SEHK:1979

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Ten Pao Group Holdings

Executive Summary

Ten Pao Group Holdings Limited, an investment holding company, develops, manufactures, and sells electric charging products in the People’s Republic of China, the rest of Asia, the Americas, Europe, Africa, and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has Ten Pao Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1979 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

1979

2.8%

HK Electrical

1.2%

HK Market


1 Year Return

1.4%

1979

-3.4%

HK Electrical

5.5%

HK Market

Return vs Industry: 1979 exceeded the Hong Kong Electrical industry which returned -3.4% over the past year.

Return vs Market: 1979 underperformed the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

1979IndustryMarket
7 Day4.2%2.8%1.2%
30 Day-1.3%-0.5%-3.8%
90 Day0%8.7%7.7%
1 Year8.5%1.4%-1.9%-3.4%9.8%5.5%
3 Year-64.6%-69.3%-42.5%-45.2%3.7%-7.4%
5 Yearn/a-53.3%-56.3%12.3%-6.5%

Price Volatility Vs. Market

How volatile is Ten Pao Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ten Pao Group 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: 1979 (HK$0.74) is trading below our estimate of fair value (HK$3.84)

Significantly Below Fair Value: 1979 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1979 is good value based on its PE Ratio (4.2x) compared to the HK Electrical industry average (10.8x).

PE vs Market: 1979 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1979 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1979 is overvalued based on its PB Ratio (1.1x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Ten Pao Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1979's forecast earnings growth (19.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1979's earnings (19.4% per year) are forecast to grow faster than the Hong Kong market (18.7% per year).

High Growth Earnings: 1979's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1979's revenue (11.1% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Revenue: 1979's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1979's Return on Equity is forecast to be high in 3 years time (28.1%)


Next Steps

Past Performance

How has Ten Pao Group Holdings performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1979 has a high level of non-cash earnings.

Growing Profit Margin: 1979's current net profit margins (4.9%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 1979's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: 1979's earnings growth over the past year (219%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: 1979 earnings growth over the past year (219%) exceeded the Electrical industry 9.9%.


Return on Equity

High ROE: 1979's Return on Equity (25.4%) is considered high.


Next Steps

Financial Health

How is Ten Pao Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1979's short term assets (HK$1.6B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: 1979's short term assets (HK$1.6B) exceed its long term liabilities (HK$134.5M).


Debt to Equity History and Analysis

Debt Level: 1979's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: 1979's debt to equity ratio has reduced from 28.4% to 23.3% over the past 5 years.

Debt Coverage: 1979's debt is well covered by operating cash flow (129.6%).

Interest Coverage: 1979's interest payments on its debt are well covered by EBIT (30x coverage).


Balance Sheet


Next Steps

Dividend

What is Ten Pao Group Holdings's current dividend yield, its reliability and sustainability?

7.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1979's dividend (7.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1979's dividend (7.57%) is in the top 25% of dividend payers in the Hong Kong market (6.87%)


Stability and Growth of Payments

Stable Dividend: 1979 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1979's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 1979's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1979's dividends in 3 years are forecast to be well covered by earnings (30.5% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Kwong Yee Hung (62 yo)

no data

Tenure

HK$10,587,000

Compensation

Mr. Kwong Yee Hung serves as the Chief Executive Officer at Ten Pao Group Holdings Limited. Mr. Hung has been chairman at Ten Pao Group Holdings Limited since June 2015 and Executive Director since January ...


CEO Compensation Analysis

Compensation vs Market: Kwong Yee's total compensation ($USD1.37M) is above average for companies of similar size in the Hong Kong market ($USD231.54K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kwong Yee Hung
Chairman & CEOno dataHK$10.59m65.08%
HK$ 481.8m
Sui Tak Hung
GM for Commodity Business & Executive Director5.58yrsHK$1.41mno data
Bingbing Yang
Executive Director & VP of Business Group 11.08yrsHK$5.45m0.042%
HK$ 310.8k
Chung Shing Tse
VP, Company Secretary & CFO4.75yrsno datano data
Philip Yue
VP of Business Group 2 & Chief Strategy Officer2.67yrsno datano data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: 1979's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwong Yee Hung
Chairman & CEOno dataHK$10.59m65.08%
HK$ 481.8m
Sui Tak Hung
GM for Commodity Business & Executive Director5.58yrsHK$1.41mno data
Bingbing Yang
Executive Director & VP of Business Group 11.08yrsHK$5.45m0.042%
HK$ 310.8k
Kwan Hung Lee
Independent Non-Executive Director4.75yrsHK$300.00kno data
Yat Pang Chu
Independent Non-Executive Director4.75yrsHK$300.00kno data
Cheung Chuen Lam
Independent Non-Executive Director4.75yrsHK$300.00k0.10%
HK$ 740.0k

4.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 1979's board of directors are considered experienced (4.8 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

Ten Pao Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ten Pao Group Holdings Limited
  • Ticker: 1979
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$740.337m
  • Shares outstanding: 1.00b
  • Website: https://www.tenpao.com

Number of Employees


Location

  • Ten Pao Group Holdings Limited
  • Kwong Sang Hong Centre
  • Room 610-612
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1979SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2015

Biography

Ten Pao Group Holdings Limited, an investment holding company, develops, manufactures, and sells electric charging products in the People’s Republic of China, the rest of Asia, the Americas, Europe, Africa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 12:54
End of Day Share Price2020/08/07 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.