SEHK:8485

Stock Analysis Report

Executive Summary

Smart Globe Holdings Limited, an investment holding company, produces, distributes, and prints books, novelty, and packaging products in the United States, the United Kingdom, the Netherlands, the People's Republic of China, Belgium, Hong Kong, and internationally.

Rewards

Trading at 76.4% below its fair value

Earnings grew by 115.8% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$100M)



Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8485 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

8485

-2.9%

HK Commercial Services

0.5%

HK Market


1 Year Return

34.7%

8485

27.2%

HK Commercial Services

-0.2%

HK Market

Return vs Industry: 8485 exceeded the Hong Kong Commercial Services industry which returned 27.2% over the past year.

Return vs Market: 8485 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

8485IndustryMarket
7 Day2.1%-2.9%0.5%
30 Day4.3%-4.8%-3.8%
90 Day18.3%9.7%-1.3%
1 Year34.7%34.7%30.1%27.2%3.4%-0.2%
3 Yearn/a-26.3%-31.8%18.8%6.7%
5 Yearn/a-44.4%-50.4%19.5%-0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Smart Globe Holdings 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: 8485 (HK$0.1) is trading below our estimate of fair value (HK$0.41)

Significantly Below Fair Value: 8485 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8485 is good value based on its PE Ratio (4.4x) compared to the Commercial Services industry average (12.8x).

PE vs Market: 8485 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8485's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8485 is good value based on its PB Ratio (0.9x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

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

26.2%

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 Smart Globe 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 Smart Globe Holdings performed over the past 5 years?

38.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8485 has a high level of non-cash earnings.

Growing Profit Margin: 8485's current net profit margins (16%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: 8485's earnings have grown significantly by 38.9% per year over the past 5 years.

Accelerating Growth: 8485's earnings growth over the past year (115.8%) exceeds its 5-year average (38.9% per year).

Earnings vs Industry: 8485 earnings growth over the past year (115.8%) exceeded the Commercial Services industry 5.7%.


Return on Equity

High ROE: 8485's Return on Equity (21.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Smart Globe Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8485's short term assets (HK$96.4M) exceed its short term liabilities (HK$32.3M).

Long Term Liabilities: 8485's short term assets (HK$96.4M) exceed its long term liabilities (HK$464.0K).


Debt to Equity History and Analysis

Debt Level: 8485's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8485's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8485's debt is well covered by operating cash flow (589.7%).

Interest Coverage: 8485's interest payments on its debt are well covered by EBIT (86.2x coverage).


Balance Sheet

Inventory Level: 8485 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8485's debt is covered by short term assets (assets are 35.5x debt).


Next Steps

Dividend

What is Smart Globe Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8485's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8485'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 8485's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8485'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 8485'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 Smart Globe Holdings's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average board tenure


CEO

Derek Lam (48yo)

0yrs

Tenure

HK$408,000

Compensation

Mr. Tak Ling Lam, also known as Derek, is the Chairman of the Board and an Executive Director of Smart Globe Holdings Ltd (the "Company"). Mr. Lam is also the chief executive of the Company. Mr. Lam has mo ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD52.13K) is below average for companies of similar size in the Hong Kong market ($USD226.68K).

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


Board Age and Tenure

2.0yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 8485's board of directors are not considered experienced ( 2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Management Team

  • Ivy Tse (48yo)

    GM, Compliance Officer & Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$427.00k
  • Yee Yeung Chan (46yo)

    COO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$407.00k
  • Derek Lam (48yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$408.00k
  • Sum Chin Cheung (33yo)

    Financial Controller & Company Secretary

    • Tenure: 2.4yrs

Board Members

  • Alan Ong (49yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: HK$120.00k
  • Ivy Tse (48yo)

    GM, Compliance Officer & Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$427.00k
  • Yee Yeung Chan (46yo)

    COO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$407.00k
  • Chun Hung Li (57yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: HK$120.00k
  • Derek Lam (48yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$408.00k
  • Kam Kwong Yam (67yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: HK$120.00k

Company Information

Smart Globe Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smart Globe Holdings Limited
  • Ticker: 8485
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: HK$100.000m
  • Shares outstanding: 1.00b
  • Website: https://www.smartglobehk.com

Number of Employees


Location

  • Smart Globe Holdings Limited
  • Kodak House II
  • 17th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8485SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon StockHKHKDDec 2017

Biography

Smart Globe Holdings Limited, an investment holding company, produces, distributes, and prints books, novelty, and packaging products in the United States, the United Kingdom, the Netherlands, the People's ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 13:04
End of Day Share Price2019/12/11 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.