SEHK:2399

Stock Analysis Report

Executive Summary

China Fordoo Holdings Limited designs, sources, manufactures, and wholesales a range of menswear under the FORDOO brand name in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2399 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

2399

-0.2%

HK Luxury

-0.6%

HK Market


1 Year Return

14.2%

2399

5.1%

HK Luxury

-7.6%

HK Market

Return vs Industry: 2399 exceeded the Hong Kong Luxury industry which returned 5.1% over the past year.

Return vs Market: 2399 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

2399IndustryMarket
7 Day-2.3%-0.2%-0.6%
30 Day10.8%-6.9%-1.4%
90 Day-8.5%-6.9%2.0%
1 Year14.2%14.2%8.6%5.1%-4.2%-7.6%
3 Year14.2%14.2%40.9%24.3%12.9%1.5%
5 Year165.2%123.4%42.7%15.0%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Fordoo Holdings undervalued compared to its fair value and its price relative to the market?

2.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2399's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2399's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2399 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 2399 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2399's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2399 is overvalued based on its PB Ratio (2.8x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

How is China Fordoo Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.9%

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 China Fordoo 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 China Fordoo Holdings performed over the past 5 years?

-52.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2399 is currently unprofitable.

Growing Profit Margin: 2399 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2399 is unprofitable, and losses have increased over the past 5 years at a rate of -52.9% per year.

Accelerating Growth: Unable to compare 2399's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2399 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-1.7%).


Return on Equity

High ROE: 2399 has a negative Return on Equity (-6.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Fordoo Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2399's short term assets (CN¥784.6M) exceed its short term liabilities (CN¥644.3M).

Long Term Liabilities: 2399's short term assets (CN¥784.6M) exceed its long term liabilities (CN¥138.1M).


Debt to Equity History and Analysis

Debt Level: 2399's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: 2399's debt to equity ratio has reduced from 62.7% to 37.9% over the past 5 years.


Balance Sheet

Inventory Level: 2399 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2399's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 2399 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 2399 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is China Fordoo Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2399's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2399'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 2399's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2399's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2399 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 2399'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?

4.5yrs

Average management tenure


CEO

Hon Fung Kwok (29yo)

4.5yrs

Tenure

CN¥523,000

Compensation

Mr. Hon Fung Kwok has been the Chief Executive Officer of China Fordoo Holdings Limited since August 18, 2015 and has been Executive Director since february 12, 2014. Mr. Kwok served as General Manager of  ...


CEO Compensation Analysis

Compensation vs Market: Hon Fung's total compensation ($USD74.41K) is below average for companies of similar size in the Hong Kong market ($USD336.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kin Sun Kwok
Founder & Chairman0yrsCN¥520.00k48.09% CN¥2.0b
Hon Fung Kwok
CEO & Executive Director4.5yrsCN¥523.00k10.48% CN¥433.4m
Wei Mo
Executive Director1.9yrsCN¥520.60kno data
Jianxin Chen
Head of Production Planning Department11.1yrsno datano data
Tsz Yin Lai
Company Secretary2.6yrsno datano data

4.5yrs

Average Tenure

45yo

Average Age

Experienced Management: 2399's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kin Sun Kwok
Founder & Chairman0yrsCN¥520.00k48.09% CN¥2.0b
Hon Fung Kwok
CEO & Executive Director4.5yrsCN¥523.00k10.48% CN¥433.4m
Wei Mo
Executive Director1.9yrsCN¥520.60kno data
Yick Pang Poon
Independent Non-Executive Director3.5yrsCN¥187.00kno data
Steven Andrew Chen
Independent Non-Executive Director0.08yrsno datano data
Chiu Tung Cheung
Independent Non-Executive Director5.7yrsCN¥124.00kno data
Yumin Huang
Independent Non-Executive Director2yrsCN¥102.00kno data

2.8yrs

Average Tenure

43yo

Average Age

Experienced Board: 2399's board of directors are not considered experienced ( 2.8 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

China Fordoo Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Fordoo Holdings Limited
  • Ticker: 2399
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$4.136b
  • Shares outstanding: 1.92b
  • Website: https://www.fordoo.cn

Number of Employees


Location

  • China Fordoo Holdings Limited
  • Fordoo Industrial Zone E12
  • Xunmei Industrial Zone
  • Quanzhou
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2399SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2014

Biography

China Fordoo Holdings Limited designs, sources, manufactures, and wholesales a range of menswear under the FORDOO brand name in the People’s Republic of China. It offers men’s trousers, tops, and blazers, as well as accessories. The company sells its products on a wholesale basis to third-party distributors and online distributors, as well as through self-operated retail outlets. As of December 31, 2018, it had 672 retail outlets, including 2 self-operated retail stores located in Quanzhou and 34 self-operated retail outlets located in Beijing. The company was incorporated in 2013 and is headquartered in Quanzhou, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:22
End of Day Share Price2020/02/21 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.