SEHK:3818

Stock Analysis Report

Executive Summary

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sportswear in the People’s Republic of China, Japan, and internationally.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

How has China Dongxiang (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

3818

4.1%

HK Luxury

2.4%

HK Market


1 Year Return

-25.0%

3818

25.8%

HK Luxury

0.4%

HK Market

Return vs Industry: 3818 underperformed the Hong Kong Luxury industry which returned 25.8% over the past year.

Return vs Market: 3818 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

3818IndustryMarket
7 Day4.7%4.1%2.4%
30 Day5.9%2.7%-2.6%
90 Day-10.0%6.5%-5.6%
1 Year-22.6%-25.0%30.2%25.8%4.0%0.4%
3 Year-19.9%-41.9%44.2%27.0%15.1%3.5%
5 Year7.9%-34.3%43.8%15.6%20.3%0.3%

Price Volatility Vs. Market

How volatile is China Dongxiang (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Dongxiang (Group) undervalued compared to its fair value and its price relative to the market?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3818 (HK$0.9) is trading below our estimate of fair value (HK$1.7)

Significantly Undervalued: 3818 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3818 is good value based on its PE Ratio (6.8x) compared to the Luxury industry average (9.4x).

PE vs Market: 3818 is good value based on its PE Ratio (6.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3818 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 3818 is good value based on its PB Ratio (0.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is China Dongxiang (Group) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3818's forecast earnings growth (2.5% per year) is above the savings rate (2%).

Earnings vs Market: 3818's earnings (2.5% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 3818's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3818's revenue (9.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 3818's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3818's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has China Dongxiang (Group) performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3818's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: 3818's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3818 had negative earnings growth (-10.9%) over the past year, making it difficult to compare to the Luxury industry average (-4.9%).


Return on Equity

High ROE: 3818's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: 3818's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 3818 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Dongxiang (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 3818's short term assets (CN¥4.5B) exceeds its short term liabilities (CN¥1.1B)

Long Term Liabilities: 3818's short term assets (4.5B) exceeds its long term liabilities (270.9M)


Debt to Equity History and Analysis

Debt Level: 3818's debt to equity ratio (5.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 3818's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3818's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 3818 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3818 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3818's debt is covered by short term assets (assets are 8.480770x debt).


Next Steps

Dividend

What is China Dongxiang (Group)'s current dividend yield, its reliability and sustainability?

9.07%

Current Dividend Yield


Dividend Yield vs Market

company9.1%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Years10.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3818's dividend (9.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3818's dividend (9.07%) is in the top 25% of dividend payers in the Hong Kong market (6.33%)

Stable Dividend: 3818's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3818's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), 3818'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 China Dongxiang (Group)'s salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Zhiyong Zhang (51yo)

2yrs

Tenure

CN¥3,241,000

Compensation

Mr. Zhiyong Zhang has been the Chief Executive Officer and Executive Director at China Dongxiang (Group) Co., Ltd. since October 10, 2017 and serves as its President. Mr. Zhang has experience in financial  ...


CEO Compensation Analysis

Compensation vs. Market: Zhiyong has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Board Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Board: 3818's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: 3818 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥26,88030 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares32,000
Max PriceCN¥0.84
SellCN¥17,478,67823 Aug 19
UBS Asset Management
EntityCompany
Shares21,536,000
Max PriceCN¥0.81
BuyCN¥281,35123 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares331,000
Max PriceCN¥0.85
BuyCN¥1,604,99423 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,000,000
Max PriceCN¥0.80
BuyCN¥3,867,35320 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares4,800,000
Max PriceCN¥0.81
BuyCN¥24,80020 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares31,000
Max PriceCN¥0.80
BuyCN¥1,101,54809 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares1,272,000
Max PriceCN¥0.87
BuyCN¥1,805,00808 Aug 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,000,000
Max PriceCN¥0.90
BuyCN¥707,00123 Jul 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares700,000
Max PriceCN¥1.01
BuyCN¥1,587,82318 Jul 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares1,605,000
Max PriceCN¥0.99
BuyCN¥2,447,57518 Jul 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,451,000
Max PriceCN¥1.00
BuyCN¥1,000,00317 Jul 19
Yihong Chen
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares1,000,000
Max PriceCN¥1.00
BuyCN¥34,895,22316 Apr 19
Chen Chen
EntityIndividual
Role
Member of the Board of Directors
Co-president & Executive Director
Shares30,343,630
Max PriceCN¥1.15
BuyCN¥2,323,80209 Apr 19
Chen Chen
EntityIndividual
Role
Member of the Board of Directors
Co-president & Executive Director
Shares2,000,000
Max PriceCN¥1.16

Ownership Breakdown


Management Team

  • Zhiyong Zhang (51yo)

    CEO, President & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥3.24m
  • Yihong Chen (61yo)

    Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥2.28m
  • Tang Lijun (56yo)

    Head of Kappa Apparel Production Department

    • Tenure: 0yrs
  • Zhong Hua (50yo)

    Head of International Sourcing Department

    • Tenure: 0yrs
  • Yang Chao (44yo)

    Head of Footwear Equipment and Accessory Design & Development Centre

    • Tenure: 0yrs
  • Sun Jun (52yo)

    Executive Officer

    • Tenure: 0yrs
  • Pui Man Wai

    Company Secretary

    • Tenure: 9.5yrs
  • Chen Chen (32yo)

    Co-president & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥1.98m

Board Members

  • Zhiyong Zhang (51yo)

    CEO, President & Executive Director

    • Tenure: 2yrs
    • Compensation: CN¥3.24m
  • Guogang Chen (60yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥233.00k
  • Yu Gao (46yo)

    Independent Non-Executive Director

    • Tenure: 11.4yrs
    • Compensation: CN¥233.00k
  • Yihong Chen (61yo)

    Founder & Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥2.28m
  • Alvin Liu (53yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥8.00k
  • Chen Chen (32yo)

    Co-president & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥1.98m

Company Information

China Dongxiang (Group) Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Dongxiang (Group) Co., Ltd.
  • Ticker: 3818
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$5.121b
  • Shares outstanding: 5.89b
  • Website: https://www.dxsport.com

Location

  • China Dongxiang (Group) Co., Ltd.
  • Building 21
  • No. 2 Jingyuanbei Street
  • Beijing
  • 100176
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3818SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
4C1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
CDGX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
3818SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
CDGX.YOTCPK (Pink Sheets LLC)UNSPONSOD ADRUSUSDJul 2010

Biography

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sportswear in the People’s Republic of China, Japan, and internationally. The company offers its pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:42
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.