SEHK:143

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Guoan International Limited, an investment holding company, provides repair services for telecommunication products in Hong Kong.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has Guoan International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 143's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.0%

143

4.5%

HK Commercial Services

-0.6%

HK Market


1 Year Return

-56.4%

143

44.5%

HK Commercial Services

-2.4%

HK Market

Return vs Industry: 143 underperformed the Hong Kong Commercial Services industry which returned 44.5% over the past year.

Return vs Market: 143 underperformed the Hong Kong Market which returned -2.4% over the past year.


Shareholder returns

143IndustryMarket
7 Day-18.0%4.5%-0.6%
30 Day-32.8%10.0%7.4%
90 Day-38.8%17.8%11.4%
1 Year-56.4%-56.4%47.4%44.5%1.6%-2.4%
3 Year-82.3%-82.3%-38.6%-43.5%5.8%-5.5%
5 Year-49.3%-55.9%-63.3%-67.2%7.3%-10.6%

Price Volatility Vs. Market

How volatile is Guoan International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guoan International 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: 143 (HK$0.04) is trading below our estimate of fair value (HK$0.15)

Significantly Below Fair Value: 143 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 143 is unprofitable, so we can't compare its PE Ratio to the HK Commercial Services industry average.

PE vs Market: 143 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 143's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 143 is overvalued based on its PB Ratio (1x) compared to the HK Commercial Services industry average (0.8x).


Next Steps

Future Growth

How is Guoan International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.4%

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 Guoan International 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 Guoan International performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 143 is currently unprofitable.

Growing Profit Margin: 143 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 143 is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% per year.

Accelerating Growth: Unable to compare 143's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 143 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-0.6%).


Return on Equity

High ROE: 143 has a negative Return on Equity (-14.75%), as it is currently unprofitable.


Next Steps

Financial Health

How is Guoan International's financial position?


Financial Position Analysis

Short Term Liabilities: 143's short term assets (HK$406.6M) do not cover its short term liabilities (HK$524.1M).

Long Term Liabilities: 143's short term assets (HK$406.6M) exceed its long term liabilities (HK$190.8M).


Debt to Equity History and Analysis

Debt Level: 143's debt to equity ratio (142.4%) is considered high.

Reducing Debt: Insufficient data to determine if 143's debt to equity ratio has reduced 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: Whilst unprofitable 143 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 143 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 13.2% per year.


Next Steps

Dividend

What is Guoan International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 143's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 143'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 143's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 143'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 143'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?

3.1yrs

Average board tenure


CEO

Guoan International has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Zhen Qian Huang
Executive Director4.42yrsHK$1.40mno data
Jun Du
Executive Chairman4.33yrsno datano data
Kwok Leung Lee
Independent Non-Executive Director0.083yrno datano data
Ngai Lam Cheung
Independent Non-Executive Director0.083yrno datano data
Man Kung Ng
Independent Non-Executive Director4.33yrsHK$360.00kno data
Ming Hong Cui
Non-Executive Director4.33yrsno datano data
Wei Bai
Non-Executive Director1.92yrsno datano data
Wen Jun Wei
Non-Executive Director0.083yrno datano data

3.1yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 143's board of directors are considered experienced (3.1 years average tenure).


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

Guoan International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guoan International Limited
  • Ticker: 143
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$302.209m
  • Shares outstanding: 7.75b
  • Website: https://www.guoanintl.com

Number of Employees


Location

  • Guoan International Limited
  • Tower 2
  • 15th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
143SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 1999
G11SGX (Singapore Exchange)YesOrdinary SharesSGSGDApr 1999

Biography

Guoan International Limited, an investment holding company, provides repair services for telecommunication products in Hong Kong. The company also trades in telecommunications, electronic, and other products; and invests in financial assets. In addition, it engages in the money lending and property holding business; and trading of wine. The company was formerly known as Global Tech (Holdings) Limited and changed its name to Guoan International Limited in September 2017. Guoan International Limited was incorporated in 1998 and is headquartered in Hong Kong, Hong Kong. Guoan International Limited is a subsidiary of Road Shine Developments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 12:42
End of Day Share Price2020/07/15 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.