SEHK:1545

Stock Analysis Report

Executive Summary

Design Capital Limited, an investment holding company, engages in the furniture business.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Design Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.3%

1545

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

n/a

1545

11.6%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: Insufficient data to determine how 1545 performed against the Hong Kong Trade Distributors industry.

Return vs Market: Insufficient data to determine how 1545 performed against the Hong Kong Market.


Shareholder returns

1545IndustryMarket
7 Day7.3%7.5%0.9%
30 Day-6.3%-7.8%0.4%
90 Day-15.7%8.2%-5.5%
1 Yearn/a15.0%11.6%4.2%0.6%
3 Yearn/a-7.8%-16.2%15.5%3.9%
5 Yearn/a-38.4%-50.5%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Design Capital undervalued compared to its fair value and its price relative to the market?

6.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 1545 (HK$0.12) is trading above our estimate of fair value (HK$0.05)

Significantly Undervalued: 1545 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1545 is good value based on its PE Ratio (6.2x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 1545 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1545's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1545 is overvalued based on its PB Ratio (0.8x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

0.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1545's forecast earnings growth (0.1% per year) is below the savings rate (2%).

Earnings vs Market: 1545's earnings (0.1% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 1545's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1545's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1545's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1545's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Design Capital performed over the past 5 years?

4.1%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1545's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1545's past year earnings growth to its 5-year average.

Earnings vs Industry: 1545 earnings growth over the past year (4.1%) exceeded the Trade Distributors industry 1%.


Return on Equity

High ROE: 1545's Return on Equity (15.5%) is considered low.


Return on Assets

ROA vs Industry: 1545 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1545's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Design Capital's financial position?


Financial Position Analysis

Short Term Liabilities: 1545's short term assets (SGD73.2M) exceeds its short term liabilities (SGD26.0M)

Long Term Liabilities: 1545's short term assets (73.2M) exceeds its long term liabilities (934.0K)


Debt to Equity History and Analysis

Debt Level: 1545 is debt free.

Reducing Debt: 1545 had no debt 5 years ago.

Debt Coverage: 1545 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1545 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1545 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1545's debt is covered by short term assets.


Next Steps

Dividend

What is Design Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1545's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1545's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1545's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1545'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 1545's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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


CEO

Design Capital has no CEO, or we have no data on them.


Insider Trading

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


Ownership Breakdown


Management Team


    Board Members

      Company Information

      Design Capital Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Design Capital Limited
      • Ticker: 1545
      • Exchange: SEHK
      • Founded: 1981
      • Industry: Trading Companies and Distributors
      • Sector: Capital Goods
      • Market Cap: HK$236.000m
      • Shares outstanding: 2.00b
      • Website: https://www.designcapital.sg

      Number of Employees


      Location

      • Design Capital Limited
      • No. 07-09
      • 16 Tai Seng Street
      • Singapore
      • 534138
      • Singapore

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      1545SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2019

      Biography

      Design Capital Limited, an investment holding company, engages in the furniture business. Its U.S. Furniture Sales segment sources and sells furniture products under the Target Marketing Systems, TMS, Simp ...


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2019/10/19 12:52
      End of Day Share Price2019/10/18 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.