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3818

China Dongxiang (Group)SEHK:3818 Stock Report

Market Cap

HK$4.8b

7D

-6.8%

1Y

-13.7%

Updated

24 Sep, 2021

Data

Company Financials +
3818 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

3818 Overview

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sport-related apparel, footwear, and accessories in the People’s Republic of China and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for China Dongxiang (Group)
Historical stock prices
Current Share PriceHK$0.82
52 Week HighHK$0.69
52 Week LowHK$1.42
Beta0.44
1 Month Change-10.87%
3 Month Change-33.33%
1 Year Change-13.68%
3 Year Change-37.41%
5 Year Change-46.41%
Change since IPO-84.90%

Recent News & Updates

Shareholder Returns

3818HK LuxuryHK Market
7D-6.8%-8.4%-2.4%
1Y-13.7%72.2%9.1%

Return vs Industry: 3818 underperformed the Hong Kong Luxury industry which returned 78.4% over the past year.

Return vs Market: 3818 underperformed the Hong Kong Market which returned 10.1% over the past year.

Price Volatility

Is 3818's price volatile compared to industry and market?
3818 volatility
3818 Beta0.44
Industry Beta0.91
Market Beta1

Stable Share Price: 3818 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 3818's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2002627Zhiyong Zhanghttps://www.dxsport.com

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sport-related apparel, footwear, and accessories in the People’s Republic of China and internationally. The company offers its products under the Kappa, Phenix, X-NIX, and INHABITANT brands. It is also involved in the retail sale of sportswear through a network of retail shops and outlets, as well as online.

China Dongxiang (Group) Fundamentals Summary

How do China Dongxiang (Group)'s earnings and revenue compare to its market cap?
3818 fundamental statistics
Market CapCN¥3.99b
Earnings (TTM)CN¥1.87b
Revenue (TTM)CN¥1.97b

2.1x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3818 income statement (TTM)
RevenueCN¥1.97b
Cost of RevenueCN¥650.59m
Gross ProfitCN¥1.32b
Expenses-CN¥546.15m
EarningsCN¥1.87b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.32
Gross Margin66.97%
Net Profit Margin94.70%
Debt/Equity Ratio1.1%

How did 3818 perform over the long term?

See historical performance and comparison

Dividends

15.8%

Current Dividend Yield

29%

Payout Ratio

Valuation

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

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3818 (HK$0.82) is trading below our estimate of fair value (HK$1.34)

Significantly Below Fair Value: 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 (2.1x) compared to the Hong Kong Luxury industry average (9.1x).

PE vs Market: 3818 is good value based on its PE Ratio (2.1x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 3818's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3818 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.8x).


Future Growth

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

-34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3818's earnings are forecast to decline over the next 3 years (-34% per year).

Earnings vs Market: 3818's earnings are forecast to decline over the next 3 years (-34% per year).

High Growth Earnings: 3818's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3818's revenue (9.7% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 3818's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3818's Return on Equity is forecast to be low in 3 years time (8.3%).


Past Performance

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

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3818 has a high level of non-cash earnings.

Growing Profit Margin: 3818's current net profit margins (94.7%) are higher than last year (26.8%).


Past Earnings Growth Analysis

Earnings Trend: 3818's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: 3818's earnings growth over the past year (352.1%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: 3818 earnings growth over the past year (352.1%) exceeded the Luxury industry 37.6%.


Return on Equity

High ROE: 3818's Return on Equity (16.2%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: 3818's short term assets (CN¥6.5B) exceed its short term liabilities (CN¥721.3M).

Long Term Liabilities: 3818's short term assets (CN¥6.5B) exceed its long term liabilities (CN¥380.6M).


Debt to Equity History and Analysis

Debt Level: 3818's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: 3818's debt to equity ratio has reduced from 9.6% to 1.1% over the past 5 years.

Debt Coverage: 3818's debt is well covered by operating cash flow (52.7%).

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


Balance Sheet


Dividend

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

15.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3818's dividend (15.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 3818's dividend (15.83%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

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%), 3818's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3818's dividends in 3 years are not forecast to be well covered by earnings (96.3% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Zhiyong Zhang (53 yo)

3.92yrs

Tenure

CN¥3,474,000

Compensation

Mr. Zhiyong Zhang has been the Chief Executive Officer and Executive Director at China Dongxiang (Group) Co., Ltd. since October 10, 2017 and also serves as its President. Mr. Zhang is responsible for Chin...


CEO Compensation Analysis

Compensation vs Market: Zhiyong's total compensation ($USD537.85K) is about average for companies of similar size in the Hong Kong market ($USD427.56K).

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


Leadership Team

Experienced Management: 3818's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: 3818's board of directors are considered experienced (4.6 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

China Dongxiang (Group) Co., Ltd.'s 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$4.809b
  • Shares outstanding: 5.86b
  • Website: https://www.dxsport.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 15:38
End of Day Share Price2021/09/24 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.