SEHK:7

Stock Analysis Report

Hong Kong Finance Investment Holding Group

Executive Summary

Hong Kong Finance Investment Holding Group Limited, an investment holding company, trades in natural resources, petrochemicals, and electronic products.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Hong Kong Finance Investment Holding Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

7

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-14.0%

7

11.6%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 7 underperformed the Hong Kong Trade Distributors industry which returned 11.6% over the past year.

Return vs Market: 7 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

7IndustryMarket
7 Day-1.1%7.5%0.9%
30 Day1.2%-7.8%0.4%
90 Day-1.1%8.2%-5.5%
1 Year-14.0%-14.0%15.0%11.6%4.2%0.6%
3 Year17.8%17.8%-7.8%-16.2%15.5%3.9%
5 Year-24.6%-24.6%-38.4%-50.5%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Hong Kong Finance Investment Holding Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hong Kong Finance Investment Holding Group undervalued compared to its fair value and its price relative to the market?

1.08x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 7's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 7's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 7 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 7 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7 is overvalued based on its PB Ratio (1.1x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is Hong Kong Finance Investment Holding Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

72.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 7 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 7 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 7's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 7's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 7's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hong Kong Finance Investment Holding Group performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 7 is unprofitable, but has reduced losses over the past 5 years at a rate of 1.3% per year.

Accelerating Growth: Unable to compare 7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 7 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (1%).


Return on Equity

High ROE: 7 has a negative Return on Equity (-92.19%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 7 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 7 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hong Kong Finance Investment Holding Group's financial position?


Financial Position Analysis

Short Term Liabilities: 7's short term assets (HK$2.2B) exceeds its short term liabilities (HK$432.2M)

Long Term Liabilities: 7's short term assets (2.2B) exceeds its long term liabilities (543.0M)


Debt to Equity History and Analysis

Debt Level: 7's debt to equity ratio (17.2%) is considered satisfactory

Reducing Debt: 7's debt to equity ratio has reduced from 20.7% to 17.2% over the past 5 years.

Debt Coverage: 7's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 7's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 7 has a high level of physical assets or inventory.

Debt Coverage by Assets: 7's debt is covered by short term assets (assets are 4.090410x debt).


Next Steps

Dividend

What is Hong Kong Finance Investment Holding Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 7's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 7'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 7's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Hong Kong Finance Investment Holding Group's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average board tenure


CEO

Say Hoe Chui (70yo)

0yrs

Tenure

HK$660,000

Compensation

Dr. Say Hoe Chui serves as Managing Director of Hoifu Energy Group Limited (also known as Karl Thomson Holdings Limited) and served as its Executive Director since December 21, 2012. Dr. Chui has been Gene ...


CEO Compensation Analysis

Compensation vs. Market: Say Hoe's total compensation ($USD84.16K) is about average for companies of similar size in the Hong Kong market ($USD298.58K).

Compensation vs Earnings: Say Hoe's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

6.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 7's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Kwok Lun Nam (60yo)

    Co-Founder & Executive Director

    • Tenure: 19.2yrs
    • Compensation: HK$1.00m
  • Wilfred Lam (55yo)

    Co-Founder & Executive Director

    • Tenure: 19.2yrs
    • Compensation: HK$2.83m
  • Ewing Fu (50yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Chi Ming Hui (54yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: HK$1.22m
  • Say Hoe Chui (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$660.00k
  • Neil Mallon Bush (64yo)

    Deputy Chairman

    • Tenure: 6.9yrs
    • Compensation: HK$600.00k
  • Yukio Hatoyama (72yo)

    Honorary Chairman & Senior Consultant

    • Tenure: 6.6yrs
  • Jun Jia Xu (30yo)

    Administration Manager & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.22m
  • Yu Cao (40yo)

    Manager of the Development Department & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.32m
  • Ren Qian (59yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$600.00k

Board Members

  • Kwok Lun Nam (60yo)

    Co-Founder & Executive Director

    • Tenure: 19.2yrs
    • Compensation: HK$1.00m
  • Wilfred Lam (55yo)

    Co-Founder & Executive Director

    • Tenure: 19.2yrs
    • Compensation: HK$2.83m
  • Alex Chow (52yo)

    Head of Investment Banking Business & Director of Karl Thomson Financial Advisory Limited

    • Tenure: 0yrs
  • Chi Ming Hui (54yo)

    Chairman

    • Tenure: 6.9yrs
    • Compensation: HK$1.22m
  • Say Hoe Chui (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$660.00k
  • Neil Mallon Bush (64yo)

    Deputy Chairman

    • Tenure: 6.9yrs
    • Compensation: HK$600.00k
  • Yukio Hatoyama (72yo)

    Honorary Chairman & Senior Consultant

    • Tenure: 6.6yrs
  • Jun Jia Xu (30yo)

    Administration Manager & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.22m
  • Yu Cao (40yo)

    Manager of the Development Department & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.32m
  • Ren Qian (59yo)

    Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$600.00k

Company Information

Hong Kong Finance Investment Holding Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hong Kong Finance Investment Holding Group Limited
  • Ticker: 7
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$3.440b
  • Shares outstanding: 4.00b
  • Website: https://www.hkfihg.com

Number of Employees


Location

  • Hong Kong Finance Investment Holding Group Limited
  • China Merchants Tower
  • Units 1910-12, 19th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2000

Biography

Hong Kong Finance Investment Holding Group Limited, an investment holding company, trades in natural resources, petrochemicals, and electronic products. It is also involved in the oil and gas exploration a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.