SEHK:116

Stock Analysis Report

Chow Sang Sang Holdings International

Executive Summary

Chow Sang Sang Holdings International Limited, an investment holding company, engages in the manufacture and retail of jewelry.

Snowflake

Fundamentals

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

116

3.0%

HK Luxury

2.9%

HK Market


1 Year Return

-39.7%

116

23.2%

HK Luxury

0.7%

HK Market

Return vs Industry: 116 underperformed the Hong Kong Luxury industry which returned 23.2% over the past year.

Return vs Market: 116 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

116IndustryMarket
7 Day1.1%3.0%2.9%
30 Day-7.6%0.9%-2.5%
90 Day-26.6%5.3%-5.4%
1 Year-36.3%-39.7%27.5%23.2%4.4%0.7%
3 Year-29.8%-37.5%45.0%27.7%17.0%5.2%
5 Year-44.3%-54.1%41.5%13.8%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chow Sang Sang Holdings International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 116 (HK$8.63) is trading below our estimate of fair value (HK$75.64)

Significantly Undervalued: 116 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 116 is good value based on its PE Ratio (5.7x) compared to the Luxury industry average (9.4x).

PE vs Market: 116 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 116 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 116 is good value based on its PB Ratio (0.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Chow Sang Sang Holdings International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 116's forecast earnings growth (9.2% per year) is above the savings rate (2%).

Earnings vs Market: 116's earnings (9.2% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 116's earnings are forecast to grow, but not significantly.

Revenue vs Market: 116's revenue (6.4% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 116's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 116's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Chow Sang Sang Holdings International performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 116's earnings have declined by -3.7% per year over the past 5 years.

Accelerating Growth: 116's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 116 had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 116's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: 116 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 116 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Chow Sang Sang Holdings International's financial position?


Financial Position Analysis

Short Term Liabilities: 116's short term assets (HK$12.2B) exceeds its short term liabilities (HK$3.7B)

Long Term Liabilities: 116's short term assets (12.2B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: 116's debt to equity ratio (20.7%) is considered satisfactory

Reducing Debt: 116's debt to equity ratio has reduced from 44.1% to 20.7% over the past 5 years.

Debt Coverage: 116's debt is well covered by operating cash flow (20.5%).

Interest Coverage: 116 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 116 has a high level of physical assets or inventory.

Debt Coverage by Assets: 116's debt is covered by short term assets (assets are 5.408550x debt).


Next Steps

Dividend

What is Chow Sang Sang Holdings International's current dividend yield, its reliability and sustainability?

6.84%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.2%markettop25%6.3%industryaverage2.7%forecastin3Years7.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 116's dividend (6.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 116's dividend (6.84%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)

Stable Dividend: 116's dividend payments have been volatile in the past 10 years.

Growing Dividend: 116's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), 116's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 116's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

What is the CEO of Chow Sang Sang Holdings International's salary, the management and board of directors tenure and is there insider trading?

15.1yrs

Average board tenure


CEO

Chow Sang Sang Holdings International has no CEO, or we have no data on them.


Board Age and Tenure

15.1yrs

Average Tenure

72yo

Average Age

Experienced Board: 116's board of directors are seasoned and experienced ( 15.1 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

SellHK$48,532,18514 Oct 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares5,762,000
Max PriceHK$8.42
SellHK$3,091,50423 Feb 19
Capital Research and Management Company
EntityCompany
Shares257,000
Max PriceHK$12.03
SellHK$23,075,79918 Jan 19
Capital Research and Management Company
EntityCompany
Shares2,129,000
Max PriceHK$10.84
SellHK$30,055,05029 Nov 18
Capital Research and Management Company
EntityCompany
Shares2,385,000
Max PriceHK$12.60
SellHK$1,216,61802 Nov 18
Capital Research and Management Company
EntityCompany
Shares96,000
Max PriceHK$12.67
BuyHK$8,972,32101 Nov 18
Schroder Investment Management (Hong Kong) Limited
EntityCompany
Shares709,000
Max PriceHK$12.65

Ownership Breakdown


Management Team

  • Winston Chow (61yo)

    Group Deputy GM & Executive Director

    • Tenure: 27.3yrs
    • Compensation: HK$3.53m
  • Vincent Chow (72yo)

    Chairman & Group General Manager

    • Tenure: 6.3yrs
    • Compensation: HK$4.28m
  • Gerald Chow (62yo)

    Executive Director

    • Tenure: 27.7yrs
    • Compensation: HK$692.00k
  • Hak Lau (66yo)

    General Manager of Retail Operations (Greater China)

    • Tenure: 0yrs
  • Theodore Tam (60yo)

    CFO & Secretary

    • Tenure: 10.8yrs

Board Members

  • Ka Lun Lee (64yo)

    Independent Non Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$407.00k
  • Stephen Ting (65yo)

    Non Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$338.00k
  • Pui Lam Chung (78yo)

    Non Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$338.00k
  • Bing Chan (85yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$338.00k
  • Winston Chow (61yo)

    Group Deputy GM & Executive Director

    • Tenure: 27.3yrs
    • Compensation: HK$3.53m
  • Vincent Chow (72yo)

    Chairman & Group General Manager

    • Tenure: 6.3yrs
    • Compensation: HK$4.28m
  • Gerald Chow (62yo)

    Executive Director

    • Tenure: 27.7yrs
    • Compensation: HK$692.00k
  • King Lo (81yo)

    Independent Non Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$338.00k
  • Stephen Lau (74yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$338.00k

Company Information

Chow Sang Sang Holdings International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chow Sang Sang Holdings International Limited
  • Ticker: 116
  • Exchange: SEHK
  • Founded: 1934
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$5.873b
  • Shares outstanding: 677.43m
  • Website: https://www.chowsangsang.com

Number of Employees


Location

  • Chow Sang Sang Holdings International Limited
  • Chow Sang Sang Building
  • 4th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
116SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CJW1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Chow Sang Sang Holdings International Limited, an investment holding company, engages in the manufacture and retail of jewelry. It operates through four segments: Manufacture and Retail of Jewellery, Whole ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:33
End of Day Share Price2019/10/14 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.