SEHK:8506

Stock Analysis Report

Executive Summary

China Futex Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of circular knitting machines in the People's Republic of China, South Korea, India, Bangladesh, Turkey, Egypt, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

8506

2.8%

HK Machinery

0.9%

HK Market


1 Year Return

3.0%

8506

18.1%

HK Machinery

0.6%

HK Market

Return vs Industry: 8506 underperformed the Hong Kong Machinery industry which returned 18.1% over the past year.

Return vs Market: 8506 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8506IndustryMarket
7 Day-4.6%2.8%0.9%
30 Day-12.7%2.7%0.5%
90 Day-16.3%-2.0%-4.3%
1 Year3.0%3.0%21.5%18.1%4.2%0.6%
3 Yearn/a54.2%44.8%15.6%4.0%
5 Yearn/a73.5%55.3%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Futex 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: 8506 (HK$0.1) is trading below our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 8506 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8506 is good value based on its PE Ratio (4x) compared to the Machinery industry average (9.2x).

PE vs Market: 8506 is good value based on its PE Ratio (4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8506's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8506 is good value based on its PB Ratio (0.7x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

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

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8506's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: 8506's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: 8506's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8506's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8506's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8506's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Futex Holdings performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8506's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: 8506's earnings growth over the past year (50.8%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: 8506 earnings growth over the past year (50.8%) exceeded the Machinery industry 7.4%.


Return on Equity

High ROE: 8506's Return on Equity (17.6%) is considered low.


Return on Assets

ROA vs Industry: 8506 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 8506's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Futex Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8506's short term assets (CN¥172.5M) exceeds its short term liabilities (CN¥63.6M)

Long Term Liabilities: 8506 has no long term liabilities


Debt to Equity History and Analysis

Debt Level: 8506's debt to equity ratio (34.6%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8506's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8506's debt is well covered by operating cash flow (39.1%).

Interest Coverage: 8506's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet

Inventory Level: 8506 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8506's debt is covered by short term assets (assets are 3.758640x debt).


Next Steps

Dividend

What is China Futex Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8506's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8506'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 8506's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8506'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 8506'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 China Futex Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

China Futex Holdings has no CEO, or we have no data on them.


Management Age and Tenure

1.8yrs

Average Tenure

38yo

Average Age

Experienced Management: 8506's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 8506's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

  • Lai Chun Huen (53yo)

    Company Secretary

    • Tenure: 0.8yrs
  • Yihui Chen (33yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥294.00k
  • Yuan Yuan (43yo)

    Chairlady

    • Tenure: 1.8yrs
    • Compensation: CN¥289.00k
  • Lina Wang (35yo)

    CFO & Finical Controller

    • Tenure: 0yrs
  • Jingyang Zhao (38yo)

    Sales Manager

    • Tenure: 0yrs

Board Members

  • Yihui Chen (33yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥294.00k
  • Yuan Yuan (43yo)

    Chairlady

    • Tenure: 1.8yrs
    • Compensation: CN¥289.00k
  • Xudong Hu (59yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥60.00k
  • Simon Shum (47yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥84.00k
  • Zhirong Mu (47yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥60.00k

Company Information

China Futex Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Futex Holdings Limited
  • Ticker: 8506
  • Exchange: SEHK
  • Founded: 2016
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$103.000m
  • Shares outstanding: 1.00b
  • Website: https://www.kx-machine.com

Number of Employees


Location

  • China Futex Holdings Limited
  • Xiawei Village
  • Fugong Town
  • Longhai City
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8506SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary Shares of HK$0.01HKHKDJan 2018

Biography

China Futex Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of circular knitting machines in the People's Republic of China, South Korea, Ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:51
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.