SEHK:1388

Stock Analysis Report

Executive Summary

Embry Holdings Limited, an investment holding company, designs, researches, develops, manufactures, trades in, and sells ladies brassieres, panties, swimwear, and sleepwear.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

1388

4.2%

HK Luxury

3.1%

HK Market


1 Year Return

-42.0%

1388

25.5%

HK Luxury

0.5%

HK Market

Return vs Industry: 1388 underperformed the Hong Kong Luxury industry which returned 25.5% over the past year.

Return vs Market: 1388 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1388IndustryMarket
7 Day-3.8%4.2%3.1%
30 Day-8.9%3.4%-1.8%
90 Day-26.1%6.2%-4.8%
1 Year-39.4%-42.0%29.9%25.5%4.1%0.5%
3 Year-53.5%-58.2%44.2%27.1%15.8%4.2%
5 Year-52.8%-60.3%42.7%14.6%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 1388 (HK$1.53) is trading above our estimate of fair value (HK$1.46)

Significantly Undervalued: 1388 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1388 is good value based on its PE Ratio (6.3x) compared to the Luxury industry average (9.3x).

PE vs Market: 1388 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1388's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1388 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 Embry Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1388's forecast earnings growth (16.5% per year) is above the savings rate (2%).

Earnings vs Market: 1388's earnings (16.5% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 1388's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1388's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1388's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1388's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Embry Holdings performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1388's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: 1388's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1388 had negative earnings growth (-80.4%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 1388's Return on Equity (4.3%) is considered low.


Return on Assets

ROA vs Industry: 1388's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 1388's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Embry Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1388's short term assets (HK$1.2B) exceeds its short term liabilities (HK$785.4M)

Long Term Liabilities: 1388's short term assets (1.2B) exceeds its long term liabilities (407.8M)


Debt to Equity History and Analysis

Debt Level: 1388's debt to equity ratio (22.4%) is considered satisfactory

Reducing Debt: 1388's debt to equity ratio has increased from 5.6% to 22.4% over the past 5 years.

Debt Coverage: 1388's debt is not well covered by operating cash flow (4.7%).

Interest Coverage: 1388's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

Inventory Level: 1388 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1388's debt is covered by short term assets (assets are 2.267430x debt).


Next Steps

Dividend

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

5.88%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1388's dividend (5.88%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1388's dividend (5.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1388's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1388's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.1%), 1388's dividend payments are 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

Management

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

12.9yrs

Average board tenure


CEO

Liza Cheng (56yo)

0yrs

Tenure

HK$4,985,000

Compensation

Ms. Pik Ho Cheng, also known as Liza, serves as the Chief Executive Officer of Embry Holdings Ltd., and served as its Compliance Officer. Ms. Cheng is responsible for overseeing the marketing and product d ...


CEO Compensation Analysis

Compensation vs. Market: Liza's total compensation ($USD635.49K) is about average for companies of similar size in the Hong Kong market ($USD212.13K).

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


Board Age and Tenure

12.9yrs

Average Tenure

67yo

Average Age

Experienced Board: 1388's board of directors are seasoned and experienced ( 12.9 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$1,463,37020 Sep 19
FIL Limited
EntityCompany
Shares871,000
Max PriceHK$1.68
SellHK$1,781,11711 Sep 19
FIL Limited
EntityCompany
Shares1,060,000
Max PriceHK$1.68
SellHK$6,237,01021 May 19
FIL Limited
EntityCompany
Shares2,772,000
Max PriceHK$2.25

Ownership Breakdown


Management Team

  • Ming Chu Ngok (82yo)

    Executive Director

    • Tenure: 13.2yrs
    • Compensation: HK$6.08m
  • Liza Cheng (56yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$4.99m
  • Qun Lu (65yo)

    Executive Director

    • Tenure: 4.7yrs
    • Compensation: HK$2.09m
  • Katie Fung (52yo)

    Chief Financial Officer

    • Tenure: 9.3yrs
  • Chuen Chuen Cheng (69yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$828.00k
  • Ka Man So (45yo)

    Company Secretary

    • Tenure: 6.8yrs
  • Hei Chan

    Compliance Officer

    • Tenure: 0yrs

Board Members

  • Kevin Lau (61yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: HK$344.00k
  • Eddie Lee (54yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: HK$344.00k
  • Man Cheng (89yo)

    Executive Chairman

    • Tenure: 1.2yrs
    • Compensation: HK$2.07m
  • Ming Chu Ngok (82yo)

    Executive Director

    • Tenure: 13.2yrs
    • Compensation: HK$6.08m
  • Tien-Sheng Lee (70yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: HK$344.00k
  • Liza Cheng (56yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$4.99m
  • Qun Lu (65yo)

    Executive Director

    • Tenure: 4.7yrs
    • Compensation: HK$2.09m
  • Chuen Chuen Cheng (69yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$828.00k

Company Information

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


Key Information

  • Name: Embry Holdings Limited
  • Ticker: 1388
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$654.746m
  • Shares outstanding: 422.42m
  • Website: https://www.embrygroup.com

Number of Employees


Location

  • Embry Holdings Limited
  • Wyler Centre II
  • 7th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1388SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2006

Biography

Embry Holdings Limited, an investment holding company, designs, researches, develops, manufactures, trades in, and sells ladies brassieres, panties, swimwear, and sleepwear. The company sells its lingerie  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:44
End of Day Share Price2019/10/16 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.