Winson Holdings Hong Kong (SEHK:6812) - Share price, News & Analysis

6812 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

6812 Stock Overview

Winson Holdings Hong Kong Limited, an investment holding company, provides environmental hygiene and related, and airline catering support services in Hong Kong.

Rewards

Trading at 84.9% below our estimate of its fair value

Risk Analysis

Unstable dividend track record

Profit margins (4.7%) are lower than last year (13.9%)

Does not have a meaningful market cap (HK$246M)

Winson Holdings Hong Kong Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Winson Holdings Hong Kong
Historical stock prices
Current Share Price	HK$0.41
52 Week High	HK$0.61
52 Week Low	HK$0.34
Beta	0.34
1 Month Change	12.33%
3 Month Change	1.23%
1 Year Change	2.50%
3 Year Change	-4.65%
5 Year Change	70.83%
Change since IPO	-6.82%

Shareholder Returns

	6812	HK Commercial Services	HK Market
7D	-1.2%	1.7%	2.1%
1Y	2.5%	-14.6%	-23.3%

Return vs Industry: 6812 exceeded the Hong Kong Commercial Services industry which returned -14.6% over the past year.

Return vs Market: 6812 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 6812's price volatile compared to industry and market?
6812 volatility
6812 Average Weekly Movement	8.2%
Commercial Services Industry Average Movement	7.7%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 6812 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6812's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	1,886	n/a	https://www.winsongrouphk.com

Winson Holdings Hong Kong Limited, an investment holding company, provides environmental hygiene and related, and airline catering support services in Hong Kong. It offers environmental hygiene services, including public area and office cleaning, and waste disposal, as well as specialized services, such as external curtain wall and window cleaning, marble floor maintenance and restoration, intensive cleaning, pest control services, etc. to residential, commercial and shopping complexes, public utilities, transportation systems, and government bodies. The company also provides pest control services comprising indoor pest management and rodent prevention, as well as control services that involve spraying of pesticides and fogging treatment, etc. to a range of customers comprising government departments, educational institutes, public utilities, and transportation systems, as well as residential, commercial, and shopping complexes.

Winson Holdings Hong Kong Fundamentals Summary

How do Winson Holdings Hong Kong's earnings and revenue compare to its market cap?
6812 fundamental statistics
Market Cap	HK$246.00m
Earnings (TTM)	HK$22.10m
Revenue (TTM)	HK$473.69m

11.1x

P/E Ratio

0.5x

P/S Ratio

Is 6812 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6812 income statement (TTM)
Revenue	HK$473.69m
Cost of Revenue	HK$397.34m
Gross Profit	HK$76.35m
Other Expenses	HK$54.25m
Earnings	HK$22.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.037
Gross Margin	16.12%
Net Profit Margin	4.66%
Debt/Equity Ratio	2.1%

How did 6812 perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

40%

Payout Ratio

Does 6812 pay a reliable dividends?

See 6812 dividend history and benchmarks

When do you need to buy 6812 by to receive an upcoming dividend?
Winson Holdings Hong Kong dividend dates
Ex Dividend Date	Aug 04 2022
Dividend Pay Date	Aug 26 2022
Days until Ex dividend	39 days
Days until Dividend pay date	61 days

Does 6812 pay a reliable dividends?

See 6812 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 6812 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6812?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6812. This is calculated by dividing 6812's market cap by their current preferred multiple.
What is 6812's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$246.00m

6812 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	4.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6812's PE Ratio compare to its peers?

6812 PE Ratio vs Peers

The above table shows the PE ratio for 6812 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.4x

Forward PE

Price-To-Earnings vs Peers: 6812 is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

How does 6812's PE Ratio compare vs other companies in the Hong Kong Commercial Services Industry?

Price-To-Earnings vs Industry: 6812 is expensive based on its Price-To-Earnings Ratio (11.1x) compared to the Hong Kong Commercial Services industry average (9.8x)

Price to Earnings Ratio vs Fair Ratio

What is 6812's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6812 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6812's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6812 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6812 (HK$0.41) is trading below our estimate of fair value (HK$2.71)

Significantly Below Fair Value: 6812 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6812's PEG Ratio to determine if it is good value.

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Future Growth

How is Winson Holdings Hong Kong forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.4%

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 Winson Holdings Hong Kong 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.

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Examine whether Winson Holdings Hong Kong is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Winson Holdings Hong Kong competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Winson Holdings Hong Kong performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6812 has high quality earnings.

Growing Profit Margin: 6812's current net profit margins (4.7%) are lower than last year (13.9%).

Past Earnings Growth Analysis

Earnings Trend: 6812's earnings have grown significantly by 28.2% per year over the past 5 years.

Accelerating Growth: 6812's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6812 had negative earnings growth (-70.1%) over the past year, making it difficult to compare to the Commercial Services industry average (9%).

Return on Equity

High ROE: 6812's Return on Equity (11.3%) is considered low.

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Financial Health

How is Winson Holdings Hong Kong's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6812's short term assets (HK$226.4M) exceed its short term liabilities (HK$55.5M).

Long Term Liabilities: 6812's short term assets (HK$226.4M) exceed its long term liabilities (HK$13.4M).

Debt to Equity History and Analysis

Debt Level: 6812 has more cash than its total debt.

Reducing Debt: 6812's debt to equity ratio has reduced from 43.3% to 2.1% over the past 5 years.

Debt Coverage: 6812's debt is well covered by operating cash flow (1718.8%).

Interest Coverage: 6812's interest payments on its debt are well covered by EBIT (217.3x coverage).

Balance Sheet

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Dividend

What is Winson Holdings Hong Kong current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.59%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 6812's dividend (3.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 6812's dividend (3.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 6812 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6812 has only been paying a dividend for 4 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40%), 6812's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.8%), 6812's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average board tenure

CEO

Winson Holdings Hong Kong has no CEO, or we have no data on them.

Board Members

Experienced Board: 6812's board of directors are considered experienced (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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31