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645

Ares AsiaSEHK:645 Stock Report

Market Cap

HK$133.4m

7D

0%

1Y

-13.3%

Updated

27 Sep, 2021

Data

Company Financials
645 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

645 Overview

Ares Asia Limited engages in the coal trading business.

Price History & Performance

Summary of all time highs, changes and price drops for Ares Asia
Historical stock prices
Current Share PriceHK$0.26
52 Week HighHK$0.25
52 Week LowHK$0.35
Beta0.63
1 Month Change0%
3 Month Change0%
1 Year Change-13.33%
3 Year Change-70.12%
5 Year Change-80.88%
Change since IPO-97.17%

Recent News & Updates

Feb 08
Our Take On Ares Asia's (HKG:645) CEO Salary

Our Take On Ares Asia's (HKG:645) CEO Salary

Woraphanit Ruayrungruang became the CEO of Ares Asia Limited ( HKG:645 ) in 2018, and we think it's a good time to look...

Jan 04
Is Ares Asia (HKG:645) Using Too Much Debt?

Is Ares Asia (HKG:645) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Nov 30
Need To Know: Ares Asia Limited (HKG:645) Insiders Have Been Buying Shares

Need To Know: Ares Asia Limited (HKG:645) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...

Shareholder Returns

645HK Trade DistributorsHK Market
7D0%1.4%-0.5%
1Y-13.3%41.5%6.3%

Return vs Industry: 645 underperformed the Hong Kong Trade Distributors industry which returned 44.4% over the past year.

Return vs Market: 645 underperformed the Hong Kong Market which returned 9.1% over the past year.

Price Volatility

Is 645's price volatile compared to industry and market?
645 volatility
645 Beta0.63
Industry Beta0.91
Market Beta1

Stable Share Price: Insufficient data to determine 645's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine 645's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
19938Woraphanit Ruayrungruanghttps://www.aresasialtd.com

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 Limited and changed its name to Ares Asia Limited in April 2012.

Ares Asia Fundamentals Summary

How do Ares Asia's earnings and revenue compare to its market cap?
645 fundamental statistics
Market CapUS$17.14m
Earnings (TTM)-US$1.01m
Revenue (TTM)US$87.81m

0.2x

P/S Ratio

-17.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
645 income statement (TTM)
RevenueUS$87.81m
Cost of RevenueUS$87.14m
Gross ProfitUS$668.00k
ExpensesUS$1.68m
Earnings-US$1.01m

Last Reported Earnings

Sep 30, 2020

Next Earnings Date

n/a

Earnings per share (EPS)-0.002
Gross Margin0.76%
Net Profit Margin-1.15%
Debt/Equity Ratio85.2%

How did 645 perform over the long term?

See historical performance and comparison

Valuation

Is Ares Asia 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: 645 (HK$0.26) is trading below our estimate of fair value (HK$16.78)

Significantly Below Fair Value: 645 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 645 is unprofitable, so we can't compare its PE Ratio to the Hong Kong 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 (1.3x) compared to the HK Trade Distributors industry average (0.7x).


Future Growth

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

5.0%

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 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.


Past Performance

How has Ares Asia performed over the past 5 years?

50.9%

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 50.9% 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 (18.7%).


Return on Equity

High ROE: 645 has a negative Return on Equity (-7.79%), as it is currently unprofitable.


Financial Health

How is Ares Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 645's short term assets ($28.0M) exceed its short term liabilities ($15.1M).

Long Term Liabilities: 645 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 645's debt to equity ratio (85.2%) is considered high.

Reducing Debt: 645's debt to equity ratio has increased from 0.8% to 85.2% 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: Insufficient data to determine if 645 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 645 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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?

5.6yrs

Average management tenure


CEO

Woraphanit Ruayrungruang (31 yo)

3.67yrs

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 ($USD101.00K) is below average for companies of similar size in the Hong Kong market ($USD229.36K).

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


Leadership Team

Experienced Management: 645's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: 645's board of directors are considered experienced (7.3 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

Ares Asia Limited's 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$133.426m
  • Shares outstanding: 513.18m
  • Website: https://www.aresasialtd.com

Number of Employees


Location

  • Ares Asia Limited
  • International Commerce Centre
  • Unit No. 9608
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 10:05
End of Day Share Price2021/06/30 00:00
Earnings2020/09/30
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.