs

Average board tenure


CEO

Wo Fai Yeung (66yo)

HK$4,444,000

Compensation

Mr. Wo Fai Yeung serves as the Chief Executive Officer of Sitoy Group Holdings Limited. Mr. Yeung has been with Sitoy Group since 1974 and is responsible for the overall daily operations of its business. H ...


CEO Compensation Analysis

Compensation vs Market: Wo Fai's total compensation ($USD572.17K) is above average for companies of similar size in the German market ($USD412.37K).

Compensation vs Earnings: Wo Fai's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Wah Keung Yeung
Chairman0yrsHK$4.93m45.74% HK$50.9m
Wo Fai Yeung
CEO & Executive Director0yrsHK$4.44m25.14% HK$28.0m
Kin Shing Lau
CFO, Company Secretary & Executive Director2.7yrsHK$6.16m0.091% HK$101.6k
Kin Yeung
Deputy GM & Executive Director8.8yrsHK$3.30m1.1% HK$1.2m
Chi Tat Yeung
Independent Non-Executive Director8.3yrsHK$220.00kno data
Hung Cheuk Lung
Independent Non-Executive Director8.3yrsHK$220.00kno data
Po Chuen Kwan
Independent Non-Executive Director8.3yrsHK$220.00kno data

8.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 8SY's board of directors are considered experienced (8.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sitoy Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sitoy Group Holdings Limited
  • Ticker: 8SY
  • Exchange: DB
  • Founded: 1968
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$937.772m
  • Listing Market Cap: HK$111.357m
  • Shares outstanding: 956.91m
  • Website: https://www.sitoy.com

Number of Employees


Location

  • Sitoy Group Holdings Limited
  • Sitoy Tower
  • 9th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1023SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011
8SYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011

Biography

Sitoy Group Holdings Limited designs, researches, develops, manufactures, sells, wholesale, and retails handbags, small leather goods, travel goods, and footwear products under the TUSCAN’S, Fashion & Joy, Kenneth Cole, and Cole Haan brands. It operates in three segments: Manufacturing, Retail, and Property Investment. The company offers travel luggage and business accessories. It also trades in handbags, small leather goods, travel goods, and footwear products; provides advertising and marketing services; and invests in office spaces. In addition, the company provides treasury management services; acts as a trade agency; and operates shops, boutiques, and department stores. Further, it engages in online sale of leather goods, clothing and accessories, and goods for daily use; retail and wholesale of shoes, clothes, belts, stationaries, glasses, bags, and other fashion products. The company offers its products in North America, Europe, Mainland China, Hong Kong, Macau, Taiwan, other Asian countries, and internationally. Sitoy Group Holdings Limited was founded in 1968 and is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:02
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.