SEHK:641

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CHTC Fong's International

Executive Summary

CHTC Fong's International Company Limited, an investment holding company, manufactures and sells dyeing and finishing machines.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 641 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

641

-1.4%

HK Machinery

0.7%

HK Market


1 Year Return

-41.1%

641

36.3%

HK Machinery

0.4%

HK Market

Return vs Industry: 641 underperformed the Hong Kong Machinery industry which returned 36.3% over the past year.

Return vs Market: 641 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

641IndustryMarket
7 Day4.8%-1.4%0.7%
30 Day-4.3%9.7%-1.0%
90 Day-5.7%32.7%9.6%
1 Year-37.3%-41.1%40.0%36.3%4.5%0.4%
3 Year-81.3%-84.2%58.6%46.6%0.2%-10.6%
5 Year-75.7%-80.1%76.5%61.6%9.9%-8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CHTC Fong's International undervalued compared to its fair value and its price relative to the market?

2.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 641 (HK$0.33) is trading above our estimate of fair value (HK$0.22)

Significantly Below Fair Value: 641 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 641 is good value based on its PE Ratio (2.2x) compared to the HK Machinery industry average (12.4x).

PE vs Market: 641 is good value based on its PE Ratio (2.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 641's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 641 is good value based on its PB Ratio (0.2x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is CHTC Fong's International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.0%

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 CHTC Fong's International 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 CHTC Fong's International performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 641 has a large one-off gain of HK$300.9M impacting its December 31 2019 financial results.

Growing Profit Margin: 641's current net profit margins (6.3%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: 641's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: 641's earnings growth over the past year (19.7%) exceeds its 5-year average (0.8% per year).

Earnings vs Industry: 641 earnings growth over the past year (19.7%) exceeded the Machinery industry -8.7%.


Return on Equity

High ROE: 641's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is CHTC Fong's International's financial position?


Financial Position Analysis

Short Term Liabilities: 641's short term assets (HK$1.6B) do not cover its short term liabilities (HK$2.8B).

Long Term Liabilities: 641's short term assets (HK$1.6B) exceed its long term liabilities (HK$202.3M).


Debt to Equity History and Analysis

Debt Level: 641's debt to equity ratio (122%) is considered high.

Reducing Debt: 641's debt to equity ratio has increased from 88.4% to 122% over the past 5 years.

Debt Coverage: 641's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 641's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

6.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 641's dividend (6.06%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 641's dividend (6.06%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: 641's dividend payments have been volatile in the past 10 years.

Growing Dividend: 641's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13%), 641's dividend payments are thoroughly 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?

6.1yrs

Average board tenure


CEO

Youping Guan (52 yo)

0.83

Tenure

HK$838,000

Compensation

Mr. Youping Guan has been Executive Director and the Chief Executive Officer of CHTC Fong's International Company Limited since October 18, 2019. Mr. Guan has been Director of Jingwei Textile Machinery Com ...


CEO Compensation Analysis

Compensation vs Market: Youping's total compensation ($USD108.13K) is below average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Board Members

NamePositionTenureCompensationOwnership
Youping Guan
CEO & Executive Director0.83yrHK$838.00kno data
Qianyi Du
CFO & Executive Director4.33yrsHK$2.40mno data
Maoxin Ye
Executive Chairman4.92yrsno datano data
Sou Kam Fong
Founder & Chairman Emeritus9.17yrsHK$2.28m5.34%
HK$ 19.4m
Xudong Wu
Executive Director1.08yrsno datano data
Ming Fai Yuen
Independent Non-Executive Director15.92yrsHK$180.00kno data
Kwok Leung Fong
Non-Executive Director30.08yrsHK$1.38m0.30%
HK$ 1.1m
Hoi Kam Fu
Director of Fongs National Engineering Company Limitedno datano datano data
Wei Ying
Independent Non-Executive Director8.92yrsHK$200.00kno data
Jianxin Li
Independent Non-Executive Director6.08yrsHK$200.00kno data

6.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 641's board of directors are considered experienced (6.1 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

CHTC Fong's International Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CHTC Fong's International Company Limited
  • Ticker: 641
  • Exchange: SEHK
  • Founded: 1963
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$363.071m
  • Shares outstanding: 1.10b
  • Website: https://www.fongs.com

Number of Employees


Location

  • CHTC Fong's International Company Limited
  • Kowloon Commerce Centre
  • Tower 2
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
641SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

CHTC Fong's International Company Limited, an investment holding company, manufactures and sells dyeing and finishing machines. It also manufactures, sells, and trades in stainless steel casting products, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:50
End of Day Share Price2020/08/03 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.