SEHK:1127

Stock Analysis Report

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Executive Summary

Lion Rock Group Limited, an investment holding company, provides printing services to international book publishers, trade, professional and educational publishing conglomerates, and print media companies. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Lion Rock Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1127 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

1127

-4.1%

HK Commercial Services

-2.9%

HK Market


1 Year Return

-44.9%

1127

50.2%

HK Commercial Services

-1.5%

HK Market

Return vs Industry: 1127 underperformed the Hong Kong Commercial Services industry which returned 50.2% over the past year.

Return vs Market: 1127 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1127IndustryMarket
7 Day-5.8%-4.1%-2.9%
30 Day-5.8%-10.5%-6.7%
90 Day-8.5%13.5%0.2%
1 Year-42.4%-44.9%53.3%50.2%2.4%-1.5%
3 Year-47.7%-56.7%-39.4%-44.7%-7.5%-17.4%
5 Year-17.7%-39.3%-56.5%-61.9%15.4%-4.0%

Price Volatility Vs. Market

How volatile is Lion Rock Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lion Rock Group 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: 1127 (HK$0.65) is trading below our estimate of fair value (HK$2.06)

Significantly Below Fair Value: 1127 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1127 is good value based on its PE Ratio (4.8x) compared to the HK Commercial Services industry average (11.6x).

PE vs Market: 1127 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1127's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1127 is good value based on its PB Ratio (0.5x) compared to the HK Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is Lion Rock Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.6%

Forecasted Commercial Services 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 Lion Rock Group 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 Lion Rock Group performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1127 has high quality earnings.

Growing Profit Margin: 1127's current net profit margins (7.4%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: 1127's earnings have declined by 2.2% per year over the past 5 years.

Accelerating Growth: 1127's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1127 had negative earnings growth (-37.5%) over the past year, making it difficult to compare to the Commercial Services industry average (13.5%).


Return on Equity

High ROE: 1127's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Lion Rock Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1127's short term assets (HK$1.1B) exceed its short term liabilities (HK$495.1M).

Long Term Liabilities: 1127's short term assets (HK$1.1B) exceed its long term liabilities (HK$81.5M).


Debt to Equity History and Analysis

Debt Level: 1127's debt to equity ratio (20%) is considered satisfactory.

Reducing Debt: 1127's debt to equity ratio has increased from 11.3% to 20% over the past 5 years.

Debt Coverage: 1127's debt is well covered by operating cash flow (69%).

Interest Coverage: 1127's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Lion Rock Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1127's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1127'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 1127's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1127's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1127 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1127'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?

8.4yrs

Average board tenure


CEO

Lion Rock Group has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Mei Lan Lam
CFO & Executive Director5.67yrsHK$1.20m2.15%
HK$ 10.4m
Chuk Kin Lau
Compliance Officer & Executive Director9.5yrsHK$1.20m10.05%
HK$ 48.8m
Chun Wan Chu
Executive Director5.5yrsHK$2.33mno data
Hau Leung Lee
Independent Non-Executive Director9.25yrsHK$210.00kno data
Ka Sing Yeung
Independent Non-Executive Chairman9.25yrsHK$240.00kno data
Lai Man Ng
Independent Non-Executive Director9.25yrsHK$210.00kno data
Richard Francis Celarc
Chairman of Left Field Printing Group Limitedno datano datano data
Hoi Li
Non Executive Director7.5yrsHK$620.00kno data
Junsheng Guo
Non-Executive Director4.33yrsHK$120.00k0.032%
HK$ 157.4k

8.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 1127's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1127 insiders have bought and sold the same number of shares 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

Lion Rock Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lion Rock Group Limited
  • Ticker: 1127
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: HK$485.100m
  • Shares outstanding: 770.00m
  • Website: https://www.lionrockgrouphk.com

Number of Employees


Location

  • Lion Rock Group Limited
  • 625 King’s Road
  • 26th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1127SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2011

Biography

Lion Rock Group Limited, an investment holding company, provides printing services to international book publishers, trade, professional and educational publishing conglomerates, and print media companies. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 12:44
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
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.