Stock Analysis Report

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Executive Summary

Herald Holdings Limited, an investment holding company, manufactures, sells, and distributes toys, computer products, housewares, clocks, watches, and electronic and gift products. More Details

Snowflake Analysis

Excellent balance sheet with acceptable track record.

Share Price & News

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

Latest Share Price and Events

Stable Share Price: 114 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 114's weekly volatility (9%) has been stable over the past year.

Market Performance

7 Day Return




HK Leisure


HK Market

1 Year Return




HK Leisure


HK Market

Return vs Industry: 114 exceeded the Hong Kong Leisure industry which returned -30.2% over the past year.

Return vs Market: 114 underperformed the Hong Kong Market which returned 11.3% over the past year.

Shareholder returns

7 Day7.9%-0.3%1.5%
30 Day21.4%-0.3%8.1%
90 Day13.3%-0.8%6.0%
1 Year11.0%3.0%-27.5%-30.2%15.9%11.3%
3 Year-29.3%-40.9%-49.6%-53.6%1.7%-8.9%
5 Year-1.9%-29.2%-62.5%-64.7%33.3%10.8%

Long-Term Price Volatility Vs. Market

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

Simply Wall St News


Is Herald Holdings undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 114 (HK$0.68) is trading below our estimate of fair value (HK$0.82)

Significantly Below Fair Value: 114 is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: 114 is poor value based on its PE Ratio (11.6x) compared to the HK Leisure industry average (7.4x).

PE vs Market: 114 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (11.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 114's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 114 is good value based on its PB Ratio (0.6x) compared to the HK Leisure industry average (0.7x).

Next Steps

Future Growth

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


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 Herald 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 Herald Holdings performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 114 has a large one-off gain of HK$20.3M impacting its September 30 2020 financial results.

Growing Profit Margin: 114's current net profit margins (3.6%) are higher than last year (0.9%).

Past Earnings Growth Analysis

Earnings Trend: 114's earnings have declined by 30.7% per year over the past 5 years.

Accelerating Growth: 114's earnings growth over the past year (274.4%) exceeds its 5-year average (-30.7% per year).

Earnings vs Industry: 114 earnings growth over the past year (274.4%) exceeded the Leisure industry 4.6%.

Return on Equity

High ROE: 114's Return on Equity (4.9%) is considered low.

Next Steps

Financial Health

How is Herald Holdings's financial position?

Financial Position Analysis

Short Term Liabilities: 114's short term assets (HK$638.9M) exceed its short term liabilities (HK$261.3M).

Long Term Liabilities: 114's short term assets (HK$638.9M) exceed its long term liabilities (HK$36.9M).

Debt to Equity History and Analysis

Debt Level: 114's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: 114's debt to equity ratio has increased from 0.8% to 1.5% over the past 5 years.

Debt Coverage: 114's debt is well covered by operating cash flow (478.4%).

Interest Coverage: 114 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Next Steps


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


Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 114's dividend (8.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.19%).

High Dividend: 114's dividend (8.82%) is in the top 25% of dividend payers in the Hong Kong market (6.58%)

Stability and Growth of Payments

Stable Dividend: 114's dividend payments have been volatile in the past 10 years.

Growing Dividend: 114's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.5%), 114's dividend payments are not 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


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


Average board tenure


Kam-Hung Shum (56 yo)





Mr. Kam-Hung Shum, ACIS, CPA has been the Managing Director of Herald Holdings Limited since July 1, 2015 and served as its Secretary since July 04, 2008 until June 30, 2015. Mr. Shum served at Herald Hold...

CEO Compensation Analysis

Compensation vs Market: Kam-Hung's total compensation ($USD407.58K) is above average for companies of similar size in the Hong Kong market ($USD230.00K).

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

Board Members

Robert Dorfman
Executive Chairman6.58yrsHK$5.58m8.51%
HK$ 35.0m
Kam-Hung Shum
MD & Executive Director 5.33yrsHK$3.16mno data
Tsang-Kay Cheung
Executive Director28.83yrsHK$5.31m26.73%
HK$ 109.9m
Tze-Kin Ng
Independent Non-Executive Director10.67yrsHK$300.00kno data
Tai Chong Lie-A-Cheong
Independent Non-Executive Director15.42yrsHK$300.00kno data
Man-Chun Yeh
Independent Non-Executive Director15.08yrsHK$300.00kno data


Average Tenure


Average Age

Experienced Board: 114's board of directors are seasoned and experienced ( 12.9 years average tenure).


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.

Recent Insider Transactions

Ownership Breakdown

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

Top Shareholders

Company Information

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

Key Information

  • Name: Herald Holdings Limited
  • Ticker: 114
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$411.054m
  • Shares outstanding: 604.49m
  • Website:

Number of Employees


  • Herald Holdings Limited
  • Tower Two
  • 31st floor
  • Hong Kong
  • Hong Kong


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HHOL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1992
114SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1992
HH3BST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 1992


Herald Holdings Limited, an investment holding company, manufactures, sells, and distributes toys, computer products, housewares, clocks, watches, and electronic and gift products. The company offers a ran...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 10:07
End of Day Share Price2020/11/27 00:00
Annual Earnings2020/03/31

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.