SEHK:544

Stock Analysis Report

Executive Summary

Daido Group Limited, an investment holding company, provides cold storage and related services in the People’s Republic of China.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 544's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

544

5.3%

HK Commercial Services

4.0%

HK Market


1 Year Return

-60.0%

544

23.3%

HK Commercial Services

-20.1%

HK Market

Return vs Industry: 544 underperformed the Hong Kong Commercial Services industry which returned 23.3% over the past year.

Return vs Market: 544 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

544IndustryMarket
7 Day5.3%5.3%4.0%
30 Day-23.1%-5.7%-11.3%
90 Day-37.5%8.7%-15.6%
1 Year-60.0%-60.0%26.1%23.3%-17.2%-20.1%
3 Year-84.8%-84.8%-43.8%-47.9%-2.9%-12.7%
5 Year-78.9%-78.9%-64.2%-66.5%-6.8%-21.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Daido 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: 544 (HK$0.02) is trading below our estimate of fair value (HK$1.35)

Significantly Below Fair Value: 544 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 544 is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: 544 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 544's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 544 is good value based on its PB Ratio (0.3x) compared to the HK Commercial Services industry average (1x).


Next Steps

Future Growth

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

28.0%

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 Daido 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 Daido Group performed over the past 5 years?

-24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 544 is currently unprofitable.

Growing Profit Margin: 544 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 544 is unprofitable, and losses have increased over the past 5 years at a rate of -24.9% per year.

Accelerating Growth: Unable to compare 544's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 544 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (12.2%).


Return on Equity

High ROE: 544 has a negative Return on Equity (-29.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Daido Group's financial position?


Financial Position Analysis

Short Term Liabilities: 544's short term assets (HK$222.0M) exceed its short term liabilities (HK$165.4M).

Long Term Liabilities: 544's short term assets (HK$222.0M) do not cover its long term liabilities (HK$342.0M).


Debt to Equity History and Analysis

Debt Level: 544's debt to equity ratio (103.9%) is considered high.

Reducing Debt: 544's debt to equity ratio has increased from 7.4% to 103.9% over the past 5 years.


Balance Sheet

Inventory Level: 544 has a high level of physical assets or inventory.

Debt Coverage by Assets: 544's debt is covered by short term assets (assets are 1.3x debt).


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 544 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 544 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.4% per year.


Next Steps

Dividend

What is Daido Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 544's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 544'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 544's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 544'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 544'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?

10.6yrs

Average board tenure


CEO

Ivan Ho (64yo)

0.75

Tenure

HK$1,518,000

Compensation

Mr. Hon Chung Ho, also known as Ivan, has been an Executive Director of Daido Group Ltd. since November 2, 2009 and its Acting Chief Executive Officer since June 4, 2019. Mr. Ho has been in the travel ind ...


CEO Compensation Analysis

Compensation vs Market: Ivan's total compensation ($USD195.83K) is about average for companies of similar size in the Hong Kong market ($USD229.07K).

Compensation vs Earnings: Ivan's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Hon Ho
Acting CEO & Executive Director0.75yrHK$1.52m5.76% HK$2.8m
Pak Fung
Executive Director0.75yrno datano data
Yuen Ming Tse
Independent Non-Executive Director16.58yrsHK$120.00kno data
Chi Hung Leung
Independent Non-Executive Director16.5yrsHK$120.00kno data
Wa Fung
Non-Executive Director16.42yrsHK$120.00kno data
Siu Fung
Independent Non-Executive Director10.58yrsHK$120.00kno data
Tat Wai Au
Non-Executive Director10.5yrsHK$1.69mno data

10.6yrs

Average Tenure

57yo

Average Age

Experienced Board: 544's board of directors are seasoned and experienced ( 10.6 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

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


Key Information

  • Name: Daido Group Limited
  • Ticker: 544
  • Exchange: SEHK
  • Founded:
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$48.646m
  • Shares outstanding: 2.43b
  • Website: https://www.daidohk.com

Number of Employees


Location

  • Daido Group Limited
  • Tower 1
  • Level 13, Unit No. 1301
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
544SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2000

Biography

Daido Group Limited, an investment holding company, provides cold storage and related services in the People’s Republic of China. It operates through Cold Storage and Related Services; Trading of Food and Beverage; and Money Lending Services segments. The company’s services include warehousing and storage, transportation and distribution, container hauling and devanning, packaging, and other services. It also manufactures industrial ice bars for construction use; offers sub-leases properties; and provides financial investment services. In addition, the company distributes food and beverage products through a network of supermarkets and convenience stores. The company is headquartered in Kwai Chung, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 12:46
End of Day Share Price2020/03/27 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.