SEHK:311

Stock Analysis Report

Executive Summary

Luen Thai Holdings Limited, an investment holding company, manufactures and trades in apparels and accessories in the People's Republic of China, the United States, Europe, Japan, rest of Asia, Canada, and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 311's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.7%

311

-1.6%

HK Luxury

-0.4%

HK Market


1 Year Return

-47.2%

311

-22.8%

HK Luxury

-22.7%

HK Market

Return vs Industry: 311 underperformed the Hong Kong Luxury industry which returned -20.6% over the past year.

Return vs Market: 311 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

311IndustryMarket
7 Day-16.7%-1.6%-0.4%
30 Day-25.8%-16.5%-11.2%
90 Day-31.2%-27.3%-17.3%
1 Year-43.9%-47.2%-20.7%-22.8%-19.9%-22.7%
3 Yearn/a8.0%-4.8%-4.8%-14.4%
5 Year-23.7%-68.1%7.7%-9.3%-12.3%-26.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Luen Thai Holdings undervalued compared to its fair value and its price relative to the market?

2.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 311's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 311's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 311 is good value based on its PE Ratio (2.5x) compared to the Luxury industry average (7.5x).

PE vs Market: 311 is good value based on its PE Ratio (2.5x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 311's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 311 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

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

15.3%

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 Luen Thai 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 Luen Thai Holdings performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 311 has a large one-off gain of $12.9M impacting its December 31 2019 financial results.

Growing Profit Margin: 311's current net profit margins (2.6%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 311's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: 311's earnings growth over the past year (8%) is below its 5-year average (10.7% per year).

Earnings vs Industry: 311 earnings growth over the past year (8%) exceeded the Luxury industry -0.6%.


Return on Equity

High ROE: 311's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is Luen Thai Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 311's short term assets ($346.0M) exceed its short term liabilities ($280.8M).

Long Term Liabilities: 311's short term assets ($346.0M) exceed its long term liabilities ($63.6M).


Debt to Equity History and Analysis

Debt Level: 311's debt to equity ratio (76.4%) is considered high.

Reducing Debt: 311's debt to equity ratio has increased from 37% to 76.4% over the past 5 years.

Debt Coverage: 311's debt is not well covered by operating cash flow (1.9%).

Interest Coverage: 311's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: 311 has a high level of physical assets or inventory.

Debt Coverage by Assets: 311's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Luen Thai Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 311's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 311'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 311's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 311's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 311 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 311'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?

3.0yrs

Average management tenure


CEO

Raymond Tan (57yo)

3s

Tenure

US$984,000

Compensation

Mr. Cho Lung Tan, also known as Raymond, serves as the President of Luen Thai International Group Limited. Mr. Tan has been the Chief Executive Officer of Luen Thai Holdings Limited since April 1, 2017. He ...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD984.00K) is above average for companies of similar size in the Hong Kong market ($USD228.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yao Qing Shen
Executive Chairman of the Board3.17yrsUS$467.00kno data
Cho Lung Tan
CEO & Executive Director3yrsUS$984.00k1.71% $8.4m
Siu Tan
Founder & Honorary Life Chairman3yrsUS$113.00kno data
Zhiming Qu
Executive Director3.17yrsUS$420.00kno data
Jie Huang
Executive Director3.17yrsUS$31.00kno data
Francisco Sauceda
President1yrno datano data
Joerg Kornblum
Chief Financial Officer3yrsno datano data
Chi Cheung Chiu
Senior VP of Corporate Finance & Company Secretaryno datano datano data
Sunny Tan
Executive Vice President of the Accessories Division3yrsUS$205.00kno data
Suk Yan Choi
Group Finance Controller and Treasurerno datano datano data

3.0yrs

Average Tenure

58yo

Average Age

Experienced Management: 311's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yao Qing Shen
Executive Chairman of the Board3.17yrsUS$467.00kno data
Cho Lung Tan
CEO & Executive Director3yrsUS$984.00k1.71% $8.4m
Siu Tan
Founder & Honorary Life Chairman3yrsUS$113.00kno data
Zhiming Qu
Executive Director3.17yrsUS$420.00kno data
Jie Huang
Executive Director3.17yrsUS$31.00kno data
Henry Chan
Independent Non-Executive Director7yrsUS$31.00kno data
Siu Wan Mok
Non-Executive Director14.83yrsUS$994.00k0.19% $950.0k
Nea Yie Seing
Independent Non-Executive Director7yrsUS$31.00kno data
Wei Ben Chan
Vice Chairman of CTSI Logistics Ltdno datano datano data
Ching Wang
Independent Non-Executive Director1yrno datano data

3.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 311's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Luen Thai Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Luen Thai Holdings Limited
  • Ticker: 311
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$491.204m
  • Shares outstanding: 1.03b
  • Website: https://www2.luenthai.com

Number of Employees


Location

  • Luen Thai Holdings Limited
  • Nanyang Plaza
  • 10th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
311SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2004
LTJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2004

Biography

Luen Thai Holdings Limited, an investment holding company, manufactures and trades in apparels and accessories in the People's Republic of China, the United States, Europe, Japan, rest of Asia, Canada, and internationally. It offers fashion and sleepwear, sportswear, sweaters and outerwear, casual knits and woven wear, accessories, and fabrics. The company also provides subcontracting services; sources, manufactures, and trades in textile and garment products; processes, trades in, imports, exports, and distributes garment products; and manufactures and trades in money pieces. In addition, it manufactures bags; offers technical services; and manufactures and trades in handbags. The company was founded in 1983 and is headquartered in Kwun Tong, Hong Kong. Luen Thai Holdings Limited is a subsidiary of Shangtex (Hong Kong) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 12:47
End of Day Share Price2020/04/01 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.