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Fountain Set (Holdings)

DB:FOV
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FOV
DB
HK$1B
Market Cap
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Last updated 2019/05/26 21:00
Company description

Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People’s Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, and internationally. The last earnings update was 54 days ago. More info.

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  • Fountain Set (Holdings) has significant price volatility in the past 3 months.
FOV Share Price and Events
7 Day Returns
-17.2%
DB:FOV
0.9%
DE Luxury
-2.3%
DE Market
1 Year Returns
-0.8%
DB:FOV
22.3%
DE Luxury
-11.5%
DE Market
FOV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fountain Set (Holdings) (FOV) -17.2% -18.9% -11.8% -0.8% 29% 60%
DE Luxury 0.9% 9.6% 21.6% 22.3% 104.5% 138.6%
DE Market -2.3% -4.9% 0.8% -11.5% 5.7% 6.6%
1 Year Return vs Industry and Market
  • FOV underperformed the Luxury industry which returned 22.3% over the past year.
  • FOV outperformed the Market in Germany which returned -11.5% over the past year.
Price Volatility
FOV
Industry
5yr Volatility vs Market

Value

 Is Fountain Set (Holdings) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fountain Set (Holdings) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fountain Set (Holdings).

DB:FOV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FOV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.716 (1 + (1- 25%) (57.41%)) 		1.016
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.016 * 6.65%) 		6.98%

Discounted Cash Flow Calculation for DB:FOV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fountain Set (Holdings) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:FOV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 6.98%)
2019 253.99 Est @ 37.17% 237.41
2020 320.25 Est @ 26.09% 279.80
2021 378.95 Est @ 18.33% 309.47
2022 427.83 Est @ 12.9% 326.58
2023 466.76 Est @ 9.1% 333.04
2024 496.80 Est @ 6.44% 331.33
2025 519.53 Est @ 4.57% 323.87
2026 536.52 Est @ 3.27% 312.63
2027 549.17 Est @ 2.36% 299.11
2028 558.61 Est @ 1.72% 284.38
Present value of next 10 years cash flows HK$3,037.61
DB:FOV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$558.61 × (1 + 0.23%) ÷ (6.98% – 0.23%) 		HK$8,286.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$8,286.81 ÷ (1 + 6.98%)10 		HK$4,218.79
DB:FOV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$3,037.61 + HK$4,218.79 		HK$7,256.40
Equity Value per Share
(HKD)		 = Total value / Shares Outstanding
= HK$7,256.40 / 1,220.18 		HK$5.95
DB:FOV Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FOV represents 0.10526x of SEHK:420
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		0.10526x
Value per Share
(Listing Adjusted, EUR)		 = Value per Share (HKD) x Listing Adjustment Factor
= HK$ 5.95 x 0.10526 		€0.63
Value per share (EUR) From above. €0.63
Current discount Discount to share price of €0.12
= -1 x (€0.12 - €0.63) / €0.63 		80.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fountain Set (Holdings) is available for.
Intrinsic value
>50%
Share price is €0.12 vs Future cash flow value of €0.626
Current Discount Checks
For Fountain Set (Holdings) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fountain Set (Holdings)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fountain Set (Holdings)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fountain Set (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fountain Set (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FOV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.13
SEHK:420 Share Price ** SEHK (2019-05-24) in HKD HK$1.14
Germany Luxury Industry PE Ratio Median Figure of 7 Publicly-Listed Luxury Companies 22.5x
Germany Market PE Ratio Median Figure of 421 Publicly-Listed Companies 20.2x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fountain Set (Holdings).

DB:FOV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:420 Share Price ÷ EPS (both in HKD)

= 1.14 ÷ 0.13

 8.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fountain Set (Holdings) is good value based on earnings compared to the DE Luxury industry average.
  • Fountain Set (Holdings) is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Fountain Set (Holdings)'s expected growth come at a high price?
Raw Data
DB:FOV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts		 16.6%per year
Europe Luxury Industry PEG Ratio Median Figure of 39 Publicly-Listed Luxury Companies 1.59x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Fountain Set (Holdings), we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fountain Set (Holdings)'s assets?
Raw Data
DB:FOV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$2.85
SEHK:420 Share Price * SEHK (2019-05-24) in HKD HK$1.14
Germany Luxury Industry PB Ratio Median Figure of 11 Publicly-Listed Luxury Companies 1.39x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.77x
DB:FOV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:420 Share Price ÷ Book Value per Share (both in HKD)

= 1.14 ÷ 2.85

 0.4x

* Primary Listing of Fountain Set (Holdings).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fountain Set (Holdings) is good value based on assets compared to the DE Luxury industry average.
Show me more potentially undervalued companies in the Luxury industry
X
Value checks
We assess Fountain Set (Holdings)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
    5. Fountain Set (Holdings) has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Fountain Set (Holdings) expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Fountain Set (Holdings), future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fountain Set (Holdings) expected to grow at an attractive rate?
  • Fountain Set (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Fountain Set (Holdings)'s earnings growth is expected to exceed the Germany market average.
  • Unable to compare Fountain Set (Holdings)'s revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:FOV Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FOV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 16.6%
Germany Luxury Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Luxury Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FOV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FOV Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,511 449 161
2018-09-30 7,486 302 156
2018-06-30 7,462 154 152
2018-03-31 7,188 191 154
2017-12-31 6,914 227 157
2017-09-30 6,689 188 143
2017-06-30 6,464 149 129
2017-03-31 6,396 228 128
2016-12-31 6,329 307 128
2016-09-30 6,428 433 134
2016-06-30 6,527 560 141
2016-03-31 6,590 505 120

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fountain Set (Holdings)'s earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Fountain Set (Holdings) is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FOV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Fountain Set (Holdings) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOV Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.13
2018-09-30 0.13
2018-06-30 0.13
2018-03-31 0.13
2017-12-31 0.13
2017-09-30 0.12
2017-06-30 0.11
2017-03-31 0.11
2016-12-31 0.11
2016-09-30 0.11
2016-06-30 0.12
2016-03-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fountain Set (Holdings) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Fountain Set (Holdings)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fountain Set (Holdings) has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Fountain Set (Holdings) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fountain Set (Holdings)'s growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fountain Set (Holdings)'s year on year earnings growth rate has been positive over the past 5 years.
  • Fountain Set (Holdings)'s 1-year earnings growth is less than its 5-year average (2.5% vs 14.5%)
  • Fountain Set (Holdings)'s earnings growth has not exceeded the DE Luxury industry average in the past year (2.5% vs 21.4%).
Earnings and Revenue History
Fountain Set (Holdings)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fountain Set (Holdings) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FOV Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,510.79 160.79 624.39
2018-09-30 7,486.28 156.26 629.33
2018-06-30 7,461.77 151.73 634.26
2018-03-31 7,187.78 154.29 610.01
2017-12-31 6,913.79 156.85 585.76
2017-09-30 6,689.01 142.80 568.34
2017-06-30 6,464.23 128.75 550.92
2017-03-31 6,396.47 128.33 569.47
2016-12-31 6,328.71 127.90 588.03
2016-09-30 6,427.82 134.40 620.70
2016-06-30 6,526.93 140.90 653.38
2016-03-31 6,589.99 120.38 657.24
2015-12-31 6,653.05 99.86 661.11
2015-09-30 6,689.50 101.53 647.52
2015-06-30 6,725.94 103.19 633.94
2015-03-31 6,808.54 96.89 623.19
2014-12-31 6,891.13 90.59 612.43
2014-09-30 6,941.94 82.56 628.56
2014-06-30 6,992.74 74.53 644.69
2014-03-31 6,967.78 82.92 672.79
2013-12-31 6,942.81 91.30 700.89
2012-12-31 6,875.32 -243.13 892.48
2012-08-31 6,959.62 -289.15 896.13
2012-05-31 7,041.55 -195.00 862.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fountain Set (Holdings) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fountain Set (Holdings) used its assets less efficiently than the DE Luxury industry average last year based on Return on Assets.
  • Fountain Set (Holdings) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fountain Set (Holdings)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fountain Set (Holdings) has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Fountain Set (Holdings)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fountain Set (Holdings)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fountain Set (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fountain Set (Holdings)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fountain Set (Holdings)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fountain Set (Holdings) Company Filings, last reported 4 months ago.

DB:FOV Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,601.25 798.51 1,067.30
2018-09-30 3,601.25 798.51 1,067.30
2018-06-30 3,502.91 1,095.86 965.65
2018-03-31 3,502.91 1,095.86 965.65
2017-12-31 3,556.38 735.23 984.78
2017-09-30 3,556.38 735.23 984.78
2017-06-30 3,440.77 743.31 912.44
2017-03-31 3,440.77 743.31 912.44
2016-12-31 3,453.65 667.64 970.05
2016-09-30 3,453.65 667.64 970.05
2016-06-30 3,405.04 584.82 919.13
2016-03-31 3,405.04 584.82 919.13
2015-12-31 3,394.76 653.84 967.40
2015-09-30 3,394.76 653.84 967.40
2015-06-30 3,313.28 967.49 1,023.61
2015-03-31 3,313.28 967.49 1,023.61
2014-12-31 3,325.62 999.94 1,058.61
2014-09-30 3,325.62 999.94 1,058.61
2014-06-30 3,245.03 1,351.43 1,098.88
2014-03-31 3,245.03 1,351.43 1,098.88
2013-12-31 3,278.65 1,355.54 1,304.29
2012-12-31 3,179.78 1,497.60 1,328.18
2012-08-31 3,245.54 1,499.49 1,004.43
2012-05-31 3,245.54 1,499.49 1,004.43
  • Fountain Set (Holdings)'s level of debt (22.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (41.3% vs 22.2% today).
  • Debt is well covered by operating cash flow (56.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).
Show me more healthy companies in the Luxury industry
X
Financial health checks
We assess Fountain Set (Holdings)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Fountain Set (Holdings) has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Fountain Set (Holdings)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.33%
Current annual income from Fountain Set (Holdings) dividends.
If you bought €2,000 of Fountain Set (Holdings) shares you are expected to receive €187 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Fountain Set (Holdings)'s pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • Fountain Set (Holdings)'s dividend is above the markets top 25% of dividend payers in Germany (3.89%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FOV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Luxury Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FOV Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-05-10 0.106 8.509
2018-04-06 0.104 8.822
2017-06-22 0.053 4.955
2016-04-21 0.040 4.038
2016-03-18 0.040 4.565
2015-04-22 0.040 4.215
2014-04-23 0.020 2.201
2014-03-21 0.020 2.072
2013-09-05 0.000 0.000
2013-08-23 0.000 0.000
2013-04-16 0.000 0.000
2013-03-26 0.000 0.000
2011-11-25 0.010 1.123
2010-12-20 0.010 0.756
2010-12-10 0.010 0.661
2009-12-22 0.000 0.000
2009-12-14 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fountain Set (Holdings) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Fountain Set (Holdings) only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Fountain Set (Holdings)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Fountain Set (Holdings)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fountain Set (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Fountain Set (Holdings) has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Fountain Set (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yao Zhao
COMPENSATION HK$4,847,000
AGE 55
TENURE AS CEO 4.3 years
CEO Bio

Mr. Yao Zhao serves as an Assistant President and the General Manager of Asset Management Department of Chinatex Corporation. Mr. Zhao serves as a General Manager of Chinatex Xinyuan Assets Management Co., Ltd., Chinatex Tianyuan Property Management Co. and Chinatex Real Estate Administration Co., Ltd. He has been the Chairman of Fountain Set (Holdings) Limited since November 14, 2014 and has been its Chief Executive Officer since January 23, 2015. Mr. Zhao serves as the Chairman of the Board of Chinatex (H.K.) Holding Limited, Huasheng Fujitec Elevator Co., Ltd., Chinatex Xinyuan Assets Management Co., Ltd., Shanghai Huasheng Fujitec Escalator Co., Ltd. and Shanghai Huade Photoelectron Science & Technology Co., Ltd. Mr. Zhao has 25 years of experience in the textile industry. He joined Chinatex's predecessor, China National Textiles Import and Export Corporationin 1987 and held positions as Financial Manager of Wah Gar Knitwear Factory Company Limited, General Manager of Suzhou Zhongfa Property Management Co., Ltd., Deputy General Manager of Chinatex Property Management Co., Ltd., Vice President of Chudai Trading Co., Ltd. He has been an Executive Director of Fountain Set (Holdings) Limited since November 27, 2012. Mr. Zhao graduated with a diploma in industrial accounting from Renmin University of China in 1987.

CEO Compensation
  • Yao's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Yao's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Fountain Set (Holdings) management team in years:

0.8
Average Tenure
52
Average Age
  • The average tenure for the Fountain Set (Holdings) management team is less than 2 years, this suggests a new team.
Management Team

Yao Zhao

TITLE
Chairman & CEO
COMPENSATION
HK$5M
AGE
55
TENURE
4.3 yrs

Chung Ha

TITLE
Founder & Honorary Chairman
COMPENSATION
HK$16M
AGE
80

Yongming Tao

TITLE
Executive Director
AGE
52
TENURE
0.8 yrs

Xianfu Liu

TITLE
Executive Director
AGE
52
TENURE
0.8 yrs

Andrew Yau

TITLE
Executive Director
AGE
49
TENURE
0.8 yrs

Charmaine Cheng

TITLE
Company Secretary & Deputy GM of Corporate Governance Department
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the Fountain Set (Holdings) board of directors in years:

1.9
Average Tenure
53
Average Age
  • The average tenure for the Fountain Set (Holdings) board of directors is less than 3 years, this suggests a new board.
Board of Directors

Yao Zhao

TITLE
Chairman & CEO
COMPENSATION
HK$5M
AGE
55
TENURE
4.5 yrs

Gordon Yen

TITLE
Non-Executive Vice Chairman
COMPENSATION
HK$200K
AGE
48
TENURE
0.8 yrs

Chung Ha

TITLE
Founder & Honorary Chairman
COMPENSATION
HK$16M
AGE
80
TENURE
6.9 yrs

Yongming Tao

TITLE
Executive Director
AGE
52
TENURE
0.8 yrs

Xianfu Liu

TITLE
Executive Director
AGE
52
TENURE
0.8 yrs

Andrew Yau

TITLE
Executive Director
AGE
49
TENURE
0.8 yrs

Kwok Ng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$250K
AGE
67
TENURE
26.3 yrs

Wei Ying

TITLE
Independent Non-Executive Director
COMPENSATION
HK$200K
AGE
51
TENURE
4.3 yrs

William Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$200K
AGE
59
TENURE
3 yrs

Fuji Sun

TITLE
Non-Executive Director
AGE
54
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
18. Jan 19 Buy Chung Ha Individual 21. Dec 18 21. Dec 18 7,816,000 €0.12 €960,451
06. Jun 18 Buy Chung Ha Individual 05. Jun 18 05. Jun 18 12,160,000 €0.13 €1,592,713
X
Management checks
We assess Fountain Set (Holdings)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Fountain Set (Holdings) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People’s Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, and internationally. It is involved in fabric knitting, dyeing, printing, finishing, and garment manufacturing activities. The company also offers yarn dyed fabrics, printed fabrics, and dyed yarns and fabrics; and garments, including men’s wear, women’s wear, children’s wear, and sportswear. In addition, it engages in trading yarns, dyestuffs, and chemicals, as well as garments and fabrics; and the heating supply activities. The company was founded in 1969 and is headquartered in Kwai Chung, Hong Kong. Fountain Set (Holdings) Limited is a subsidiary of Chinatex Yieldfull Investments Co., Ltd.

Details
Name: Fountain Set (Holdings) Limited
FOV
Exchange: DB
Founded: 1969
HK$158,108,654
1,220,176,960
Website: http://www.fshl.com
Address: Fountain Set (Holdings) Limited
Eastern Sea Industrial Building,
Block A,
Kwai Chung,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 420 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
DB FOV Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
8,926
Fountain Set (Holdings) employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 21:00
End of day share price update: 2019/05/24 00:00
Last earnings filing: 2019/04/02
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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