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518

Tungtex (Holdings)SEHK:518 Stock Report

Market Cap

HK$169.2m

7D

1.4%

1Y

-36.4%

Updated

22 Oct, 2021

Data

Company Financials
518 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends3/6

518 Overview

Tungtex (Holdings) Company Limited, an investment holding company, manufactures, sells, retails, and trades in garments in North America, Asia, Europe, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Tungtex (Holdings)
Historical stock prices
Current Share PriceHK$0.38
52 Week HighHK$0.34
52 Week LowHK$0.74
Beta0.40
1 Month Change7.14%
3 Month Change-5.06%
1 Year Change-36.44%
3 Year Change-42.31%
5 Year Change-63.59%
Change since IPO-64.95%

Recent News & Updates

Aug 18
We Think Shareholders Are Less Likely To Approve A Pay Rise For Tungtex (Holdings) Company Limited's (HKG:518) CEO For Now

We Think Shareholders Are Less Likely To Approve A Pay Rise For Tungtex (Holdings) Company Limited's (HKG:518) CEO For Now

The underwhelming share price performance of Tungtex (Holdings) Company Limited ( HKG:518 ) in the past three years...

Jan 31
We're Not Counting On Tungtex (Holdings) (HKG:518) To Sustain Its Statutory Profitability

We're Not Counting On Tungtex (Holdings) (HKG:518) To Sustain Its Statutory Profitability

As a general rule, we think profitable companies are less risky than companies that lose money. Having said that...

Shareholder Returns

518HK LuxuryHK Market
7D1.4%4.4%1.8%
1Y-36.4%54.1%5.7%

Return vs Industry: 518 underperformed the Hong Kong Luxury industry which returned 54.1% over the past year.

Return vs Market: 518 underperformed the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 518's price volatile compared to industry and market?
518 volatility
518 Beta0.40
Industry Beta0.94
Market Beta1

Stable Share Price: 518 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 518's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19771,300Raymond Tunghttps://www.tungtex.com

Tungtex (Holdings) Company Limited, an investment holding company, manufactures, sells, retails, and trades in garments in North America, Asia, Europe, and internationally. The company manufactures and exports ladies sportswear, casual wear, and suit pieces; and various women career and casual sportswear for department stores, chain stores, specialty stores, catalogs, and designer labels, as well as silk-blended, linen, cotton, and synthetic apparel products. As of March 31, 2021, it operated 177 Betu-brand stores in Mainland China.

Tungtex (Holdings) Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
518 income statement (TTM)
RevenueHK$460.38m
Cost of RevenueHK$361.89m
Gross ProfitHK$98.49m
Expenses-HK$157.51m
EarningsHK$256.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin21.39%
Net Profit Margin55.61%
Debt/Equity Ratio22.2%

How did 518 perform over the long term?

See historical performance and comparison

Dividends

8.0%

Current Dividend Yield

7%

Payout Ratio

Valuation

Is Tungtex (Holdings) undervalued compared to its fair value and its price relative to the market?

0.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 518 (HK$0.38) is trading above our estimate of fair value (HK$0.13)

Significantly Below Fair Value: 518 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 518 is good value based on its PE Ratio (0.7x) compared to the Hong Kong Luxury industry average (8.9x).

PE vs Market: 518 is good value based on its PE Ratio (0.7x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 518's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 518 is good value based on its PB Ratio (0.4x) compared to the HK Luxury industry average (0.8x).


Future Growth

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

22.8%

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 Tungtex (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.


Past Performance

How has Tungtex (Holdings) performed over the past 5 years?

49.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 518 has a high level of non-cash earnings.

Growing Profit Margin: 518 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 518 has become profitable over the past 5 years, growing earnings by 49.9% per year.

Accelerating Growth: 518 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 518 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (40.3%).


Return on Equity

High ROE: 518's Return on Equity (60.6%) is considered outstanding.


Financial Health

How is Tungtex (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 518's short term assets (HK$554.2M) exceed its short term liabilities (HK$186.8M).

Long Term Liabilities: 518's short term assets (HK$554.2M) exceed its long term liabilities (HK$10.5M).


Debt to Equity History and Analysis

Debt Level: 518's debt to equity ratio (22.2%) is considered satisfactory.

Reducing Debt: 518's debt to equity ratio has increased from 16.7% to 22.2% over the past 5 years.

Debt Coverage: 518's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 518's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Tungtex (Holdings) current dividend yield, its reliability and sustainability?

8.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 518's dividend (8%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 518's dividend (8%) is in the top 25% of dividend payers in the Hong Kong market (6.81%)


Stability and Growth of Payments

Stable Dividend: 518's dividend payments have been volatile in the past 10 years.

Growing Dividend: 518's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.5%), 518's dividend payments are thoroughly 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?

3.8yrs

Average management tenure


CEO

Raymond Tung (56 yo)

3.75yrs

Tenure

HK$2,696,000

Compensation

Mr. Wai Man Tung, also known as Raymond, has been Managing Director of Tungtex (Holdings) Company Limited since January 12, 2018. Mr. Tung has been a Director of Tungtex (Holdings) Company Limited since 20...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD346.78K) is above average for companies of similar size in the Hong Kong market ($USD228.05K).

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


Leadership Team

Experienced Management: 518's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 518's board of directors are considered experienced (3.8 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

Tungtex (Holdings) Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Tungtex (Holdings) Company Limited
  • Ticker: 518
  • Exchange: SEHK
  • Founded: 1977
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$169.150m
  • Shares outstanding: 451.07m
  • Website: https://www.tungtex.com

Number of Employees


Location

  • Tungtex (Holdings) Company Limited
  • Tungtex Building
  • 12th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:32
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.