SEHK:1749

Stock Analysis Report

Shanshan Brand Management

Executive Summary

Shanshan Brand Management Co., Ltd. engages in the design, marketing, and sale of formal and casual business menswear in the People’s Republic of China.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Shanshan Brand Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1749's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.1%

1749

9.4%

HK Luxury

5.3%

HK Market


1 Year Return

-40.7%

1749

-20.6%

HK Luxury

-20.4%

HK Market

Return vs Industry: 1749 underperformed the Hong Kong Luxury industry which returned -21.7% over the past year.

Return vs Market: 1749 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

1749IndustryMarket
7 Day14.1%9.4%5.3%
30 Day6.0%-12.1%-8.5%
90 Day-20.5%-24.7%-14.7%
1 Year-37.3%-40.7%-18.3%-20.6%-17.6%-20.4%
3 Yearn/a10.8%-2.2%-2.5%-12.3%
5 Yearn/a11.5%-6.0%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Shanshan Brand Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shanshan Brand Management undervalued compared to its fair value and its price relative to the market?

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1749 (HK$0.89) is trading below our estimate of fair value (HK$1.1)

Significantly Below Fair Value: 1749 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1749 is good value based on its PE Ratio (3x) compared to the Luxury industry average (7.3x).

PE vs Market: 1749 is good value based on its PE Ratio (3x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1749's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1749 is good value based on its PB Ratio (0.4x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Shanshan Brand Management forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.1%

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 Shanshan Brand Management 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 Shanshan Brand Management performed over the past 5 years?

-8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1749 has high quality earnings.

Growing Profit Margin: 1749's current net profit margins (3.4%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: 1749's earnings have declined by -8.9% per year over the past 5 years.

Accelerating Growth: 1749's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1749 had negative earnings growth (-13.7%) over the past year, making it difficult to compare to the Luxury industry average (-0.2%).


Return on Equity

High ROE: 1749's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Shanshan Brand Management's financial position?


Financial Position Analysis

Short Term Liabilities: 1749's short term assets (CN¥940.1M) exceed its short term liabilities (CN¥786.8M).

Long Term Liabilities: 1749's short term assets (CN¥940.1M) exceed its long term liabilities (CN¥22.8M).


Debt to Equity History and Analysis

Debt Level: 1749's debt to equity ratio (92%) is considered high.

Reducing Debt: Insufficient data to determine if 1749's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1749's debt is not well covered by operating cash flow (10.2%).

Interest Coverage: 1749's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: 1749 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1749's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Shanshan Brand Management's current dividend yield, its reliability and sustainability?

7.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1749's dividend (7.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 1749's dividend (7.36%) is in the top 25% of dividend payers in the Hong Kong market (7.28%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1749's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1749's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.4%), 1749'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?

2.0yrs

Average board tenure


CEO

Yefei Luo

no data

Tenure

Mr. Yefei Luo serves as Executive Director and general manager at Shanshan Brand Management Co., Ltd. 


Board Members

NamePositionTenureCompensationOwnership
Yefei Luo
GM & Executive Directorno datano data7.5% CN¥8.9m
Yang Cao
Vice Chairmanno datano datano data
Jingfen Yan
CFO, Joint Company Secretary & Executive Director3.83yrsno datano data
Wei Zhuang
Chairman of the Boardno datano datano data
Ying Hui
Non-Executive Director2.17yrsno datano data
Feng Yang
Non-Executive Director2.17yrsno datano data
Au Yeung Po Fung
Independent Non-Executive Director1.83yrsno datano data
Yashan Wang
Independent Non-Executive Director1.83yrsno datano data
Xuekai Wu
Independent Non-Executive Director1.83yrsno datano data
Danna Zhou
Member of Supervisory Committeeno datano datano data

2.0yrs

Average Tenure

47yo

Average Age

Experienced Board: 1749's board of directors are not considered experienced ( 2 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 been diluted in the past year, with total shares outstanding growing by 33.2%.


Top Shareholders

Company Information

Shanshan Brand Management Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanshan Brand Management Co., Ltd.
  • Ticker: 1749
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$118.726m
  • Shares outstanding: 133.40m
  • Website: https://www.chinafirs.com

Number of Employees


Location

  • Shanshan Brand Management Co., Ltd.
  • 238 Yunlin Middle Road
  • Wangchun Industrial Park
  • Ningbo
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1749SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJun 2018

Biography

Shanshan Brand Management Co., Ltd. engages in the design, marketing, and sale of formal and casual business menswear in the People’s Republic of China. The company primarily offers its products under Firs, Shanshan, and Lubiam brand names. As of December 31, 2018, it had 1,226 retail outlets operated by its distributors and franchisees, as well as self-operated. The company is also involved in the sub-licensing of trademark. The company was founded in 1989 and is headquartered in Ningbo, the People’s Republic of China. Shanshan Brand Management Co., Ltd. is a subsidiary of Ningbo Shanshan Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:59
End of Day Share Price2020/03/31 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.