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 and good value.

Risks

  • Dragon Crown Group Holdings is not covered by any analysts.

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

0%

SEHK:935

4.2%

HK Commercial Services

1.5%

HK Market


1 Year Return

-28.1%

SEHK:935

-7.5%

HK Commercial Services

-4.7%

HK Market

935 underperformed the Commercial Services industry which returned -7.5% over the past year.

935 underperformed the Market in Hong Kong which returned -5.9% over the past year.


Share holder returns

935IndustryMarket
7 Day0%4.2%1.5%
30 Day-3.0%8.6%3.9%
90 Day-12.3%4.5%-8.2%
1 Year-24.3%-28.1%-4.7%-7.5%-1.4%-4.7%
3 Year-49.4%-54.6%-14.9%-20.8%31.5%18.3%
5 Year-19.6%-34.7%-32.6%-40.0%24.3%3.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Dragon Crown Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Dragon Crown Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Dragon Crown Group Holdings is good value based on earnings compared to the HK Commercial Services industry average.

Dragon Crown Group Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Dragon Crown Group Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Dragon Crown Group Holdings is good value based on assets compared to the HK Commercial Services industry average.


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Dragon Crown Group Holdings is high growth as no revenue estimate data is available.

Dragon Crown Group Holdings's earnings are expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare Dragon Crown Group Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Dragon Crown Group Holdings's earnings growth is positive but not above the Hong Kong market average.

Dragon Crown Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Dragon Crown Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-10.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Dragon Crown Group Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Dragon Crown Group Holdings's 1-year earnings growth exceeds its 5-year average (33.1% vs -10.6%)

Dragon Crown Group Holdings's earnings growth has exceeded the HK Commercial Services industry average in the past year (33.1% vs 22.9%).


Return on Equity

Dragon Crown Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Dragon Crown Group Holdings used its assets less efficiently than the HK Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Dragon Crown Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dragon Crown Group Holdings's financial position?


Financial Position Analysis

Dragon Crown Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Dragon Crown Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Dragon Crown Group Holdings's level of debt (15.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (14.7% vs 15.9% today).

Debt is well covered by operating cash flow (79.5%, greater than 20% of total debt).

Dragon Crown Group Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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

6.25%

Current Dividend Yield


Dividend Yield and Payments Analysis

Dragon Crown Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).

Dragon Crown Group Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.74%).

Dragon Crown Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dragon Crown Group Holdings has only been paying a dividend for 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

1.0yrs

Average management tenure


CEO

Wai Man Ng (63yo)

1.8yrs

Tenure

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

Wai Man's remuneration is lower than average for companies of similar size in Hong Kong.

Insufficient data for Wai Man to compare compensation growth.


Management Age and Tenure

1.0yrs

Average Tenure

54yo

Average Age

The average tenure for the Dragon Crown Group Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.7yrs

Average Tenure

57yo

Average Age

The tenure for the Dragon Crown Group Holdings board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Mei Yi Lee (51yo)

    Company Secretary

    • Tenure: 1.1yrs
  • Wai Man Ng (63yo)

    Founder

    • Tenure: 1.8yrs
  • Yat Chin Chong (58yo)

    Executive Director

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

    Executive Director

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

    Chief Operating Officer

    • Tenure: 1.0yrs
  • Wong Wai Ming (46yo)

    Chief Financial Officer

    • Tenure: 1.0yrs
  • Yang Ai Ming (57yo)

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

    • Tenure: 1.0yrs

Board Members

  • Jianping Feng (65yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: HK$120.00k
  • Sik Yuen Lau (52yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$240.00k
  • Xiaoming Hou (57yo)

    Independent Non-executive Director

  • Wai Man Ng (63yo)

    Founder

  • Yat Chin Chong (58yo)

    Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$1.91m
  • Wan Ming Chan (54yo)

    Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$1.77m
  • Yang Ai Ming (57yo)

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

    • Tenure: 1.0yrs

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$768.996m
  • Shares outstanding: 1.22b
  • Website: Click here

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 Analysis2019/07/16 12:54
End of Day Share Price2019/07/16 00:00
Earnings2018/12/31
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.