SEHK:417

Stock Analysis Report

Tse Sui Luen Jewellery (International)

Executive Summary

Tse Sui Luen Jewellery (International) Limited, an investment holding company, manufactures, sells, and markets jewelry products in Hong Kong, Macau, Mainland China, Malaysia, and other countries.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Tse Sui Luen Jewellery (International)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

417

1.9%

HK Luxury

0.9%

HK Market


1 Year Return

-29.2%

417

27.3%

HK Luxury

0.6%

HK Market

Return vs Industry: 417 underperformed the Hong Kong Luxury industry which returned 27.3% over the past year.

Return vs Market: 417 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

417IndustryMarket
7 Day-0.7%1.9%0.9%
30 Day-11.0%4.3%0.4%
90 Day-15.9%6.3%-5.5%
1 Year-24.9%-29.2%31.8%27.3%4.2%0.6%
3 Year-18.3%-27.5%44.2%27.1%15.5%3.9%
5 Year-38.8%-47.6%43.7%15.7%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Tse Sui Luen Jewellery (International)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tse Sui Luen Jewellery (International) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 417 (HK$1.38) is trading below our estimate of fair value (HK$9.51)

Significantly Undervalued: 417 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 417 is good value based on its PE Ratio (6.3x) compared to the Luxury industry average (9.5x).

PE vs Market: 417 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 417's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 417 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Tse Sui Luen Jewellery (International) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 417's forecast earnings growth (18.6% per year) is above the savings rate (2%).

Earnings vs Market: 417's earnings (18.6% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: 417's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 417's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 417'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 417's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tse Sui Luen Jewellery (International) performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 417's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: 417's earnings growth over the past year (18.7%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: 417 earnings growth over the past year (18.7%) exceeded the Luxury industry -4.9%.


Return on Equity

High ROE: 417's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: 417's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 417 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tse Sui Luen Jewellery (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: 417's short term assets (HK$2.2B) exceeds its short term liabilities (HK$1.3B)

Long Term Liabilities: 417's short term assets (2.2B) exceeds its long term liabilities (26.1M)


Debt to Equity History and Analysis

Debt Level: 417's debt to equity ratio (72.5%) is considered high

Reducing Debt: 417's debt to equity ratio has reduced from 79.4% to 72.5% over the past 5 years.

Debt Coverage: 417's debt is well covered by operating cash flow (36.5%).

Interest Coverage: 417's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet

Inventory Level: 417 has a high level of physical assets or inventory.

Debt Coverage by Assets: 417's debt is covered by short term assets (assets are 2.760240x debt).


Next Steps

Dividend

What is Tse Sui Luen Jewellery (International)'s current dividend yield, its reliability and sustainability?

7.54%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 417's dividend (7.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 417's dividend (7.54%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 417's dividend payments have been volatile in the past 10 years.

Growing Dividend: 417's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), 417's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Tse Sui Luen Jewellery (International)'s salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Annie Yau (49yo)

9.6yrs

Tenure

HK$6,424,000

Compensation

Ms. On Yee Yau, also known as Annie, has been the Chief Executive Officer at TSE Sui Luen Jewellery International Ltd. since March 1st, 2010. Ms. Yau served as Senior Information Technology Manager and Sen ...


CEO Compensation Analysis

Compensation vs. Market: Annie's total compensation ($USD819.16K) is about average for companies of similar size in the Hong Kong market ($USD212.49K).

Compensation vs Earnings: Annie's compensation has increased by more than 20% in the past year.


Management Age and Tenure

8.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 417's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 417's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: 417 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$512,39317 Oct 19
Tat Fung Tse
EntityIndividual
Role
Senior Key Executive
Deputy Chief Executive Officer
Shares321,048
Max PriceHK$1.60
BuyHK$438,47609 Jan 19
Tat Fung Tse
EntityIndividual
Role
Senior Key Executive
Deputy Chief Executive Officer
Shares236,758
Max PriceHK$1.85

Ownership Breakdown


Management Team

  • Tommy Tse (51yo)

    Deputy Chief Executive Officer

    • Tenure: 8.1yrs
    • Compensation: HK$516.00k
  • Annie Yau (49yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: HK$6.42m
  • Michael Cheung (52yo)

    Export Operations Controller

    • Tenure: 14.6yrs
    • Compensation: HK$212.00k
  • Estella Ng (62yo)

    Deputy Chairman

    • Tenure: 3.8yrs
    • Compensation: HK$5.41m
  • Tse Sui Luen (82yo)

    • Tenure: 0yrs
  • Abby Fung (50yo)

    Financial Controller of Group Finance

    • Tenure: 0yrs
  • Wilson Chung (54yo)

    Financial Controller of China Finance

    • Tenure: 0yrs
  • Anthony Jim (42yo)

    Director of Group Marketing and International Business

    • Tenure: 0yrs
  • Dominic Wong (46yo)

    Director of Sales & Operations - China Retail

    • Tenure: 0yrs
  • victor Wong

    Managing Director of The People's Republic of China

    • Tenure: 0yrs

Board Members

  • Michael Chan (67yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: HK$180.00k
  • Robert Chui (62yo)

    Independent Non-Executive Director

    • Tenure: 20.5yrs
    • Compensation: HK$180.00k
  • Annie Yau (49yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: HK$6.42m
  • Erwin Steve Huang (53yo)

    Deputy Chairman

    • Tenure: 0yrs
    • Compensation: HK$180.00k
  • Estella Ng (62yo)

    Deputy Chairman

    • Tenure: 3.8yrs
    • Compensation: HK$5.41m
  • Christopher Chow (52yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: HK$180.00k

Company Information

Tse Sui Luen Jewellery (International) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tse Sui Luen Jewellery (International) Limited
  • Ticker: 417
  • Exchange: SEHK
  • Founded: 1971
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$343.871m
  • Shares outstanding: 249.18m
  • Website: https://www.tslj.com

Number of Employees


Location

  • Tse Sui Luen Jewellery (International) Limited
  • Summit Building
  • Ground Floor
  • Hunghom
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
417SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992

Biography

Tse Sui Luen Jewellery (International) Limited, an investment holding company, manufactures, sells, and markets jewelry products in Hong Kong, Macau, Mainland China, Malaysia, and other countries. The comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:32
End of Day Share Price2019/10/18 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.