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

Fundamentals

Good value average dividend payer.

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


Market Performance


7 Day Return

-1.5%

311

4.1%

HK Luxury

2.4%

HK Market


1 Year Return

-27.0%

311

25.8%

HK Luxury

0.4%

HK Market

Return vs Industry: 311 underperformed the Hong Kong Luxury industry which returned 25.8% over the past year.

Return vs Market: 311 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

311IndustryMarket
7 Day-1.5%4.1%2.4%
30 Day-4.4%2.7%-2.6%
90 Day-19.8%6.5%-5.6%
1 Year-22.4%-27.0%30.2%25.8%4.0%0.4%
3 Year-21.8%-64.7%44.2%27.0%15.1%3.5%
5 Year-9.5%-62.2%43.8%15.6%20.3%0.3%

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?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 311 (HK$0.65) is trading below our estimate of fair value (HK$0.86)

Significantly Undervalued: 311 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 311 is good value based on its PE Ratio (4.1x) compared to the Luxury industry average (9.4x).

PE vs Market: 311 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 (0.4x) compared to the HK Luxury industry average (0.9x).


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?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 311's forecast earnings growth (3.3% per year) is above the savings rate (2%).

Earnings vs Market: 311's earnings (3.3% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 311's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 311's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 311's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 311's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 311's earnings have declined by -6.1% per year over the past 5 years.

Accelerating Growth: 311's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 311 had negative earnings growth (-5%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 311's Return on Equity (10.2%) is considered low.


Return on Assets

ROA vs Industry: 311's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 311 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Luen Thai Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 311's short term assets ($348.8M) exceeds its short term liabilities ($293.5M)

Long Term Liabilities: 311's short term assets (348.8M) exceeds its long term liabilities (48.5M)


Debt to Equity History and Analysis

Debt Level: 311's debt to equity ratio (76%) is considered high

Reducing Debt: 311's debt to equity ratio has increased from 43.3% to 76% over the past 5 years.

Debt Coverage: 311's debt is not well covered by operating cash flow (2.1%).

Interest Coverage: 311's interest payments on its debt are well covered by EBIT (7.1x 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 2.248450x debt).


Next Steps

Dividend

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

8.16%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 311's dividend (8.16%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 311's dividend (8.16%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)

Stable Dividend: 311's dividend payments have been volatile in the past 10 years.

Growing Dividend: 311's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 311'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

What is the CEO of Luen Thai Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Raymond Tan (57yo)

2.5yrs

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 ($USD984.00K) is about average for companies of similar size in the Hong Kong market ($USD211.40K).

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


Management Age and Tenure

2.5yrs

Average Tenure

59.5yo

Average Age

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


Board Age and Tenure

2.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 311's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$85024 Jun 19
Tan Siu Lin Foundation Limited, Endowment Arm
EntityCompany
Shares1,000
Max PriceUS$0.85
BuyUS$1,889,97620 Jun 19
Tan Siu Lin Foundation Limited, Endowment Arm
EntityCompany
Shares2,304,000
Max PriceUS$0.82
BuyUS$42,00021 Dec 18
Cho Lung Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,000
Max PriceUS$0.84
BuyUS$7,20012 Nov 18
Cho Lung Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares8,000
Max PriceUS$0.90
BuyUS$334,87907 Nov 18
Cho Lung Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares364,000
Max PriceUS$0.92
BuyUS$404,80205 Nov 18
Cho Lung Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares440,000
Max PriceUS$0.92
BuyUS$172,96002 Nov 18
Cho Lung Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares188,000
Max PriceUS$0.92

Ownership Breakdown


Management Team

  • Sunny Tan (45yo)

    Executive Vice President of the Accessories Division

    • Tenure: 2.5yrs
    • Compensation: US$205.00k
  • Siu Tan (88yo)

    Founder & Honorary Life Chairman

    • Tenure: 2.5yrs
    • Compensation: US$113.00k
  • Anne Mok (66yo)

    President & Executive Director

    • Tenure: 14.3yrs
    • Compensation: US$994.00k
  • Francisco Sauceda (60yo)

    President

    • Tenure: 0.5yrs
  • Belinda Choi (70yo)

    Group Finance Controller and Treasurer

    • Tenure: 0yrs
  • Chi Cheung Chiu (55yo)

    Senior VP of Corporate Finance & Company Secretary

    • Tenure: 0yrs
  • Raymond Tan (57yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$984.00k
  • Yao Qing Shen (59yo)

    Executive Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$467.00k
  • Zhiming Qu (63yo)

    Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$420.00k
  • Joerg Kornblum (55yo)

    Chief Financial Officer

    • Tenure: 2.5yrs

Board Members

  • Henry Chan (53yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$31.00k
  • Siu Tan (88yo)

    Founder & Honorary Life Chairman

    • Tenure: 2.5yrs
    • Compensation: US$113.00k
  • Anne Mok (66yo)

    President & Executive Director

    • Tenure: 14.3yrs
    • Compensation: US$994.00k
  • Nea Yie Seing (71yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: US$31.00k
  • Benny Chan (66yo)

    Vice Chairman of CTSI Logistics Ltd

    • Tenure: 0yrs
  • Raymond Tan (57yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$984.00k
  • Jim Wang (64yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Yao Qing Shen (59yo)

    Executive Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$467.00k
  • Zhiming Qu (63yo)

    Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$420.00k
  • Jie Huang (54yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$31.00k

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$672.173m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:40
End of Day Share Price2019/10/15 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.