SEHK:311

Stock Analysis Report

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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, Singapore, Canada, and internationally. More Details


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

0%

311

3.3%

HK Luxury

1.2%

HK Market


1 Year Return

-48.4%

311

12.2%

HK Luxury

2.3%

HK Market

Return vs Industry: 311 underperformed the Hong Kong Luxury industry which returned 12.2% over the past year.

Return vs Market: 311 underperformed the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

311IndustryMarket
7 Day0%3.3%1.2%
30 Day3.1%11.9%6.1%
90 Day-8.3%31.4%3.1%
1 Year-48.4%-48.4%14.5%12.2%6.6%2.3%
3 Yearn/a48.7%34.9%-4.7%-15.1%
5 Year-35.9%-72.0%77.4%51.5%19.1%-1.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 311 (HK$0.33) is trading below our estimate of fair value (HK$2.34)

Significantly Below Fair Value: 311 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 311 is unprofitable, so we can't compare its PE Ratio to the HK Luxury industry average.

PE vs Market: 311 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 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 (0.2x) 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?

36.8%

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?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 311 is currently unprofitable.

Growing Profit Margin: 311 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 311 is unprofitable, but has reduced losses over the past 5 years at a rate of 5.9% per year.

Accelerating Growth: Unable to compare 311's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 311 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-29.5%).


Return on Equity

High ROE: 311 has a negative Return on Equity (-0.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is Luen Thai Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 311's short term assets ($299.5M) exceed its short term liabilities ($255.8M).

Long Term Liabilities: 311's short term assets ($299.5M) exceed its long term liabilities ($70.6M).


Debt to Equity History and Analysis

Debt Level: 311's debt to equity ratio (73.4%) is considered high.

Reducing Debt: 311's debt to equity ratio has increased from 22.9% to 73.4% over the past 5 years.

Debt Coverage: 311's debt is well covered by operating cash flow (29.5%).

Interest Coverage: Insufficient data to determine if 311's interest payments on its debt are well covered by EBIT.


Balance Sheet


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 recent payouts.

High Dividend: Unable to evaluate 311's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?

2.5yrs

Average management tenure


CEO

Raymond Tan (58 yo)

3.5yrs

Tenure

US$1,289,000

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 ($USD1.29M) is above average for companies of similar size in the Hong Kong market ($USD233.00K).

Compensation vs Earnings: Raymond's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Zhiming Qu
Executive Chairman of the Board0.42yrUS$420.00kno data
Cho Lung Tan
CEO & Executive Director3.5yrsUS$1.29m1.71%
$ 5.8m
Siu Lin Tan
Founder & Honorary Life Chairman3.5yrsUS$113.00kno data
Jie Huang
Executive Director3.67yrsUS$31.00kno data
Francisco Sauceda
President1.5yrsno datano data
Joerg Kornblum
Chief Financial Officer3.5yrsno datano data
Chi Cheung Chiu
Senior VP of Corporate Finance & Company Secretaryno datano datano data
Sunny Tan
Executive Vice President of the Accessories Division3.5yrsUS$205.00kno data
Min Zhang
Executive Director0.42yrno datano data
Suk Yan Choi
Group Finance Controller and Treasurerno datano datano data
Cho Yee Tan
Chief Executive Officer of CTSI Logistics Ltdno datano datano data
Sammy Wong
MD of Tien-Hu Trading Hong Kong Ltdno datano datano data

2.5yrs

Average Tenure

58yo

Average Age

Experienced Management: 311's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhiming Qu
Executive Chairman of the Board0.42yrUS$420.00kno data
Cho Lung Tan
CEO & Executive Director3.5yrsUS$1.29m1.71%
$ 5.8m
Siu Lin Tan
Founder & Honorary Life Chairman3.5yrsUS$113.00kno data
Jie Huang
Executive Director3.67yrsUS$31.00kno data
Min Zhang
Executive Director0.42yrno datano data
Henry Chan
Independent Non-Executive Director7.5yrsUS$31.00kno data
Siu Wan Mok
Non-Executive Director15.33yrsUS$1.13m0.19%
$ 660.0k
Nea Yie Seing
Independent Non-Executive Director7.5yrsUS$31.00kno data
Wei Ben Chan
Vice Chairman of CTSI Logistics Ltdno datano datano data
Ching Wang
Independent Non-Executive Director1.5yrsUS$22.00kno data

3.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 311's board of directors are considered experienced (3.7 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: 2004
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$341.257m
  • 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, Singapore, Canada, and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:50
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.