SEHK:380

Stock Analysis Report

Softpower International

Executive Summary

Softpower International Limited, an investment holding company, trades in construction materials in Hong Kong, Macau, and Mainland China.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.

Share Price & News

How has Softpower International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

380

-0.2%

HK Trade Distributors

2.4%

HK Market


1 Year Return

-12.9%

380

5.4%

HK Trade Distributors

0.4%

HK Market

Return vs Industry: 380 underperformed the Hong Kong Trade Distributors industry which returned 5.4% over the past year.

Return vs Market: 380 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

380IndustryMarket
7 Day3.2%-0.2%2.4%
30 Day-1.5%-15.1%-2.6%
90 Day-10.5%2.0%-5.6%
1 Year-12.9%-12.9%8.6%5.4%4.0%0.4%
3 Year-17.6%-17.6%-12.3%-20.2%15.1%3.5%
5 Year-58.3%-58.3%-44.4%-55.5%20.3%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Softpower International undervalued compared to its fair value and its price relative to the market?

25.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 380 (HK$0.2) is trading above our estimate of fair value (HK$0.16)

Significantly Undervalued: 380 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 380 is poor value based on its PE Ratio (26x) compared to the Trade Distributors industry average (9.3x).

PE vs Market: 380 is poor value based on its PE Ratio (26x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 380's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 380 is good value based on its PB Ratio (0.5x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 380's forecast earnings growth (16.8% per year) is above the savings rate (2%).

Earnings vs Market: 380's earnings (16.8% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 380's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 380's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 380's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 380's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Softpower International performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 380's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: 380's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 380 had negative earnings growth (-79%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 380's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: 380's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 380's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Softpower International's financial position?


Financial Position Analysis

Short Term Liabilities: 380's short term assets (HK$564.1M) exceeds its short term liabilities (HK$144.8M)

Long Term Liabilities: 380's short term assets (564.1M) exceeds its long term liabilities (131.8M)


Debt to Equity History and Analysis

Debt Level: 380's debt to equity ratio (11%) is considered satisfactory

Reducing Debt: 380's debt to equity ratio has reduced from 27.3% to 11% over the past 5 years.

Debt Coverage: 380's debt is well covered by operating cash flow (48.2%).

Interest Coverage: 380 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 380 has a high level of physical assets or inventory.

Debt Coverage by Assets: 380's debt is covered by short term assets (assets are 9.475810x debt).


Next Steps

Dividend

What is Softpower International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 380's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 380's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 380's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 380's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 380 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 380's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Softpower International's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Ben Yu (55yo)

10.4yrs

Tenure

HK$3,182,000

Compensation

Mr. Ansheng Yu, also known as Ben, has been the Chief Executive Officer of Softpower International Limited (alternate name China Pipe Group Limited) since May 13, 2009 and its Executive Director since May  ...


CEO Compensation Analysis

Compensation vs. Market: Ben's total compensation ($USD405.62K) is above average for companies of similar size in the Hong Kong market ($USD211.40K).

Compensation vs Earnings: Ben's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 380's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

54yo

Average Age

Experienced Board: 380's board of directors are considered experienced (9.5 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.


Ownership Breakdown


Management Team

  • Joseph Cheng (49yo)

    Financial Controller & Company Secretary

    • Tenure: 6.8yrs
  • Barry Ku (53yo)

    Sales Director of Bun Kee (International) Limited

    • Tenure: 0yrs
  • Fanny Chan (56yo)

    Deputy Managing Director of Bun Kee (International) Limited

    • Tenure: 0yrs
  • Fulin Lai (54yo)

    Chairman and Head of Production & Purchasing

    • Tenure: 1.6yrs
    • Compensation: HK$3.67m
  • Ben Yu (55yo)

    CEO & Executive Director

    • Tenure: 10.4yrs
    • Compensation: HK$3.18m
  • Timothy Chow (50yo)

    Chief Operating Officer

    • Tenure: 4.8yrs

Board Members

  • Wei Wen Chen (50yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: HK$150.00k
  • Wilson Wong (51yo)

    Independent Non-Executive Director

    • Tenure: 10.7yrs
    • Compensation: HK$200.00k
  • Fulin Lai (54yo)

    Chairman and Head of Production & Purchasing

    • Tenure: 1.6yrs
    • Compensation: HK$3.67m
  • Ben Yu (55yo)

    CEO & Executive Director

    • Tenure: 10.4yrs
    • Compensation: HK$3.18m
  • Guan Zhiqiang (56yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$200.00k

Company Information

Softpower International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Softpower International Limited
  • Ticker: 380
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$261.321m
  • Shares outstanding: 1.33b
  • Website: https://www.softpower.hk

Number of Employees


Location

  • Softpower International Limited
  • Austin Tower
  • 12th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
380SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2000

Biography

Softpower International Limited, an investment holding company, trades in construction materials in Hong Kong, Macau, and Mainland China. The company engages in the wholesale, retail, warehouse, and logist ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:37
End of Day Share Price2019/10/14 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.