SEHK:3686

Stock Analysis Report

Clifford Modern Living Holdings

Executive Summary

Clifford Modern Living Holdings Limited, an investment holding company, provides a portfolio of services in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

How has Clifford Modern Living Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

3686

2.5%

HK Industrials

2.2%

HK Market


1 Year Return

10.9%

3686

-12.3%

HK Industrials

-1.3%

HK Market

Return vs Industry: 3686 exceeded the Hong Kong Industrials industry which returned -12.3% over the past year.

Return vs Market: 3686 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

3686IndustryMarket
7 Day3.4%2.5%2.2%
30 Day1.7%-2.5%-2.9%
90 Day-14.1%-7.1%-5.8%
1 Year15.0%10.9%-8.3%-12.3%2.3%-1.3%
3 Yearn/a-6.0%-15.7%15.6%3.9%
5 Yearn/a3.4%-29.1%20.1%0.06%

Price Volatility Vs. Market

How volatile is Clifford Modern Living Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Clifford Modern Living Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 3686 (HK$0.61) is trading below our estimate of fair value (HK$2.24)

Significantly Undervalued: 3686 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 3686 is poor value based on its PE Ratio (7.3x) compared to the Industrials industry average (5.6x).

PE vs Market: 3686 is good value based on its PE Ratio (7.3x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 3686's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 3686 is overvalued based on its PB Ratio (1.6x) compared to the HK Industrials industry average (0.6x).


Next Steps

Future Growth

How is Clifford Modern Living Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 3686's earnings are forecast to decline over the next 3 years (-11.7% per year).

Earnings vs Market: 3686's earnings are forecast to decline over the next 3 years (-11.7% per year).

High Growth Earnings: 3686's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 3686's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 3686's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 3686's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Clifford Modern Living Holdings performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3686's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: 3686's earnings growth over the past year (3.7%) is below its 5-year average (25.3% per year).

Earnings vs Industry: 3686 earnings growth over the past year (3.7%) exceeded the Industrials industry -0.02%.


Return on Equity

High ROE: 3686's Return on Equity (22%) is considered high.


Return on Assets

ROA vs Industry: 3686 has a higher Return on Assets than the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: 3686's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Clifford Modern Living Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3686's short term assets (HK$477.5M) exceeds its short term liabilities (HK$163.5M)

Long Term Liabilities: 3686's short term assets (HK$477.5M) exceeds its long term liabilities (HK$28.6M)


Debt to Equity History and Analysis

Debt Level: 3686 is debt free.

Reducing Debt: 3686 has no debt compared to 5 years ago when its debt to equity ratio was 1.2%.

Debt Coverage: 3686 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3686 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3686 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3686's debt is covered by short term assets.


Next Steps

Dividend

What is Clifford Modern Living Holdings's current dividend yield, its reliability and sustainability?

3.41%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%6.3%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 3686's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 3686's dividend (3.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: Too early to tell whether 3686's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 3686's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.8%), 3686's dividend payments are well 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

What is the CEO of Clifford Modern Living Holdings's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Wendy Man (60yo)

1yrs

Tenure

CN¥186,000

Compensation

Ms. Lai Hung Man, also known as Wendy, serves as Chairman at Clifford Modern Living Holdings Limited since January 6, 2016, and has been its CEO & Executive Director since October 1, 2018. She was its Exec ...


Management Age and Tenure

1.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 3686's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

60yo

Average Age

Experienced Board: 3686's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCN¥420,00112 Jul 19
Cham Ho
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares600,000
Max PriceCN¥0.70
BuyCN¥59,00009 Jul 19
Cham Ho
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceCN¥0.59
BuyCN¥260,00127 Mar 19
Cham Ho
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares400,000
Max PriceCN¥0.65
BuyCN¥65,00027 Mar 19
Cham Ho
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceCN¥0.65

Ownership Breakdown


Management Team

  • Anthony Yu (34yo)

    CFO & Company Secretary

    • Tenure: 0.8yrs
  • Wendy Man (60yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: CN¥186.00k
  • Yuhua Liang (54yo)

    COO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥754.00k
  • Suk Mee Ho (51yo)

    Executive Director & Marketing Director

    • Tenure: 0.8yrs
    • Compensation: CN¥460.00k
  • MingXia Pang (38yo)

    General Manager of Human Resources

    • Tenure: 0yrs

Board Members

  • Wah Cheung Mak (69yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥177.00k
  • Elizabeth Law (65yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥177.00k
  • Wendy Man (60yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: CN¥186.00k
  • Yuhua Liang (54yo)

    COO & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥754.00k
  • Xing Liu (56yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥177.00k
  • Cham Ho (62yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥177.00k
  • Suk Mee Ho (51yo)

    Executive Director & Marketing Director

    • Tenure: 0.8yrs
    • Compensation: CN¥460.00k

Company Information

Clifford Modern Living Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clifford Modern Living Holdings Limited
  • Ticker: 3686
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: HK$619.272m
  • Shares outstanding: 1.02b
  • Website: https://www.cliffordmodernliving.com

Number of Employees


Location

  • Clifford Modern Living Holdings Limited
  • 8 Shiguang Road
  • Panyu
  • Guangzhou
  • Guangdong Province
  • 511496
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3686SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2016

Biography

Clifford Modern Living Holdings Limited, an investment holding company, provides a portfolio of services in the People’s Republic of China. The company operates through six segments: Property Management Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 13:11
End of Day Share Price2019/10/11 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.

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