SEHK:8162

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Loco Hong Kong Holdings

Executive Summary

Loco Hong Kong Holdings Limited, an investment holding company, engages in the trade of metal and commodity forward contracts in Hong Kong and the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Loco Hong Kong Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8162's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

8162

-0.6%

HK Trade Distributors

0.7%

HK Market


1 Year Return

-46.8%

8162

-26.3%

HK Trade Distributors

0.4%

HK Market

Return vs Industry: 8162 underperformed the Hong Kong Trade Distributors industry which returned -26.3% over the past year.

Return vs Market: 8162 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

8162IndustryMarket
7 Day-1.5%-0.6%0.7%
30 Day-10.7%-0.3%-1.0%
90 Day-25.6%-1.1%9.6%
1 Year-46.8%-46.8%-23.9%-26.3%4.5%0.4%
3 Year-36.8%-36.8%-46.0%-49.8%0.2%-10.6%
5 Year-50.0%-50.0%-62.4%-67.3%9.9%-8.5%

Price Volatility Vs. Market

How volatile is Loco Hong Kong Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Loco Hong Kong Holdings undervalued compared to its fair value and its price relative to the market?

2.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8162's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8162's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8162 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 8162 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 8162's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8162 is overvalued based on its PB Ratio (2.6x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

How is Loco Hong Kong Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.8%

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 Loco Hong Kong 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 Loco Hong Kong Holdings performed over the past 5 years?

-61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8162 is currently unprofitable.

Growing Profit Margin: 8162 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8162 is unprofitable, and losses have increased over the past 5 years at a rate of 61.3% per year.

Accelerating Growth: Unable to compare 8162's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8162 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (0.9%).


Return on Equity

High ROE: 8162 has a negative Return on Equity (-27.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Loco Hong Kong Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8162's short term assets (HK$61.9M) exceed its short term liabilities (HK$9.3M).

Long Term Liabilities: 8162's short term assets (HK$61.9M) exceed its long term liabilities (HK$871.0K).


Debt to Equity History and Analysis

Debt Level: 8162 is debt free.

Reducing Debt: 8162 has no debt compared to 5 years ago when its debt to equity ratio was 5.1%.


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: 8162 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 8162 has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of 27.2% each year.


Next Steps

Dividend

What is Loco Hong Kong Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8162's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8162'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 8162's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8162'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 8162'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?

1.4yrs

Average management tenure


CEO

Wendong Wang (52 yo)

1.83yrs

Tenure

HK$2,722,000

Compensation

Mr. Wendong Wang has been Chief Executive Officer of Loco Hong Kong Holdings Limited since October 31, 2018 and its Executive Chairman since January 11, 2019. Mr. Wang is an Executive Director of Loco Hong ...


CEO Compensation Analysis

Compensation vs Market: Wendong's total compensation ($USD351.22K) is above average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wendong Wang
Executive Chairman & CEO1.83yrsHK$2.72mno data
Chi Kin Fung
Compliance Officer & Executive Director1.17yrsHK$1.35mno data
Yun Fong Lau
Financial Controller and Chief Accountantno datano datano data
Hin Chung Lau
Chief Operation Officer4.83yrsno datano data
Zhemin Wei
Deputy Chief Executive Officerno datano datano data
Yuen Ching Tang
Company Secretary0.25yrno datano data

1.4yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 8162's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wendong Wang
Executive Chairman & CEO1.83yrsHK$2.72mno data
Chi Kin Fung
Compliance Officer & Executive Director1.17yrsHK$1.35mno data
Chui San Wong
Independent Non-Executive Director1.5yrsHK$229.00kno data
Tianshu Zhou
Independent Non-Executive Director1.92yrsHK$261.00kno data
Wu Liyan
Independent Non-Executive Director1.92yrsHK$261.00kno data

1.6yrs

Average Tenure

46yo

Average Age

Experienced Board: 8162's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Loco Hong Kong Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loco Hong Kong Holdings Limited
  • Ticker: 8162
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$193.017m
  • Shares outstanding: 576.17m
  • Website: https://www.locohkholdings.com

Number of Employees


Location

  • Loco Hong Kong Holdings Limited
  • Fairmont House
  • Unit 401
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8162SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2014

Biography

Loco Hong Kong Holdings Limited, an investment holding company, engages in the trade of metal and commodity forward contracts in Hong Kong and the People’s Republic of China. The company primarily trades i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:47
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.