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.

Risk Analysis

Earnings have declined by -40.91% per year over past 5 years

Large one-off items impacting financial results

Profit margins (3.9%) are lower than last year (6.8%)

Does not have a meaningful market cap (HK$655M)



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

2.3%

1146

0.1%

HK Luxury

0.6%

HK Market


1 Year Return

-14.8%

1146

22.6%

HK Luxury

-0.06%

HK Market

Return vs Industry: 1146 underperformed the Hong Kong Luxury industry which returned 22.6% over the past year.

Return vs Market: 1146 underperformed the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

1146IndustryMarket
7 Day2.3%0.1%0.6%
30 Day-0.6%-3.3%-3.6%
90 Day3.5%6.1%-0.01%
1 Year-14.8%-14.8%26.7%22.6%3.5%-0.06%
3 Year-55.3%-55.3%51.3%33.0%19.5%7.4%
5 Year-80.2%-81.0%56.3%25.6%18.4%-1.4%

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?

16.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1146's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1146's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1146 is poor value based on its PE Ratio (16.4x) compared to the Luxury industry average (8.9x).

PE vs Market: 1146 is poor value based on its PE Ratio (16.4x) compared to the Hong Kong market (10.2x).


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 (0.9x).


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?

18.0%

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 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?

-40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1146 has a large one-off loss of CN¥67.2M impacting its June 30 2019 financial results.

Growing Profit Margin: 1146's current net profit margins (3.9%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 1146's earnings have declined by -40.9% 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 (-46.2%) over the past year, making it difficult to compare to the Luxury industry average (-2.8%).


Return on Equity

High ROE: 1146's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Outfitters Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1146's short term assets (CN¥1.3B) exceed its short term liabilities (CN¥306.0M).

Long Term Liabilities: 1146's short term assets (CN¥1.3B) exceed its long term liabilities (CN¥28.2M).


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 14.7%.

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

Inventory Level: 1146 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1146's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of China Outfitters Holdings's salary, the management and board of directors tenure and is there insider trading?

8.5yrs

Average management tenure


CEO

Yongli Zhang (60yo)

8.5yrs

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 ($USD440.99K) is above average for companies of similar size in the Hong Kong market ($USD215.77K).

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


Management Age and Tenure

8.5yrs

Average Tenure

49yo

Average Age

Experienced Management: 1146's management team is seasoned and experienced (8.5 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

53yo

Average Age

Experienced Board: 1146's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥6,009,82409 Dec 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares33,388,000
Max PriceCN¥0.18
SellCN¥712,81019 Nov 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares3,960,000
Max PriceCN¥0.18
SellCN¥1,324,06214 Nov 19
Orchid Asia Group Management, Ltd.
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Shares7,356,000
Max PriceCN¥0.18
SellCN¥1,983,96205 Nov 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares11,022,000
Max PriceCN¥0.18
SellCN¥726,83028 Oct 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares4,038,000
Max PriceCN¥0.18
SellCN¥705,60024 Oct 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares3,920,000
Max PriceCN¥0.18
SellCN¥720,00024 Oct 19
Orchid Asia Group Management, Ltd.
EntityCompany
Shares4,000,000
Max PriceCN¥0.18

Ownership Breakdown

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


Management Team

  • Yongli Zhang (60yo)

    CEO & Chairman

    • Tenure: 8.5yrs
    • Compensation: CN¥3.11m
  • David Sun (53yo)

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥430.00k
  • Xiaoyun Huang (48yo)

    CFO & Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥1.16m
  • Yi Lu (40yo)

    Chief Branding Officer & Regional Sales Controller

    • Tenure: 8.5yrs
  • Zhu Jun Li (45yo)

    Chief Sales Officer

    • Tenure: 3.3yrs
  • Hon Wing Wong (50yo)

    Chief Procurement Officer

    • Tenure: 8.5yrs
  • Wen Liu (55yo)

    Chief Procurement Officer - Accessories

    • Tenure: 8.5yrs
  • Shuk Yi Leung (52yo)

    Chief Design Officer

    • Tenure: 0yrs
  • Zhuoping Li (39yo)

    Chief Technology Officer

    • Tenure: 2.9yrs
  • Xiaosheng Huang (34yo)

    Chief Marketing Officer

    • Tenure: 0yrs

Board Members

  • Yongli Zhang (60yo)

    CEO & Chairman

    • Tenure: 8.5yrs
    • Compensation: CN¥3.11m
  • David Sun (53yo)

    Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥430.00k
  • Wilson Kwong (53yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥211.00k
  • Xiaoyun Huang (48yo)

    CFO & Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥1.16m
  • Yi Cui (64yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥211.00k
  • Chi Wai Yeung (58yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: CN¥211.00k
  • Wei Wang (36yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: CN¥191.00k

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$654.636m
  • Shares outstanding: 3.45b
  • Website: https://www.cohl.hk

Number of Employees


Location

  • China Outfitters Holdings Limited
  • No. 9, Lane 1225
  • Tongpu 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, includin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:55
End of Day Share Price2019/12/09 00:00
Earnings2019/06/30
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.