SEHK:513

Stock Analysis Report

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Executive Summary

Continental Holdings Limited, an investment holding company, designs, manufactures, markets, wholesales, retails, and trades in fine jewelries and diamonds.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 513's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

513

3.2%

HK Luxury

0.7%

HK Market


1 Year Return

-45.6%

513

-4.4%

HK Luxury

0.4%

HK Market

Return vs Industry: 513 underperformed the Hong Kong Luxury industry which returned -4.4% over the past year.

Return vs Market: 513 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

513IndustryMarket
7 Day0%3.2%0.7%
30 Day-20.4%1.5%-1.0%
90 Day-32.8%10.2%9.6%
1 Year-43.8%-45.6%-2.3%-4.4%4.5%0.4%
3 Year-56.8%-60.2%31.3%17.7%0.2%-10.6%
5 Year-68.9%-71.3%36.9%17.4%9.9%-8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 513 (HK$0.04) is trading above our estimate of fair value (HK$0.03)

Significantly Below Fair Value: 513 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 513 is good value based on its PE Ratio (6.1x) compared to the HK Luxury industry average (7.7x).

PE vs Market: 513 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 513's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 513 is good value based on its PB Ratio (0.1x) compared to the HK Luxury industry average (0.6x).


Next Steps

Future Growth

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

34.1%

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 Continental 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 Continental Holdings performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 513 has a large one-off gain of HK$39.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 513's current net profit margins (9.9%) are lower than last year (66.2%).


Past Earnings Growth Analysis

Earnings Trend: 513's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: 513's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 513 had negative earnings growth (-83.2%) over the past year, making it difficult to compare to the Luxury industry average (-14.7%).


Return on Equity

High ROE: 513's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Continental Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 513's short term assets (HK$1.3B) exceed its short term liabilities (HK$949.9M).

Long Term Liabilities: 513's short term assets (HK$1.3B) exceed its long term liabilities (HK$179.9M).


Debt to Equity History and Analysis

Debt Level: 513's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: 513's debt to equity ratio has increased from 31.2% to 32.9% over the past 5 years.

Debt Coverage: 513's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 513's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

5.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 513's dividend (5.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 513's dividend (5.81%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: 513's dividend payments have been volatile in the past 10 years.

Growing Dividend: 513's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), 513'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

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

11.1yrs

Average board tenure


CEO

Shirley Cheng (67 yo)

no data

Tenure

HK$2,573,000

Compensation

Ms. Siu Yin Cheng, also known as Shirley, serves as Managing Director at Continental Holdings Limited. Siu Yin Cheng has over 45 years of experience in the jewellery industry. Ms. Cheng also plays an activ ...


CEO Compensation Analysis

Compensation vs Market: Shirley's total compensation ($USD331.99K) is above average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Board Members

NamePositionTenureCompensationOwnership
Wai Lap Chan
Chairman of the Board3.58yrsHK$2.94m0.040%
HK$ 121.5k
Siu Yin Cheng
MD & Executive Directorno dataHK$2.57mno data
Sing Chuk Chan
Founder & Executive Directorno dataHK$2.71mno data
Wai Kei Chan
Executive Director25.58yrsHK$1.26mno data
Gwon-hing Wong
Executive Director6.42yrsHK$1.69mno data
Shiu Tin Yu
Independent Non-Executive Director15.33yrsHK$50.00kno data
Ping Kuen Chan
Independent Non-Executive Director12.42yrsHK$50.00k0.0029%
HK$ 9.0k
Irons Sze
Independent Non-Executive Director11.83yrsHK$50.00kno data
Chi Fai Cheung
Independent Non-Executive Director10.33yrsHK$50.00kno data
Tat Wing Yam
Non-Executive Director6.42yrsHK$50.00k0.035%
HK$ 108.0k

11.1yrs

Average Tenure

62yo

Average Age

Experienced Board: 513's board of directors are seasoned and experienced ( 11.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Continental Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Continental Holdings Limited
  • Ticker: 513
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$307.403m
  • Shares outstanding: 6.83b
  • Website: https://www.continental.com.hk

Number of Employees


Location

  • Continental Holdings Limited
  • Kaiser Estate
  • 1st Floor, Flats M and N
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 1994

Biography

Continental Holdings Limited, an investment holding company, designs, manufactures, markets, wholesales, retails, and trades in fine jewelries and diamonds. It offers fine jewelries in precious metal sets ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:46
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.