SEHK:2940

Stock Analysis Report

Victory City International Holdings

Executive Summary

Victory City International Holdings Limited, an investment holding company, produces and sells knitted fabrics, dyed yarns, and garment products.

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • Victory City International Holdings has significant price volatility in the past 3 months.
  • Victory City International Holdings is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

2940

-2.4%

HK Luxury

-2.7%

HK Market


1 Year Return

n/a

2940

5.6%

HK Luxury

-9.4%

HK Market

No trading data on 2940.

No trading data on 2940.


Share holder returns

2940IndustryMarket
7 Day5.8%-2.4%-2.7%
30 Day-17.9%-0.9%2.4%
90 Dayn/a5.8%-5.6%
1 Yearn/a9.2%5.6%-6.2%-9.4%
3 Yearn/a33.6%17.8%14.3%2.7%
5 Yearn/a38.4%11.1%16.7%-2.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Victory City International Holdings undervalued based on future cash flows and its price relative to the stock market?

0.89x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Victory City International Holdings to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Victory City International Holdings to establish if it is available at substantial discount.


Price Based on Earnings

Victory City International Holdings is good value based on earnings compared to the HK Luxury industry average.

Victory City International Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Victory City International Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Victory City International Holdings is good value based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is Victory City International Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Victory City International Holdings is high growth as no revenue estimate data is available.

Victory City International Holdings's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Victory City International Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Victory City International Holdings's earnings growth is expected to exceed the Hong Kong market average.

Victory City International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Victory City International Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Victory City International Holdings performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Victory City International Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Victory City International Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Victory City International Holdings's 1-year earnings growth is negative, it can't be compared to the HK Luxury industry average.


Return on Equity

Victory City International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Victory City International Holdings used its assets less efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Victory City International Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Victory City International Holdings's financial position?


Financial Position Analysis

Victory City International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Victory City International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Victory City International Holdings's level of debt (81.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (63% vs 81.2% today).

Debt is not well covered by operating cash flow (8.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

What is Victory City International Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Victory City International Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Victory City International Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Victory City International Holdings has not reported any payouts.

Unable to verify if Victory City International Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Victory City International Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Victory City International Holdings's salary, the management and board of directors tenure and is there insider trading?

23.5yrs

Average board tenure


CEO

Tien Tui Chen (70yo)

0yrs

Tenure

HK$10,062,000

Compensation

Mr. Tien Tui Chen is the Co-Founder of Victory City International Holdings Limited and serves as its Chief Executive Officer. Mr. Chen is responsible for the day-to-day operation in respect of production,  ...


CEO Compensation Analysis

Tien Tui's remuneration is higher than average for companies of similar size in Hong Kong.

Tien Tui's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

23.5yrs

Average Tenure

68yo

Average Age

The average tenure for the Victory City International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Andy Lee (54yo)

    Executive Director

    • Tenure: 18.5yrs
    • Compensation: HK$2.36m
  • Wing Shuen Sy (65yo)

    Sales Manager

    • Tenure: 0yrs
  • Tien Tui Chen (70yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$10.06m
  • Lin Hung Choi (57yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$10.97m
  • Chung Shing Lee (52yo)

    Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Ming Hung Li (68yo)

    Chairman

    • Tenure: 23.5yrs
    • Compensation: HK$10.06m

Board Members

  • Ka Hon Kan (68yo)

    Independent Non-Executive Director

    • Tenure: 23.5yrs
    • Compensation: HK$240.00k
  • Andy Hung (71yo)

    Independent Non Executive Director

    • Tenure: 23.5yrs
    • Compensation: HK$240.00k
  • Andy Lee (54yo)

    Executive Director

    • Tenure: 18.5yrs
    • Compensation: HK$2.36m
  • Tien Tui Chen (70yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$10.06m
  • Lin Hung Choi (57yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$10.97m
  • Sze Chi Kwok (64yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: HK$240.00k
  • Ming Hung Li (68yo)

    Chairman

    • Tenure: 23.5yrs
    • Compensation: HK$10.06m

Company Information

Victory City International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Victory City International Holdings Limited
  • Ticker: 2940
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$384.571m
  • Shares outstanding: 776.91m
  • Website: https://www.victorycity.com.hk

Number of Employees


Location

  • Victory City International Holdings Limited
  • Winfield Industrial Building
  • Unit D
  • Tuen Mun
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1996
VI3ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1996
2940SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.1 (PARALLEL 29/07/19)HKHKDJun 2019

Biography

Victory City International Holdings Limited, an investment holding company, produces and sells knitted fabrics, dyed yarns, and garment products. The company provides fabric knitting, bleaching, dyeing, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/30 13:15
End of Day Share Price2019/07/29 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.