Fountain Set (Holdings)
Market Cap
HK$1.1b
Last Updated
2020/10/24 12:50 UTC
Data Sources
Company Financials
Executive Summary
Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People’s Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Share Price & News
How has Fountain Set (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 420 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
420
3.3%
HK Luxury
1.2%
HK Market
1 Year Return
-27.4%
420
12.2%
HK Luxury
2.3%
HK Market
Return vs Industry: 420 underperformed the Hong Kong Luxury industry which returned 12.3% over the past year.
Return vs Market: 420 underperformed the Hong Kong Market which returned 2.7% over the past year.
Shareholder returns
| 420 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 3.3% | 1.2% |
| 30 Day | 3.4% | 11.9% | 6.1% |
| 90 Day | 1.1% | 31.4% | 3.1% |
| 1 Year | -20.2%-27.4% | 14.5%12.2% | 6.6%2.3% |
| 3 Year | 0.7%-23.1% | 48.7%34.9% | -4.7%-15.1% |
| 5 Year | 34.1%-7.2% | 77.4%51.5% | 19.1%-1.1% |
Price Volatility Vs. Market
How volatile is Fountain Set (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Does Fountain Set (Holdings) (HKG:420) Have A Healthy Balance Sheet?2 weeks ago | Simply Wall St
How Much Did Fountain Set (Holdings)'s(HKG:420) Shareholders Earn From Share Price Movements Over The Last Year?1 month ago | Simply Wall St
Returns On Capital At Fountain Set (Holdings) (HKG:420) Paint A Concerning PictureValuation
Is Fountain Set (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: 420 (HK$0.9) is trading below our estimate of fair value (HK$5.34)
Significantly Below Fair Value: 420 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 420 is poor value based on its PE Ratio (25.5x) compared to the HK Luxury industry average (11.2x).
PE vs Market: 420 is poor value based on its PE Ratio (25.5x) compared to the Hong Kong market (11.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 420's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 420 is good value based on its PB Ratio (0.3x) compared to the HK Luxury industry average (0.7x).
Next Steps
Future Growth
How is Fountain Set (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
36.8%
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 Fountain Set (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
- Examine whether Fountain Set (Holdings) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Fountain Set (Holdings) competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Durables industry.
Past Performance
How has Fountain Set (Holdings) performed over the past 5 years?
2.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 420 has high quality earnings.
Growing Profit Margin: 420's current net profit margins (0.8%) are lower than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: 420's earnings have grown by 2.4% per year over the past 5 years.
Accelerating Growth: 420's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 420 had negative earnings growth (-75.9%) over the past year, making it difficult to compare to the Luxury industry average (-29.5%).
Return on Equity
High ROE: 420's Return on Equity (1.7%) is considered low.
Next Steps
Financial Health
How is Fountain Set (Holdings)'s financial position?
Financial Position Analysis
Short Term Liabilities: 420's short term assets (HK$3.3B) exceed its short term liabilities (HK$1.3B).
Long Term Liabilities: 420's short term assets (HK$3.3B) exceed its long term liabilities (HK$309.0M).
Debt to Equity History and Analysis
Debt Level: 420's debt to equity ratio (17.6%) is considered satisfactory.
Reducing Debt: 420's debt to equity ratio has reduced from 29% to 17.6% over the past 5 years.
Debt Coverage: 420's debt is well covered by operating cash flow (108.7%).
Interest Coverage: 420's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Fountain Set (Holdings) current dividend yield, its reliability and sustainability?
11.60%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 420's dividend (11.6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).
High Dividend: 420's dividend (11.6%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)
Stability and Growth of Payments
Stable Dividend: 420's dividend payments have been volatile in the past 10 years.
Growing Dividend: 420's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (262.7%), 420's dividend payments are not 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
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Yao Zhao (57 yo)
5.75yrs
Tenure
HK$4,847,000
Compensation
Mr. Yao Zhao serves as an Assistant President and the General Manager of Asset Management Department of Chinatex Corporation. Mr. Zhao serves as a General Manager of Chinatex Xinyuan Assets Management Co., ...
CEO Compensation Analysis
Compensation vs Market: Yao's total compensation ($USD625.42K) is above average for companies of similar size in the Hong Kong market ($USD232.63K).
Compensation vs Earnings: Yao's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.75yrs | HK$4.85m | no data | |
| Executive Director | 2.17yrs | no data | no data | |
| Executive Director | 2.17yrs | no data | no data | |
| Executive Director | 2.17yrs | HK$2.56m | 0.22% HK$ 2.5m | |
| Founder & Honorary Chairman | 8.33yrs | HK$15.68m | 8% HK$ 88.2m | |
| Company Secretary & Deputy GM of Corporate Governance Department | 4.92yrs | no data | no data |
2.2yrs
Average Tenure
54yo
Average Age
Experienced Management: 420's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 5.75yrs | HK$4.85m | no data | |
| Executive Director | 2.17yrs | no data | no data | |
| Executive Director | 2.17yrs | no data | no data | |
| Executive Director | 2.17yrs | HK$2.56m | 0.22% HK$ 2.5m | |
| Founder & Honorary Chairman | 8.33yrs | HK$15.68m | 8% HK$ 88.2m | |
| Non-Executive Vice Chairman | 2.17yrs | HK$200.00k | 0.68% HK$ 7.5m | |
| Independent Non-Executive Director | 27.75yrs | HK$250.00k | no data | |
| Independent Non-Executive Director | 5.75yrs | HK$200.00k | no data | |
| Independent Non-Executive Director | 4.42yrs | HK$200.00k | no data | |
| Non-Executive Director | 2.17yrs | no data | no data |
3.3yrs
Average Tenure
55yo
Average Age
Experienced Board: 420's board of directors are considered experienced (3.3 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
Fountain Set (Holdings) Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fountain Set (Holdings) Limited
- Ticker: 420
- Exchange: SEHK
- Founded: 1969
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: HK$1.103b
- Shares outstanding: 1.23b
- Website: https://www.fshl.com
Number of Employees
Location
- Fountain Set (Holdings) Limited
- Eastern Sea Industrial Building
- Block A
- Kwai Chung
- New Territories
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 420 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| FOV | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
Biography
Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People’s Republic of China, Taiwan, Korea, Sri Lanka, the United States, Eu ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/24 12:50 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.