SEHK:1520

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

CEFC Hong Kong Financial Investment

Executive Summary

CEFC Hong Kong Financial Investment Company Limited, an investment holding company, designs, manufactures, and trades in apparels in the United States, Hong Kong, and internationally.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has CEFC Hong Kong Financial Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1520's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.7%

1520

8.2%

HK Luxury

4.1%

HK Market


1 Year Return

-46.5%

1520

8.2%

HK Luxury

-5.2%

HK Market

Return vs Industry: 1520 underperformed the Hong Kong Luxury industry which returned 8.2% over the past year.

Return vs Market: 1520 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

1520IndustryMarket
7 Day2.7%8.2%4.1%
30 Day-14.4%12.1%3.5%
90 Day-32.5%-2.1%-5.3%
1 Year-46.5%-46.5%10.5%8.2%-2.0%-5.2%
3 Year-93.5%-93.5%31.5%19.4%-0.4%-10.6%
5 Year-93.9%-93.9%27.7%8.2%-9.0%-23.3%

Price Volatility Vs. Market

How volatile is CEFC Hong Kong Financial Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CEFC Hong Kong Financial Investment undervalued compared to its fair value and its price relative to the market?

0.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1520's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1520's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1520 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 1520 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 1520's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1520 is good value based on its PB Ratio (0.4x) compared to the HK Luxury industry average (0.6x).


Next Steps

Future Growth

How is CEFC Hong Kong Financial Investment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.1%

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 CEFC Hong Kong Financial Investment 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 CEFC Hong Kong Financial Investment performed over the past 5 years?

-66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1520 is currently unprofitable.

Growing Profit Margin: 1520 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1520 is unprofitable, and losses have increased over the past 5 years at a rate of -66.8% per year.

Accelerating Growth: Unable to compare 1520's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1520 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (3%).


Return on Equity

High ROE: 1520 has a negative Return on Equity (-25.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is CEFC Hong Kong Financial Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 1520's short term assets (HK$268.5M) exceed its short term liabilities (HK$42.9M).

Long Term Liabilities: 1520's short term assets (HK$268.5M) exceed its long term liabilities (HK$3.0M).


Debt to Equity History and Analysis

Debt Level: 1520 is debt free.

Reducing Debt: 1520 has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.


Balance Sheet


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: 1520 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 1520 has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of 28.8% each year.


Next Steps

Dividend

What is CEFC Hong Kong Financial Investment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1520's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1520's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1520's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1520's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1520's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

CEFC Hong Kong Financial Investment has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Lin Guo
Chairman of the Boardno dataHK$1.22mno data
Mingsheng Jiang
Executive Director3yrsHK$600.00kno data
Tianqing Jiang
Executive Director3yrsHK$600.00kno data
Ka Lung Cheung
Deputy CEO & Director1yrHK$2.52mno data
Yuen Sin Tin
Executive Director0.67yrHK$938.00k6.77% HK$8.8m
Ka Yu Chan
Chief Financial Officerno datano datano data
Winnie Tien
Chief Administrative Officer & Head of Quality Controlno datano datano data
David Blitz
Head of Sales & Marketing for the United Statesno datano datano data
Ka Man Wong
Company Secretary3yrsno datano data

3.0yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 1520's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lin Guo
Chairman of the Boardno dataHK$1.22mno data
Mingsheng Jiang
Executive Director3yrsHK$600.00kno data
Tianqing Jiang
Executive Director3yrsHK$600.00kno data
Ka Lung Cheung
Deputy CEO & Director1yrHK$2.52mno data
Yuen Sin Tin
Executive Director0.67yrHK$938.00k6.77% HK$8.8m
Hong Bing Lyu
Independent Non-Executive Director3yrsHK$240.00kno data
Ming Sang Hon
Independent Non-Executive Director3.58yrsHK$240.00kno data
Shu Pui Tang
Independent Non-Executive Director3.83yrsHK$240.00k0.30% HK$385.0k
Hubert Tien
Director of Runway Global Limitedno dataHK$2.36mno data
Fei Wu
Independent Non Executive Director2.33yrsHK$240.00kno data

3.0yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 1520's board of directors are considered experienced (3 years average tenure).


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

CEFC Hong Kong Financial Investment Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CEFC Hong Kong Financial Investment Company Limited
  • Ticker: 1520
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$130.130m
  • Shares outstanding: 1.69b
  • Website: https://www.cefcfi.com.hk

Number of Employees


Location

  • CEFC Hong Kong Financial Investment Company Limited
  • Capital Centre
  • 7th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1520SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013

Biography

CEFC Hong Kong Financial Investment Company Limited, an investment holding company, designs, manufactures, and trades in apparels in the United States, Hong Kong, and internationally. The company provides its products under private labels and own brands. It also provides designing, marketing, and advertising services; and money lending services to individual consumers and small businesses. The company was formerly known as Runway Global Holdings Company Limited and changed its name to CEFC Hong Kong Financial Investment Company Limited in October 2017. CEFC Hong Kong Financial Investment Company Limited was founded in 2001 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:18
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
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.