SEHK:1146

Stock Analysis Report

China Outfitters Holdings

Executive Summary

China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1146 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.9%

1146

9.0%

HK Luxury

3.6%

HK Market


1 Year Return

-30.2%

1146

-15.7%

HK Luxury

-18.5%

HK Market

Return vs Industry: 1146 underperformed the Hong Kong Luxury industry which returned -21% over the past year.

Return vs Market: 1146 underperformed the Hong Kong Market which returned -19.8% over the past year.


Shareholder returns

1146IndustryMarket
7 Day7.9%9.0%3.6%
30 Day0%-6.4%-3.8%
90 Day-16.7%-23.0%-13.2%
1 Year-30.2%-30.2%-13.3%-15.7%-15.5%-18.5%
3 Year-48.3%-48.3%14.6%1.3%0.7%-9.5%
5 Year-82.4%-83.1%8.9%-7.8%-14.0%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1146 (HK$0.15) is trading above our estimate of fair value (HK$0)

Significantly Below Fair Value: 1146 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1146 is poor value based on its PE Ratio (23.3x) compared to the Luxury industry average (7.6x).

PE vs Market: 1146 is poor value based on its PE Ratio (23.3x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1146's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1146 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

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

15.1%

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 China Outfitters 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 China Outfitters Holdings performed over the past 5 years?

-38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1146 has a large one-off loss of CN¥53.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 1146's current net profit margins (2.4%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 1146's earnings have declined by -38% per year over the past 5 years.

Accelerating Growth: 1146's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1146 had negative earnings growth (-66.9%) over the past year, making it difficult to compare to the Luxury industry average (0.6%).


Return on Equity

High ROE: 1146's Return on Equity (1.1%) is considered low.


Next Steps

Financial Health

How is China Outfitters Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1146's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥355.9M).

Long Term Liabilities: 1146's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥29.9M).


Debt to Equity History and Analysis

Debt Level: 1146 is debt free.

Reducing Debt: 1146 has no debt compared to 5 years ago when its debt to equity ratio was 39.3%.

Debt Coverage: 1146 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1146 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1146's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1146's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1146's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1146's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1146 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1146's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Yongli Zhang (60yo)

8.83s

Tenure

CN¥3,109,000

Compensation

Mr. Yongli Zhang has been the Chief Executive Officer of China Outfitters Holdings Limited since June 8, 2011 and has been its Chairman since June 22, 2018. Mr. Zhang serves as an Assistant of the Navy Sha ...


CEO Compensation Analysis

Compensation vs Market: Yongli's total compensation ($USD441.31K) is above average for companies of similar size in the Hong Kong market ($USD232.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yongli Zhang
CEO & Chairman8.83yrsCN¥3.11m0.26% CN¥1.4m
Xiaoyun Huang
CFO & Executive Director8.83yrsCN¥1.16m5.53% CN¥28.6m
Lee Sun
Executive Director8.83yrsCN¥430.00k0.013% CN¥67.8k
Zhuoping Li
Chief Technology Officer3.25yrsno datano data
Zhu Jun Li
Chief Sales Officer3.67yrsno datano data
Xiaosheng Huang
Chief Marketing Officerno datano datano data
Yi Lu
Chief Branding Officer & Regional Sales Controller8.83yrsno datano data
Hon Wing Wong
Chief Procurement Officer of Garment8.83yrsno datano data
Wen Liu
Chief Procurement Officer - Accessories8.83yrsno datano data
Shuk Yi Leung
Chief Design Officerno datano datano data

8.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 1146's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yongli Zhang
CEO & Chairman8.83yrsCN¥3.11m0.26% CN¥1.4m
Xiaoyun Huang
CFO & Executive Director8.83yrsCN¥1.16m5.53% CN¥28.6m
Lee Sun
Executive Director8.83yrsCN¥430.00k0.013% CN¥67.8k
Wai Sun Kwong
Independent Non-Executive Director8.83yrsCN¥211.00kno data
Yi Cui
Independent Non-Executive Director8.83yrsCN¥211.00kno data
Chi Wai Yeung
Independent Non-Executive Director8.83yrsCN¥211.00kno data
Wei Wang
Non-Executive Director7.92yrsCN¥191.00kno data

8.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 1146's board of directors are considered experienced (8.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: China Outfitters Holdings Limited
  • Ticker: 1146
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$516.818m
  • Shares outstanding: 3.45b
  • Website: https://www.cohl.hk

Number of Employees


Location

  • China Outfitters Holdings Limited
  • No. 9, Lane 1225
  • Tong Pu Road
  • Shanghai
  • 200333
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1146SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011
CFODB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011
COUT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2011

Biography

China Outfitters Holdings Limited, an investment holding company, designs, manufactures, markets, and sells apparels and accessories in the People’s Republic of China. It offers men's casual wear, including smart casual wear, outdoor casual wear, leisure wear, and accessories under licensed and self-owned brands targeting consumers in the mid-to-high income bracket. The company also offers womenswear. Its licensed brands include Barbour, Jeep, Santa Barbara Polo & Racquet Club, Maxim's, Sideout, and Koyo Jeans; self-owned brands comprise Artful Dodger, Doright, London Fog, Zoo York, and MCS; and joint venture brands include Henry Cotton's, Marina Yachting, LINCS, and Manhattan. In addition, it develops, operates, and manages properties; and sells software products. As of December 31, 2018, the company’s sales network included 576 self-operated retail points and 290 retail points operated by third-party retailers. The company was founded in 2000 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 14:01
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.