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Ares Asia

SEHK:645
Snowflake Description

Slightly overvalued with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
645
SEHK
HK$229M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Ares Asia Limited, an investment holding company, engages in the coal trading business. The last earnings update was 22 days ago. More info.


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645 Share Price and Events
7 Day Returns
0%
SEHK:645
1.6%
HK Trade Distributors
1%
HK Market
1 Year Returns
-21.2%
SEHK:645
1.1%
HK Trade Distributors
-4.7%
HK Market
645 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ares Asia (645) 0% -4.3% -9.5% -21.2% -46% -53.5%
HK Trade Distributors 1.6% 2.6% -7.3% 1.1% -24.1% -52.9%
HK Market 1% 3.9% -7.8% -4.7% 17.5% 2%
1 Year Return vs Industry and Market
  • 645 underperformed the Trade Distributors industry which returned 1.1% over the past year.
  • 645 underperformed the Market in Hong Kong which returned -4.7% over the past year.
Price Volatility
645
Industry
5yr Volatility vs Market

Value

 Is Ares Asia undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ares Asia to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ares Asia.

SEHK:645 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:645
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.917 (1 + (1- 25%) (10.08%))
0.991
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.991 * 6.65%)
8.59%

Discounted Cash Flow Calculation for SEHK:645 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ares Asia is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:645 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.59%)
2020 3.76 Est @ 9.02% 3.46
2021 4.02 Est @ 6.91% 3.41
2022 4.23 Est @ 5.44% 3.31
2023 4.42 Est @ 4.41% 3.18
2024 4.58 Est @ 3.69% 3.04
2025 4.73 Est @ 3.18% 2.88
2026 4.86 Est @ 2.83% 2.73
2027 4.99 Est @ 2.58% 2.58
2028 5.11 Est @ 2.41% 2.43
2029 5.23 Est @ 2.29% 2.29
Present value of next 10 years cash flows $29.30
SEHK:645 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $5.23 × (1 + 2%) ÷ (8.59% – 2%)
$80.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $80.89 ÷ (1 + 8.59%)10
$35.47
SEHK:645 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $29.30 + $35.47
$64.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $64.78 / 342.12
$0.19
SEHK:645 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:645)
7.814
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $0.19 x 7.814
HK$1.48
Value per share (HKD) From above. HK$1.48
Current discount Discount to share price of HK$0.67
= -1 x (HK$0.67 - HK$1.48) / HK$1.48
54.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ares Asia is available for.
Intrinsic value
>50%
Share price is HK$0.67 vs Future cash flow value of HK$1.48
Current Discount Checks
For Ares Asia to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ares Asia's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Ares Asia's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ares Asia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ares Asia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:645 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.00
SEHK:645 Share Price ** SEHK (2019-07-17) in HKD HK$0.67
SEHK:645 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.09
Hong Kong Trade Distributors Industry PE Ratio Median Figure of 30 Publicly-Listed Trade Distributors Companies 10.42x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ares Asia.

SEHK:645 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:645 Share Price ÷ EPS (both in USD)

= 0.09 ÷ 0.00

-19.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Asia is loss making, we can't compare its value to the HK Trade Distributors industry average.
  • Ares Asia is loss making, we can't compare the value of its earnings to the Hong Kong market.
Price based on expected Growth
Does Ares Asia's expected growth come at a high price?
Raw Data
SEHK:645 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Global Trade Distributors Industry PEG Ratio Median Figure of 80 Publicly-Listed Trade Distributors Companies 1.17x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Ares Asia, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ares Asia's assets?
Raw Data
SEHK:645 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $0.02
SEHK:645 Share Price * SEHK (2019-07-17) in HKD HK$0.67
SEHK:645 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $0.09
Hong Kong Trade Distributors Industry PB Ratio Median Figure of 59 Publicly-Listed Trade Distributors Companies 0.79x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:645 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:645 Share Price ÷ Book Value per Share (both in USD)

= 0.09 ÷ 0.02

4.02x

* Primary Listing of Ares Asia.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ares Asia is overvalued based on assets compared to the HK Trade Distributors industry average.
X
Value checks
We assess Ares Asia's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Ares Asia has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ares Asia expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Ares Asia 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected Trade Distributors industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ares Asia expected to grow at an attractive rate?
  • Unable to compare Ares Asia's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Ares Asia's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Ares Asia's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:645 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
Asia Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 12%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 13.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:645 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:645 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:645 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 198 -1
2018-12-31 225 -2
2018-09-30 252 -21 -2
2018-06-30 225 -9 -2
2018-03-31 199 3 -2
2017-12-31 212 15 -2
2017-09-30 226 27 -1
2017-06-30 240 -8 0
2017-03-31 254 -43 0
2016-12-31 193 -48 -6
2016-09-30 132 -52 -13
2016-06-30 87 -19 -13

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Ares Asia is high growth as no earnings estimate data is available.
  • Unable to determine if Ares Asia is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:645 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Ares Asia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:645 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:645 Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.00
2018-12-31 0.00
2018-09-30 0.00
2018-06-30 -0.01
2018-03-31 -0.01
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 0.00
2016-12-31 -0.02
2016-09-30 -0.04
2016-06-30 -0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ares Asia will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of 645’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Ares Asia's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. Ares Asia's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Ares Asia's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ares Asia has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ares Asia performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ares Asia's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ares Asia does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Ares Asia's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Ares Asia's 1-year growth to the HK Trade Distributors industry average as it is not currently profitable.
Earnings and Revenue History
Ares Asia's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ares Asia Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:645 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 198.35 -1.48 1.92
2018-12-31 225.29 -1.54 2.04
2018-09-30 252.23 -1.60 2.16
2018-06-30 225.45 -2.04 2.18
2018-03-31 198.67 -2.48 2.21
2017-12-31 212.46 -1.63 2.19
2017-09-30 226.25 -0.78 2.16
2017-06-30 240.30 -0.33 2.19
2017-03-31 254.36 0.13 2.22
2016-12-31 193.32 -6.35 2.11
2016-09-30 132.29 -12.83 2.00
2016-06-30 87.46 -13.10 2.00
2016-03-31 42.64 -13.37 2.00
2015-12-31 50.91 -7.81 2.54
2015-09-30 59.17 -2.24 3.08
2015-06-30 92.12 -1.92 3.36
2015-03-31 125.07 -1.60 3.65
2014-12-31 124.24 -1.41 3.50
2014-09-30 123.41 -1.21 3.35
2014-06-30 116.22 -4.42 3.37
2014-03-31 109.02 -7.64 3.39
2013-09-30 105.33 -5.89 2.81
2013-06-30 74.99 -3.22 2.72
2013-03-31 44.64 -0.55 2.63
2012-09-30 -14.70 -3.01 2.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Ares Asia has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Ares Asia has efficiently used its assets last year compared to the HK Trade Distributors industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Ares Asia improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Ares Asia's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ares Asia has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ares Asia's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ares Asia's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ares Asia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ares Asia has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ares Asia's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 8.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ares Asia Company Filings, last reported 3 months ago.

SEHK:645 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7.30 2.96 3.85
2018-12-31 7.30 2.96 3.85
2018-09-30 8.40 38.39 1.67
2018-06-30 8.40 38.39 1.67
2018-03-31 8.78 49.51 8.44
2017-12-31 8.78 49.51 8.44
2017-09-30 10.01 19.63 4.95
2017-06-30 10.01 19.63 4.95
2017-03-31 11.26 56.06 12.23
2016-12-31 11.26 56.06 12.23
2016-09-30 10.79 49.77 9.35
2016-06-30 10.79 49.77 9.35
2016-03-31 11.13 9.08 9.05
2015-12-31 11.13 9.08 9.05
2015-09-30 23.62 0.00 12.19
2015-06-30 23.62 0.00 12.19
2015-03-31 24.50 26.92 12.53
2014-12-31 24.50 26.92 12.53
2014-09-30 25.76 32.84 12.48
2014-06-30 25.76 32.84 12.48
2014-03-31 22.80 0.00 9.36
2013-09-30 24.21 0.00 23.68
2013-06-30 24.21 0.00 23.68
2013-03-31 30.96 0.00 31.06
2012-09-30 30.48 0.00 28.98
  • Ares Asia's level of debt (40.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (1.6% vs 40.5% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Ares Asia has less than a year of cash runway based on current free cash flow.
  • Ares Asia has less than a year of cash runway if free cash flow continues to reduce at historical rates of -34.5% each year.
X
Financial health checks
We assess Ares Asia's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ares Asia has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ares Asia's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ares Asia dividends.
If you bought HK$2,000 of Ares Asia shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ares Asia's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ares Asia's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:645 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 4.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:645 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
SEHK:645 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2008-12-29 0.000 0.000
2008-12-22 0.000 0.000
2008-07-30 0.000 0.000
2008-07-28 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ares Asia has not reported any payouts.
  • Unable to verify if Ares Asia's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ares Asia's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ares Asia has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Ares Asia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ares Asia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ares Asia has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Woraphanit Ruayrungruang
COMPENSATION $23,000
AGE 28
TENURE AS CEO 1.5 years
CEO Bio

Ms. Woraphanit Ruayrungruang has been Chairlady, Chief Executive Officer and Executive Director of Ares Asia Ltd since January 5, 2018. Ms. Ruayrungruang is currently a director of several subsidiaries of the Ares Asia Ltd. Ms. Ruayrungruang is also a director of Reignwood International Investment (Group) Co. Ltd., a wholly-owned subsidiary of Reignwood, responsible for the daily operations of its Hong Kong office, handling the refinancing issues, maintaining relationships with banking partners since August 2013. Ms. Ruayrungruang is also a director of the Ruayrungruang Family Office working with several investment banks such as Goldman, UBS and Credit Suisse and is responsible for managing large value of asset, including stock, equity and properties since September 2014. She is also a director of Reignwood Europe Holdings S.a.r.1., a 90%-owned subsidiary of Reignwood, responsible for the delivery of Reignwood’s strategic vision outside of the PRC, ranging from property, luxury and lifestyle, to sport, consumer goods and wellbeing, as well as to support the welfare of local community in UK since July 2017. Ms. Ruayrungruang is also the President of Reignwood Investments UK Limited. Ms. Ruayrungruang obtained her Bachelor’s Degree in Advertisement from Peking University in the People’s Republic of China (the “PRC”) in 2013.

CEO Compensation
  • Insufficient data for Woraphanit to compare compensation growth.
  • Woraphanit's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Ares Asia management team in years:

3.4
Average Tenure
52.5
Average Age
  • The tenure for the Ares Asia management team is about average.
Management Team

Woraphanit Ruayrungruang

TITLE
Chairlady & CEO
COMPENSATION
$23K
AGE
28
TENURE
1.5 yrs

Raymond Tsoi

TITLE
Chief Financial Officer and Chief Operating Officer
AGE
52
TENURE
6.5 yrs

Anna Lee

TITLE
Head of Communications

Robert Lai

TITLE
Executive Director
AGE
53

Pui Leung

TITLE
Company Secretary
TENURE
3.4 yrs

Russell Lee

TITLE
Director of The Group's Shoe Sole Production
COMPENSATION
$425K
AGE
62
Board of Directors Tenure

Average tenure and age of the Ares Asia board of directors in years:

5.1
Average Tenure
53
Average Age
  • The tenure for the Ares Asia board of directors is about average.
Board of Directors

Woraphanit Ruayrungruang

TITLE
Chairlady & CEO
COMPENSATION
$23K
AGE
28
TENURE
1.5 yrs

Robert Lai

TITLE
Executive Director
AGE
53
TENURE
0.7 yrs

Hing Ngan

TITLE
Independent Non-Executive Director
COMPENSATION
$23K
AGE
62
TENURE
8.4 yrs

Sydney Yeung

TITLE
Independent Non-Executive Director
COMPENSATION
$23K
AGE
45
TENURE
8.4 yrs

Jesse Chang

TITLE
Independent Non-Executive Director
COMPENSATION
$23K
AGE
64
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Ares Asia's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ares Asia has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Introducing Ares Asia (HKG:645), The Stock That Dropped 41% In The Last Three Years

Because Ares Asia is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … Over three years, Ares Asia grew revenue at 43% per year. … While its revenue increased, the share price dropped at a rate of 16% per year.

Simply Wall St -

What Kind Of Investor Owns Most Of Ares Asia Limited (HKG:645)?

The big shareholder groups in Ares Asia Limited (HKG:645) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ares Asia is not a large company by global standards.

Simply Wall St -

Does Ares Asia Limited (HKG:645) Have A High Beta?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

What Kind Of Shareholder Owns Most Ares Asia Limited (HKG:645) Stock?

Every investor in Ares Asia Limited (HKG:645) should be aware of the most powerful shareholder groups. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ares Asia is a smaller company with a market capitalization of HK$263m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Does The Ares Asia Limited (HKG:645) Share Price Fall With The Market?

If you're interested in Ares Asia Limited (HKG:645), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Do You Know Who Else Invests In Ares Asia Limited (HKG:645)?

The big shareholder groups in Ares Asia Limited (HKG:645) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Ares Asia is not a large company by global standards.

Simply Wall St -

Does Ares Asia Limited (HKG:645) Fall With The Market?

Generally, an investor should consider two types of risk that impact the market value of 645. … The first risk to consider is company-specific, which can be diversified away when you invest in other companies in the same industry as 645, because it is rare that an entire industry collapses at once. … The other type of risk, which cannot be diversified away, is market risk.

Simply Wall St -

Company Info

Description

Ares Asia Limited, an investment holding company, engages in the coal trading business. It sells thermal and coking coal purchased from Indonesia, Russia, and Australia to the People’s Republic of China. The company was formerly known as KTP Holdings Limited and changed its name to Ares Asia Limited in April 2012. Ares Asia Limited was incorporated in 1993 and is headquartered in Kowloon, Hong Kong. Ares Asia Limited is a subsidiary of Reignwood International Holdings Company Limited.

Details
Name: Ares Asia Limited
645
Exchange: SEHK
Founded: 1993
HK$229,218,345
342,116,934
Website: http://www.aresasialtd.com
Address: Ares Asia Limited
International Commerce Centre,
Level 96,
Kowloon,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 645 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Feb 1994
Number of employees
Current staff
Staff numbers
9
Ares Asia employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 12:40
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2017/07/26
Last earnings filing: 2019/06/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.