SEHK:413

Stock Analysis Report

Executive Summary

South China Holdings Company Limited, an investment holding company, engages in the manufacture and trading of toys, property investment and development, and agriculture and forestry businesses.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

413

-0.4%

HK Leisure

3.3%

HK Market


1 Year Return

-6.7%

413

-17.3%

HK Leisure

1.6%

HK Market

Return vs Industry: 413 exceeded the Hong Kong Leisure industry which returned -17.3% over the past year.

Return vs Market: 413 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

413IndustryMarket
7 Day0%-0.4%3.3%
30 Day-7.1%-8.1%-0.009%
90 Day2.6%-13.5%-5.1%
1 Year-6.7%-6.7%-14.3%-17.3%5.3%1.6%
3 Year-39.1%-39.1%-33.9%-38.5%16.1%4.4%
5 Year-26.1%-26.1%-51.8%-54.3%20.4%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is South China Holdings undervalued compared to its fair value and its price relative to the market?

11.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 413 (HK$0.2) is trading below our estimate of fair value (HK$0.22)

Significantly Undervalued: 413 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 413 is poor value based on its PE Ratio (15.2x) compared to the Leisure industry average (9.6x).

PE vs Market: 413 is poor value based on its PE Ratio (15.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 413's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 413 is good value based on its PB Ratio (0.4x) compared to the HK Leisure industry average (0.7x).


Next Steps

Future Growth

How is South China Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 413's forecast earnings growth (25.5% per year) is above the savings rate (2%).

Earnings vs Market: 413's earnings (25.5% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: Insufficient data to determine if 413's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 413's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 413's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has South China Holdings performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 413's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: 413's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 413 had negative earnings growth (-15.7%) over the past year, making it difficult to compare to the Leisure industry average (7%).


Return on Equity

High ROE: 413's Return on Equity (2.6%) is considered low.


Return on Assets

ROA vs Industry: 413's Return on Assets is below or equal to the Leisure industry average last year.


Return on Capital Employed

ROCE Improving: 413's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is South China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 413's short term assets (HK$5.4B) exceeds its short term liabilities (HK$4.7B)

Long Term Liabilities: 413's short term assets (5.4B) exceeds its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: 413's debt to equity ratio (82.3%) is considered high

Reducing Debt: 413's debt to equity ratio has increased from 63.1% to 82.3% over the past 5 years.

Debt Coverage: 413's debt is not well covered by operating cash flow (2.1%).

Interest Coverage: 413's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

Inventory Level: 413 has a high level of physical assets or inventory.

Debt Coverage by Assets: 413's debt is covered by short term assets (assets are 1.093070x debt).


Next Steps

Dividend

What is South China Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 413's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 413's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 413's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 413's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 413 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 413's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Christina Cheung (65yo)

1.4yrs

Tenure

HK$4,420,000

Compensation

Ms. Choi Ngor Cheung, also known as Christina, has been Co-Chief Executive Officer of South China Holdings Company Limited since May 16, 2018. Ms. Cheung served as Chief Executive Officer of South China H ...


CEO Compensation Analysis

Compensation vs. Market: Christina has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Christina's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.4yrs

Average Tenure

67yo

Average Age

Experienced Management: 413's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

16.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 413's board of directors are seasoned and experienced ( 16.2 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

BuyHK$227,31304 Apr 19
Hung Sang Ng
EntityIndividual
Role
Chairman of the Board
Chairman
Shares1,296,000
Max PriceHK$0.18

Ownership Breakdown


Management Team

  • Richard Gorges (75yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.90m
  • Hung Sang Ng (69yo)

    Chairman

    • Tenure: 27.3yrs
    • Compensation: HK$10.00k
  • Christina Cheung (65yo)

    Vice Chairman & Co-CEO

    • Tenure: 1.4yrs
    • Compensation: HK$4.42m
  • James Watt

    Company Secretary

    • Tenure: 1.8yrs
  • Paul Ng (38yo)

    Executive Vice Chairman & Co-CEO

    • Tenure: 3.8yrs
    • Compensation: HK$3.63m

Board Members

  • Jessica Ng (41yo)

    Non-Executive Director

    • Tenure: 17.3yrs
    • Compensation: HK$100.00k
  • Richard Gorges (75yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.90m
  • Hung Sang Ng (69yo)

    Chairman

    • Tenure: 27.3yrs
    • Compensation: HK$10.00k
  • Elizabeth Tse Wong (61yo)

    Independent Non-Executive Director

    • Tenure: 15yrs
    • Compensation: HK$100.00k
  • Christina Cheung (65yo)

    Vice Chairman & Co-CEO

    • Tenure: 1.4yrs
    • Compensation: HK$4.42m
  • Patrick Chiu (71yo)

    Independent Non-Executive Director

    • Tenure: 18.2yrs
    • Compensation: HK$100.00k
  • Peter Ng (39yo)

    Non Executive Director

    • Tenure: 17.3yrs
    • Compensation: HK$2.45m
  • Paul Ng (38yo)

    Executive Vice Chairman & Co-CEO

    • Tenure: 3.8yrs
    • Compensation: HK$3.63m
  • Alice Li (49yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$100.00k
  • Tony Kam (58yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs

Company Information

South China Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: South China Holdings Company Limited
  • Ticker: 413
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$2.532b
  • Shares outstanding: 12.98b
  • Website: https://www.scchina.co

Number of Employees


Location

  • South China Holdings Company Limited
  • Bank of China Tower
  • 28th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
413SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SZHBBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

South China Holdings Company Limited, an investment holding company, engages in the manufacture and trading of toys, property investment and development, and agriculture and forestry businesses. Its Tradin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:34
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.