SEHK:2307

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Kam Hing International Holdings

Executive Summary

Kam Hing International Holdings Limited, an investment holding company, manufactures and sells knitted fabrics and dyed yarns in Mainland China, Korea, Hong Kong, Taiwan, Singapore, and internationally.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Kam Hing International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2307 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

2307

6.7%

HK Luxury

2.7%

HK Market


1 Year Return

-23.7%

2307

5.7%

HK Luxury

-6.5%

HK Market

Return vs Industry: 2307 underperformed the Hong Kong Luxury industry which returned 5.7% over the past year.

Return vs Market: 2307 underperformed the Hong Kong Market which returned -6.5% over the past year.


Shareholder returns

2307IndustryMarket
7 Day1.2%6.7%2.7%
30 Day-6.5%6.8%-0.7%
90 Day-11.2%-0.2%-5.3%
1 Year-23.7%-23.7%8.0%5.7%-3.3%-6.5%
3 Year-11.4%-17.9%27.9%16.5%-1.6%-11.7%
5 Year-33.9%-41.2%22.8%4.4%-11.4%-25.3%

Price Volatility Vs. Market

How volatile is Kam Hing International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kam Hing International 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: 2307 (HK$0.44) is trading below our estimate of fair value (HK$14.3)

Significantly Below Fair Value: 2307 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2307 is good value based on its PE Ratio (6.3x) compared to the Luxury industry average (7x).

PE vs Market: 2307 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2307's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2307 is good value based on its PB Ratio (0.2x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Kam Hing International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.0%

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 Kam Hing International 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 Kam Hing International Holdings performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2307 has high quality earnings.

Growing Profit Margin: 2307's current net profit margins (1.4%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 2307's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: 2307's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2307 had negative earnings growth (-17.5%) over the past year, making it difficult to compare to the Luxury industry average (3%).


Return on Equity

High ROE: 2307's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Kam Hing International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2307's short term assets (HK$2.8B) exceed its short term liabilities (HK$1.5B).

Long Term Liabilities: 2307's short term assets (HK$2.8B) exceed its long term liabilities (HK$1.3B).


Debt to Equity History and Analysis

Debt Level: 2307's debt to equity ratio (96.1%) is considered high.

Reducing Debt: 2307's debt to equity ratio has increased from 85% to 96.1% over the past 5 years.

Debt Coverage: 2307's debt is well covered by operating cash flow (27.5%).

Interest Coverage: 2307's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Kam Hing International Holdings's current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 2307's dividend (3.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.5%).

High Dividend: 2307's dividend (3.45%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.2%).


Stability and Growth of Payments

Stable Dividend: 2307's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2307's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), 2307'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

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

3.5yrs

Average board tenure


CEO

Chin Wen Tai (64yo)

no data

Tenure

HK$4,695,000

Compensation

Mr. Chin Wen Tai is a Co-Founder of Kam Hing International Holdings Ltd. and serves as its Chief Executive Officer. Mr. Tai is In Charge of the Group’s overall management. Mr. Tai was a founder of a constr ...


CEO Compensation Analysis

Compensation vs Market: Chin Wen's total compensation ($USD605.74K) is above average for companies of similar size in the Hong Kong market ($USD226.43K).

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


Board Members

NamePositionTenureCompensationOwnership
Chin Chun Tai
Co-Founder & Chairmanno dataHK$5.78m38.58% HK$146.0m
Chin Wen Tai
Co-Founderno dataHK$4.70m11.27% HK$42.6m
Siu Yuk Wong
Head of Dyeing Material Sourcingno dataHK$2.82m0.11% HK$435.0k
So Wan Cheung
Head of Yarn Sourcingno dataHK$2.82m0.11% HK$435.0k
Heong Man Lei
CFO, Secretary & Executive Director0.42yrno datano data
Wai Kong Wong
Non Executive Director11.67yrsHK$600.00kno data
Kay Loong Ting
Independent Non-Executive Director2.92yrsHK$240.00kno data
Chi Hang Ho
Independent Non-Executive Director10.08yrsHK$240.00kno data
Tak Lung Wu
Independent Non-Executive Director3.5yrsHK$240.00kno data

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 2307's board of directors are considered experienced (3.5 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

Kam Hing International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kam Hing International Holdings Limited
  • Ticker: 2307
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$378.415m
  • Shares outstanding: 869.92m
  • Website: https://www.kamhingintl.com

Number of Employees


Location

  • Kam Hing International Holdings Limited
  • TML Tower, Workshop A
  • 23rd Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2307SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2004

Biography

Kam Hing International Holdings Limited, an investment holding company, manufactures and sells knitted fabrics and dyed yarns in Mainland China, Korea, Hong Kong, Taiwan, Singapore, and internationally. The company operates through three segments: Fabric Products, Garment Products, and Others. It offers knitted and dyed fabrics, including pure cotton and cotton blended fabrics, and special raw materials; and dyed yarns and sewing threads, as well as manufactures and trades in garment products. The company also provides sewage treatment, and air and ocean freight handling services; subcontracting; and corporate management, sales planning, and consultancy services. In addition, it engages in the trading of yarns, dyeing materials, and finished fabrics; and property holding and mining activities. Kam Hing International Holdings Limited was founded in 1996 and is headquartered in Tsuen Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 12:32
End of Day Share Price2020/06/02 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.