SEHK:1348

Stock Analysis Report

Executive Summary

Quali-Smart Holdings Limited, an investment holding company, engages in the manufacture of toys on OEM/ODM basis in Hong Kong and internationally.

Rewards

Trading at 48% below its fair value

Risk Analysis

Earnings have declined by -9.87% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$494M)



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1348's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.1%

1348

1.4%

HK Leisure

3.7%

HK Market


1 Year Return

-48.5%

1348

-20.7%

HK Leisure

2.4%

HK Market

Return vs Industry: 1348 underperformed the Hong Kong Leisure industry which returned -20.7% over the past year.

Return vs Market: 1348 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

1348IndustryMarket
7 Day8.1%1.4%3.7%
30 Day4.7%-4.6%4.2%
90 Day-26.4%-12.7%1.7%
1 Year-48.5%-48.5%-17.4%-20.7%6.0%2.4%
3 Year-51.4%-51.4%-37.5%-41.9%25.6%12.9%
5 Year-80.6%-80.6%-48.1%-50.8%23.2%2.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Quali-Smart Holdings undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1348 (HK$0.34) is trading below our estimate of fair value (HK$0.64)

Significantly Below Fair Value: 1348 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1348 is unprofitable, so we can't compare its PE Ratio to the Leisure industry average.

PE vs Market: 1348 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 1348's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1348 is overvalued based on its PB Ratio (1.3x) compared to the HK Leisure industry average (0.7x).


Next Steps

Future Growth

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

16.8%

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 Quali-Smart 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 Quali-Smart Holdings performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1348 is currently unprofitable.

Growing Profit Margin: 1348 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1348 is unprofitable, and losses have increased over the past 5 years at a rate of -9.9% per year.

Accelerating Growth: Unable to compare 1348's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1348 is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (-9.2%).


Return on Equity

High ROE: 1348 has a negative Return on Equity (-8.22%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Quali-Smart Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1348's short term assets (HK$403.3M) exceed its short term liabilities (HK$132.8M).

Long Term Liabilities: 1348's short term assets (HK$403.3M) exceed its long term liabilities (HK$102.8M).


Debt to Equity History and Analysis

Debt Level: 1348's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: 1348's debt to equity ratio has reduced from 58.1% to 32.4% over the past 5 years.


Balance Sheet

Inventory Level: 1348 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1348's debt is covered by short term assets (assets are 3.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 1348 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1348 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -26.6% per year.


Next Steps

Dividend

What is Quali-Smart Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1348's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1348'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 1348's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1348's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1348 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 1348'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 Quali-Smart Holdings's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average board tenure


CEO

Quali-Smart Holdings has no CEO, or we have no data on them.


Board Age and Tenure

6.9yrs

Average Tenure

55yo

Average Age

Experienced Board: 1348's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: 1348 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,768,78505 Dec 19
Pak Ki Poon
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,896,000
Max PriceHK$0.30

Ownership Breakdown

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


Management Team

  • Irene Tang (49yo)

    Company Secretary

    • Tenure: 4.8yrs
  • Peter Lau (65yo)

    Executive Chairman

    • Tenure: 6.1yrs
    • Compensation: HK$3.91m
  • Eric Poon (51yo)

    Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$1.60m
  • Kam Seng Ng (37yo)

    Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$2.06m
  • Raymond Chu (52yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$3.62m

Board Members

  • Edward Wong (56yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$245.00k
  • Raymond Chan (54yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$268.00k
  • Bowen Joseph Leung (70yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$298.00k
  • Peter Lau (65yo)

    Executive Chairman

    • Tenure: 6.1yrs
    • Compensation: HK$3.91m
  • Eric Poon (51yo)

    Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$1.60m
  • Kam Seng Ng (37yo)

    Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$2.06m
  • Stella Li (56yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: HK$263.00k
  • Raymond Chu (52yo)

    Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$3.62m

Company Information

Quali-Smart Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quali-Smart Holdings Limited
  • Ticker: 1348
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$493.868m
  • Shares outstanding: 1.47b
  • Website: https://www.quali-smart.com.hk

Number of Employees


Location

  • Quali-Smart Holdings Limited
  • TML Tower
  • Workshop C on 19th Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1348SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2013

Biography

Quali-Smart Holdings Limited, an investment holding company, engages in the manufacture of toys on OEM/ODM basis in Hong Kong and internationally. The company operates through Manufacturing and Sales of To ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:58
End of Day Share Price2019/12/13 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.