DB:LSJ

Stock Analysis Report

Lianhua Supermarket Holdings

Executive Summary

Lianhua Supermarket Holdings Co., Ltd., together with its subsidiaries, operates supermarkets, hypermarkets, and convenience stores primarily in the eastern region of the People's Republic of China.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

LSJ

1.8%

DE Consumer Retailing

1.0%

DE Market


1 Year Return

0.7%

LSJ

8.2%

DE Consumer Retailing

14.2%

DE Market

Return vs Industry: LSJ underperformed the German Consumer Retailing industry which returned 8.2% over the past year.

Return vs Market: LSJ underperformed the German Market which returned 14.2% over the past year.


Shareholder returns

LSJIndustryMarket
7 Day0%1.8%1.0%
30 Day-1.5%-1.9%0.04%
90 Day-25.0%-3.5%6.0%
1 Year0.7%0.7%12.4%8.2%17.8%14.2%
3 Year-63.8%-63.8%3.9%-6.1%19.2%8.7%
5 Year-61.8%-61.8%26.0%6.6%36.0%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Lianhua Supermarket Holdings undervalued compared to its fair value and its price relative to the market?

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LSJ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LSJ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LSJ is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: LSJ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LSJ is good value based on its PB Ratio (0.6x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is Lianhua Supermarket Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSJ is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LSJ is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LSJ is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LSJ's revenue (2.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: LSJ's revenue (2.4% 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 LSJ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lianhua Supermarket Holdings performed over the past 5 years?

-13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LSJ is currently unprofitable.

Growing Profit Margin: LSJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LSJ is unprofitable, and losses have increased over the past 5 years at a rate of -13% per year.

Accelerating Growth: Unable to compare LSJ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LSJ is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (2.1%).


Return on Equity

High ROE: LSJ has a negative Return on Equity (-2.44%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lianhua Supermarket Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LSJ's short term assets (CN¥9.0B) do not cover its short term liabilities (CN¥13.5B).

Long Term Liabilities: LSJ's short term assets (CN¥9.0B) exceed its long term liabilities (CN¥7.3B).


Debt to Equity History and Analysis

Debt Level: LSJ is debt free.

Reducing Debt: LSJ has no debt compared to 5 years ago when its debt to equity ratio was 0.05%.


Balance Sheet

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

Debt Coverage by Assets: LSJ's debt is not covered by short term assets (assets are -9.9386681223975E+15x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LSJ has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LSJ has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 22.4% each year


Next Steps

Dividend

What is Lianhua Supermarket Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LSJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LSJ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LSJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LSJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LSJ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LSJ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Lianhua Supermarket Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Tao Xu (45yo)

2.3yrs

Tenure

CN¥2,736,000

Compensation

Mr. Tao Xu has been General Manager and Executive Director of Lianhua Supermarket Holdings Co., Ltd. since September 27, 2017. Mr. Xu has extensive experience in corporate management and operations and fin ...


CEO Compensation Analysis

Compensation vs Market: Tao's total compensation ($USD392.03K) is below average for companies of similar size in the German market ($USD606.58K).

Compensation vs Earnings: Tao's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: LSJ's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: LSJ's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: LSJ insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€49,89019 Nov 19
Zizuo Xu
EntityIndividual
Shares328,000
Max Price€0.15
Buy€583,11130 Oct 19
Zizuo Xu
EntityIndividual
Shares3,695,000
Max Price€0.16
Buy€115,57529 Jul 19
Zizuo Xu
EntityIndividual
Shares575,000
Max Price€0.20
Buy€576,72111 Jul 19
Zizuo Xu
EntityIndividual
Shares2,802,000
Max Price€0.21
Buy€150,08202 Jul 19
Zizuo Xu
EntityIndividual
Shares737,000
Max Price€0.20
Buy€643,04521 Jun 19
Zizuo Xu
EntityIndividual
Shares3,342,000
Max Price€0.19
Buy€318,90817 Jun 19
Zizuo Xu
EntityIndividual
Shares1,784,000
Max Price€0.18
Sell€14,27111 Feb 19
Industrial and Commercial Bank of China Limited, Asset Management Arm
EntityCompany
Shares104,000
Max Price€0.14
Sell€80,68414 Jan 19
Industrial and Commercial Bank of China Limited, Asset Management Arm
EntityCompany
Shares610,000
Max Price€0.13
Sell€84,25427 Dec 18
Industrial and Commercial Bank of China Limited, Asset Management Arm
EntityCompany
Shares600,000
Max Price€0.14

Ownership Breakdown

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


Management Team

  • Stephen Mok (54yo)

    Legal Adviser

    • Tenure: 16.9yrs
  • Bao-Long Liang (54yo)

    Deputy General Manager

    • Tenure: 7.8yrs
    • Compensation: CN¥1.02m
  • Li-Ping Hu (54yo)

    CFO, Chief of Financial Admin Dept

    • Tenure: 4.5yrs
    • Compensation: CN¥1.35m
  • Hui-Qin Zhang (45yo)

    Deputy General Manager

    • Tenure: 3.5yrs
    • Compensation: CN¥8.05m
  • Yu Xi (40yo)

    Deputy General Manager

    • Tenure: 3yrs
    • Compensation: CN¥745.00k
  • Tao Xu (45yo)

    GM & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥2.74m
  • Dong Gang (40yo)

    Vice Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: CN¥1.98m
  • Dai Yu-peng (51yo)

    Vice Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: CN¥1.90m

Board Members

  • Tak Hung Wong (67yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Don Lee (61yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥150.00k
  • Dawei Xia (66yo)

    Independent Non Executive Director

    • Tenure: 14.5yrs
    • Compensation: CN¥150.00k
  • Yong-Ming Ye (55yo)

    Chairman of the Board

    • Tenure: 4.1yrs
  • Jian-Qiang Qian (57yo)

    Non-Executive Director

    • Tenure: 4.1yrs
  • Zi-Ying Xu (49yo)

    Deputy Chairman

    • Tenure: 2.5yrs
  • Wei Chen (57yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥113.00k
  • A-Guo Yang (55yo)

    Chairman of Supervisors Committee

    • Tenure: 2.1yrs
  • Xiao-Yun Zheng (57yo)

    Non-Executive Director

    • Tenure: 4.1yrs
  • Tao Xu (45yo)

    GM & Executive Director

    • Tenure: 2.3yrs
    • Compensation: CN¥2.74m

Company Information

Lianhua Supermarket Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lianhua Supermarket Holdings Co., Ltd.
  • Ticker: LSJ
  • Exchange: DB
  • Founded: 1991
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: HK$1.455b
  • Listing Market Cap: HK$167.875m
  • Shares outstanding: 1.12b
  • Website: https://lianhua.todayir.com

Number of Employees


Location

  • Lianhua Supermarket Holdings Co., Ltd.
  • No. 1258, Zhen Guang Road
  • 7th Floor
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LHUA.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJun 2003
980SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2003
LSJDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJun 2003

Biography

Lianhua Supermarket Holdings Co., Ltd., together with its subsidiaries, operates supermarkets, hypermarkets, and convenience stores primarily in the eastern region of the People's Republic of China. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:03
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
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.