SEHK:1025

Stock Analysis Report

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Executive Summary

KNT Holdings Limited, an investment holding company, engages in manufacturing and trading of garments in Hong Kong, the People’s Republic of China, the United States, Europe, Australia, and internationally.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1025's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

1025

8.4%

HK Luxury

5.0%

HK Market


1 Year Return

-65.6%

1025

8.8%

HK Luxury

-5.3%

HK Market

Return vs Industry: 1025 underperformed the Hong Kong Luxury industry which returned 8.2% over the past year.

Return vs Market: 1025 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

1025IndustryMarket
7 Day-3.1%8.4%5.0%
30 Day-24.1%11.4%4.0%
90 Day-35.3%1.3%-4.0%
1 Year-63.5%-65.6%11.5%8.8%-1.9%-5.3%
3 Yearn/a32.6%19.8%-0.5%-10.9%
5 Yearn/a31.1%10.4%-9.0%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is KNT 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: 1025 (HK$0.22) is trading below our estimate of fair value (HK$0.56)

Significantly Below Fair Value: 1025 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1025 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 1025 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1025's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1025 is overvalued based on its PB Ratio (1.3x) compared to the HK Luxury industry average (0.6x).


Next Steps

Future Growth

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

21.0%

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 KNT 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 KNT Holdings performed over the past 5 years?

-37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1025 is currently unprofitable.

Growing Profit Margin: 1025 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1025 is unprofitable, and losses have increased over the past 5 years at a rate of -37.5% per year.

Accelerating Growth: Unable to compare 1025's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1025 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (3%).


Return on Equity

High ROE: 1025 has a negative Return on Equity (-21.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is KNT Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1025's short term assets (HK$169.9M) exceed its short term liabilities (HK$88.4M).

Long Term Liabilities: 1025's short term assets (HK$169.9M) exceed its long term liabilities (HK$1.6M).


Debt to Equity History and Analysis

Debt Level: 1025's debt to equity ratio (58.7%) is considered high.

Reducing Debt: Insufficient data to determine if 1025's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1025's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1025 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

17.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1025's dividend (17.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).

High Dividend: 1025's dividend (17.27%) is in the top 25% of dividend payers in the Hong Kong market (7.14%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1025's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1025's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: 1025 is paying a dividend but the company is unprofitable.


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?

3.2yrs

Average management tenure


CEO

Chong Sik (51yo)

no data

Tenure

HK$1,651,000

Compensation

Mr. Chong Sik is a Co-Founder, Executive Director, Chief Executive Officer and Chairman of KNT Holdings Limited. Mr. Sik is a Director of KNTGL, KNT Int'l and KNT. 


CEO Compensation Analysis

Compensation vs Market: Chong's total compensation ($USD213.01K) is about average for companies of similar size in the Hong Kong market ($USD229.19K).

Compensation vs Earnings: Chong's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Chong Sik
Co-Founderno dataHK$1.65m45.38% HK$51.9m
Chong Pun
Co-Founder & Executive Director3.83yrsHK$1.12m29.63% HK$33.9m
Chi Yuen Lam
COO & Executive Director2.17yrsHK$1.37mno data
Nga Chun Chan
CFO & Company Secretary3yrsno datano data
Ping Kwok
Financial Controller3.17yrsno datano data

3.2yrs

Average Tenure

51yo

Average Age

Experienced Management: 1025's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chong Sik
Co-Founderno dataHK$1.65m45.38% HK$51.9m
Chong Pun
Co-Founder & Executive Director3.83yrsHK$1.12m29.63% HK$33.9m
Chi Yuen Lam
COO & Executive Director2.17yrsHK$1.37mno data
Oh Man Leung
Independent Non-Executive Director1.42yrsHK$16.00kno data
Koong Yep Lau
Independent Non-Executive Director1.42yrsHK$16.00kno data
King Sum Yuen
Independent Non-Executive Director1.42yrsHK$16.00kno data
Kwok Fan Lau
Independent Non-Executive Director1.42yrsHK$31.00kno data

1.4yrs

Average Tenure

45yo

Average Age

Experienced Board: 1025's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: KNT Holdings Limited
  • Ticker: 1025
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$114.400m
  • Shares outstanding: 520.00m
  • Website: https://www.kntholdings.com

Number of Employees


Location

  • KNT Holdings Limited
  • EW International Tower
  • 30th Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1025SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2019

Biography

KNT Holdings Limited, an investment holding company, engages in manufacturing and trading of garments in Hong Kong, the People’s Republic of China, the United States, Europe, Australia, and internationally. The company offers sells bridesmaid dresses, bridal gowns and special occasion dresses to brand apparel companies. It also provides a range of value-added services, including fashion trend analysis, product design and development, raw material procurement, design and development, production, quality assurance, and inventory management. The company was founded in 1993 and is headquartered in Tsuen Wan, Hong Kong. KNT Holdings Limited is a subsidiary of Strategic Elite Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 13:46
End of Day Share Price2020/06/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.