SEHK:2280

Stock Analysis Report

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Executive Summary

HC Group Inc., an investment holding company, provides business information services through online and offline channels in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2280's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.9%

2280

5.3%

HK Trade Distributors

0.5%

HK Market


1 Year Return

-52.0%

2280

-24.3%

HK Trade Distributors

6.6%

HK Market

Return vs Industry: 2280 underperformed the Hong Kong Trade Distributors industry which returned -24.3% over the past year.

Return vs Market: 2280 underperformed the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

2280IndustryMarket
7 Day-6.9%5.3%0.5%
30 Day-14.3%4.1%-0.8%
90 Day-27.5%5.2%9.4%
1 Year-52.0%-52.0%-21.9%-24.3%11.0%6.6%
3 Year-83.7%-83.7%-44.1%-47.9%3.2%-7.8%
5 Year-71.3%-71.7%-60.6%-65.6%22.5%1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HC Group undervalued compared to its fair value and its price relative to the market?

0.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2280's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2280's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2280 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 2280 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 2280's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2280 is good value based on its PB Ratio (0.3x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

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

13.2%

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 HC Group 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 HC Group performed over the past 5 years?

-16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2280 is currently unprofitable.

Growing Profit Margin: 2280 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2280 is unprofitable, and losses have increased over the past 5 years at a rate of 16.2% per year.

Accelerating Growth: Unable to compare 2280's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2280 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (6.3%).


Return on Equity

High ROE: 2280 has a negative Return on Equity (-9.72%), as it is currently unprofitable.


Next Steps

Financial Health

How is HC Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2280's short term assets (CN¥3.5B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: 2280's short term assets (CN¥3.5B) exceed its long term liabilities (CN¥913.4M).


Debt to Equity History and Analysis

Debt Level: 2280's debt to equity ratio (50.6%) is considered high.

Reducing Debt: 2280's debt to equity ratio has reduced from 52.7% to 50.6% over the past 5 years.

Debt Coverage: 2280's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 2280's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is HC Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2280's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2280'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 2280's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2280's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2280 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 2280'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?

1.6yrs

Average management tenure


CEO

Yonghong Zhang (52 yo)

1.58yrs

Tenure

CN¥9,451,000

Compensation

Mr. Yonghong Zhang has been Executive Director and Chief Executive Officer of the HC Group Inc since January 04, 2019 and served as its Co-President since August 26, 2018 until January 04, 2019. Mr. Zhang ...


CEO Compensation Analysis

Compensation vs Market: Yonghong's total compensation ($USD1.36M) is above average for companies of similar size in the Hong Kong market ($USD277.61K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jun Liu
Chairman & Compliance Officer2.42yrsCN¥22.10m3.83%
CN¥ 54.2m
Yonghong Zhang
CEO & Executive Director1.58yrsCN¥9.45m0.0076%
CN¥ 107.9k
Xiaodong Liu
President & Executive Director2.17yrsCN¥4.97m4.75%
CN¥ 67.3m
Wee Ong Lee
Senior Consultant0.25yrno datano data
Lei Wu
Executive Vice Presidentno datano datano data
Bingchen Song
Executive Vice Presidentno datano datano data
Hong Zhao
Chief Financial Officer0.25yrno datano data
Gang Guo
Chief Technology Officer and Vice Presidentno datano datano data
Qingguo Lu
General Counsel & Secretaryno datano datano data
Tao Li
Chief Marketing Officer and Vice Presidentno datano datano data
Yi Geng
Chief Human Resources Officer and Senior Vice-Presidentno datano datano data
Wang Xiaoyu
President of Southern Region and Vice President19.58yrsno datano data

1.6yrs

Average Tenure

45.5yo

Average Age

Experienced Management: 2280's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jun Liu
Chairman & Compliance Officer2.42yrsCN¥22.10m3.83%
CN¥ 54.2m
Yonghong Zhang
CEO & Executive Director1.58yrsCN¥9.45m0.0076%
CN¥ 107.9k
Xiaodong Liu
President & Executive Director2.17yrsCN¥4.97m4.75%
CN¥ 67.3m
Fansheng Guo
Non-Executive Director 20.42yrsno data4.41%
CN¥ 62.4m
Ke Zhang
Independent Non-Executive Director17.42yrsCN¥250.00kno data
Dewei Lin
Non-Executive Director0.083yrno datano data
Tianwei Zhang
Independent Non-Executive Director8.75yrsCN¥220.00kno data
Yan Qi
Independent Non-Executive Director2.75yrsCN¥220.00kno data
Yang Sun
Non-Executive Director1.25yrsno datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 2280's board of directors are not considered experienced ( 2.4 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: 2280 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.


Top Shareholders

Company Information

HC Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HC Group Inc.
  • Ticker: 2280
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.415b
  • Shares outstanding: 1.31b
  • Website: https://www.hcgroup.com

Number of Employees


Location

  • HC Group Inc.
  • Tower A1
  • 7th Floor, Junhao Central Park Plaza
  • Beijing
  • Beijing Province
  • 100026
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2280SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2003
HCIBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2003
2280SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2003

Biography

HC Group Inc., an investment holding company, provides business information services through online and offline channels in the People’s Republic of China. It operates through Technology-Driven New Retail, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:18
End of Day Share Price2020/08/14 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.