SEHK:518

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

518

4.5%

HK Luxury

3.3%

HK Market


1 Year Return

-23.9%

518

28.7%

HK Luxury

1.6%

HK Market

Return vs Industry: 518 underperformed the Hong Kong Luxury industry which returned 28.7% over the past year.

Return vs Market: 518 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

518IndustryMarket
7 Day-3.8%4.5%3.3%
30 Day-7.3%6.8%-0.009%
90 Day-3.8%8.2%-5.1%
1 Year-22.6%-23.9%33.2%28.7%5.3%1.6%
3 Year-50.1%-51.0%46.7%29.3%16.1%4.4%
5 Year-46.6%-53.2%46.1%17.6%20.4%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 518's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 518's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 518 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 518 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low 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 (0.7x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

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

17.1%

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 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.


Next Steps

Past Performance

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

-37.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 518 is unprofitable, and losses have increased over the past 5 years at a rate of -37.9% per year.

Accelerating Growth: Unable to compare 518's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 518 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-4.9%).


Return on Equity

High ROE: 518 has a negative Return on Equity (-27.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 518 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 518 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Tungtex (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 518's short term assets (HK$520.7M) exceeds its short term liabilities (HK$264.9M)

Long Term Liabilities: 518's short term assets (520.7M) exceeds its long term liabilities (9.3M)


Debt to Equity History and Analysis

Debt Level: 518's debt to equity ratio (41.5%) is considered high

Reducing Debt: 518's debt to equity ratio has reduced from 59% to 41.5% over the past 5 years.


Balance Sheet

Inventory Level: 518 has a high level of physical assets or inventory.

Debt Coverage by Assets: 518's debt is covered by short term assets (assets are 3.627160x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 518 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 518 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 5.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 518's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 518's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 518's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 518's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 518 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 518's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Tungtex (Holdings)'s salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Raymond Tung (54yo)

1.8yrs

Tenure

HK$2,390,000

Compensation

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


CEO Compensation Analysis

Compensation vs. Market: Raymond has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

Compensation vs Earnings: Raymond's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.2yrs

Average Tenure

49yo

Average Age

Experienced Management: 518's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

54yo

Average Age

Experienced Board: 518's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: 518 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$207,99925 Jul 19
Chung Man Tung
EntityIndividual
Role
Member of the Board of Directors
MD of the Group's Retail Operation & Executive Director
Shares400,000
Max PriceHK$0.52
BuyHK$625,39723 Jul 19
Chung Man Tung
EntityIndividual
Role
Member of the Board of Directors
MD of the Group's Retail Operation & Executive Director
Shares1,180,000
Max PriceHK$0.53

Ownership Breakdown


Management Team

  • Raymond Tung (54yo)

    MD & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$2.39m
  • Martin Tung (43yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: HK$2.42m
  • Billy Tung (42yo)

    MD of the Group's Retail Operation & Executive Director

    • Tenure: 9.6yrs
    • Compensation: HK$1.51m
  • Ray Chan (49yo)

    Group Treasurer and Assistant General Manager

    • Tenure: 0yrs
  • Yiu Cheung (49yo)

    Chief Financial Officer

    • Tenure: 3.2yrs
  • Hoi Keung Liu

    Company Secretary

    • Tenure: 2.2yrs

Board Members

  • Tony Chang (63yo)

    Independent & Non-Executive Director

    • Tenure: 25.8yrs
    • Compensation: HK$170.00k
  • Raymond Tung (54yo)

    MD & Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$2.39m
  • Monnie Tong (57yo)

    Executive Director of Do Do Fashion Limited

    • Tenure: 0yrs
  • Martin Tung (43yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: HK$2.42m
  • Billy Tung (42yo)

    MD of the Group's Retail Operation & Executive Director

    • Tenure: 9.6yrs
    • Compensation: HK$1.51m
  • Robert Yau (80yo)

    Independent & Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$170.00k
  • Leslie Chang (73yo)

    Independent & Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$170.00k
  • Li Ki (38yo)

    Executive Director of Do Do Fashion Limited

    • Tenure: 0yrs
  • Kenneth Yuen (44yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$75.00k

Company Information

Tungtex (Holdings) Company Limited's company bio, 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$236.187m
  • Shares outstanding: 463.11m
  • Website: https://www.tungtex.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
518SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

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 exp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:36
End of Day Share Price2019/10/17 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.