SEHK:1104

Stock Analysis Report

Executive Summary

APAC Resources Limited, an investment holding company, engages in commodity trading and natural resource investment businesses in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has APAC Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

1104

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-20.7%

1104

12.8%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 1104 underperformed the Hong Kong Trade Distributors industry which returned 12.8% over the past year.

Return vs Market: 1104 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1104IndustryMarket
7 Day-7.1%7.5%0.9%
30 Day-7.1%-5.7%0.5%
90 Day-6.1%8.1%-4.3%
1 Year-9.9%-20.7%16.3%12.8%4.2%0.6%
3 Year2.6%-14.8%-5.7%-14.5%15.6%4.0%
5 Year-22.8%-52.1%-37.9%-50.4%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is APAC Resources undervalued compared to its fair value and its price relative to the market?

13.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1104 (HK$0.92) is trading below our estimate of fair value (HK$1.06)

Significantly Below Fair Value: 1104 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1104 is good value based on its PE Ratio (1.4x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 1104 is good value based on its PE Ratio (1.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1104's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1104 is good value based on its PB Ratio (0.3x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is APAC Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1104's earnings are forecast to decline over the next 3 years (-4% per year).

Earnings vs Market: 1104's earnings are forecast to decline over the next 3 years (-4% per year).

High Growth Earnings: 1104's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1104's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1104's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1104's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has APAC Resources performed over the past 5 years?

37.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1104's earnings have grown significantly by 37.3% per year over the past 5 years.

Accelerating Growth: 1104's earnings growth over the past year (85.4%) exceeds its 5-year average (37.3% per year).

Earnings vs Industry: 1104 earnings growth over the past year (85.4%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: 1104's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: 1104 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 1104's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is APAC Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 1104's short term assets (HK$1.8B) exceeds its short term liabilities (HK$13.0M)

Long Term Liabilities: 1104 has no long term liabilities


Debt to Equity History and Analysis

Debt Level: 1104 is debt free.

Reducing Debt: 1104 has no debt compared to 5 years ago when its debt to equity ratio was 4%.

Debt Coverage: 1104 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1104 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1104 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1104's debt is covered by short term assets.


Next Steps

Dividend

What is APAC Resources's current dividend yield, its reliability and sustainability?

10.87%

Current Dividend Yield


Dividend Yield vs Market

company10.9%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1104's dividend (10.87%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1104's dividend (10.87%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: Whilst dividend payments have been stable, 1104 has been paying a dividend for less than 10 years.

Growing Dividend: 1104's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.7%), 1104's dividend payments are thoroughly 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

What is the CEO of APAC Resources's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Andrew Ferguson (46yo)

9.8yrs

Tenure

HK$5,242,000

Compensation

Mr. Andrew Charles Ferguson, BSc Hons, has been the Chief Executive Officer and Executive Director of APAC Resources Limited since January 12, 2010. Mr. Ferguson serves as a Fund Manager at New City Invest ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD668.44K) is above average for companies of similar size in the Hong Kong market ($USD214.48K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 1104's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 1104's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$436,00112 Jul 19
Lee and Lee Trust
EntityCompany
Shares420,000
Max PriceHK$1.04
BuyHK$291,78811 Jul 19
Lee and Lee Trust
EntityCompany
Shares280,000
Max PriceHK$1.04
BuyHK$105,00008 Jul 19
Lee and Lee Trust
EntityCompany
Shares100,000
Max PriceHK$1.05
BuyHK$422,99905 Jul 19
Lee and Lee Trust
EntityCompany
Shares400,000
Max PriceHK$1.06
BuyHK$560,00030 Apr 19
Lee and Lee Trust
EntityCompany
Shares500,000
Max PriceHK$1.12
BuyHK$475,20009 Apr 19
Lee and Lee Trust
EntityCompany
Shares400,000
Max PriceHK$1.19
BuyHK$347,01008 Apr 19
Lee and Lee Trust
EntityCompany
Shares300,000
Max PriceHK$1.16
BuyHK$220,39210 Jan 19
Lee and Lee Trust
EntityCompany
Shares180,000
Max PriceHK$1.22
BuyHK$264,19809 Jan 19
Lee and Lee Trust
EntityCompany
Shares220,000
Max PriceHK$1.20
BuyHK$2,774,99318 Dec 18
Lee and Lee Trust
EntityCompany
Shares2,220,000
Max PriceHK$1.25
BuyHK$16,238,33617 Dec 18
Lee and Lee Trust
EntityCompany
Shares14,315,733
Max PriceHK$1.13
BuyHK$4,250,01012 Dec 18
Lee and Lee Trust
EntityCompany
Shares3,400,000
Max PriceHK$1.25
SellHK$4,687,13012 Dec 18
Andrew Ferguson
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares3,750,000
Max PriceHK$1.25
BuyHK$160,80408 Nov 18
Lee and Lee Trust
EntityCompany
Shares140,000
Max PriceHK$1.15

Ownership Breakdown


Management Team

  • Tam Kit Ling (53yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
  • Brett Smith (58yo)

    Deputy Chairman

    • Tenure: 3.4yrs
    • Compensation: HK$1.54m
  • Jenny Wong

    Vice President of Corporate & Investment

    • Tenure: 7.7yrs
  • Andrew Ferguson (46yo)

    CEO & Executive Director

    • Tenure: 9.8yrs
    • Compensation: HK$5.24m
  • Kenneth To

    Financial Controller

    • Tenure: 8.8yrs
  • Frederick Wong (63yo)

    Consultant

    • Tenure: 3.2yrs
  • Luyong Zhou (55yo)

    General Manager of Shanghai Commodity Business

    • Tenure: 0yrs
    • Compensation: HK$10.75m
  • Tung Ni Lau (37yo)

    Company Secretary

    • Tenure: 3.3yrs

Board Members

  • Robert Willcocks (71yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$190.00k
  • Arthur George Dew (77yo)

    Non-Executive Chairman

    • Tenure: 3.6yrs
    • Compensation: HK$666.00k
  • Kwok Hoo So (65yo)

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: HK$120.00k
  • Mark Wong (54yo)

    Alternate Director

    • Tenure: 3.6yrs
    • Compensation: HK$236.00k
  • Seng-Hui Lee (50yo)

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: HK$120.00k
  • Johnson Francis Chang (65yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$190.00k
  • Albert Wong (67yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$190.00k
  • Brett Smith (58yo)

    Deputy Chairman

    • Tenure: 3.4yrs
    • Compensation: HK$1.54m
  • Andrew Ferguson (46yo)

    CEO & Executive Director

    • Tenure: 9.8yrs
    • Compensation: HK$5.24m
  • Hongqian Wang (60yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs

Company Information

APAC Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: APAC Resources Limited
  • Ticker: 1104
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.109b
  • Shares outstanding: 1.22b
  • Website: https://www.apacresources.com

Number of Employees


Location

  • APAC Resources Limited
  • Allied Kajima Building
  • Room 2304, 23rd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1104SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1998
FZV1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1998
APPC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1998

Biography

APAC Resources Limited, an investment holding company, engages in commodity trading and natural resource investment businesses in the People’s Republic of China. It operates through Commodity Business; Res ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:38
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.