SEHK:626

Stock Analysis Report

Public Financial Holdings

Executive Summary

Public Financial Holdings Limited, an investment and property holding company, provides retail and commercial banking, lending, and stockbroking services in Hong Kong and Mainland China.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 626 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

626

-3.2%

HK Banks

-3.3%

HK Market


1 Year Return

-15.2%

626

-14.7%

HK Banks

-9.6%

HK Market

Return vs Industry: 626 matched the Hong Kong Banks industry which returned -14.7% over the past year.

Return vs Market: 626 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

626IndustryMarket
7 Day-1.8%-3.2%-3.3%
30 Day-5.4%-3.4%-3.8%
90 Day-10.3%-4.2%-0.2%
1 Year-9.6%-15.2%-10.2%-14.7%-6.3%-9.6%
3 Year-3.8%-20.3%5.9%-8.7%11.2%-0.05%
5 Year2.8%-23.1%14.9%-11.8%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Public Financial 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: 626 (HK$2.79) is trading below our estimate of fair value (HK$6.35)

Significantly Below Fair Value: 626 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 626 is poor value based on its PE Ratio (6.6x) compared to the Banks industry average (5.6x).

PE vs Market: 626 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 626's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 626 is good value based on its PB Ratio (0.4x) compared to the HK Banks industry average (0.5x).


Next Steps

Future Growth

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

5.7%

Forecasted Banks 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 Public Financial 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 Public Financial Holdings performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 626 has high quality earnings.

Growing Profit Margin: 626's current net profit margins (33.7%) are lower than last year (34.7%).


Past Earnings Growth Analysis

Earnings Trend: 626's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 626's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 626 had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Banks industry average (3.6%).


Return on Equity

High ROE: 626's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Public Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 626 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 626's debt is covered by short term assets (assets are 4.3x debt).


Financial Institutions Analysis

Asset Level: 626's level of assets compared to its equity is low.

Allowance for Bad Loans: 626 has a sufficient allowance for bad loans.

Low Risk Liabilities: 626's liabilities are made up of primarily low risk sources of funding.

Loan Level: 626 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 626's loans are broadly funded by customer deposits.

Level of Bad Loans: 626 has an appropriate level of bad loans (0.66%)


Next Steps

Dividend

What is Public Financial Holdings's current dividend yield, its reliability and sustainability?

7.17%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%2.3%markettop25%6.4%industryaverage5.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 626's dividend (7.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 626's dividend (7.17%) is in the top 25% of dividend payers in the Hong Kong market (6.42%)


Stability and Growth of Payments

Stable Dividend: 626's dividend payments have been volatile in the past 10 years.

Growing Dividend: 626's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.1%), 626'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?

13.5yrs

Average board tenure


CEO

Yoke Kong Tan (66yo)

HK$4,116,000

Compensation

Mr. Tan Yoke Kong has been Chief Executive of Public Bank (Hong Kong) Limited at Public Bank Berhad since 2006. Mr. Tan serves as the Chief Executive Officer and Joint Secretary of Public Financial Holding ...


CEO Compensation Analysis

Compensation vs Market: Yoke Kong's total compensation ($USD528.11K) is above average for companies of similar size in the Hong Kong market ($USD341.79K).

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


Board Members

NamePositionTenureCompensationOwnership
Yoke Kong Tan
CEO, Joint Secretary & Executive Director0yrsHK$4.12m0.049% HK$1.5m
Hong Piow Teh
Non-Executive Chairman of the Board28.4yrsHK$650.00kno data
Chin Guan Lee
Independent Non-Executive Director15.4yrsHK$405.00kno data
Wan Lai
Independent Non-Executive Co-Chairman of the Board4.6yrsHK$405.00kno data
Kat Kiam Chang
Non-Executive Director15.9yrsHK$300.00k0.027% HK$836.9k
Yam Kiang Chong
Non-Executive Director11.1yrsHK$3.24m0.0018% HK$55.8k
Poh Keat Quah
Non-Executive Director11.6yrsHK$400.00kno data
Wing Chew Tang
Independent Non-Executive Director6.2yrsHK$405.00kno data

13.5yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 626's board of directors are seasoned and experienced ( 13.5 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

Public Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Public Financial Holdings Limited
  • Ticker: 626
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: HK$3.063b
  • Shares outstanding: 1.10b
  • Website: https://www.publicfinancial.com.hk

Number of Employees


Location

  • Public Financial Holdings Limited
  • Public Bank Centre
  • 2nd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
626SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
PBCF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Public Financial Holdings Limited, an investment and property holding company, provides retail and commercial banking, lending, and stockbroking services in Hong Kong and Mainland China. The company’s Retail and Commercial Banking Businesses segment offers various products and services, including deposit accounts; mortgages and consumer lending products; hire purchase and leasing; financing to purchasers of licensed public vehicles, such as taxis and public light buses; services and financing for customers in trading, manufacturing, and various other business sectors; foreign exchange services; and cash management services for deposit taking and lending. This segment has a combined network of 77 branches in Hong Kong and 4 branches in the People’s Republic of China. Its Wealth Management Services, Stockbroking and Securities Management segment is involved in the management of investments in debt securities and equities; securities dealing; and provision of wealth management products and services. The company’s Other Businesses segment engages in trading taxi cabs and taxi licenses; leasing taxis; and letting investment properties. Public Financial Holdings Limited also provides personal and short term loans, and nominee services. The company was formerly known as JCG Holdings Limited. The company was incorporated in 1991 and is headquartered in Central, Hong Kong. Public Financial Holdings Limited is a subsidiary of Public Bank Berhad. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:44
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.