SEHK:3998

Stock Analysis Report

Bosideng International Holdings

Executive Summary

Bosideng International Holdings Limited researches, designs, develops, manufactures, markets, and distributes branded down apparel products, original equipment manufacturing (OEM) products, and non-down apparel products.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.9%

3998

-2.7%

HK Luxury

0.3%

HK Market


1 Year Return

238.9%

3998

24.1%

HK Luxury

1.3%

HK Market

Return vs Industry: 3998 exceeded the Hong Kong Luxury industry which returned 24.1% over the past year.

Return vs Market: 3998 exceeded the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

3998IndustryMarket
7 Day-3.9%-2.7%0.3%
30 Day8.9%4.3%0.5%
90 Day32.6%2.5%-4.6%
1 Year251.3%238.9%28.5%24.1%4.9%1.3%
3 Year465.5%394.6%43.3%26.2%15.3%3.7%
5 Year277.5%210.2%43.0%15.2%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bosideng International Holdings undervalued compared to its fair value and its price relative to the market?

35.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3998 (HK$3.66) is trading above our estimate of fair value (HK$2.75)

Significantly Below Fair Value: 3998 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3998 is poor value based on its PE Ratio (35.5x) compared to the Luxury industry average (9.3x).

PE vs Market: 3998 is poor value based on its PE Ratio (35.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 3998 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 3998 is overvalued based on its PB Ratio (3.5x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Bosideng International Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3998's forecast earnings growth (22% per year) is above the savings rate (2%).

Earnings vs Market: 3998's earnings (22% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 3998's revenue (18.9% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 3998's revenue (18.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3998's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Bosideng International Holdings performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3998's earnings have grown by 17% per year over the past 5 years.

Accelerating Growth: 3998's earnings growth over the past year (59.4%) exceeds its 5-year average (17% per year).

Earnings vs Industry: 3998 earnings growth over the past year (59.4%) exceeded the Luxury industry -4.9%.


Return on Equity

High ROE: 3998's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: 3998 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 3998 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Bosideng International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3998's short term assets (CN¥11.1B) exceeds its short term liabilities (CN¥4.8B)

Long Term Liabilities: 3998's short term assets (11.1B) exceeds its long term liabilities (178.0M)


Debt to Equity History and Analysis

Debt Level: 3998's debt to equity ratio (16.1%) is considered satisfactory

Reducing Debt: 3998's debt to equity ratio has reduced from 44.2% to 16.1% over the past 5 years.

Debt Coverage: 3998's debt is well covered by operating cash flow (92.7%).

Interest Coverage: 3998 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3998 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3998's debt is covered by short term assets (assets are 6.8x debt).


Next Steps

Dividend

What is Bosideng International Holdings's current dividend yield, its reliability and sustainability?

2.18%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%6.2%industryaverage2.7%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3998's dividend (2.18%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 3998's dividend (2.18%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 3998's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3998's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.2%), 3998's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3998's dividends in 3 years are forecast to be covered by earnings (69.9% payout ratio).


Next Steps

Management

What is the CEO of Bosideng International Holdings's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Dekang Gao (67yo)

4.8yrs

Tenure

CN¥3,955,000

Compensation

Mr. Dekang Gao founded Bosideng International Holdings Ltd and has been its Chairman and Chief Executive Officer since September 15, 2007 and January 30, 2015 respectively. Mr. Gao is responsible for the s ...


CEO Compensation Analysis

Compensation vs. Market: Dekang's total compensation ($USD558.86K) is about average for companies of similar size in the Hong Kong market ($USD582.48K).

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


Management Age and Tenure

1.5yrs

Average Tenure

46yo

Average Age

Experienced Management: 3998's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

12.1yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 3998's board of directors are seasoned and experienced ( 12.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥2,940,99521 Feb 19
Yun Mak
EntityIndividual
Shares2,000,000
Max PriceCN¥1.47
SellCN¥2,940,99521 Feb 19
Yun Mak
EntityIndividual
Shares2,000,000
Max PriceCN¥1.47

Ownership Breakdown


Management Team

  • Jinsong Rui (47yo)

    Senior VP & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥7.29m
  • Dong Mei (51yo)

    Executive President & Executive Director

    • Tenure: 13.3yrs
    • Compensation: CN¥3.44m
  • Qiaolian Huang (54yo)

    VP & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥6.86m
  • Xiaodong Gao (43yo)

    VP & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.28m
  • Dekang Gao (67yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: CN¥3.96m
  • Shen Guangjian (45yo)

    Chief Officer of the Investor Relations Department

    • Tenure: 0yrs
  • Gaofeng Zhu (44yo)

    Vice President

    • Tenure: 0.5yrs
  • Shuang Liang (30yo)

    Company Secretary

    • Tenure: 0.4yrs

Board Members

  • Maurice Ngai (57yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: CN¥385.00k
  • Binggen Dong (70yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: CN¥330.00k
  • Yao Wang (60yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
  • Jinsong Rui (47yo)

    Senior VP & Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥7.29m
  • Dong Mei (51yo)

    Executive President & Executive Director

    • Tenure: 13.3yrs
    • Compensation: CN¥3.44m
  • Qiaolian Huang (54yo)

    VP & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥6.86m
  • Xiaodong Gao (43yo)

    VP & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.28m
  • Dekang Gao (67yo)

    Founder

    • Tenure: 4.8yrs
    • Compensation: CN¥3.96m

Company Information

Bosideng International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bosideng International Holdings Limited
  • Ticker: 3998
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$40.105b
  • Shares outstanding: 10.69b
  • Website: https://www.bosideng.com

Number of Employees


Location

  • Bosideng International Holdings Limited
  • The Center
  • Unit 5709
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3998SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
3BDDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
BSDG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2007
3998SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
3998SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
BSDG.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 2009

Biography

Bosideng International Holdings Limited researches, designs, develops, manufactures, markets, and distributes branded down apparel products, original equipment manufacturing (OEM) products, and non-down ap ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:46
End of Day Share Price2019/10/23 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.