SEHK:1906

Stock Analysis Report

Bonny International Holding

Executive Summary

Bonny International Holding Limited, an investment holding company, manufactures and sells brassieres, functional sportswear, panties, and thermal underwear in the People’s Republic of China.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Share Price & News

How has Bonny International Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

17.2%

1906

3.1%

HK Luxury

2.2%

HK Market


1 Year Return

n/a

1906

21.8%

HK Luxury

-1.3%

HK Market

Return vs Industry: Insufficient data to determine how 1906 performed against the Hong Kong Luxury industry.

Return vs Market: Insufficient data to determine how 1906 performed against the Hong Kong Market.


Share holder returns

1906IndustryMarket
7 Day17.2%3.1%2.2%
30 Day19.3%1.1%-2.9%
90 Day11.5%6.6%-5.8%
1 Yearn/a26.1%21.8%2.3%-1.3%
3 Yearn/a44.7%27.4%15.6%3.9%
5 Yearn/a41.9%14.3%20.1%0.06%

Price Volatility Vs. Market

How volatile is Bonny International Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bonny International Holding undervalued based on future cash flows and its price relative to the stock market?

42.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 1906 (HK$0.68) is trading above our estimate of fair value (HK$0.24)

Significantly Undervalued: 1906 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 1906 is poor value based on its PE Ratio (42.1x) compared to the Luxury industry average (9.5x).

PE vs Market: 1906 is poor value based on its PE Ratio (42.1x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 1906's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 1906 is overvalued based on its PB Ratio (2.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Bonny International Holding expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1906's forecast earnings growth (12.1% per year) is above the savings rate (2%).

Earnings vs Market: 1906's earnings (12.1% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1906's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1906's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1906's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1906's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Bonny International Holding performed over the past 5 years?

-22.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1906's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: 1906's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1906 had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 1906's Return on Equity (5.8%) is considered low.


Return on Assets

ROA vs Industry: 1906's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1906's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Bonny International Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1906's short term assets (CN¥382.9M) exceeds its short term liabilities (CN¥339.0M)

Long Term Liabilities: 1906's short term assets (382.9M) exceeds its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: 1906's debt to equity ratio (82.7%) is considered high

Reducing Debt: Insufficient data to determine if 1906's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1906's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: 1906's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: 1906 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1906's debt is covered by short term assets (assets are 1.552250x debt).


Next Steps

Dividend

What is Bonny International Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage6.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 1906's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1906's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1906's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1906'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 1906'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 Bonny International Holding's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Bonny International Holding has no CEO, or we have no data on them.


Board Age and Tenure

1.4yrs

Average Tenure

Experienced Board: 1906's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Guojun Jin

    Chairman

    • Tenure: 0yrs
  • Hui Zhao

    Executive Director

    • Tenure: 2.3yrs
  • Chun Chen

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Zhang Min Zhang (42yo)

    Independent Non-executive Director

    • Tenure: 0.6yrs
  • Guojun Jin

    Chairman

    • Tenure: 0yrs
  • Weixing Luo

    Non-Executive Director

    • Tenure: 0yrs
  • Jian Wang

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Hui Zhao

    Executive Director

    • Tenure: 2.3yrs
  • Lijin Gong

    Non-executive Director

    • Tenure: 2.3yrs
  • Youxing Li

    Independent Non-executive Director

    • Tenure: 0.6yrs

Company Information

Bonny International Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bonny International Holding Limited
  • Ticker: 1906
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$816.000m
  • Shares outstanding: 1.20b
  • Website: https://www.bonnychina.com

Number of Employees


Location

  • Bonny International Holding Limited
  • Yiwu Industrial Park
  • No. 86, Changfu Road
  • Yiwu
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1906SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2019

Biography

Bonny International Holding Limited, an investment holding company, manufactures and sells brassieres, functional sportswear, panties, and thermal underwear in the People’s Republic of China. The company’s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:56
End of Day Share Price2019/10/14 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.

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