SEHK:935

Stock Analysis Report

Dragon Crown Group Holdings

Executive Summary

Dragon Crown Group Holdings Limited, an investment holding company, provides integrated terminal services for liquid chemical products in the People’s Republic of China.

Snowflake

Fundamentals

Excellent balance sheet second-rate dividend payer.

Share Price & News

How has Dragon Crown Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.3%

935

1.3%

HK Commercial Services

0.3%

HK Market


1 Year Return

-26.8%

935

33.5%

HK Commercial Services

1.3%

HK Market

Return vs Industry: 935 underperformed the Hong Kong Commercial Services industry which returned 33.5% over the past year.

Return vs Market: 935 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

935IndustryMarket
7 Day5.3%1.3%0.3%
30 Day3.4%6.8%0.5%
90 Day0%8.2%-4.6%
1 Year-22.9%-26.8%36.8%33.5%4.9%1.3%
3 Year-54.7%-59.7%-22.2%-28.1%15.3%3.7%
5 Year-11.0%-27.7%-42.6%-48.8%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Dragon Crown Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dragon Crown Group Holdings undervalued compared to its fair value and its price relative to the market?

38.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 935 (HK$0.6) is trading below our estimate of fair value (HK$0.97)

Significantly Below Fair Value: 935 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 935 is poor value based on its PE Ratio (14.9x) compared to the Commercial Services industry average (13.8x).

PE vs Market: 935 is poor value based on its PE Ratio (14.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 935's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 935 is good value based on its PB Ratio (0.7x) compared to the HK Commercial Services industry average (1.1x).


Next Steps

Future Growth

How is Dragon Crown Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 935's forecast earnings growth (13.1% per year) is above the savings rate (2%).

Earnings vs Market: 935's earnings (13.1% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 935's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 935's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 935's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 935's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Dragon Crown Group Holdings performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 935's earnings have declined by -9.7% per year over the past 5 years.

Accelerating Growth: 935's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 935 had negative earnings growth (-26.5%) over the past year, making it difficult to compare to the Commercial Services industry average (11.2%).


Return on Equity

High ROE: 935's Return on Equity (5.2%) is considered low.


Return on Assets

ROA vs Industry: 935's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: 935's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dragon Crown Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 935's short term assets (HK$317.4M) exceeds its short term liabilities (HK$89.6M)

Long Term Liabilities: 935's short term assets (317.4M) exceeds its long term liabilities (207.3M)


Debt to Equity History and Analysis

Debt Level: 935's debt to equity ratio (20.5%) is considered satisfactory

Reducing Debt: 935's debt to equity ratio has increased from 15% to 20.5% over the past 5 years.

Debt Coverage: 935's debt is well covered by operating cash flow (42.4%).

Interest Coverage: 935 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 935 has a high level of physical assets or inventory.

Debt Coverage by Assets: 935's debt is covered by short term assets (assets are 1.413860x debt).


Next Steps

Dividend

What is Dragon Crown Group Holdings's current dividend yield, its reliability and sustainability?

6.67%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%2.3%markettop25%6.2%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 935's dividend (6.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 935's dividend (6.67%) is in the top 25% of dividend payers in the Hong Kong market (6.18%)

Stable Dividend: 935 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 935 has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.2%), 935's payments are 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

What is the CEO of Dragon Crown Group Holdings's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Wai Man Ng (63yo)

2.1yrs

Tenure

0

Mr. Wai Man Ng founded Dragon Crown Group Holdings Limited in 1988 and serves as its Chairman. Mr. Ng has been Chief Executive Officer of Dragon Crown Group Holdings Limited since September 22, 2017. He is ...


CEO Compensation Analysis

Compensation vs. Market: Wai Man's total compensation ($USD0.00) is too low to compare against companies of similar size in the Hong Kong market ($USD215.97K).

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


Management Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: 935's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

57yo

Average Age

Experienced Board: 935's board of directors are considered experienced (5.1 years average tenure).


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


Management Team

  • Mei Yi Lee (51yo)

    Company Secretary

    • Tenure: 1.3yrs
  • Wai Man Ng (63yo)

    Founder

    • Tenure: 2.1yrs
  • Yat Chin Chong (58yo)

    Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$1.91m
  • Wan Ming Chan (54yo)

    Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$1.77m
  • Qing Long Zou (54yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
  • Wong Wai Ming (46yo)

    Chief Financial Officer

    • Tenure: 1.3yrs

Board Members

  • Jianping Feng (65yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$120.00k
  • Sik Yuen Lau (52yo)

    Independent Non-Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$240.00k
  • Xiaoming Hou (57yo)

    Independent Non-executive Director

    • Tenure: 0.3yrs
  • Wai Man Ng (63yo)

    Founder

    • Tenure: 2.1yrs
  • Yat Chin Chong (58yo)

    Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$1.91m
  • Wan Ming Chan (54yo)

    Executive Director

    • Tenure: 8.9yrs
    • Compensation: HK$1.77m
  • Yang Ai Ming (57yo)

    Chairman of the Board of Nanjing Dragon Crown & Weifang Sime Darby Liguid Terminal Co.

    • Tenure: 1.3yrs

Company Information

Dragon Crown Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dragon Crown Group Holdings Limited
  • Ticker: 935
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$707.964m
  • Shares outstanding: 1.22b
  • Website: https://www.dragoncrown.com

Number of Employees


Location

  • Dragon Crown Group Holdings Limited
  • Convention Plaza
  • Suite 1803
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
935SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2011

Biography

Dragon Crown Group Holdings Limited, an investment holding company, provides integrated terminal services for liquid chemical products in the People’s Republic of China. It offers liquid chemical storage a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:49
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.