SEHK:2180

Stock Analysis Report

ManpowerGroup Greater China

Executive Summary

ManpowerGroup Greater China Limited, an investment holding company, provides workforce solutions and other HR services to clients in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2180's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.7%

2180

-2.0%

HK Professional Services

-3.3%

HK Market


1 Year Return

n/a

2180

-29.0%

HK Professional Services

-9.6%

HK Market

Return vs Industry: Insufficient data to determine how 2180 performed against the Hong Kong Professional Services industry.

Return vs Market: Insufficient data to determine how 2180 performed against the Hong Kong Market.


Shareholder returns

2180IndustryMarket
7 Day3.7%-2.0%-3.3%
30 Day21.6%-1.5%-3.8%
90 Day44.0%11.7%-0.2%
1 Yearn/a-28.9%-29.0%-6.3%-9.6%
3 Yearn/a-43.4%-44.0%11.2%-0.05%
5 Yearn/a-38.3%-39.5%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ManpowerGroup Greater China 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: 2180 (HK$11.96) is trading below our estimate of fair value (HK$28.28)

Significantly Below Fair Value: 2180 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2180 is good value based on its PE Ratio (17.6x) compared to the Professional Services industry average (18.7x).

PE vs Market: 2180 is poor value based on its PE Ratio (17.6x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2180 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 2180 is good value based on its PB Ratio (2.7x) compared to the HK Professional Services industry average (2.7x).


Next Steps

Future Growth

How is ManpowerGroup Greater China forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2180's forecast earnings growth (35.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 2180's earnings (35.8% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2180's revenue (24.4% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 2180's revenue (24.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2180's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has ManpowerGroup Greater China performed over the past 5 years?

3.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 2180 has high quality earnings.

Growing Profit Margin: 2180's current net profit margins (3.2%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 2180's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 2180's past year earnings growth to its 5-year average.

Earnings vs Industry: 2180 earnings growth over the past year (3.9%) underperformed the Professional Services industry 11.6%.


Return on Equity

High ROE: 2180's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is ManpowerGroup Greater China's financial position?


Financial Position Analysis

Short Term Liabilities: 2180's short term assets (CN¥903.2M) exceed its short term liabilities (CN¥429.3M).

Long Term Liabilities: 2180's short term assets (CN¥903.2M) exceed its long term liabilities (CN¥52.9M).


Debt to Equity History and Analysis

Debt Level: 2180 is debt free.

Reducing Debt: 2180 had no debt 5 years ago.

Debt Coverage: 2180 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2180 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2180 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 2180's debt is covered by short term assets.


Next Steps

Dividend

What is ManpowerGroup Greater China's current dividend yield, its reliability and sustainability?

3.04%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2180's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2180's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2180's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2180'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 2180'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?

2.6yrs

Average management tenure


CEO

Jianhua Yuan (43yo)

4.4yrs

Tenure

Mr. Yuan Jianhua is the Director of ManpowerGroup Greater China Ltd from September 26, 2014 and re-designated as our executive Director on January 18, 2019. Mr. Yuan is primarily responsible for formulatin ...


Leadership Team

NamePositionTenureCompensationOwnership
Jianhua Yuan
CEO, President & Executive Director4.4yrsno datano data
Zhihui Cui
Chief Financial Officer4.1yrsno datano data
Xingyue Gao
Joint Company Secretary1.1yrsno datano data
Yee Wong
Joint Company Secretary1.1yrsno datano data

2.6yrs

Average Tenure

Experienced Management: 2180's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianhua Yuan
CEO, President & Executive Director4.4yrsno datano data
Darryl Green
Chairman4.5yrsno datano data
Eng Yeoh
Independent Non-Executive Director0.9yrsno datano data
Man Wong
Independent Non-Executive Director0.9yrsno datano data
Yinghao Zhang
Non-Executive Director4.5yrsno datano data
Sriram Chandrasekar
Non-Executive Director4.5yrsno datano data
Victor Huang
Independent Non-Executive Director0.9yrsno datano data
Feng Zhai
Non-Executive Director4.5yrsno datano data

4.5yrs

Average Tenure

50yo

Average Age

Experienced Board: 2180's board of directors are considered experienced (4.5 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: 2180 only recently listed within the past 12 months, with total shares outstanding growing by 0% in the past year..


Top Shareholders

Company Information

ManpowerGroup Greater China Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ManpowerGroup Greater China Limited
  • Ticker: 2180
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: HK$2.482b
  • Shares outstanding: 207.50m
  • Website: https://www.manpowergroupgrc.com

Number of Employees


Location

  • ManpowerGroup Greater China Limited
  • Building A, 36th Floor
  • Xin Mei Union Square
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2180SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2019

Biography

ManpowerGroup Greater China Limited, an investment holding company, provides workforce solutions and other HR services to clients in the People’s Republic of China. It offers flexible staffing solutions to deliver associates to its clients and assist in managing their contingent labor needs; headhunting services that help enterprises in selecting various senior-level talents; recruitment process outsourcing services that allows clients to outsource their recruitment needs; and other HR services, including HR consultancy services, training and development services, career transition services, and other services. The company was founded in 1997 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:40
End of Day Share Price2020/02/27 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.