SEHK:8419

Stock Analysis Report

Executive Summary

AV Promotions Holdings Limited, an investment holding company, provides visual, lighting, and audio solution services in the People's Republic of China.

Rewards

Trading at 44.9% below its fair value

Earnings grew by 134.5% over the past year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$144M)



Snowflake Analysis

Outstanding track record and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8419's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.4%

8419

2.9%

HK Commercial Services

1.5%

HK Market


1 Year Return

27.9%

8419

44.2%

HK Commercial Services

5.9%

HK Market

Return vs Industry: 8419 underperformed the Hong Kong Commercial Services industry which returned 38.9% over the past year.

Return vs Market: 8419 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8419IndustryMarket
7 Day16.4%2.9%1.5%
30 Day11.4%10.8%4.2%
90 Day21.9%13.7%8.7%
1 Year27.9%27.9%47.6%44.2%9.8%5.9%
3 Yearn/a-26.0%-31.4%27.7%14.7%
5 Yearn/a-41.1%-47.4%21.4%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AV Promotions Holdings undervalued compared to its fair value and its price relative to the market?

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8419 (HK$0.36) is trading below our estimate of fair value (HK$0.65)

Significantly Below Fair Value: 8419 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8419 is good value based on its PE Ratio (6.4x) compared to the Commercial Services industry average (12.2x).

PE vs Market: 8419 is good value based on its PE Ratio (6.4x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8419's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8419 is overvalued based on its PB Ratio (1.4x) compared to the HK Commercial Services industry average (1.2x).


Next Steps

Future Growth

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

26.9%

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 AV Promotions 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 AV Promotions Holdings performed over the past 5 years?

65.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8419 has high quality earnings.

Growing Profit Margin: 8419's current net profit margins (11.9%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 8419's earnings have grown significantly by 65.7% per year over the past 5 years.

Accelerating Growth: 8419's earnings growth over the past year (134.5%) exceeds its 5-year average (65.7% per year).

Earnings vs Industry: 8419 earnings growth over the past year (134.5%) exceeded the Commercial Services industry 9.3%.


Return on Equity

High ROE: 8419's Return on Equity (22%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AV Promotions Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8419's short term assets (HK$101.2M) exceed its short term liabilities (HK$81.8M).

Long Term Liabilities: 8419's short term assets (HK$101.2M) exceed its long term liabilities (HK$67.3M).


Debt to Equity History and Analysis

Debt Level: 8419's debt to equity ratio (64.8%) is considered high.

Reducing Debt: Insufficient data to determine if 8419's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8419's debt is well covered by operating cash flow (49.4%).

Interest Coverage: 8419's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: 8419 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8419's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is AV Promotions Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.0%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8419's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8419'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 8419's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8419'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 8419's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of AV Promotions Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Bun Bun Fu (45yo)

5yrs

Tenure

HK$1,260,000

Compensation

Ms. Bun Bun? Fu has been the Chief Executive Officer of AV Promotions Holdings Limited since 2015 and also has been its Executive Director December 1, 2017. Ms. Fu joined AV Promotions Holdings Limited Gro ...


CEO Compensation Analysis

Compensation vs Market: Bun Bun's total compensation ($USD162.05K) is about average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Bun Bun's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 8419's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

Experienced Board: 8419's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$593,99411 Sep 19
Chi Bor Wong
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,700,000
Max PriceHK$0.22
SellHK$2,199,97711 Sep 19
Man-Por Wong
EntityIndividual
Role
Chairman of the Board
Executive Chairman & Compliance Officer
Shares10,000,000
Max PriceHK$0.22

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Management Team

  • Hon Po Wong (54yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$799.00k
  • Chi Bor Wong (51yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$1.11m
  • Man-Por Wong (61yo)

    Executive Chairman & Compliance Officer

    • Compensation: HK$2.42m
  • Bun Bun Fu (45yo)

    CEO & Executive Director

    • Tenure: 5yrs
    • Compensation: HK$1.26m
  • Kai Leung (35yo)

    Company Secretary & Authorized Representative

    • Tenure: 0.6yrs

Board Members

  • Hon Po Wong (54yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$799.00k
  • Chi Bor Wong (51yo)

    Executive Director

    • Tenure: 2.9yrs
    • Compensation: HK$1.11m
  • Man-Por Wong (61yo)

    Executive Chairman & Compliance Officer

    • Compensation: HK$2.42m
  • Yeung Tak Chen (35yo)

    Independent Non Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$150.00k
  • Bun Bun Fu (45yo)

    CEO & Executive Director

    • Tenure: 5yrs
    • Compensation: HK$1.26m
  • Jacky Lun (45yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$150.00k
  • Chan Wing Kee (60yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$150.00k

Company Information

AV Promotions Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AV Promotions Holdings Limited
  • Ticker: 8419
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$152.000m
  • Shares outstanding: 400.00m
  • Website: https://www.avpromotions.com

Number of Employees


Location

  • AV Promotions Holdings Limited
  • Shing Dao Industrial Building
  • 13th Floor
  • Aberdeen
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8419SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017

Biography

AV Promotions Holdings Limited, an investment holding company, provides visual, lighting, and audio solution services in the People's Republic of China. The company offers services to its customers in various events, including exhibitions, ceremonies, conferences, concerts, TV shows, product launches, and other types of events. AV Promotions Holdings Limited was incorporated in 2017 and is headquartered in Aberdeen, Hong Kong. AV Promotions Holdings Limited is a subsidiary of Jumbo Fame Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 12:49
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
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.