SEHK:1425

Stock Analysis Report

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Executive Summary

Justin Allen Holdings Limited, an investment holding company, manufactures and sells sleepwear and loungewear products, and greige fabrics. More Details


Snowflake Analysis

Outstanding track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1425 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1425's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

1425

1.3%

HK Luxury

-0.2%

HK Market


1 Year Return

10.8%

1425

57.1%

HK Luxury

20.8%

HK Market

Return vs Industry: 1425 underperformed the Hong Kong Luxury industry which returned 51.7% over the past year.

Return vs Market: 1425 underperformed the Hong Kong Market which returned 19.4% over the past year.


Shareholder returns

1425IndustryMarket
7 Day-2.7%1.3%-0.2%
30 Day-7.7%-4.6%-1.5%
90 Day-1.4%12.4%10.3%
1 Year17.5%10.8%60.1%57.1%25.4%20.8%
3 Yearn/a65.3%51.0%4.0%-6.8%
5 Yearn/a140.4%101.5%60.7%33.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1425 (HK$0.36) is trading below our estimate of fair value (HK$10.05)

Significantly Below Fair Value: 1425 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1425 is good value based on its PE Ratio (5.7x) compared to the HK Luxury industry average (13.3x).

PE vs Market: 1425 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (12x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1425's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1425 is overvalued based on its PB Ratio (1.5x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

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

33.5%

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 Justin Allen 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 Justin Allen Holdings performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1425 has high quality earnings.

Growing Profit Margin: 1425's current net profit margins (10.3%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: 1425's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: 1425's earnings growth over the past year (57.9%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: 1425 earnings growth over the past year (57.9%) exceeded the Luxury industry -31.1%.


Return on Equity

High ROE: 1425's Return on Equity (21.6%) is considered high.


Next Steps

Financial Health

How is Justin Allen Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1425's short term assets (HK$344.9M) exceed its short term liabilities (HK$213.1M).

Long Term Liabilities: 1425's short term assets (HK$344.9M) exceed its long term liabilities (HK$2.2M).


Debt to Equity History and Analysis

Debt Level: 1425's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1425's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1425's debt is well covered by operating cash flow (758.7%).

Interest Coverage: 1425's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet


Next Steps

Dividend

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

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1425's dividend (6.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.02%).

High Dividend: 1425's dividend (6.33%) is in the top 25% of dividend payers in the Hong Kong market (6.26%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1425's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1425's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), 1425'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

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

1.9yrs

Average board tenure


CEO

Edmond Tam (69 yo)

2.08yrs

Tenure

Mr. Kwok Pui Tam, also known as Edmond, serves as Chairman and Chief Executive Officer of Justin Allen Holdings Limited since February 27, 2019 and serves as its Executive Director. He is the Founder of J...


Board Members

NamePositionTenureCompensationOwnership
Kwok Pui Tam
Chairman & CEO2.08yrsno datano data
Suk Foon Yeung
Executive Director & President7.33yrsno datano data
Lie Mo So
Executive Director7.33yrsno datano data
Tze Lun Law
Independent Non-Executive Director1yrno datano data
Chun Fai Woo
Independent Non-Executive Director1.67yrsno datano data
Ho Ming Lui
Independent Non-Executive Director1.67yrsno datano data

1.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 1425's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Justin Allen Holdings Limited
  • Ticker: 1425
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$450.000m
  • Shares outstanding: 1.25b
  • Website: https://www.justinallengroup.com

Number of Employees


Location

  • Justin Allen Holdings Limited
  • Tower 2
  • 5th Floor
  • Shanghai
  • Shanghai Province
  • 200235
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1425SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2019

Biography

Justin Allen Holdings Limited, an investment holding company, manufactures and sells sleepwear and loungewear products, and greige fabrics. The company also provides men’s and women’s casualwear, and proce...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 10:26
End of Day Share Price2021/03/05 00:00
Earnings2020/06/30
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.