Man Wah Holdings
Market Cap
HK$16.0b
Last Updated
2020/03/30 13:17 UTC
Data Sources
Company Financials +
Executive Summary
Man Wah Holdings Limited, an investment holding company, manufactures and distributes sofas and ancillary products.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Man Wah Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1999's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
11.3%
1999
9.6%
HK Consumer Durables
7.4%
HK Market
1 Year Return
-13.4%
1999
-23.1%
HK Consumer Durables
-22.7%
HK Market
Return vs Industry: 1999 exceeded the Hong Kong Consumer Durables industry which returned -18.6% over the past year.
Return vs Market: 1999 exceeded the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 1999 | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.3% | 9.6% | 7.4% |
| 30 Day | -26.5% | -15.3% | -11.2% |
| 90 Day | -25.4% | -20.4% | -17.3% |
| 1 Year | -10.8%-13.4% | -21.6%-23.1% | -19.9%-22.7% |
| 3 Year | -26.1%-33.5% | -17.7%-22.9% | -5.3%-14.8% |
| 5 Year | 25.8%5.6% | -19.2%-27.9% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is Man Wah Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
We Wouldn't Rely On Man Wah Holdings's (HKG:1999) Statutory Earnings As A Guide1 week ago | Simply Wall St
What Is Man Wah Holdings's (HKG:1999) P/E Ratio After Its Share Price Tanked?2 weeks ago | Simply Wall St
Should Man Wah Holdings (HKG:1999) Be Disappointed With Their 27% Profit?Valuation
Is Man Wah 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: 1999 (HK$4.14) is trading below our estimate of fair value (HK$12.77)
Significantly Below Fair Value: 1999 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1999 is poor value based on its PE Ratio (11.3x) compared to the Consumer Durables industry average (10.5x).
PE vs Market: 1999 is poor value based on its PE Ratio (11.3x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: 1999 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 1999 is overvalued based on its PB Ratio (2.6x) compared to the HK Consumer Durables industry average (0.7x).
Next Steps
Future Growth
How is Man Wah Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
16.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1999's forecast earnings growth (16.5% per year) is above the savings rate (1.6%).
Earnings vs Market: 1999's earnings (16.5% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).
High Growth Earnings: 1999's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1999's revenue (11% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).
High Growth Revenue: 1999's revenue (11% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1999's Return on Equity is forecast to be high in 3 years time (23.1%)
Next Steps
Past Performance
How has Man Wah Holdings performed over the past 5 years?
5.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1999 has a high level of non-cash earnings.
Growing Profit Margin: 1999's current net profit margins (12.4%) are lower than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: 1999's earnings have grown by 5.7% per year over the past 5 years.
Accelerating Growth: 1999's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1999 had negative earnings growth (-0.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (5.9%).
Return on Equity
High ROE: 1999's Return on Equity (21.8%) is considered high.
Next Steps
Financial Health
How is Man Wah Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 1999's short term assets (HK$5.4B) exceed its short term liabilities (HK$5.2B).
Long Term Liabilities: 1999's short term assets (HK$5.4B) exceed its long term liabilities (HK$1.1B).
Debt to Equity History and Analysis
Debt Level: 1999's debt to equity ratio (60.9%) is considered high.
Reducing Debt: 1999's debt to equity ratio has increased from 19.5% to 60.9% over the past 5 years.
Debt Coverage: 1999's debt is well covered by operating cash flow (45.3%).
Interest Coverage: 1999's interest payments on its debt are well covered by EBIT (20.1x coverage).
Balance Sheet
Inventory Level: 1999 has a high level of physical assets or inventory.
Debt Coverage by Assets: 1999's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Man Wah Holdings's current dividend yield, its reliability and sustainability?
2.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1999's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 1999's dividend (2.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).
Stability and Growth of Payments
Stable Dividend: 1999's dividend payments have been volatile in the past 10 years.
Growing Dividend: 1999's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.4%), 1999's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1999's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Man Li Wong (54yo)
15.33s
Tenure
HK$2,048,000
Compensation
Mr. Wong Man Li, BBS, founded Man Wah Holdings Ltd. in 1992 and has been its Chairman of the Board and Managing Director since November 17, 2004. Mr. Wong is responsible for the day-today overall managemen ...
CEO Compensation Analysis
Compensation vs Market: Man Li's total compensation ($USD264.21K) is below average for companies of similar size in the Hong Kong market ($USD445.47K).
Compensation vs Earnings: Man Li's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 15.33yrs | HK$2.05m | 65.98% HK$10.6b | |
| VP of General Administration & Retail Sales and Executive Director | 15.33yrs | HK$1.64m | 0.052% HK$8.4m | |
| Chief Brand Officer | 5yrs | HK$1.06m | 0.049% HK$7.8m | |
| Executive Director | 8.42yrs | HK$5.51m | 0.021% HK$3.4m | |
| Senior Director of the Manufacturing Center & Executive Director | 7.67yrs | HK$2.10m | 0.013% HK$2.1m | |
| CFO & Executive Director | 0.17yr | no data | no data | |
| Director of Corporate Communications | 2.67yrs | no data | no data | |
| Company Secretary & Regional Financial Controller | 0.17yr | no data | no data |
1.4yrs
Average Tenure
47yo
Average Age
Experienced Management: 1999's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 15.33yrs | HK$2.05m | 65.98% HK$10.6b | |
| VP of General Administration & Retail Sales and Executive Director | 15.33yrs | HK$1.64m | 0.052% HK$8.4m | |
| Chief Brand Officer | 5yrs | HK$1.06m | 0.049% HK$7.8m | |
| Executive Director | 8.42yrs | HK$5.51m | 0.021% HK$3.4m | |
| Senior Director of the Manufacturing Center & Executive Director | 7.67yrs | HK$2.10m | 0.013% HK$2.1m | |
| CFO & Executive Director | 0.17yr | no data | no data | |
| Independent Non-Executive Director | 10yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 6.83yrs | HK$380.00k | no data | |
| Independent Non Executive Director | 10yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 3.25yrs | HK$380.00k | no data |
8.0yrs
Average Tenure
49.5yo
Average Age
Experienced Board: 1999's board of directors are considered experienced (8 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Man Wah Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Man Wah Holdings Limited
- Ticker: 1999
- Exchange: SEHK
- Founded: 1992
- Industry: Home Furnishings
- Sector: Consumer Durables
- Market Cap: HK$15.990b
- Shares outstanding: 3.74b
- Website: https://www.manwahholdings.com
Number of Employees
Location
- Man Wah Holdings Limited
- Wah Lai Industrial Center
- 1st Floor
- Fotan
- New Territories
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1999 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Apr 2010 |
| AAM | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2010 |
| MAWH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2010 |
| 1999 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Apr 2010 |
| 1999 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Apr 2010 |
| MAWH.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Jul 2010 |
Biography
Man Wah Holdings Limited, an investment holding company, manufactures and distributes sofas and ancillary products. The company operates through Sofa and Ancillary Products, Other Products, and Home Group Business segments. It offers sofas under the CHEERS brand; mattresses under the Enlanda brand; panel furniture and furniture accessories; sofas, sofa-beds, beds, armchairs, and accessories under the Fleming brand name; and chairs, smart furniture spare parts, etc. The company is also involved in the production and sale of chairs and other products to high-speed railways, chain cinemas, and other business customers, as well as metal components for furniture; advertising and marketing of home furnishing products; manufacturing and trading of foam products; property investment business; operation, leasing, and management of furniture malls; trading of sofas, bedding products, other furniture, and furniture components, as well as foam products; and research and production of smart drive machines and electric regulators. In addition, it offers property management services; offshore sales, management business consultancy, and back office support services; business management and design services; warehouse services; and brand management, and import and export services. As of March 31, 2019, the company had a total of 2,614 CHEERS First-class Cabin brand sofa and CHEERS Five-star Mattress brand stores, as well as Fleming stores in China. It has operations in the People's Republic of China, North America, Europe, Australia, the United Arab Emirates, Israel, and Indonesia. The company was founded in 1992 and is headquartered in Fotan, Hong Kong. Man Wah Holdings Limited is a subsidiary of Man Wah Investments Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 13:17 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.