SEHK:3966

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China Baofeng (International)

Executive Summary

China Baofeng (International) Limited, an investment holding company, engages in photovoltaic power generation, and designs and supplies lighting and home furnishing products in the People’s Republic of China, Canada, the United States, and internationally.


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3966's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

3966

2.4%

HK Consumer Durables

0.8%

HK Market


1 Year Return

-10.7%

3966

34.8%

HK Consumer Durables

6.9%

HK Market

Return vs Industry: 3966 underperformed the Hong Kong Consumer Durables industry which returned 32.5% over the past year.

Return vs Market: 3966 underperformed the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

3966IndustryMarket
7 Day2.0%2.4%0.8%
30 Day2.9%11.3%-0.5%
90 Day36.6%33.0%9.8%
1 Year-3.7%-10.7%37.4%34.8%11.3%6.9%
3 Year-30.5%-35.6%8.3%1.3%3.3%-7.7%
5 Year264.2%237.8%51.3%33.2%22.6%1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3966 (HK$2.5) is trading above our estimate of fair value (HK$0.52)

Significantly Below Fair Value: 3966 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3966 is good value based on its PE Ratio (5.6x) compared to the HK Consumer Durables industry average (11.7x).

PE vs Market: 3966 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3966's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3966 is overvalued based on its PB Ratio (1x) compared to the HK Consumer Durables industry average (0.7x).


Next Steps

Future Growth

How is China Baofeng (International) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.7%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Baofeng (International) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Baofeng (International) performed over the past 5 years?

46.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3966 has high quality earnings.

Growing Profit Margin: 3966's current net profit margins (33.5%) are lower than last year (48.1%).


Past Earnings Growth Analysis

Earnings Trend: 3966's earnings have grown significantly by 46% per year over the past 5 years.

Accelerating Growth: 3966's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3966 had negative earnings growth (-32.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (8.3%).


Return on Equity

High ROE: 3966's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is China Baofeng (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: 3966's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥136.5M).

Long Term Liabilities: 3966's short term assets (CN¥2.0B) do not cover its long term liabilities (CN¥2.6B).


Debt to Equity History and Analysis

Debt Level: 3966's debt to equity ratio (101.6%) is considered high.

Reducing Debt: Insufficient data to determine if 3966's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 3966's debt is not well covered by operating cash flow (5.5%).

Interest Coverage: 3966's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Next Steps

Dividend

What is China Baofeng (International) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3966's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 3966's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3966's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3966's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3966 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3966's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.5yrs

Average board tenure


CEO

Zidong Dang (30 yo)

4.5yrs

Tenure

CN¥223,000

Compensation

Mr. Zidong Dang has been Chief Executive Officer and Executive Director at China Baofeng (International) Limited (formerly known as Mastercraft International Holdings Limited) since February 19, 2016. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Zidong's total compensation ($USD32.08K) is below average for companies of similar size in the Hong Kong market ($USD277.61K).

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


Board Members

NamePositionTenureCompensationOwnership
Yanbao Dang
Executive Chairman4.5yrsCN¥1.66mno data
Zidong Dang
CEO & Executive Director4.5yrsCN¥223.00k68.71%
CN¥ 1.1b
Yuanguan Liu
Executive Director4.58yrsno datano data
Jianjun Gao
Executive Director4.58yrsno datano data
Zuoquan Xia
Independent Non-Executive Director4.5yrsCN¥212.00kno data
Kan Hee Tyen
Independent Non-Executive Director4.5yrsCN¥318.00kno data
Hoo Cheng
Non-Executive Director4.5yrsCN¥212.00kno data
Xuewen Guo
Independent Non-Executive Director4.5yrsCN¥318.00kno data
Kin Shun Chung
Non-Executive Director3.92yrsCN¥318.00kno data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Board: 3966's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 3966 insiders have bought and sold the same number of shares 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 Baofeng (International) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Baofeng (International) Limited
  • Ticker: 3966
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: HK$1.660b
  • Shares outstanding: 663.85m
  • Website: https://www.baofengintl.com

Number of Employees


Location

  • China Baofeng (International) Limited
  • Two Pacific Place
  • 34th Floor, Suites 3401
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3966SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2012

Biography

China Baofeng (International) Limited, an investment holding company, engages in photovoltaic power generation, and designs and supplies lighting and home furnishing products in the People’s Republic of Ch ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:28
End of Day Share Price2020/08/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.