SEHK:3306

Stock Analysis Report

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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 Mainland China, Hong Kong, Taiwan, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3306 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

3306

3.3%

HK Luxury

1.2%

HK Market


1 Year Return

-23.0%

3306

12.2%

HK Luxury

2.3%

HK Market

Return vs Industry: 3306 underperformed the Hong Kong Luxury industry which returned 12.3% over the past year.

Return vs Market: 3306 underperformed the Hong Kong Market which returned 2.7% over the past year.


Shareholder returns

3306IndustryMarket
7 Day2.9%3.3%1.2%
30 Day18.7%11.9%6.1%
90 Day14.4%31.4%3.1%
1 Year-17.8%-23.0%14.5%12.2%6.6%2.3%
3 Year5.1%-12.1%48.7%34.9%-4.7%-15.1%
5 Yearn/a77.4%51.5%19.1%-1.1%

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?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3306 (HK$8.81) is trading below our estimate of fair value (HK$17.41)

Significantly Below Fair Value: 3306 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3306's PE Ratio (11.2x) is in line with the HK Luxury industry average.

PE vs Market: 3306's PE Ratio (11.2x) is in line with the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: 3306 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 3306 is overvalued based on its PB Ratio (2.6x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3306's forecast earnings growth (14.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 3306's earnings (14.2% per year) are forecast to grow slower than the Hong Kong market (22.3% per year).

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

Revenue vs Market: 3306's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 3306's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3306's Return on Equity is forecast to be high in 3 years time (28.9%)


Next Steps

Past Performance

How has JNBY Design performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3306 has high quality earnings.

Growing Profit Margin: 3306's current net profit margins (11.2%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: 3306's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 3306's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3306 had negative earnings growth (-28.5%) over the past year, making it difficult to compare to the Luxury industry average (-29.5%).


Return on Equity

High ROE: 3306's Return on Equity (23.3%) is considered high.


Next Steps

Financial Health

How is JNBY Design's financial position?


Financial Position Analysis

Short Term Liabilities: 3306's short term assets (CN¥2.1B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 3306's short term assets (CN¥2.1B) exceed its long term liabilities (CN¥91.5M).


Debt to Equity History and Analysis

Debt Level: 3306's debt to equity ratio (12.6%) is considered satisfactory.

Reducing Debt: 3306's debt to equity ratio has reduced from 31.4% to 12.6% over the past 5 years.

Debt Coverage: 3306's debt is well covered by operating cash flow (356.3%).

Interest Coverage: 3306 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3306's dividend (6.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 3306's dividend (6.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), 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 (77.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Huating Wu (45 yo)

1.58yrs

Tenure

CN¥23,746,000

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: Huating's total compensation ($USD3.55M) is above average for companies of similar size in the Hong Kong market ($USD339.35K).

Compensation vs Earnings: Huating's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jian Wu
Chairman of the Boardno dataCN¥1.49m30.43%
CN¥ 1.3b
Huating Wu
CEO & Executive Director1.58yrsCN¥23.75m0.0040%
CN¥ 176.1k
Lin Li
Chief Creative Officer & Executive Director7.92yrsCN¥2.53m33.37%
CN¥ 1.5b
Qian Zhu
Chief Financial Officer6.92yrsno datano data
Sau Mei Ng
Company Secretary3.75yrsno datano data
Minyuan Wang
Joint Company Secretary1.92yrsno datano data

2.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 3306's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jian Wu
Chairman of the Boardno dataCN¥1.49m30.43%
CN¥ 1.3b
Huating Wu
CEO & Executive Director1.58yrsCN¥23.75m0.0040%
CN¥ 176.1k
Lin Li
Chief Creative Officer & Executive Director7.92yrsCN¥2.53m33.37%
CN¥ 1.5b
Zhe Wei
Non-Executive Director7.33yrsCN¥225.00kno data
Yiu Por Lam
Independent Non-Executive Director4yrsCN¥300.00kno data
Huanxin Hu
Independent Non-Executive Director4yrsCN¥250.00kno data
Min Han
Independent Non-Executive Director4yrsCN¥250.00kno data

4.0yrs

Average Tenure

49yo

Average Age

Experienced Board: 3306's board of directors are considered experienced (4 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

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$4.403b
  • Shares outstanding: 499.83m
  • 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 Mainland China, Hong Kong, Taiwan, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 12:52
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.