SEHK:3306

Stock Analysis Report

Executive Summary

JNBY Design Limited, together with its subsidiaries, engages in the design, marketing, retail, and sale of fashion apparels, accessory products, and household goods in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has JNBY Design's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

3306

1.8%

HK Luxury

0.8%

HK Market


1 Year Return

-14.6%

3306

27.3%

HK Luxury

0.5%

HK Market

Return vs Industry: 3306 underperformed the Hong Kong Luxury industry which returned 27.3% over the past year.

Return vs Market: 3306 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

3306IndustryMarket
7 Day1.8%1.8%0.8%
30 Day-0.9%3.6%-0.5%
90 Day-20.0%6.3%-5.6%
1 Year-9.6%-14.6%31.8%27.3%4.1%0.5%
3 Yearn/a44.7%27.6%15.5%3.9%
5 Yearn/a44.9%16.5%19.9%-0.2%

Price Volatility Vs. Market

How volatile is JNBY Design's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is JNBY Design undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3306 (HK$11.6) is trading below our estimate of fair value (HK$30.51)

Significantly Undervalued: 3306 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3306 is poor value based on its PE Ratio (11x) compared to the Luxury industry average (9.3x).

PE vs Market: 3306 is poor value based on its PE Ratio (11x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3306 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 3306 is overvalued based on its PB Ratio (3.7x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is JNBY Design forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3306's forecast earnings growth (11.2% per year) is above the savings rate (2%).

Earnings vs Market: 3306's earnings (11.2% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 3306's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3306's revenue (12.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3306's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3306's Return on Equity is forecast to be high in 3 years time (36.2%)


Next Steps

Past Performance

How has JNBY Design performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3306's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: 3306's earnings growth over the past year (18.1%) is below its 5-year average (22.2% per year).

Earnings vs Industry: 3306 earnings growth over the past year (18.1%) exceeded the Luxury industry -4.9%.


Return on Equity

High ROE: 3306's Return on Equity (34.4%) is considered high.


Return on Assets

ROA vs Industry: 3306 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 3306's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is JNBY Design's financial position?


Financial Position Analysis

Short Term Liabilities: 3306's short term assets (CN¥1.8B) exceeds its short term liabilities (CN¥860.8M)

Long Term Liabilities: 3306's short term assets (1.8B) exceeds its long term liabilities (13.1M)


Debt to Equity History and Analysis

Debt Level: 3306 is debt free.

Reducing Debt: 3306 has no debt compared to 5 years ago when its debt to equity ratio was 104.1%.

Debt Coverage: 3306 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3306 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3306 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3306's debt is covered by short term assets.


Next Steps

Dividend

What is JNBY Design's current dividend yield, its reliability and sustainability?

6.78%

Current Dividend Yield


Upcoming Dividend Payment

Purchase JNBY Design before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.8%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Years8.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3306's dividend (6.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3306's dividend (6.78%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 3306 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3306's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.8%), 3306's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3306's dividends in 3 years are forecast to be covered by earnings (72.8% payout ratio).


Next Steps

Management

What is the CEO of JNBY Design's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Huating Wu (44yo)

0.6yrs

Tenure

CN¥1,976,000

Compensation

Ms. Huating Wu has been Chief Executive Officer at JNBY Design Limited since March 7, 2019 and as its Executive Director since May 8, 2019. She has experience in the operation, management and investment of ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Huating's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

Compensation vs Earnings: Insufficient data to compare Huating's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

43yo

Average Age

Experienced Management: 3306's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

48yo

Average Age

Experienced Board: 3306's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Sau Mei Ng (42yo)

    Company Secretary

    • Tenure: 2.8yrs
  • Jian Wu (51yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥2.08m
  • Lin Li (48yo)

    Chief Creative Officer & Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥2.45m
  • Qian Zhu (38yo)

    Chief Financial Officer

    • Tenure: 5.9yrs
  • Minyuan Wang (37yo)

    Joint Company Secretary

    • Tenure: 0.9yrs
  • Huating Wu (44yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥1.98m

Board Members

  • David Wei (49yo)

    Non-Executive Director

    • Tenure: 6.3yrs
  • Yiu Por Lam (42yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥300.00k
  • Michael Hu (50yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥250.00k
  • Jian Wu (51yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥2.08m
  • Lin Li (48yo)

    Chief Creative Officer & Executive Director

    • Tenure: 6.9yrs
    • Compensation: CN¥2.45m
  • Min Han (45yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥250.00k
  • Huating Wu (44yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥1.98m

Company Information

JNBY Design Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JNBY Design Limited
  • Ticker: 3306
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$5.785b
  • Shares outstanding: 495.31m
  • Website: https://www.jnbygroup.com

Number of Employees


Location

  • JNBY Design Limited
  • Blue Ocean Times Building
  • 3rd Floor
  • Hangzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3306SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2016
3306SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2016
3306SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2016
JNBY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2016

Biography

JNBY Design Limited, together with its subsidiaries, engages in the design, marketing, retail, and sale of fashion apparels, accessory products, and household goods in the People’s Republic of China and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.