SEHK:645

Stock Analysis Report

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Executive Summary

Ares Asia Limited engages in the coal trading business.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Ares Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 645 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

645

0.3%

HK Trade Distributors

2.3%

HK Market


1 Year Return

-48.3%

645

-25.3%

HK Trade Distributors

6.9%

HK Market

Return vs Industry: 645 underperformed the Hong Kong Trade Distributors industry which returned -25.3% over the past year.

Return vs Market: 645 underperformed the Hong Kong Market which returned 6.9% over the past year.


Shareholder returns

645IndustryMarket
7 Day0%0.3%2.3%
30 Day-7.6%-2.8%-2.2%
90 Day-11.6%-1.2%10.6%
1 Year-46.8%-48.3%-22.9%-25.3%11.3%6.9%
3 Year-73.4%-74.2%-46.7%-50.5%1.8%-9.1%
5 Year-79.9%-80.4%-62.7%-67.5%14.3%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ares Asia undervalued compared to its fair value and its price relative to the market?

1.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 645 (HK$0.31) is trading above our estimate of fair value (HK$0.03)

Significantly Below Fair Value: 645 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 645 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 645 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 645's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 645 is overvalued based on its PB Ratio (1.5x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

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

10.5%

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 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ares Asia performed over the past 5 years?

36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 645 is currently unprofitable.

Growing Profit Margin: 645 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 645 is unprofitable, but has reduced losses over the past 5 years at a rate of 36.5% per year.

Accelerating Growth: Unable to compare 645's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 645 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (0.9%).


Return on Equity

High ROE: 645 has a negative Return on Equity (-5.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ares Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 645's short term assets ($29.7M) exceed its short term liabilities ($16.5M).

Long Term Liabilities: 645's short term assets ($29.7M) exceed its long term liabilities ($57.0K).


Debt to Equity History and Analysis

Debt Level: 645's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: 645's debt to equity ratio has reduced from 107.6% to 23.3% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable 645 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 645 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 645's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 645's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 645's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 645's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 645's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Woraphanit Ruayrungruang (30 yo)

2.58yrs

Tenure

US$101,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Woraphanit's total compensation ($USD101.00K) is below average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Woraphanit Ruayrungruang
Chairlady & CEO2.58yrsUS$101.00kno data
Yi-Chun Lai
Executive Director1.75yrsUS$119.00kno data
Lai Man Tsoi
Chief Financial Officer and Chief Operating Officer7.58yrsno datano data
Anna Lee
Head of Communicationsno datano datano data
Pui Leung
Company Secretary4.5yrsno datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: 645's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Woraphanit Ruayrungruang
Chairlady & CEO2.58yrsUS$101.00kno data
Yi-Chun Lai
Executive Director1.75yrsUS$119.00kno data
Hing Hon Ngan
Independent Non-Executive Director9.5yrsUS$23.00kno data
Kin Bond Yeung
Independent Non-Executive Director9.5yrsUS$23.00kno data
Tseng Chang
Independent Non-Executive Director6.17yrsUS$23.00kno data

6.2yrs

Average Tenure

53yo

Average Age

Experienced Board: 645's board of directors are considered experienced (6.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 50%.


Top Shareholders

Company Information

Ares Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ares Asia Limited
  • Ticker: 645
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$156.518m
  • Shares outstanding: 513.18m
  • Website: https://www.aresasialtd.com

Number of Employees


Location

  • Ares Asia Limited
  • International Commerce Centre
  • Level 96
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
645SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1994

Biography

Ares Asia Limited engages in the coal trading business. It primarily sells thermal coal purchased from various countries to the People’s Republic of China. The company was formerly known as KTP Holdings Li ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 12:51
End of Day Share Price2020/08/06 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.