SEHK:731

Stock Analysis Report

Samson Paper Holdings

Executive Summary

Samson Paper Holdings Limited, an investment holding company, engages in manufacturing, trading, and marketing paper products worldwide.

Snowflake

Fundamentals

Fair value second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

731

2.3%

HK Trade Distributors

2.9%

HK Market


1 Year Return

-12.2%

731

6.5%

HK Trade Distributors

0.7%

HK Market

Return vs Industry: 731 underperformed the Hong Kong Trade Distributors industry which returned 6.5% over the past year.

Return vs Market: 731 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

731IndustryMarket
7 Day0%2.3%2.9%
30 Day-3.7%-14.8%-2.5%
90 Day-10.2%3.1%-5.4%
1 Year-7.0%-12.2%9.7%6.5%4.4%0.7%
3 Year12.1%-4.8%-12.5%-20.4%17.0%5.2%
5 Year2.2%-21.0%-44.2%-55.4%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Samson Paper Holdings undervalued compared to its fair value and its price relative to the market?

4.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 731 (HK$0.4) is trading above our estimate of fair value (HK$0.26)

Significantly Undervalued: 731 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 731 is good value based on its PE Ratio (4.3x) compared to the Trade Distributors industry average (9.3x).

PE vs Market: 731 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 731's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 731 is good value based on its PB Ratio (0.2x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 731's forecast earnings growth (13.3% per year) is above the savings rate (2%).

Earnings vs Market: 731's earnings (13.3% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 731's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 731's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 731'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 731's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Samson Paper Holdings performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 731's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: 731's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 731 had negative earnings growth (-45.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 731's Return on Equity (5.5%) is considered low.


Return on Assets

ROA vs Industry: 731's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 731 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Samson Paper Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 731's short term assets (HK$3.5B) exceeds its short term liabilities (HK$3.2B)

Long Term Liabilities: 731's short term assets (3.5B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: 731's debt to equity ratio (146.2%) is considered high

Reducing Debt: 731's debt to equity ratio has increased from 110.8% to 146.2% over the past 5 years.

Debt Coverage: 731's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 731's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 731 has a high level of physical assets or inventory.

Debt Coverage by Assets: 731's debt is covered by short term assets (assets are 1.105870x debt).


Next Steps

Dividend

What is Samson Paper Holdings's current dividend yield, its reliability and sustainability?

6.08%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.2%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 731's dividend (6.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 731's dividend (6.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 731's dividend payments have been volatile in the past 10 years.

Growing Dividend: 731's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.1%), 731's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Samson Paper Holdings's salary, the management and board of directors tenure and is there insider trading?

19.3yrs

Average board tenure


CEO

Seng Lee (62yo)

0yrs

Tenure

HK$9,200,000

Compensation

Mr. Seng Jin Lee serves as Deputy Chairman, Executive Director and Chief Executive Officer of Samson Paper Holdings Ltd. Mr. Lee is responsible for the formulation of Samson's corporate strategies and deve ...


CEO Compensation Analysis

Compensation vs. Market: Seng's total compensation ($USD1.17M) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

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


Board Age and Tenure

19.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 731's board of directors are seasoned and experienced ( 19.3 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

  • Seng Lee (62yo)

    Deputy Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$9.20m
  • Albert Lee (63yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.88m
  • Peggy Sham (53yo)

    Director of Credit & Administrative Management and Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.92m
  • SHAM Kit Sham (93yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$5.88m
  • Wing Yuen Chow (60yo)

    COO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.93m

Board Members

  • Seng Lee (62yo)

    Deputy Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$9.20m
  • Patrick Pang (63yo)

    Independent Non-Executive Director

    • Tenure: 24.8yrs
    • Compensation: HK$200.00k
  • Albert Lee (63yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.88m
  • Peggy Sham (53yo)

    Director of Credit & Administrative Management and Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.92m
  • SHAM Kit Sham (93yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$5.88m
  • Eric Lau (52yo)

    Non-Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$200.00k
  • Wing Yuen Chow (60yo)

    COO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.93m
  • Kenneth Ng (52yo)

    Independent Non-Executive Director

    • Tenure: 14.8yrs
    • Compensation: HK$200.00k
  • Yat Tong (62yo)

    Independent Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: HK$200.00k

Company Information

Samson Paper Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Samson Paper Holdings Limited
  • Ticker: 731
  • Exchange: SEHK
  • Founded: 1965
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$456.430m
  • Shares outstanding: 1.14b
  • Website: https://www.samsonpaper.com

Number of Employees


Location

  • Samson Paper Holdings Limited
  • Seapower Industrial Centre
  • 3rd Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
731SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1996

Biography

Samson Paper Holdings Limited, an investment holding company, engages in manufacturing, trading, and marketing paper products worldwide. The company operates through four segments: Trading, Paper Manufactu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:38
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.