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.

Risks

  • Bosideng International Holdings has significant price volatility in the past 3 months.

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

7.0%

3998

0.3%

HK Luxury

-1.5%

HK Market


1 Year Return

215.9%

3998

9.3%

HK Luxury

-7.5%

HK Market

3998 outperformed the Luxury industry which returned 9.3% over the past year.

3998 outperformed the Market in Hong Kong which returned -7.5% over the past year.


Share holder returns

3998IndustryMarket
7 Day7.0%0.3%-1.5%
30 Day20.7%2.1%2.1%
90 Day47.0%7.2%-5.5%
1 Year227.4%215.9%13.1%9.3%-4.1%-7.5%
3 Year444.3%376.1%34.6%18.6%14.2%2.6%
5 Year245.7%184.0%39.3%11.7%16.5%-2.9%

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 based on future cash flows and its price relative to the stock market?

32.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bosideng International Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bosideng International Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bosideng International Holdings is overvalued based on earnings compared to the HK Luxury industry average.

Bosideng International Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Bosideng International Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Bosideng International Holdings is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is Bosideng International Holdings expected 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 Estimates


Future Annual Growth Analysis

Bosideng International Holdings's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Bosideng International Holdings's earnings are expected to grow significantly at over 20% yearly.

Bosideng International Holdings's revenue growth is expected to exceed the Hong Kong market average.

Bosideng International Holdings's earnings growth is expected to exceed the Hong Kong market average.

Bosideng International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Bosideng International Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Bosideng International Holdings's year on year earnings growth rate has been positive over the past 5 years.

Bosideng International Holdings's 1-year earnings growth exceeds its 5-year average (59.4% vs 17%)

Bosideng International Holdings's earnings growth has exceeded the HK Luxury industry average in the past year (59.4% vs -4.9%).


Return on Equity

Bosideng International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bosideng International Holdings used its assets more efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Bosideng International Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Bosideng International Holdings's financial position?


Financial Position Analysis

Bosideng International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bosideng International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bosideng International Holdings's level of debt (16.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (44.2% vs 16.1% today).

Debt is well covered by operating cash flow (92.7%, greater than 20% of total debt).

Bosideng International Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

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?

3.38%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bosideng International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Bosideng International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.19%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


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?

1.4yrs

Average management tenure


CEO

Dekang Gao (67yo)

4.7yrs

Tenure

CN¥11,205,000

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

Dekang's remuneration is higher than average for companies of similar size in Hong Kong.

Dekang's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

46yo

Average Age

The average tenure for the Bosideng International Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

12.0yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Bosideng International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


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: 6.3yrs
    • Compensation: CN¥7.62m
  • Dong Mei (51yo)

    Executive President & Executive Director

    • Tenure: 13.2yrs
    • Compensation: CN¥9.65m
  • Qiaolian Huang (54yo)

    VP & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥19.92m
  • Xiaodong Gao (43yo)

    VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥3.17m
  • Dekang Gao (67yo)

    Founder

    • Tenure: 4.7yrs
    • Compensation: CN¥11.21m
  • Shen Guangjian (45yo)

    Chief Officer of the Investor Relations Department

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

    Vice President

    • Tenure: 0.4yrs
  • Shuang Liang (30yo)

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Maurice Ngai (57yo)

    Independent Non-Executive Director

    • Tenure: 12yrs
    • Compensation: CN¥385.00k
  • Binggen Dong (70yo)

    Independent Non-Executive Director

    • Tenure: 12yrs
    • Compensation: CN¥330.00k
  • Yao Wang (60yo)

    Independent Non-Executive Director

    • Tenure: 12yrs
  • Jinsong Rui (47yo)

    Senior VP & Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥7.62m
  • Dong Mei (51yo)

    Executive President & Executive Director

    • Tenure: 13.2yrs
    • Compensation: CN¥9.65m
  • Qiaolian Huang (54yo)

    VP & Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥19.92m
  • Xiaodong Gao (43yo)

    VP & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥3.17m
  • Dekang Gao (67yo)

    Founder

    • Tenure: 4.7yrs
    • Compensation: CN¥11.21m

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$34.103b
  • Shares outstanding: 10.62b
  • 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 Analysis2019/09/20 12:45
End of Day Share Price2019/09/20 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.