SEHK:3322

Stock Analysis Report

Executive Summary

Win Hanverky Holdings Limited, together with its subsidiaries, manufactures and sells sportswear, high-end fashion apparel, and related accessories in Europe, the United States, Mainland China, Canada, Hong Kong, other Asian countries, and internationally.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

3322

1.9%

HK Luxury

0.9%

HK Market


1 Year Return

-29.8%

3322

27.3%

HK Luxury

0.6%

HK Market

Return vs Industry: 3322 underperformed the Hong Kong Luxury industry which returned 27.3% over the past year.

Return vs Market: 3322 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

3322IndustryMarket
7 Day-1.1%1.9%0.9%
30 Day-8.4%5.5%0.5%
90 Day-54.2%5.6%-4.3%
1 Year-27.5%-29.8%31.8%27.3%4.2%0.6%
3 Year-61.4%-66.8%44.2%27.1%15.6%4.0%
5 Year-39.2%-55.2%43.9%15.8%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Win Hanverky Holdings undervalued compared to its fair value and its price relative to the market?

19.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3322 (HK$0.44) is trading above our estimate of fair value (HK$0.4)

Significantly Below Fair Value: 3322 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3322 is poor value based on its PE Ratio (19.1x) compared to the Luxury industry average (9.5x).

PE vs Market: 3322 is poor value based on its PE Ratio (19.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3322's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3322 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3322's forecast earnings growth (24.1% per year) is above the savings rate (2%).

Earnings vs Market: 3322's earnings (24.1% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 3322's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 3322's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3322's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Win Hanverky Holdings performed over the past 5 years?

-14.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3322's earnings have declined by -14.5% per year over the past 5 years.

Accelerating Growth: 3322's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3322 had negative earnings growth (-78.2%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 3322's Return on Equity (2.7%) is considered low.


Return on Assets

ROA vs Industry: 3322's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 3322's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Win Hanverky Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3322's short term assets (HK$2.5B) exceeds its short term liabilities (HK$1.7B)

Long Term Liabilities: 3322's short term assets (2.5B) exceeds its long term liabilities (387.8M)


Debt to Equity History and Analysis

Debt Level: 3322's debt to equity ratio (38.5%) is considered satisfactory

Reducing Debt: 3322's debt to equity ratio has increased from 5.3% to 38.5% over the past 5 years.

Debt Coverage: 3322's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3322's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: 3322 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3322's debt is covered by short term assets (assets are 3.028820x debt).


Next Steps

Dividend

What is Win Hanverky Holdings's current dividend yield, its reliability and sustainability?

9.20%

Current Dividend Yield


Dividend Yield vs Market

company9.2%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3322's dividend (9.2%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 3322's dividend (9.2%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 3322's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3322's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.8%), 3322's payments are 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 Win Hanverky Holdings's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Kwok Lee (56yo)

5.8yrs

Tenure

HK$3,585,000

Compensation

Mr. Kwok Leung Lee, also known as Alan, has been the Chief Executive Officer at Win Hanverky Holdings Limited since January 2, 2014 and served as its Chief Operating Officer since May 11, 2016. Mr. Lee ser ...


CEO Compensation Analysis

Compensation vs. Market: Kwok's total compensation ($USD457.15K) is about average for companies of similar size in the Hong Kong market ($USD214.48K).

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


Management Age and Tenure

5.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 3322's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

13.5yrs

Average Tenure

68yo

Average Age

Experienced Board: 3322's board of directors are seasoned and experienced ( 13.5 years average tenure).


Insider Trading

Insider Buying: 3322 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$2,288,95129 Aug 19
David Webb
EntityIndividual
Shares4,600,000
Max PriceHK$0.50
SellHK$4,098,59721 Mar 19
David Webb
EntityIndividual
Shares3,726,000
Max PriceHK$1.10

Ownership Breakdown


Management Team

  • Chi Keung Wong (52yo)

    CFO & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.39m
  • Kwok Lee (56yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$3.59m
  • Roy Li (68yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$4.88m
  • Fredrick Li (42yo)

    Managing Director of High-End Fashion Retail

    • Tenure: 0yrs
  • Ching Lai (68yo)

    Co-Founder & Deputy Chairman

    • Tenure: 0yrs
    • Compensation: HK$4.13m
  • Choi Lam (40yo)

    Company Secretary

    • Tenure: 9.1yrs

Board Members

  • Chi Keung Wong (52yo)

    CFO & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.39m
  • Kai Cheong Kwan (69yo)

    Independent Non Executive Director

    • Tenure: 13.5yrs
    • Compensation: HK$240.00k
  • Kwok Lee (56yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$3.59m
  • Ka Chan (69yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Ka Ma (67yo)

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: HK$160.00k
  • Roy Li (68yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$4.88m
  • Ching Lai (68yo)

    Co-Founder & Deputy Chairman

    • Tenure: 0yrs
    • Compensation: HK$4.13m
  • Kwong Chan (72yo)

    Independent Non-Executive Director

    • Tenure: 13.5yrs
    • Compensation: HK$160.00k

Company Information

Win Hanverky Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Win Hanverky Holdings Limited
  • Ticker: 3322
  • Exchange: SEHK
  • Founded:
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$558.714m
  • Shares outstanding: 1.28b
  • Website: https://www.winhanverky.com

Number of Employees


Location

  • Win Hanverky Holdings Limited
  • Hong Kong Spinners Industrial Building
  • 6th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3322SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2006

Biography

Win Hanverky Holdings Limited, together with its subsidiaries, manufactures and sells sportswear, high-end fashion apparel, and related accessories in Europe, the United States, Mainland China, Canada, Hon ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:44
End of Day Share Price2019/10/18 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.