SEHK:718

Stock Analysis Report

Executive Summary

Tai United Holdings Limited, an investment holding company, engages in the trading of petrochemical and metal-related products.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Share Price & News

How has Tai United Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

718

-20.5%

HK Trade Distributors

0.3%

HK Market


1 Year Return

-33.8%

718

14.2%

HK Trade Distributors

1.3%

HK Market

Return vs Industry: 718 underperformed the Hong Kong Trade Distributors industry which returned 14.2% over the past year.

Return vs Market: 718 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

718IndustryMarket
7 Day3.4%-20.5%0.3%
30 Day7.5%-6.5%0.5%
90 Day0.9%8.0%-4.6%
1 Year10.3%-33.8%17.7%14.2%4.9%1.3%
3 Year-49.3%-80.1%-7.1%-14.3%15.3%3.7%
5 Year-60.9%-85.4%-36.5%-49.2%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Tai United Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tai United Holdings 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: 718 (HK$0.22) is trading below our estimate of fair value (HK$28.27)

Significantly Below Fair Value: 718 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 718 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 718 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 718's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 718 is good value based on its PB Ratio (0.5x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

How is Tai United Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.2%

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 Tai United Holdings 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 Tai United Holdings performed over the past 5 years?

-31.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 718 is unprofitable, and losses have increased over the past 5 years at a rate of -31.5% per year.

Accelerating Growth: Unable to compare 718's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 718 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (1%).


Return on Equity

High ROE: 718 has a negative Return on Equity (-20.12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 718 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 718 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tai United Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 718's short term assets (HK$2.0B) exceeds its short term liabilities (HK$877.2M)

Long Term Liabilities: 718's short term assets (2.0B) exceeds its long term liabilities (66.0M)


Debt to Equity History and Analysis

Debt Level: 718's debt to equity ratio (23.2%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 718's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 718 has a high level of physical assets or inventory.

Debt Coverage by Assets: 718's debt is covered by short term assets (assets are 3.802590x debt).


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 718 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 718 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 85.5% per year.


Next Steps

Dividend

What is Tai United Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.2%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 718's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 718'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 718's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 718's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 718 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 718'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 Tai United Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Weisong Chen (40yo)

2yrs

Tenure

HK$6,515,000

Compensation

Mr. Weisong Chen has been the Chief Executive Officer and Executive Director of Tai United Holdings Limited since October 27, 2017. Mr. Chen served as Senior Vice President of the Group at Tai United Holdi ...


CEO Compensation Analysis

Compensation vs. Market: Weisong has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Board Age and Tenure

3.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 718's board of directors are considered experienced (3.3 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

  • Chow Lung Lee (84yo)

    Executive Vice President and Head of General Marketing & Business Development

    • Tenure: 0yrs
  • Jenny Yam (48yo)

    Company Secretary

    • Tenure: 2.7yrs
  • Weisong Chen (40yo)

    CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: HK$6.52m
  • Benny Kwong (60yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$2.63m

Board Members

  • King Shing Tang (65yo)

    Independent Non-Executive-Director

    • Tenure: 2.7yrs
    • Compensation: HK$300.00k
  • Yan Liu (48yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$300.00k
  • Weisong Chen (40yo)

    CEO & Executive Director

    • Tenure: 2yrs
    • Compensation: HK$6.52m
  • Bin Gao (57yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$300.00k
  • Benny Kwong (60yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$2.63m
  • Yan Liu (48yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs

Company Information

Tai United Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tai United Holdings Limited
  • Ticker: 718
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$1.129b
  • Shares outstanding: 5.25b
  • Website: https://null

Number of Employees


Location

  • Tai United Holdings Limited
  • China United Centre
  • Room 2902, 29th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
718SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1996

Biography

Tai United Holdings Limited, an investment holding company, engages in the trading of petrochemical and metal-related products. The company operates through Financial Services and Asset Management; Commodi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:42
End of Day Share Price2019/10/22 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.