SEHK:2030

Stock Analysis Report

Executive Summary

Cabbeen Fashion Limited, a fashion casual menswear company, together with its subsidiaries, engages in the research and design, wholesale, and retailing of apparel, footwear, and related accessories in the People’s Republic of China.

Rewards

Trading at 48.2% below its fair value

Risk Analysis

Earnings have declined by -5.13% per year over past 5 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Cabbeen Fashion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2030 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.2%

2030

1.4%

HK Luxury

1.6%

HK Market


1 Year Return

-16.6%

2030

27.3%

HK Luxury

6.0%

HK Market

Return vs Industry: 2030 underperformed the Hong Kong Luxury industry which returned 28% over the past year.

Return vs Market: 2030 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2030IndustryMarket
7 Day5.2%1.4%1.6%
30 Day5.9%4.5%4.4%
90 Day-0.6%6.2%8.6%
1 Year-10.8%-16.6%31.6%27.3%9.9%6.0%
3 Year-2.7%-20.7%52.9%34.9%27.7%14.7%
5 Year-34.1%-51.2%68.9%35.6%21.7%1.4%

Price Volatility Vs. Market

How volatile is Cabbeen Fashion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cabbeen Fashion undervalued compared to its fair value and its price relative to the market?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2030 (HK$1.54) is trading below our estimate of fair value (HK$2.97)

Significantly Below Fair Value: 2030 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2030 is good value based on its PE Ratio (4.3x) compared to the Luxury industry average (9.1x).

PE vs Market: 2030 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2030's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2030 is good value based on its PB Ratio (0.8x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Cabbeen Fashion forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.5%

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 Cabbeen Fashion 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 Cabbeen Fashion performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2030 has a high level of non-cash earnings.

Growing Profit Margin: 2030's current net profit margins (16.7%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: 2030's earnings have declined by -5.1% per year over the past 5 years.

Accelerating Growth: 2030's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2030 had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Luxury industry average (-2.8%).


Return on Equity

High ROE: 2030's Return on Equity (17.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cabbeen Fashion's financial position?


Financial Position Analysis

Short Term Liabilities: 2030's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥779.7M).

Long Term Liabilities: 2030's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥6.2M).


Debt to Equity History and Analysis

Debt Level: 2030's debt to equity ratio (28.5%) is considered satisfactory.

Reducing Debt: 2030's debt to equity ratio has increased from 8.8% to 28.5% over the past 5 years.

Debt Coverage: 2030's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: 2030's interest payments on its debt are well covered by EBIT (31x coverage).


Balance Sheet

Inventory Level: 2030 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2030's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

What is Cabbeen Fashion's current dividend yield, its reliability and sustainability?

10.79%

Current Dividend Yield


Dividend Yield vs Market

company10.8%marketbottom25%2.2%markettop25%6.0%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2030's dividend (11.25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 2030's dividend (11.25%) is in the top 25% of dividend payers in the Hong Kong market (6.02%)


Stability and Growth of Payments

Stable Dividend: 2030 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2030's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), 2030'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

What is the CEO of Cabbeen Fashion's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average board tenure


CEO

Siu Ng (49yo)

9.5yrs

Tenure

CN¥533,000

Compensation

Mr. Siu Keung Ng has been the Chief Executive Officer and General Manager of Cabbeen Lifestyle Business Division of Cabbeen Fashion Limited since July 2010 and April 2013 respectively. Mr. Ng is one of the ...


CEO Compensation Analysis

Compensation vs Market: Siu's total compensation ($USD77.36K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Siu's compensation has been consistent with company performance over the past year.


Board Age and Tenure

6.9yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 2030's board of directors are considered experienced (6.9 years average tenure).


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

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


Management Team

  • Lai Wong (44yo)

    CFO & Company Secretary

    • Ziming Yang (47yo)

      Founder & Chairman

      • Compensation: CN¥41.00k
    • Siu Ng (49yo)

      CEO, GM of Cabbeen Lifestyle Business Division & Executive Director

      • Tenure: 9.5yrs
      • Compensation: CN¥533.00k
    • Rongqin Ke (44yo)

      VP, GM of Cabbeen Urban Business Division & Executive Director

      • Tenure: 6.9yrs
      • Compensation: CN¥521.00k
    • Yu Zhang

      Chief Logistics Officer

      • Hui Wang

        Chief Legal Officer

        • Guanzheng Hong

          Chief Capital Management Officer

          • Xixia Chen

            Head of General Manager's Office

            • Haiyan Jie

              Chief Design Officer

              • Cong Zou

                Chief Information Management Officer


                Board Members

                • Vincent Leung (43yo)

                  Independent Non-Executive Director

                  • Tenure: 6.9yrs
                  • Compensation: CN¥307.00k
                • Yung Kwok Tsui (51yo)

                  Independent Non-Executive Director

                  • Tenure: 6.9yrs
                  • Compensation: CN¥307.00k
                • Ziming Yang (47yo)

                  Founder & Chairman

                  • Compensation: CN¥41.00k
                • Siu Ng (49yo)

                  CEO, GM of Cabbeen Lifestyle Business Division & Executive Director

                  • Tenure: 9.5yrs
                  • Compensation: CN¥533.00k
                • Rongqin Ke (44yo)

                  VP, GM of Cabbeen Urban Business Division & Executive Director

                  • Tenure: 6.9yrs
                  • Compensation: CN¥521.00k
                • Honghui Chen (48yo)

                  Independent Non-Executive Director

                  • Tenure: 6.9yrs
                  • Compensation: CN¥307.00k

                Company Information

                Cabbeen Fashion Limited's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Cabbeen Fashion Limited
                • Ticker: 2030
                • Exchange: SEHK
                • Founded:
                • Industry: Apparel, Accessories and Luxury Goods
                • Sector: Consumer Durables
                • Market Cap: HK$1.076b
                • Shares outstanding: 668.59m
                • Website: https://www.cabbeen.com

                Number of Employees


                Location

                • Cabbeen Fashion Limited
                • Cabbeen Apparel Building
                • No. 379 Shougouling Road
                • Guangzhou
                • Guangdong Province
                • 510507
                • China

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                2030SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2013

                Biography

                Cabbeen Fashion Limited, a fashion casual menswear company, together with its subsidiaries, engages in the research and design, wholesale, and retailing of apparel, footwear, and related accessories in the People’s Republic of China. The company offers apparel, shoes, and accessories for men, women, and children under the Cabbeen Lifestyle, Cabbeen Urban, Cabbeen Love, and 2AM brands. In addition, it engages in the real estate development and trademark holding activities. The company sells its products through company-operated and franchise stores, online shops, and other wholesale arrangement with third-parties, as well as operates online shops on various e-commerce platforms. As of December 31, 2018, it had 910 retail outlets in China. The company is headquartered in Guangzhou, China. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/19 12:55
                End of Day Share Price2020/01/17 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.