DB:FTQ

Stock Analysis Report

China Fortune Holdings

Executive Summary

China Fortune Holdings Limited, an investment holding company, engages in the distribution and trading of mobile phones and related accessories in the People’s Republic of China.


Snowflake Analysis

Acceptable track record and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FTQ

-2.4%

DE Electronic

-0.2%

DE Market


1 Year Return

0%

FTQ

8.1%

DE Electronic

13.7%

DE Market

Return vs Industry: FTQ underperformed the German Electronic industry which returned 8.7% over the past year.

Return vs Market: FTQ underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

FTQIndustryMarket
7 Day0%-2.4%-0.2%
30 Day0%9.1%0.3%
90 Day42.9%6.8%3.7%
1 Year0%0%10.5%8.1%17.2%13.7%
3 Year-87.2%-87.2%48.0%43.1%15.4%5.3%
5 Year-84.4%-84.4%113.5%98.2%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is China Fortune Holdings undervalued compared to its fair value and its price relative to the market?

4.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: FTQ is good value based on its PE Ratio (4.4x) compared to the Electronic industry average (33.5x).

PE vs Market: FTQ is good value based on its PE Ratio (4.4x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FTQ is overvalued based on its PB Ratio (2.5x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

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

16.5%

Forecasted Tech 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 China Fortune 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 China Fortune Holdings performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTQ has high quality earnings.

Growing Profit Margin: FTQ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FTQ has become profitable over the past 5 years, growing earnings by -4.3% per year.

Accelerating Growth: FTQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FTQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: FTQ's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Fortune Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FTQ has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: FTQ has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: FTQ has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: FTQ's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: FTQ has a low level of unsold assets or inventory.

Debt Coverage by Assets: FTQ has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: FTQ is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: FTQ is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is China Fortune Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate FTQ'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 FTQ's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Steve Lau (55yo)

28.1yrs

Tenure

HK$2,772,000

Compensation

Mr. Lau Siu Ying, also known as Steve, founded China Fortune Holdings Limited (formerly, Fortune Telecom Holdings Ltd.) in 1992 and has been its Chairman and Chief Executive Officer since 1992. Mr. Lau has ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD356.15K) is about average for companies of similar size in the German market ($USD412.57K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Siu Ying Lau
Founder28.1yrsHK$2.77m49.72% HK$4.9m
Yu Wang
VP & Executive Director10.3yrsHK$501.00kno data
Wei Wang
Group President6.8yrsno datano data
Chi Kai So
Group Financial Controller & Company Secretary1.8yrsno datano data
Kin Kiu Fong
Chief Technology Officer0yrsno datano data
Kwok Leung Lo
Sales Director0yrsno datano data
Huai Bin Kuang
General Manager of Zhuhai Reminda Telecom Equipment Company Limited0yrsno datano data

6.8yrs

Average Tenure

54yo

Average Age

Experienced Management: FTQ's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siu Ying Lau
Founder28.1yrsHK$2.77m49.72% HK$4.9m
Yu Wang
VP & Executive Director10.3yrsHK$501.00kno data
Man Kit Lam
Independent Non-Executive Director2.3yrsHK$100.00kno data
Kang Rong Bao
Non-Executive Director1.7yrsHK$58.00kno data
Chun Law
Independent Non-Executive Director7.7yrsHK$100.00kno data
Wai Shun Lo
Independent Non-Executive Director1.7yrsHK$58.00kno data

5.0yrs

Average Tenure

54yo

Average Age

Experienced Board: FTQ's board of directors are considered experienced (5 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

China Fortune Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Fortune Holdings Limited
  • Ticker: FTQ
  • Exchange: DB
  • Founded: 1992
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$83.518m
  • Listing Market Cap: HK$9.943m
  • Shares outstanding: 917.78m
  • Website: https://www.fortunetele.com

Number of Employees


Location

  • China Fortune Holdings Limited
  • Tower A, Regent Centre
  • Room 1505-6, 15th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
110SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2000
FTQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2000

Biography

China Fortune Holdings Limited, an investment holding company, engages in the distribution and trading of mobile phones and related accessories in the People’s Republic of China. The company operates through Mobile Phone Business and Mining Business segments. It also offers telecommunication equipment, wireless solutions, personal electronic assistants, network equipment, software, and other equipment. In addition, the company is involved in the development of marketing and after-sales service network; and mining and processing of celestite, zinc, and lead minerals located in Huangshi City, Hubei Province. Further, it engages in the provision of management services. The company was formerly known as Fortune Telecom Holdings Limited and changed its name to China Fortune Holdings Limited in October 2007. China Fortune Holdings Limited was founded in 1992 and is based in Kwai Chung, Hong Kong. China Fortune Holdings Limited is a subsidiary of Future 2000 Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:01
End of Day Share Price2020/02/20 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.