SEHK:1868

Stock Analysis Report

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Executive Summary

Neo-Neon Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of lighting products in North America, Europe, the People's Republic of China, rest of Asia, and internationally.

Risk Analysis

No risks detected for 1868 from our risk checks.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

How has Neo-Neon Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1868 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

15.4%

1868

13.9%

HK Electrical

9.0%

HK Market


1 Year Return

-1.6%

1868

-15.5%

HK Electrical

0.2%

HK Market

Return vs Industry: 1868 exceeded the Hong Kong Electrical industry which returned -19.5% over the past year.

Return vs Market: 1868 underperformed the Hong Kong Market which returned -0.5% over the past year.


Shareholder returns

1868IndustryMarket
7 Day15.4%13.9%9.0%
30 Day20.0%8.4%8.4%
90 Day13.2%15.9%12.9%
1 Year-1.6%-1.6%-14.8%-15.5%4.4%0.2%
3 Year-33.3%-33.3%-42.7%-45.1%10.1%-1.8%
5 Year-43.9%-43.9%-53.6%-56.2%12.2%-6.7%

Price Volatility Vs. Market

How volatile is Neo-Neon Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neo-Neon Holdings undervalued compared to its fair value and its price relative to the market?

0.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1868 (HK$0.6) is trading above our estimate of fair value (HK$0.54)

Significantly Below Fair Value: 1868 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1868 is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: 1868 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1868's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1868 is overvalued based on its PB Ratio (0.7x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Neo-Neon Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Capital Goods 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 Neo-Neon 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 Neo-Neon Holdings performed over the past 5 years?

51.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1868 is currently unprofitable.

Growing Profit Margin: 1868 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1868 is unprofitable, but has reduced losses over the past 5 years at a rate of 51.1% per year.

Accelerating Growth: Unable to compare 1868's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1868 is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (12.8%).


Return on Equity

High ROE: 1868 has a negative Return on Equity (-1.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Neo-Neon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1868's short term assets (CN¥1.1B) exceed its short term liabilities (CN¥331.9M).

Long Term Liabilities: 1868's short term assets (CN¥1.1B) exceed its long term liabilities (CN¥431.1M).


Debt to Equity History and Analysis

Debt Level: 1868's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: 1868's debt to equity ratio has increased from 9.9% to 28.6% over the past 5 years.


Balance Sheet


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: Whilst unprofitable 1868 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1868 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.8% per year.


Next Steps

Dividend

What is Neo-Neon Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1868's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1868's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1868's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1868's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1868 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1868's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Zhi Gao (57yo)

0.50

Tenure

Mr. Zhi Gao serves as Chairman of the Board at Neo-Neon Holdings Limited since March 26, 2020. Mr. Gao serves as Executive Director, President and Chief Executive Officer at Neo-Neon Holdings Limited since ...


Leadership Team

NamePositionTenureCompensationOwnership
Pak Wang Li
Executive Director2.17yrsCN¥1.17m8.46% CN¥108.1m
Zhi Gao
Executive Chairman of the Board0.50yrno datano data
Kai Fu
CFO & Chief Accountant4.75yrsno datano data
Jann Huan Jang
Assistant Presidentno datano datano data
Hui Lai Xu
Assistant Presidentno datano datano data
Chien Wen Cheng
Assistant Presidentno datano datano data
Jian Yi Zhai
Assistant Presidentno datano datano data
Hiu Tung Chow
Company Secretary0.17yrno datano data

1.3yrs

Average Tenure

50yo

Average Age

Experienced Management: 1868's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Pak Wang Li
Executive Director2.17yrsCN¥1.17m8.46% CN¥108.1m
Zhi Gao
Executive Chairman of the Board0.50yrno datano data
Tian Min Liu
Independent Non-Executive Director5.92yrsCN¥354.00k0.029% CN¥366.0k
Han Leong Seah
Non-Executive Director5.92yrsCN¥1.11m0.072% CN¥915.0k
Ming Qi Li
Independent Non-Executive Director5.92yrsCN¥354.00k0.029% CN¥366.0k
Ren-Da Fan
Independent Non-Executive Director5.92yrsCN¥354.00k0.029% CN¥366.0k
Haiying Zhou
Non-Executive Director0.50yrno datano data

5.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 1868's board of directors are considered experienced (5.9 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

Neo-Neon Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neo-Neon Holdings Limited
  • Ticker: 1868
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$1.278b
  • Shares outstanding: 2.09b
  • Website: https://www.neo-neon.com

Number of Employees


Location

  • Neo-Neon Holdings Limited
  • Allied Kajima Building
  • 15th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1868SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2006
N2LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006
911868TSEC (Taiwan Stock Exchange)TDR EACH REPR 0.5 ORD SHSTWTWDDec 2009

Biography

Neo-Neon Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of lighting products in North America, Europe, the People's Republic of China, rest of Asia, and internationally. The company offers decorative lighting products, including neon flex, tape light, LED light string, duralight, party light, LED flexible wall washer, LED dewdrop light, and vintage style and other products. It also provides asset management, investment advisory, and securities brokerage services; and trades in lighting products. The company was founded in 1978 and is headquartered in Wanchai, Hong Kong. Neo-Neon Holdings Limited is a subsidiary of THTF Energy Saving Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:43
End of Day Share Price2020/07/08 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.