SEHK:2299

Stock Analysis Report

Billion Industrial Holdings

Executive Summary

Billion Industrial Holdings Limited, together with its subsidiaries, develops, manufactures, and sells polyester filament yarns and polyester thin films primarily in the People’s Republic of China.

Rewards

Trading at 81.2% below its fair value

Earnings grew by 10.2% over the past year

Risk Analysis

No risks detected for 2299 from our risk checks.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Billion Industrial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2299 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

2299

8.4%

HK Luxury

4.0%

HK Market


1 Year Return

-56.3%

2299

-20.0%

HK Luxury

-20.1%

HK Market

Return vs Industry: 2299 underperformed the Hong Kong Luxury industry which returned -20% over the past year.

Return vs Market: 2299 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

2299IndustryMarket
7 Day6.7%8.4%4.0%
30 Day-5.6%-14.6%-11.3%
90 Day2.0%-24.1%-15.6%
1 Year-56.1%-56.3%-17.7%-20.0%-17.2%-20.1%
3 Year-0.1%-3.8%11.7%-1.5%-2.9%-12.7%
5 Year55.8%45.7%10.7%-6.9%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is Billion Industrial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Billion Industrial 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: 2299 (HK$5.1) is trading below our estimate of fair value (HK$27.13)

Significantly Below Fair Value: 2299 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2299 is poor value based on its PE Ratio (11.6x) compared to the Luxury industry average (7.4x).

PE vs Market: 2299 is poor value based on its PE Ratio (11.6x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2299's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2299 is overvalued based on its PB Ratio (1.5x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Billion Industrial Holdings 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 Billion Industrial Holdings 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 Billion Industrial Holdings performed over the past 5 years?

33.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2299 has high quality earnings.

Growing Profit Margin: 2299's current net profit margins (9.1%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 2299's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: 2299's earnings growth over the past year (10.2%) is below its 5-year average (33.7% per year).

Earnings vs Industry: 2299 earnings growth over the past year (10.2%) exceeded the Luxury industry -1.7%.


Return on Equity

High ROE: 2299's Return on Equity (12.8%) is considered low.


Next Steps

Financial Health

How is Billion Industrial Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2299's short term assets (CN¥6.8B) do not cover its short term liabilities (CN¥9.2B).

Long Term Liabilities: 2299's short term assets (CN¥6.8B) exceed its long term liabilities (CN¥646.8M).


Debt to Equity History and Analysis

Debt Level: 2299's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: 2299's debt to equity ratio has reduced from 58.9% to 24.2% over the past 5 years.

Debt Coverage: 2299's debt is well covered by operating cash flow (223.8%).

Interest Coverage: 2299's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: 2299 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2299's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is Billion Industrial Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2299's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2299's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2299's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2299's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2299 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2299's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure


CEO

Jinbiao Wu (56yo)

no data

Tenure

CN¥1,013,000

Compensation

Mr. Jinbiao Wu is the Co-founder, Chief Executive Officer of Billion Industrial Holdings Ltd. He served as a President at Billion Industrial Holdings Limited. Mr. Wu has approximately 25 years of experienc ...


CEO Compensation Analysis

Compensation vs Market: Jinbiao's total compensation ($USD142.76K) is below average for companies of similar size in the Hong Kong market ($USD446.01K).

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


Board Members

NamePositionTenureCompensationOwnership
Tin Yau Sze
Co-Founder & Co-Chairmanno dataCN¥1.06m30.33% CN¥3.3b
Jinbiao Wu
Co-Founderno dataCN¥1.01m6.45% CN¥697.8m
Jian Lin
Independent Non-Executive Director0.83yrCN¥76.00kno data
Shek Chi Chan
Independent Non-Executive Director5.83yrsCN¥118.00kno data
Chun Pi Shih
Independent Non-Executive Director1.25yrsCN¥1.00kno data
Shengbai Zhang
Co-Chairman of the Board0.83yrno datano data

1.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 2299's board of directors are not considered experienced ( 1.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Billion Industrial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Billion Industrial Holdings Limited
  • Ticker: 2299
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$10.823b
  • Shares outstanding: 2.12b
  • Website: https://www.baihong.com

Number of Employees


Location

  • Billion Industrial Holdings Limited
  • Office Tower
  • Unit 1501
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2299SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2011
2BLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2011

Biography

Billion Industrial Holdings Limited, together with its subsidiaries, develops, manufactures, and sells polyester filament yarns and polyester thin films primarily in the People’s Republic of China. Its polyester filament yarns include drawn textured, fully drawn, and partially oriented yarns for use in the production of fabrics and textiles for various consumer products, including apparel, footwear, and home furnishings. The company’s polyester thin films comprise heat sealable, twistable, anti-static, electronic releasing, and coating films, as well as metallization, printing, transfer, electrical insulation, card lamination, hot stamping, metallic yarn, reflector, holographic, and solar base films. It also exports its products to Turkey, Italy, Belgium, Brazil, the United States, Spain, Russia, and Poland. Billion Industrial Holdings Limited was founded in 2003 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:32
End of Day Share Price2020/03/27 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.