SEHK:599

Stock Analysis Report

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Executive Summary

E. Bon Holdings Limited, an investment holding company, imports, wholesales, retails, and installs architectural builders’ hardware, bathroom and kitchen collections, and furniture in the Hong Kong and the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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

Stable Share Price: 599 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

599

-6.0%

HK Trade Distributors

-2.8%

HK Market


1 Year Return

-28.4%

599

-25.6%

HK Trade Distributors

-1.7%

HK Market

Return vs Industry: 599 underperformed the Hong Kong Trade Distributors industry which returned -25.6% over the past year.

Return vs Market: 599 underperformed the Hong Kong Market which returned -1.7% over the past year.


Shareholder returns

599IndustryMarket
7 Day-3.3%-6.0%-2.8%
30 Day0%-3.6%2.7%
90 Day0%1.5%-0.4%
1 Year-25.3%-28.4%-22.9%-25.6%2.3%-1.7%
3 Year-52.7%-59.7%-53.8%-56.6%-8.7%-18.6%
5 Year-50.7%-63.7%-61.7%-63.8%13.7%-5.4%

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$0.29) is trading below our estimate of fair value (HK$7.19)

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 (15.4x) compared to the HK Trade Distributors industry average (8.9x).

PE vs Market: 599 is poor value based on its PE Ratio (15.4x) compared to the Hong Kong market (10.7x).


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's PB Ratio (0.4x) is in line with the HK Trade Distributors industry average.


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?

19.3%

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

-33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 599 has a large one-off loss of HK$4.8M impacting its March 31 2020 financial results.

Growing Profit Margin: 599's current net profit margins (2.2%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 599's earnings have declined by 33.4% 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 (-24.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (-19.3%).


Return on Equity

High ROE: 599's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is E. Bon Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 599's short term assets (HK$387.2M) exceed its short term liabilities (HK$161.5M).

Long Term Liabilities: 599's short term assets (HK$387.2M) exceed its long term liabilities (HK$67.0M).


Debt to Equity History and Analysis

Debt Level: 599's debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: 599's debt to equity ratio has reduced from 15.5% to 2.4% over the past 5 years.

Debt Coverage: 599's debt is well covered by operating cash flow (1036.8%).

Interest Coverage: 599's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

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

5.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 599's dividend (5.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 599's dividend (5.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.5%), 599's payments are 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?

16.0yrs

Average board tenure


CEO

Tony Tse (61 yo)

no data

Tenure

HK$3,733,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD481.38K) is above average for companies of similar size in the Hong Kong market ($USD232.64K).

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


Board Members

NamePositionTenureCompensationOwnership
Sun Fat Tse
Executive Chairmanno dataHK$2.96mno data
Sun Po Tse
MD & Executive Directorno dataHK$3.73mno data
Sun Wai Tse
Executive Vice Chairman8.25yrsHK$4.37mno data
Shiu Sun Lau
Executive Director18.83yrsHK$1.77mno data
Hon Kit Tse
Deputy MD & Executive Director12yrsHK$2.87mno data
Wah Wong
Independent Non-Executive Director19.25yrsHK$108.00kno data
Sze Chung Wan
Independent Non-Executive Director16yrsHK$108.00kno data
Wang Kwong Luk
Independent Non-Executive Director0.83yrHK$28.00kno data

16.0yrs

Average Tenure

62yo

Average Age

Experienced Board: 599's board of directors are seasoned and experienced ( 16 years average tenure).


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

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$174.174m
  • 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, imports, wholesales, retails, and installs architectural builders’ hardware, bathroom and kitchen collections, and furniture in the Hong Kong and the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 12:33
End of Day Share Price2020/10/30 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.