North Asia Strategic Holdings Limited, an investment holding company, engages in the hi-tech distribution and services, and leasing businesses in the People’s Republic of China and rest of Asia.
The last earnings update was 22 days ago.
Discounted Cash Flow Calculation for SEHK:8080 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
North Asia Strategic Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
SEHK:8080 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
North Asia Strategic Holdings
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
North Asia Strategic Holdings
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
North Asia Strategic Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
North Asia Strategic Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
North Asia Strategic Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
North Asia Strategic Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
North Asia Strategic Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if North Asia Strategic Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
North Asia Strategic Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
North Asia Strategic Holdings
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
North Asia Strategic Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
North Asia Strategic Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
North Asia Strategic Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
North Asia Strategic Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
North Asia Strategic Holdings has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
What Kind Of Share Price Volatility Should You Expect For North Asia Strategic Holdings Limited (HKG:8080)?
If you own shares in North Asia Strategic Holdings Limited (HKG:8080) then it's worth thinking about how it contributes to the volatility of your portfolio, overall. … Beta is worth considering, but it's also important to consider whether North Asia Strategic Holdings is growing earnings and revenue. … What this means for you: Since North Asia Strategic Holdings has a beta close to one, it will probably show a positive return when the market is moving up, based on history.
Why We Like North Asia Strategic Holdings Limited’s (HKG:8080) 16% Return On Capital Employed
The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for North Asia Strategic Holdings: 0.16 = HK$155m ÷ (HK$1.9b - HK$885m) (Based on the trailing twelve months to December 2018.) So, North Asia Strategic Holdings has an ROCE of 16%. … What Are Current Liabilities, And How Do They Affect North Asia Strategic Holdings's ROCE? … Our Take On North Asia Strategic Holdings's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.
These Factors Make North Asia Strategic Holdings Limited (HKG:8080) An Interesting Investment
I've been keeping an eye on North Asia Strategic Holdings Limited (HKG:8080) because I'm attracted to its fundamentals. … For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on North Asia Strategic Holdings here. … SEHK:8080 Income Statement, May 22nd 2019 Next Steps: For North Asia Strategic Holdings, I've compiled three relevant factors you should look at: Future Outlook: What are well-informed industry analysts predicting for 8080’s future growth?
Do Directors Own North Asia Strategic Holdings Limited (HKG:8080) Shares?
A look at the shareholders of North Asia Strategic Holdings Limited (HKG:8080) can tell us which group is most powerful. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … North Asia Strategic Holdings is a smaller company with a market capitalization of HK$245m, so it may still be flying under the radar of many institutional investors.
Does North Asia Strategic Holdings Limited (HKG:8080) Have A Volatile Share Price?
If you're interested in North Asia Strategic Holdings Limited (HKG:8080), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).
Such Is Life: How North Asia Strategic Holdings (HKG:8080) Shareholders Saw Their Shares Drop 63%
So we wouldn't blame long term North Asia Strategic Holdings Limited (HKG:8080) shareholders for doubting their decision to hold, with the stock down 63% over a half decade. … During five years of share price growth, North Asia Strategic Holdings moved from a loss to profitability. … A more detailed examination of the revenue and earnings may or may not explain why the share price languishes; there could be an opportunity.
Should You Like North Asia Strategic Holdings Limited’s (HKG:8080) High Return On Capital Employed?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Is North Asia Strategic Holdings Limited's (HKG:8080) Balance Sheet A Threat To Its Future?
North Asia Strategic Holdings Limited (HKG:8080), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is 8080 growing fast enough to value financial flexibility over lower cost of capital. … Debt funding can be cheaper than issuing new equity due to lower interest cost on debt
Does Market Volatility Impact North Asia Strategic Holdings Limited's (HKG:8080) Share Price?
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
What Kind Of Shareholders Own North Asia Strategic Holdings Limited (HKG:8080)?
If you want to know who really controls North Asia Strategic Holdings Limited (HKG:8080), then you'll have to look at the makeup of its share registry. … With a market capitalization of HK$210m, North Asia Strategic Holdings is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for North Asia Strategic Holdings
North Asia Strategic Holdings Limited, an investment holding company, engages in the hi-tech distribution and services, and leasing businesses in the People’s Republic of China and rest of Asia. The company’s Hi-Tech Distribution and Services segment trades in surface mount technology (SMT) assembly equipment, machinery, and spare parts; and provides installation, training, repair, and maintenance services for SMT assembly equipment. Its Leasing segment provides finance to its customers through a range of assets under finance and operating lease arrangements. The company also offers management services. North Asia Strategic Holdings Limited is based in Central, Hong Kong.
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