SEHK:3818

Stock Analysis Report

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Executive Summary

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, Japan, and internationally.


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.

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

Stable Share Price: 3818's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

3818

3.1%

HK Luxury

2.3%

HK Market


1 Year Return

15.2%

3818

-1.2%

HK Luxury

6.9%

HK Market

Return vs Industry: 3818 exceeded the Hong Kong Luxury industry which returned -1.2% over the past year.

Return vs Market: 3818 exceeded the Hong Kong Market which returned 6.9% over the past year.


Shareholder returns

3818IndustryMarket
7 Day7.1%3.1%2.3%
30 Day43.2%2.8%-2.2%
90 Day65.6%9.5%10.6%
1 Year21.4%15.2%1.0%-1.2%11.3%6.9%
3 Year-6.1%-31.2%33.6%19.7%1.8%-9.1%
5 Year-15.8%-46.2%40.7%20.6%14.3%-4.8%

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?

15.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3818 (HK$1.06) is trading above our estimate of fair value (HK$0.82)

Significantly Below Fair Value: 3818 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3818 is poor value based on its PE Ratio (15.3x) compared to the HK Luxury industry average (7.6x).

PE vs Market: 3818 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3818 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 3818's PB Ratio (0.5x) is in line with the HK Luxury industry average.


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?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3818's forecast earnings growth (13.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 3818's earnings (13.3% per year) are forecast to grow slower than the Hong Kong market (18.3% per year).

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

Revenue vs Market: 3818's revenue (6.9% per year) is forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Revenue: 3818's revenue (6.9% 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 (5.4%).


Next Steps

Past Performance

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

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3818 has high quality earnings.

Growing Profit Margin: 3818's current net profit margins (19.9%) are lower than last year (40.4%).


Past Earnings Growth Analysis

Earnings Trend: 3818's earnings have declined by 13.5% 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 (-47.1%) over the past year, making it difficult to compare to the Luxury industry average (-14.7%).


Return on Equity

High ROE: 3818's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 3818's short term assets (CN¥6.7B) exceed its short term liabilities (CN¥791.9M).

Long Term Liabilities: 3818's short term assets (CN¥6.7B) exceed its long term liabilities (CN¥281.7M).


Debt to Equity History and Analysis

Debt Level: 3818's debt to equity ratio (2.3%) is considered satisfactory.

Reducing Debt: 3818's debt to equity ratio has reduced from 4.6% to 2.3% 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


Next Steps

Dividend

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

4.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 3818's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3818's dividend (4.52%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.88%).


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 (29.9%), 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

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

2.8yrs

Average management tenure


CEO

Zhiyong Zhang (52 yo)

2.83yrs

Tenure

CN¥3,141,000

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 ($USD450.45K) is about average for companies of similar size in the Hong Kong market ($USD505.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yihong Chen
Founder & Executive Chairmanno dataCN¥3.23m38.84%
CN¥ 2.4b
Zhiyong Zhang
CEO, President & Executive Director2.83yrsCN¥3.14m2.82%
CN¥ 177.7m
Chen Chen
Co-president & Executive Director5.67yrsCN¥1.84m3.41%
CN¥ 214.6m
Guanghong Lyu
CFO & Executive Director0.33yrno data0.17%
CN¥ 10.7m
Tang Lijun
Head of Kappa Apparel Production Departmentno datano datano data
Zhong Hua
Head of International Sourcing Departmentno datano datano data
Yang Chao
Head of Footwear Equipment and Accessory Design & Development Centreno datano datano data
Pui Man Wai
Company Secretary10.33yrsno datano data
Sun Jun
Executive Officerno datano datano data

2.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 3818's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yihong Chen
Founder & Executive Chairmanno dataCN¥3.23m38.84%
CN¥ 2.4b
Zhiyong Zhang
CEO, President & Executive Director2.83yrsCN¥3.14m2.82%
CN¥ 177.7m
Chen Chen
Co-president & Executive Director5.67yrsCN¥1.84m3.41%
CN¥ 214.6m
Guanghong Lyu
CFO & Executive Director0.33yrno data0.17%
CN¥ 10.7m
Guogang Chen
Independent Non-Executive Director4.17yrsCN¥201.00kno data
Yu Gao
Independent Non-Executive Director12.25yrsCN¥201.00kno data
Xiaosong Liu
Independent Non-Executive Director1.42yrsCN¥201.00kno data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Board: 3818's board of directors are considered experienced (3.5 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 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$6.298b
  • Shares outstanding: 5.89b
  • Website: https://www.dxsport.com

Number of Employees


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 sport-related apparel, footwear, and accessories in the People’s Republic of China, Japan, and inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 13:08
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.