SEHK:2223

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Executive Summary

Casablanca Group Limited, an investment holding company, designs, manufactures, distributes, and retails bedding products in Hong Kong, Macau, the People’s Republic of China, and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Casablanca Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2223's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

2223

7.7%

HK Consumer Durables

9.1%

HK Market


1 Year Return

-44.8%

2223

11.5%

HK Consumer Durables

0.9%

HK Market

Return vs Industry: 2223 underperformed the Hong Kong Consumer Durables industry which returned 11.5% over the past year.

Return vs Market: 2223 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

2223IndustryMarket
7 Day2.2%7.7%9.1%
30 Day-15.2%6.9%8.2%
90 Day-19.5%23.0%13.8%
1 Year-40.4%-44.8%13.6%11.5%4.6%0.9%
3 Year-57.7%-60.7%2.2%-4.6%13.1%1.4%
5 Year-86.6%-87.6%12.1%1.3%10.8%-7.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Casablanca Group undervalued compared to its fair value and its price relative to the market?

34.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2223 (HK$0.48) is trading below our estimate of fair value (HK$0.72)

Significantly Below Fair Value: 2223 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2223 is good value based on its PE Ratio (6.6x) compared to the Consumer Durables industry average (9.3x).

PE vs Market: 2223 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2223's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2223 is good value based on its PB Ratio (0.3x) compared to the HK Consumer Durables industry average (0.8x).


Next Steps

Future Growth

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

15.2%

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 Casablanca Group 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 Casablanca Group performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2223 has high quality earnings.

Growing Profit Margin: 2223's current net profit margins (4.9%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 2223's earnings have grown significantly by 34.8% per year over the past 5 years.

Accelerating Growth: 2223's earnings growth over the past year (136%) exceeds its 5-year average (34.8% per year).

Earnings vs Industry: 2223 earnings growth over the past year (136%) exceeded the Consumer Durables industry 16.1%.


Return on Equity

High ROE: 2223's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Casablanca Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2223's short term assets (HK$343.3M) exceed its short term liabilities (HK$95.3M).

Long Term Liabilities: 2223's short term assets (HK$343.3M) exceed its long term liabilities (HK$9.7M).


Debt to Equity History and Analysis

Debt Level: 2223's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: 2223's debt to equity ratio has reduced from 30.8% to 1.6% over the past 5 years.

Debt Coverage: 2223's debt is well covered by operating cash flow (649.5%).

Interest Coverage: 2223's interest payments on its debt are well covered by EBIT (68.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Casablanca Group current dividend yield, its reliability and sustainability?

12.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2223's dividend (12.63%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 2223's dividend (12.63%) is in the top 25% of dividend payers in the Hong Kong market (6.54%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2223's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2223's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.9%), 2223's dividend payments are 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?

5.5yrs

Average board tenure


CEO

Sze Cheng (47yo)

3.83yrs

Tenure

HK$3,995,000

Compensation

Mr. Sze Tsan Cheng has been the Chief Executive Officer of Casablanca Group Limited since September 1, 2016. Mr. Cheng is the Co-Owner of World Empire Investment Inc. Mr. Cheng is one of the founders of Ca ...


CEO Compensation Analysis

Compensation vs Market: Sze's total compensation ($USD515.48K) is above average for companies of similar size in the Hong Kong market ($USD227.60K).

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


Board Members

NamePositionTenureCompensationOwnership
Sze Cheng
Executive Chairman7.75yrsHK$3.77m1.74% HK$2.1m
Sze Cheng
Vice Chairman & CEO3.83yrsHK$4.00m1.6% HK$1.9m
Pik Wong
Executive Director8.25yrsHK$3.94m1.31% HK$1.6m
Wah Keung Cheung
Independent Non-Executive Director3.17yrsHK$224.00kno data
Siu Lo
Independent Non-Executive Director2.25yrsHK$224.00kno data
On Chow
Independent Non-Executive Director3.17yrsHK$224.00kno data

5.5yrs

Average Tenure

56yo

Average Age

Experienced Board: 2223's board of directors are considered experienced (5.5 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

Casablanca Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Casablanca Group Limited
  • Ticker: 2223
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: HK$118.879m
  • Shares outstanding: 258.43m
  • Website: https://www.casablanca.com.hk

Number of Employees


Location

  • Casablanca Group Limited
  • Yan Hing Centre
  • 5th Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2223SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2012

Biography

Casablanca Group Limited, an investment holding company, designs, manufactures, distributes, and retails bedding products in Hong Kong, Macau, the People’s Republic of China, and internationally. Its products include bed linens, duvets, and pillows, as well as other home accessories, such as blankets, mattresses and towels, etc. The company sells its products under the Casa Calvin, Casablanca, and CASA-V brands. It also trades in home accessories and furniture. The company was founded in 1993 and is headquartered in Sha Tin, Hong Kong. Casablanca Group Limited is a subsidiary of World Empire Investment Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:43
End of Day Share Price2020/07/07 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.