SEHK:222

Stock Analysis Report

Executive Summary

Min Xin Holdings Limited, an investment holding company, primarily engages in the motor vehicles trading business in Hong Kong, Mainland China, and Macau.

Rewards

Trading at 56.4% below its fair value

Pays a reliable dividend of 3.73%

Risk Analysis

No risks detected for 222 from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 222 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

222

-5.5%

HK Trade Distributors

0.2%

HK Market


1 Year Return

-45.0%

222

-37.3%

HK Trade Distributors

-22.0%

HK Market

Return vs Industry: 222 underperformed the Hong Kong Trade Distributors industry which returned -37.1% over the past year.

Return vs Market: 222 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

222IndustryMarket
7 Day-6.6%-5.5%0.2%
30 Day-11.8%-19.8%-10.6%
90 Day-15.7%-27.5%-15.8%
1 Year-43.9%-45.0%-34.9%-37.3%-19.1%-22.0%
3 Year-55.1%-57.3%-34.9%-40.4%-3.7%-13.4%
5 Year-51.0%-54.1%-65.6%-70.9%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Min Xin 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: 222 (HK$2.68) is trading below our estimate of fair value (HK$6.15)

Significantly Below Fair Value: 222 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 222 is good value based on its PE Ratio (2.8x) compared to the Trade Distributors industry average (8.8x).

PE vs Market: 222 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 222's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 222 is good value based on its PB Ratio (0.2x) compared to the HK Trade Distributors industry average (0.4x).


Next Steps

Future Growth

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

9.0%

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 Min Xin 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 Min Xin Holdings performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 222 has high quality earnings.

Growing Profit Margin: 222's current net profit margins are higher than last year (55.6%).


Past Earnings Growth Analysis

Earnings Trend: 222's earnings have grown by 5.9% per year over the past 5 years.

Accelerating Growth: 222's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 222 had negative earnings growth (-1.1%) over the past year, making it difficult to compare to the Trade Distributors industry average (-1.1%).


Return on Equity

High ROE: 222's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Min Xin Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 222's short term assets (HK$1.0B) exceed its short term liabilities (HK$254.2M).

Long Term Liabilities: 222's short term assets (HK$1.0B) exceed its long term liabilities (HK$405.7M).


Debt to Equity History and Analysis

Debt Level: 222's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: 222's debt to equity ratio has reduced from 12% to 6.5% over the past 5 years.

Debt Coverage: 222's debt is well covered by operating cash flow (47.2%).

Interest Coverage: 222's interest payments on its debt are well covered by EBIT (71.4x coverage).


Balance Sheet

Inventory Level: 222 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 222's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Min Xin Holdings's current dividend yield, its reliability and sustainability?

3.73%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 222's dividend (3.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.65%).

High Dividend: 222's dividend (3.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.26%).


Stability and Growth of Payments

Stable Dividend: 222's dividends per share have been stable in the past 10 years.

Growing Dividend: 222's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.5%), 222'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

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

2.5yrs

Average board tenure


CEO

Yu Chen (55yo)

no data

Tenure

HK$2,129,426

Compensation

Mr. Chen Yu has been Executive Director and General Manager of Min Xin Holdings Limited since September 10, 2018. Mr. Chen was Executive Deputy General Manager of Min Xin Holdings Limited since August 2018 ...


CEO Compensation Analysis

Compensation vs Market: Yu's total compensation ($USD274.66K) is about average for companies of similar size in the Hong Kong market ($USD300.45K).

Compensation vs Earnings: Insufficient data to compare Yu's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Zheng Yan
Executive Chairman of the Board2yrsno datano data
Yu Chen
GM & Executive Directorno dataHK$2.13mno data
Fei Wang
Vice Chairman of the Board5.67yrsno datano data
Kai Ming Ip
Independent Non-Executive Director21.75yrsHK$250.00k0.14% HK$2.3m
Chong Shun Leung
Independent Non-executive Director1.92yrsHK$167.00kno data
Man Hoi Cheung
Independent Non-Executive Director3yrsHK$350.00kno data
Jingchao Yang
Non-executive Director1.33yrsno datano data
Hau Hon
Non Executive Director4.08yrsHK$60.00kno data

2.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 222's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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

Min Xin Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Min Xin Holdings Limited
  • Ticker: 222
  • Exchange: SEHK
  • Founded:
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.601b
  • Shares outstanding: 597.26m
  • Website: https://www.minxin.com.hk

Number of Employees


Location

  • Min Xin Holdings Limited
  • Fairmont House
  • 17th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MXDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
222SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Min Xin Holdings Limited, an investment holding company, primarily engages in the motor vehicles trading business in Hong Kong, Mainland China, and Macau. The company is also involved in the financial services, general insurance, property development and investment, and strategic investment businesses. It provides micro credit and entrusted loans; and leases office space. Min Xin Holdings Limited is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 13:02
End of Day Share Price2020/04/03 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.