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1005

Matrix Holdings SEHK:1005 Stock Report

Last Price

HK$3.00

Market Cap

HK$2.3b

7D

1.7%

1Y

11.9%

Updated

01 Oct, 2022

Data

Company Financials
1005 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

1005 Stock Overview

Matrix Holdings Limited, an investment holding company, manufactures and trades in toys and LED lighting products.

Matrix Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Matrix Holdings
Historical stock prices
Current Share PriceHK$3.00
52 Week HighHK$3.20
52 Week LowHK$2.41
Beta-0.12
1 Month Change3.09%
3 Month Change7.14%
1 Year Change11.94%
3 Year Change-14.29%
5 Year Change0%
Change since IPO-68.75%

Recent News & Updates

Aug 28
Matrix Holdings (HKG:1005) Is Increasing Its Dividend To HK$0.04

Matrix Holdings (HKG:1005) Is Increasing Its Dividend To HK$0.04

Matrix Holdings Limited ( HKG:1005 ) has announced that it will be increasing its periodic dividend on the 22nd of...

Aug 25
There Are Reasons To Feel Uneasy About Matrix Holdings' (HKG:1005) Returns On Capital

There Are Reasons To Feel Uneasy About Matrix Holdings' (HKG:1005) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to...

Shareholder Returns

1005HK LeisureHK Market
7D1.7%1.2%-4.4%
1Y11.9%-17.1%-28.8%

Return vs Industry: 1005 exceeded the Hong Kong Leisure industry which returned -17.1% over the past year.

Return vs Market: 1005 exceeded the Hong Kong Market which returned -28.8% over the past year.

Price Volatility

Is 1005's price volatile compared to industry and market?
1005 volatility
1005 Average Weekly Movement6.2%
Leisure Industry Average Movement7.1%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 1005 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1005's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19794,900Hiu Har Yiphttps://www.matrix.hk.com

Matrix Holdings Limited, an investment holding company, manufactures and trades in toys and LED lighting products. It offers plastic, die-cast, and plush toys. The company also engages in the purchase and trading of toys; trading of lighting products; import and wholesale distribution of toys, and sale of accessories connected with its products; and provision of management services.

Matrix Holdings Fundamentals Summary

How do Matrix Holdings's earnings and revenue compare to its market cap?
1005 fundamental statistics
Market CapHK$2.27b
Earnings (TTM)HK$93.75m
Revenue (TTM)HK$1.18b

24.2x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1005 income statement (TTM)
RevenueHK$1.18b
Cost of RevenueHK$680.58m
Gross ProfitHK$494.76m
Other ExpensesHK$401.00m
EarningsHK$93.75m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin42.09%
Net Profit Margin7.98%
Debt/Equity Ratio0.8%

How did 1005 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

81%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1005 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1005?

Other financial metrics that can be useful for relative valuation.

1005 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA12.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1005's PE Ratio compare to its peers?

1005 PE Ratio vs Peers
The above table shows the PE ratio for 1005 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.6x
6858 Honma Golf
5.7xn/aHK$1.9b
1126 Dream International
5.4xn/aHK$1.9b
1086 Goodbaby International Holdings
59.5x131.5%HK$1.3b
413 South China Holdings
3.8xn/aHK$701.1m
1005 Matrix Holdings
24.2xn/aHK$2.3b

Price-To-Earnings vs Peers: 1005 is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (18.6x).


Price to Earnings Ratio vs Industry

How does 1005's PE Ratio compare vs other companies in the Asian Leisure Industry?

Price-To-Earnings vs Industry: 1005 is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the Asian Leisure industry average (16.2x)


Price to Earnings Ratio vs Fair Ratio

What is 1005's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1005 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1005's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1005 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1005 (HK$3) is trading below our estimate of fair value (HK$9.77)

Significantly Below Fair Value: 1005 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.6%

Forecasted Consumer Durables 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 Matrix 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.


Discover growth companies

  • Examine Matrix Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Matrix Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Matrix Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1005 has high quality earnings.

Growing Profit Margin: 1005's current net profit margins (8%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: 1005's earnings have declined by 19.2% per year over the past 5 years.

Accelerating Growth: 1005's earnings growth over the past year (15.7%) exceeds its 5-year average (-19.2% per year).

Earnings vs Industry: 1005 earnings growth over the past year (15.7%) underperformed the Leisure industry 15.7%.


Return on Equity

High ROE: 1005's Return on Equity (8.1%) is considered low.


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Financial Health

How is Matrix Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1005's short term assets (HK$701.2M) exceed its short term liabilities (HK$177.1M).

Long Term Liabilities: 1005's short term assets (HK$701.2M) exceed its long term liabilities (HK$52.8M).


Debt to Equity History and Analysis

Debt Level: 1005 has more cash than its total debt.

Reducing Debt: 1005's debt to equity ratio has reduced from 1.3% to 0.8% over the past 5 years.

Debt Coverage: 1005's debt is well covered by operating cash flow (2602.6%).

Interest Coverage: 1005's interest payments on its debt are well covered by EBIT (56.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.33%

Current Dividend Yield

Dividend Yield vs Market

Matrix Holdings Dividend Yield vs Market
How does Matrix Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Matrix Holdings)3.3%
Market Bottom 25% (HK)3.0%
Market Top 25% (HK)8.9%
Industry Average (Leisure)3.6%
Analyst forecast in 3 Years (Matrix Holdings)n/a

Notable Dividend: 1005's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (3.01%).

High Dividend: 1005's dividend (3.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.94%).


Stability and Growth of Payments

Stable Dividend: 1005's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1005's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (80.7%), 1005's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.4%), 1005's dividend payments are well covered by cash flows.


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Management

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

1.4yrs

Average management tenure


CEO

Hiu Har Yip (42 yo)

4.42yrs

Tenure

HK$2,812,000

Compensation

Ms. Hiu Har Yip serves as Executive Director at Matrix Holdings Ltd since April 01, 2018 and serves as its Chief Executive Officer since April 15, 2021. She joined Funrise Toys Limited, indirect wholly-own...


CEO Compensation Analysis

Hiu Har Yip's Compensation vs Matrix Holdings Earnings
How has Hiu Har Yip's remuneration changed compared to Matrix Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

HK$94m

Mar 31 2022n/an/a

HK$74m

Dec 31 2021HK$3mHK$3m

HK$55m

Sep 30 2021n/an/a

HK$68m

Jun 30 2021n/an/a

HK$81m

Mar 31 2021n/an/a

HK$46m

Dec 31 2020HK$1mHK$1m

HK$11m

Sep 30 2020n/an/a

-HK$4m

Jun 30 2020n/an/a

-HK$18m

Mar 31 2020n/an/a

HK$62m

Dec 31 2019HK$1mHK$1m

HK$143m

Sep 30 2019n/an/a

HK$176m

Jun 30 2019n/an/a

HK$209m

Mar 31 2019n/an/a

HK$172m

Dec 31 2018HK$1mHK$980k

HK$135m

Compensation vs Market: Hiu Har's total compensation ($USD358.22K) is about average for companies of similar size in the Hong Kong market ($USD311.56K).

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


Leadership Team

Experienced Management: 1005's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1005's board of directors are seasoned and experienced ( 12.3 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

What is the ownership structure of 1005?
Owner TypeNumber of SharesOwnership Percentage
Institutions1,103,4140.1%
General Public191,985,76625.4%
Individual Insiders563,113,82074.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 7 shareholders own 74.61% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
72.54%
Yung Pun Cheng
548,573,569HK$1.6b0%no data
0.56%
Kam Wah Tse
4,200,000HK$12.6m0%no data
0.54%
Chung Wa Tsang
4,108,251HK$12.3m0%no data
0.53%
Wei Qing Chen
3,980,000HK$11.9m0%no data
0.27%
King Cheung Cheng
2,052,000HK$6.2m0%no data
0.15%
Dimensional Fund Advisors LP
1,103,414HK$3.3m0%no data
0.026%
Hiu Har Yip
200,000HK$600.0k0%no data

Company Information

Matrix Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Matrix Holdings Limited
  • Ticker: 1005
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Implied Market Cap: HK$2.269b
  • Shares outstanding: 756.20m
  • Website: https://www.matrix.hk.com

Number of Employees


Location

  • Matrix Holdings Limited
  • Unit 01, Railway Plaza
  • 10 Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1005SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.