SEHK:8485

Stock Analysis Report

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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, Australia, the People's Republic of China, Hong Kong, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 8485's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

8485

5.0%

HK Commercial Services

0.4%

HK Market


1 Year Return

147.4%

8485

31.5%

HK Commercial Services

11.0%

HK Market

Return vs Industry: 8485 exceeded the Hong Kong Commercial Services industry which returned 31.5% over the past year.

Return vs Market: 8485 exceeded the Hong Kong Market which returned 11% over the past year.


Shareholder returns

8485IndustryMarket
7 Day-1.3%5.0%0.4%
30 Day-4.9%2.0%7.0%
90 Day17.5%-12.4%6.4%
1 Year152.1%147.4%34.2%31.5%15.5%11.0%
3 Yearn/a-39.5%-45.0%4.1%-6.8%
5 Yearn/a-55.8%-61.3%34.9%12.3%

Long-Term 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?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8485 (HK$0.24) is trading below our estimate of fair value (HK$0.4)

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


Price To Earnings Ratio

PE vs Industry: 8485 is poor value based on its PE Ratio (12.7x) compared to the HK Commercial Services industry average (11.2x).

PE vs Market: 8485 is poor value based on its PE Ratio (12.7x) compared to the Hong Kong market (11.1x).


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 overvalued based on its PB Ratio (2x) compared to the HK Commercial Services industry average (0.9x).


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?

31.1%

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?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8485 has high quality earnings.

Growing Profit Margin: 8485's current net profit margins (14.8%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: 8485's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: 8485's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8485 had negative earnings growth (-16.6%) over the past year, making it difficult to compare to the Commercial Services industry average (24.4%).


Return on Equity

High ROE: 8485's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Smart Globe Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8485's short term assets (HK$105.9M) exceed its short term liabilities (HK$26.7M).

Long Term Liabilities: 8485's short term assets (HK$105.9M) exceed its long term liabilities (HK$363.0K).


Debt to Equity History and Analysis

Debt Level: 8485 is debt free.

Reducing Debt: 8485 had no debt 5 years ago.

Debt Coverage: 8485 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8485 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8485's dividend (1.7%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 8485's dividend (1.7%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8485's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8485's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.5%), 8485's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average board tenure


CEO

Derek Lam (49 yo)

no data

Tenure

HK$428,000

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 ($USD55.21K) is below average for companies of similar size in the Hong Kong market ($USD230.39K).

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


Board Members

NamePositionTenureCompensationOwnership
Tak Ling Lam
Chairman & CEOno dataHK$428.00kno data
Yee Yeung Chan
COO & Executive Director3.58yrsHK$428.00kno data
Yuen Shan Tse
GM, Compliance Officer & Executive Director3.58yrsHK$428.00k7.5%
HK$ 17.6m
Chor Wei Ong
Independent Non-Executive Director3yrsHK$120.00kno data
Chun Hung Li
Independent Non-Executive Director3yrsHK$120.00kno data
Kam Kwong Yam
Independent Non-Executive Director3yrsHK$120.00kno data

3.0yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 8485's board of directors are considered experienced (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

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$235.000m
  • 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, Australia, t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 10:21
End of Day Share Price2020/12/03 00:00
Earnings2020/09/30
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.