SEHK:706

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Beautiful China Holdings Company Limited, an investment holding company, engages in ecological garden and landscape, and ecological environmental protection businesses in the People’s Republic of China.


Snowflake Analysis

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 706 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.3%

706

3.7%

HK Commercial Services

1.2%

HK Market


1 Year Return

-31.6%

706

76.4%

HK Commercial Services

5.4%

HK Market

Return vs Industry: 706 underperformed the Hong Kong Commercial Services industry which returned 76.4% over the past year.

Return vs Market: 706 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

706IndustryMarket
7 Day8.3%3.7%1.2%
30 Day-13.3%14.2%-4.4%
90 Day18.2%20.4%7.6%
1 Year-31.6%-31.6%80.2%76.4%9.7%5.4%
3 Year-80.5%-82.7%-35.0%-40.1%3.5%-7.6%
5 Year-93.1%-93.9%-58.4%-62.9%12.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Beautiful China Holdings undervalued compared to its fair value and its price relative to the market?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 706's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 706's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 706 is unprofitable, so we can't compare its PE Ratio to the HK Commercial Services industry average.

PE vs Market: 706 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 706's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 706 is good value based on its PB Ratio (0.3x) compared to the HK Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is Beautiful China Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.3%

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 Beautiful China Holdings 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 Beautiful China Holdings performed over the past 5 years?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 706 is currently unprofitable.

Growing Profit Margin: 706 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 706 is unprofitable, and losses have increased over the past 5 years at a rate of 20.9% per year.

Accelerating Growth: Unable to compare 706's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 706 is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-3.5%).


Return on Equity

High ROE: 706 has a negative Return on Equity (-30.6%), as it is currently unprofitable.


Next Steps

Financial Health

How is Beautiful China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 706's short term assets (HK$67.4M) do not cover its short term liabilities (HK$192.0M).

Long Term Liabilities: 706's short term assets (HK$67.4M) exceed its long term liabilities (HK$41.6M).


Debt to Equity History and Analysis

Debt Level: 706's debt to equity ratio (40.5%) is considered high.

Reducing Debt: 706's debt to equity ratio has increased from 0.03% to 40.5% 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: Insufficient data to determine if 706 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 706 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Beautiful China Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 706's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 706'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 706's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 706'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 706'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?

2.1yrs

Average management tenure


CEO

Wei Feng Zhou (50 yo)

6.08yrs

Tenure

HK$1,941,000

Compensation

Mr. Wei Feng Zhou has been the Chief Executive Officer of Beautiful China Holdings Company Limited since July 18, 2014 and as its Vice President since 2009. Mr. Zhou was the Vice General Manager of Shi Jia ...


CEO Compensation Analysis

Compensation vs Market: Wei Feng's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD230.44K).

Compensation vs Earnings: Wei Feng's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Wai Sze
Executive Chairmanno dataHK$3.53m53.34%
HK$ 64.2m
Wei Feng Zhou
CEO, VP & Executive Director6.08yrsHK$1.94mno data
Shu Jiang Tan
Executive Director13.58yrsHK$2.02mno data
Yongzhi Wang
Chief Financial Officer2.08yrsno datano data
Kwan Yip Chang
Company Secretary0.25yrno datano data

2.1yrs

Average Tenure

50yo

Average Age

Experienced Management: 706's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wai Sze
Executive Chairmanno dataHK$3.53m53.34%
HK$ 64.2m
Wei Feng Zhou
CEO, VP & Executive Director6.08yrsHK$1.94mno data
Shu Jiang Tan
Executive Director13.58yrsHK$2.02mno data
Yiu Kan Chong
Independent Non-Executive Director15.92yrsHK$296.00k0.012%
HK$ 14.8k
Liyang Liu
Independent Non-Executive Director6.25yrsHK$296.00kno data
Jun Xie
Independent Non-Executive Director2yrsHK$52.00k0.024%
HK$ 28.6k
Lin Chai
Non-Executive Director2.33yrsHK$101.00kno data

6.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 706's board of directors are considered experienced (6.3 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

Beautiful China Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beautiful China Holdings Company Limited
  • Ticker: 706
  • Exchange: SEHK
  • Founded:
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: HK$120.438m
  • Shares outstanding: 9.26b
  • Website: https://www.beautifulchina.com.hk

Number of Employees


Location

  • Beautiful China Holdings Company Limited
  • United Centre
  • Room A, 29/F
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
706SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1998
SQFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1998

Biography

Beautiful China Holdings Company Limited, an investment holding company, engages in ecological garden and landscape, and ecological environmental protection businesses in the People’s Republic of China. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:45
End of Day Share Price2020/08/07 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.