DB:G2M

Stock Analysis Report

Executive Summary

Beijing Jingkelong Company Limited engages in the retail and wholesale distribution of daily consumer products in the People's Republic of China.

Rewards

PE ratio (7.3x) is below the German market (21.1x)

Earnings are forecast to grow 11.87% per year

Earnings grew by 19.5% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value with acceptable track record.

Share Price & News

How has Beijing Jingkelong's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G2M's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

G2M

1.4%

DE Consumer Retailing

1.7%

DE Market


1 Year Return

-14.5%

G2M

1.3%

DE Consumer Retailing

15.0%

DE Market

Return vs Industry: G2M underperformed the German Consumer Retailing industry which returned 1.3% over the past year.

Return vs Market: G2M underperformed the German Market which returned 15% over the past year.


Shareholder returns

G2MIndustryMarket
7 Day3.2%1.4%1.7%
30 Day-9.1%1.5%0.8%
90 Day-0.8%0.7%3.7%
1 Year-7.9%-14.5%5.3%1.3%18.5%15.0%
3 Year-15.7%-27.0%5.5%-5.0%17.1%6.9%
5 Year-15.4%-33.3%9.4%-7.3%24.3%7.3%

Price Volatility Vs. Market

How volatile is Beijing Jingkelong's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Beijing Jingkelong undervalued compared to its fair value and its price relative to the market?

7.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: G2M (€0.13) is trading above our estimate of fair value (€0.09)

Significantly Below Fair Value: G2M is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: G2M is good value based on its PE Ratio (7.3x) compared to the Consumer Retailing industry average (21x).

PE vs Market: G2M is good value based on its PE Ratio (7.3x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: G2M is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: G2M is good value based on its PB Ratio (0.3x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Beijing Jingkelong forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G2M's forecast earnings growth (11.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: G2M's earnings (11.9% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: G2M's earnings are forecast to grow, but not significantly.

Revenue vs Market: G2M's revenue (1.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: G2M's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if G2M's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Beijing Jingkelong performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G2M has a large one-off gain of CN¥83.9M impacting its September 30 2019 financial results.

Growing Profit Margin: G2M's current net profit margins (0.6%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: G2M's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: G2M's earnings growth over the past year (19.5%) is below its 5-year average (19.8% per year).

Earnings vs Industry: G2M earnings growth over the past year (19.5%) exceeded the Consumer Retailing industry -0.7%.


Return on Equity

High ROE: G2M's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beijing Jingkelong's financial position?


Financial Position Analysis

Short Term Liabilities: G2M's short term assets (CN¥4.6B) exceed its short term liabilities (CN¥4.3B).

Long Term Liabilities: G2M's short term assets (CN¥4.6B) exceed its long term liabilities (CN¥1.3B).


Debt to Equity History and Analysis

Debt Level: G2M's debt to equity ratio (121.5%) is considered high.

Reducing Debt: G2M's debt to equity ratio has reduced from 142.7% to 121.5% over the past 5 years.

Debt Coverage: G2M's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: G2M's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: G2M has a high level of physical assets or inventory.

Debt Coverage by Assets: G2M's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Beijing Jingkelong's current dividend yield, its reliability and sustainability?

6.74%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years7.6%

Current dividend yield vs market & industry

Notable Dividend: G2M's dividend (6.74%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: G2M's dividend (6.74%) is in the top 25% of dividend payers in the German market (3.59%)


Stability and Growth of Payments

Stable Dividend: G2M's dividend payments have been volatile in the past 10 years.

Growing Dividend: G2M's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), G2M's dividend payments are well 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?

4.6yrs

Average management tenure


CEO

Yongtian Shang (57yo)

4.8yrs

Tenure

CN¥658,000

Compensation

Mr. Yongtian Shang has been General Manager of Beijing Jingkelong Co. Ltd. since May 2015. Mr. Shang has been Executive Director of Beijing Jingkelong Co. Ltd. since November 5, 2015. He served as an Assis ...


CEO Compensation Analysis

Compensation vs Market: Yongtian's total compensation ($USD94.18K) is below average for companies of similar size in the German market ($USD412.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board6.7yrsCN¥659.00k0.34% CN¥317.0k
Yongtian Shang
GM & Executive Director4.8yrsCN¥658.00k0.17% CN¥155.1k
Chunyan Li
CFO, Deputy GM & Executive Director15.3yrsCN¥615.00k0.085% CN¥79.3k
Shenlin Li
Assistant General Manager10.5yrsno data0.072% CN¥67.4k
Hong Wang
Assistant General Manager2.5yrsCN¥461.00k0.031% CN¥29.3k
Hongbo Zhang
Assistant General Manager4.5yrsno data0.017% CN¥15.7k
Liwei Zhang
Assistant GM & Executive Director0.8yrsno data0.025% CN¥23.5k
Bo Li
Company Secretary8.9yrsno datano data
Xuemin Pan
Board Secretary3.5yrsno datano data

4.6yrs

Average Tenure

48yo

Average Age

Experienced Management: G2M's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board6.7yrsCN¥659.00k0.34% CN¥317.0k
Yongtian Shang
GM & Executive Director4.8yrsCN¥658.00k0.17% CN¥155.1k
Chunyan Li
CFO, Deputy GM & Executive Director15.3yrsCN¥615.00k0.085% CN¥79.3k
Liwei Zhang
Assistant GM & Executive Director0.8yrsno data0.025% CN¥23.5k
Shunxiang Li
Non-Executive Director15.3yrsno data0.87% CN¥816.7k
Onward Choi
Independent Non-Executive Director9.7yrsCN¥155.00kno data
Liping Wang
Independent Non-Executive Director9.7yrsCN¥42.00kno data
Liping Chen
Independent Non-Executive Director9.7yrsCN¥42.00kno data
Wenyu Liu
Chairman of the Supervisory Committee9.7yrsCN¥677.00k0.061% CN¥57.2k
Yan Zhang
Non-Executive Director1.3yrsno datano data

9.7yrs

Average Tenure

52.5yo

Average Age

Experienced Board: G2M's board of directors are considered experienced (9.7 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 been diluted in the past year, with total shares outstanding growing by 8.2%.


Top Shareholders

Company Information

Beijing Jingkelong Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Jingkelong Company Limited
  • Ticker: G2M
  • Exchange: DB
  • Founded: 1994
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: HK$790.020m
  • Listing Market Cap: HK$93.812m
  • Shares outstanding: 598.50m
  • Website: https://www.jkl.com.cn

Number of Employees


Location

  • Beijing Jingkelong Company Limited
  • Block No. 45
  • XinYuan Street
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
814SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2006
G2MDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2006

Biography

Beijing Jingkelong Company Limited engages in the retail and wholesale distribution of daily consumer products in the People's Republic of China. The company operates in three segments: Retailing, Wholesaling, and Others. It is involved in the operation of hypermarkets, supermarkets, convenience stores, and department stores. The company offers food products, untagged food products, daily necessities, drinks and cigarettes, beverages, hardware products, and household appliances. It also provides plastic packing products; hotel services; and school training services. As of December 31, 2018, the company operated 206 retail outlets. Beijing Jingkelong Company Limited was founded in 1994 and is based in Beijing, the People's Republic of China. Beijing Jingkelong Company Limited is a subsidiary of Beijing Chaoyang Auxiliary Food Company. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:06
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.