SEHK:936

Stock Analysis Report

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Executive Summary

Eagle Legend Asia Limited, an investment holding company, trades in construction machinery and spare parts in Hong Kong, Singapore, Vietnam, Macau, and the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Eagle Legend Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 936 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

936

-0.6%

HK Trade Distributors

0.7%

HK Market


1 Year Return

-33.0%

936

-26.3%

HK Trade Distributors

0.4%

HK Market

Return vs Industry: 936 underperformed the Hong Kong Trade Distributors industry which returned -26.3% over the past year.

Return vs Market: 936 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

936IndustryMarket
7 Day1.7%-0.6%0.7%
30 Day-12.9%-0.3%-1.0%
90 Day-7.6%-1.1%9.6%
1 Year-33.0%-33.0%-23.9%-26.3%4.5%0.4%
3 Year-42.5%-42.5%-46.0%-49.8%0.2%-10.6%
5 Year-71.6%-71.6%-62.4%-67.3%9.9%-8.5%

Price Volatility Vs. Market

How volatile is Eagle Legend Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eagle Legend Asia undervalued compared to its fair value and its price relative to the market?

2.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 936's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 936's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 936 is unprofitable, so we can't compare its PE Ratio to the HK Trade Distributors industry average.

PE vs Market: 936 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 936's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 936 is overvalued based on its PB Ratio (2.7x) compared to the HK Trade Distributors industry average (0.5x).


Next Steps

Future Growth

How is Eagle Legend Asia 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 Eagle Legend Asia 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 Eagle Legend Asia performed over the past 5 years?

-12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 936 is currently unprofitable.

Growing Profit Margin: 936 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 936 is unprofitable, and losses have increased over the past 5 years at a rate of 12.4% per year.

Accelerating Growth: Unable to compare 936's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 936 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (0.9%).


Return on Equity

High ROE: 936 has a negative Return on Equity (-13.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eagle Legend Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 936's short term assets (HK$665.4M) exceed its short term liabilities (HK$368.2M).

Long Term Liabilities: 936's short term assets (HK$665.4M) exceed its long term liabilities (HK$48.2M).


Debt to Equity History and Analysis

Debt Level: 936's debt to equity ratio (48.3%) is considered high.

Reducing Debt: 936's debt to equity ratio has reduced from 88.9% to 48.3% over the past 5 years.


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: 936 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 936 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 44.3% each year


Next Steps

Dividend

What is Eagle Legend Asia current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 936's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 936'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 936's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 936'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 936'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?

0.8yrs

Average management tenure


CEO

Yi Zhao (44 yo)

0.75

Tenure

HK$588,000

Compensation

Mr. Yi Zhao has been Chief Executive Officer and Executive Director of Eagle Legend Asia Limited. He served as a Senior Vice President at Kaisa Group Holdings Ltd. since May 2018. Mr. Zhao served as a Vice ...


CEO Compensation Analysis

Compensation vs Market: Yi's total compensation ($USD75.87K) is below average for companies of similar size in the Hong Kong market ($USD232.25K).

Compensation vs Earnings: Insufficient data to compare Yi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yi Zhao
CEO & Executive Director0.75yrHK$588.00kno data
Peineng Guo
Executive Deputy Chairman1.08yrsHK$727.00kno data
Huajie Chen
Executive Director1.08yrsHK$904.00kno data
Ai Zhao
Chief Financial Officer0.83yrno datano data
Yuk Ching Poon
Company Secretary0.83yrno datano data

0.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 936's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yi Zhao
CEO & Executive Director0.75yrHK$588.00kno data
Peineng Guo
Executive Deputy Chairman1.08yrsHK$727.00kno data
Huajie Chen
Executive Director1.08yrsHK$904.00kno data
Xiaowu Xu
Independent Non-Executive Director0.75yrHK$28.00kno data
Yingfeng Diao
Independent Non-Executive Director0.67yrHK$13.00kno data
Yongjun Li
Independent Non Executive Director0.75yrHK$28.00kno data

0.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 936's board of directors are not considered experienced ( 0.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Eagle Legend Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eagle Legend Asia Limited
  • Ticker: 936
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$625.400m
  • Shares outstanding: 1.06b
  • Website: https://www.elasialtd.com

Number of Employees


Location

  • Eagle Legend Asia Limited
  • No. 3610, The Center
  • 36th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
936SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2010

Biography

Eagle Legend Asia Limited, an investment holding company, trades in construction machinery and spare parts in Hong Kong, Singapore, Vietnam, Macau, and the People’s Republic of China. The company also leas ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:59
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
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.