SEHK:413

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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. More Details


Snowflake Analysis

Undervalued with proven track record.


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

Stable Share Price: 413 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

413

-3.0%

HK Leisure

-0.3%

HK Market


1 Year Return

-34.4%

413

-30.2%

HK Leisure

0.7%

HK Market

Return vs Industry: 413 underperformed the Hong Kong Leisure industry which returned -30.2% over the past year.

Return vs Market: 413 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

413IndustryMarket
7 Day-3.0%-3.0%-0.3%
30 Day-14.1%-1.7%0.2%
90 Day-14.1%-3.1%0.3%
1 Year-34.4%-34.4%-27.9%-30.2%4.9%0.7%
3 Year-54.3%-54.3%-52.2%-55.8%-5.8%-16.1%
5 Year-70.4%-70.4%-63.4%-65.4%14.0%-5.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 413 (HK$0.13) is trading below our estimate of fair value (HK$1.23)

Significantly Below Fair Value: 413 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 413 is good value based on its PE Ratio (4x) compared to the HK Leisure industry average (7.6x).

PE vs Market: 413 is good value based on its PE Ratio (4x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

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 (0.3x) compared to the HK Leisure industry average (0.6x).


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?

21.6%

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

28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 413 has a large one-off gain of HK$765.4M impacting its June 30 2020 financial results.

Growing Profit Margin: 413's current net profit margins (9.6%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 413's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: 413's earnings growth over the past year (144.3%) exceeds its 5-year average (28.8% per year).

Earnings vs Industry: 413 earnings growth over the past year (144.3%) exceeded the Leisure industry -27.7%.


Return on Equity

High ROE: 413's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is South China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 413's short term assets (HK$6.1B) exceed its short term liabilities (HK$3.9B).

Long Term Liabilities: 413's short term assets (HK$6.1B) exceed its long term liabilities (HK$3.7B).


Debt to Equity History and Analysis

Debt Level: 413's debt to equity ratio (77.6%) is considered high.

Reducing Debt: 413's debt to equity ratio has increased from 73.3% to 77.6% over the past 5 years.

Debt Coverage: 413's debt is not well covered by operating cash flow (8.5%).

Interest Coverage: 413's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate 413'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 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

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

2.4yrs

Average management tenure


CEO

Christina Cheung (66 yo)

2.42yrs

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's total compensation ($USD570.32K) is above average for companies of similar size in the Hong Kong market ($USD292.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hung Sang Ng
Executive Chairman28.33yrsHK$10.00k42.37%
HK$ 704.0m
Choi Ngor Cheung
Vice Chairman & Co-CEO2.42yrsHK$4.42m0.39%
HK$ 6.5m
Yuk Yeung Ng
Executive Vice Chairman & Co-CEO4.75yrsHK$3.63m1.32%
HK$ 22.0m
Richard Howard Gorges
Vice Chairmanno dataHK$1.90mno data
Ka Po Watt
Company Secretary2.83yrsno datano data

2.4yrs

Average Tenure

68yo

Average Age

Experienced Management: 413's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hung Sang Ng
Executive Chairman28.33yrsHK$10.00k42.37%
HK$ 704.0m
Choi Ngor Cheung
Vice Chairman & Co-CEO2.42yrsHK$4.42m0.39%
HK$ 6.5m
Yuk Yeung Ng
Executive Vice Chairman & Co-CEO4.75yrsHK$3.63m1.32%
HK$ 22.0m
Richard Howard Gorges
Vice Chairmanno dataHK$1.90mno data
David Michael Norman
Non-Executive Director5.83yrsHK$150.00kno data
Yuk Mui Ng
Non-Executive Director18.33yrsHK$100.00k1.31%
HK$ 21.8m
Siu Yin Tse Wong
Independent Non-Executive Director16yrsHK$100.00kno data
Sin Chun Chiu
Independent Non-Executive Director19.17yrsHK$100.00kno data
Yuk Fung Ng
Non-Executive Director18.33yrsHK$100.00k5.03%
HK$ 83.6m
Yuen Yu Li
Non-Executive Director16.08yrsHK$100.00kno data
Yiu Shing Kam
Independent Non-Executive Director2.92yrsHK$100.00kno data
Oi Lan Scarlett
Independent Non-executive Director0.083yrno datano data

16.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 413's board of directors are seasoned and experienced ( 16 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

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$1.662b
  • 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 Analysis2020/10/21 12:34
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.