SEHK:599

Stock Analysis Report

Executive Summary

E. Bon Holdings Limited, an investment holding company, engages in the import, wholesale, retail, and installation of architectural builders’ hardware, bathroom and kitchen collections, and furniture in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and fair value.

Share Price & News

How has E. Bon Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

599

-20.5%

HK Trade Distributors

0.3%

HK Market


1 Year Return

-12.6%

599

14.2%

HK Trade Distributors

1.3%

HK Market

Return vs Industry: 599 underperformed the Hong Kong Trade Distributors industry which returned 14.2% over the past year.

Return vs Market: 599 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

599IndustryMarket
7 Day-2.4%-20.5%0.3%
30 Day-2.4%-6.5%0.5%
90 Day-12.6%8.0%-4.6%
1 Year-7.7%-12.6%17.7%14.2%4.9%1.3%
3 Year-43.0%-51.7%-7.1%-14.3%15.3%3.7%
5 Year71.1%20.3%-36.5%-49.2%20.0%-0.006%

Price Volatility Vs. Market

How volatile is E. Bon Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is E. Bon 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: 599 (HK$0.42) is trading below our estimate of fair value (HK$2.14)

Significantly Below Fair Value: 599 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 599 is poor value based on its PE Ratio (16.5x) compared to the Trade Distributors industry average (9.3x).

PE vs Market: 599 is poor value based on its PE Ratio (16.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 599's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 599 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 E. Bon Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 599's forecast earnings growth (11% per year) is above the savings rate (2%).

Earnings vs Market: 599's earnings (11% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 599's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 599's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 599's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 599's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has E. Bon Holdings performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 599's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: 599's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 599 had negative earnings growth (-65.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 599's Return on Equity (3.3%) is considered low.


Return on Assets

ROA vs Industry: 599's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 599's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is E. Bon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 599's short term assets (HK$371.7M) exceeds its short term liabilities (HK$133.0M)

Long Term Liabilities: 599's short term assets (371.7M) exceeds its long term liabilities (24.5M)


Debt to Equity History and Analysis

Debt Level: 599's debt to equity ratio (7.9%) is considered satisfactory

Reducing Debt: 599's debt to equity ratio has reduced from 21% to 7.9% over the past 5 years.

Debt Coverage: 599's debt is well covered by operating cash flow (141.8%).

Interest Coverage: 599's interest payments on its debt are well covered by EBIT (23.6x coverage).


Balance Sheet

Inventory Level: 599 has a high level of physical assets or inventory.

Debt Coverage by Assets: 599's debt is covered by short term assets (assets are 10.160220x debt).


Next Steps

Dividend

What is E. Bon Holdings's current dividend yield, its reliability and sustainability?

6.02%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%2.3%markettop25%6.2%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 599's dividend (6.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 599's dividend (6.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 599's dividend payments have been volatile in the past 10 years.

Growing Dividend: 599's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.5%), 599's dividend payments are not 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 E. Bon Holdings's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Tony Tse (60yo)

0yrs

Tenure

HK$4,291,000

Compensation

Mr. Sun Po Tse, also known as Tony, serves as Managing Director of E. Bon Holdings Ltd. and has been its Executive Director since January 07, 2000. Mr. Tse has over 25 years of experience in the trading of ...


CEO Compensation Analysis

Compensation vs. Market: Tony's total compensation ($USD547.14K) is above average for companies of similar size in the Hong Kong market ($USD215.97K).

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


Management Age and Tenure

7.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 599's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

16.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 599's board of directors are seasoned and experienced ( 16.5 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

  • Raymond Lo (65yo)

    Technical Director

    • Tenure: 40.8yrs
  • Shiu Lau (51yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$1.89m
  • Henry Tse (62yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.40m
  • Tony Tse (60yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$4.29m
  • Kevin Tse (39yo)

    Deputy MD & Executive Director

    • Tenure: 11.1yrs
    • Compensation: HK$3.23m
  • Albert Tse (68yo)

    Vice Chairman

    • Tenure: 7.3yrs
    • Compensation: HK$5.02m
  • Teddy Lo (42yo)

    Chief Operating Officer of the Kitchen Project Division

    • Tenure: 0yrs
  • Chi Yu (40yo)

    CFO & Company Secretary

    • Tenure: 6.1yrs

Board Members

  • Shiu Lau (51yo)

    Executive Director

    • Tenure: 17.8yrs
    • Compensation: HK$1.89m
  • Henry Tse (62yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.40m
  • Tony Tse (60yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$4.29m
  • Dominic Wong (70yo)

    Independent Non-Executive Director

    • Tenure: 18.3yrs
    • Compensation: HK$108.00k
  • Wilson Wan (45yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$108.00k
  • Kevin Tse (39yo)

    Deputy MD & Executive Director

    • Tenure: 11.1yrs
    • Compensation: HK$3.23m
  • Albert Tse (68yo)

    Vice Chairman

    • Tenure: 7.3yrs
    • Compensation: HK$5.02m

Company Information

E. Bon Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: E. Bon Holdings Limited
  • Ticker: 599
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$249.249m
  • Shares outstanding: 600.60m
  • Website: https://www.ebon.com.hk

Number of Employees


Location

  • E. Bon Holdings Limited
  • First Commercial Building
  • 16th–18th Floors
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2000
599SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2000

Biography

E. Bon Holdings Limited, an investment holding company, engages in the import, wholesale, retail, and installation of architectural builders’ hardware, bathroom and kitchen collections, and furniture in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:38
End of Day Share Price2019/10/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.