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608

High Fashion InternationalSEHK:608 Stock Report

Market Cap

HK$443.1m

7D

-2.0%

1Y

0%

Updated

20 Oct, 2021

Data

Company Financials
608 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends2/6

608 Overview

High Fashion International Limited, an investment holding company, engages in manufacturing, retailing, and trading garments in the United States, Europe, Greater China, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for High Fashion International
Historical stock prices
Current Share PriceHK$1.45
52 Week HighHK$1.36
52 Week LowHK$1.55
Beta0.19
1 Month Change-2.03%
3 Month Change-3.33%
1 Year Change0%
3 Year Change-17.14%
5 Year Change-27.50%
Change since IPO-11.59%

Recent News & Updates

Shareholder Returns

608HK LuxuryHK Market
7D-2.0%6.0%2.8%
1Y0%53.6%6.6%

Return vs Industry: 608 underperformed the Hong Kong Luxury industry which returned 53.6% over the past year.

Return vs Market: 608 underperformed the Hong Kong Market which returned 6.6% over the past year.

Price Volatility

Is 608's price volatile compared to industry and market?
608 volatility
608 Beta0.19
Industry Beta0.94
Market Beta1

Stable Share Price: 608 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: 608's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19785,100Will Lamhttps://www.highfashion.com.hk

High Fashion International Limited, an investment holding company, engages in manufacturing, retailing, and trading garments in the United States, Europe, Greater China, and internationally. The company operates through Manufacturing and Trading, Brand Business, and Property Investment and Development segments. It primarily offers upper tier, women’s and men’s, and woven silk and knitwear products, as well as sportswear, intimate apparel, neckwear, and home furnishings and textiles; silk ties and presents; and apparel accessories, such as plastic bags, hand tags, labels, clothes-racks, and stickers.

High Fashion International Fundamentals Summary

How do High Fashion International's earnings and revenue compare to its market cap?
608 fundamental statistics
Market CapHK$443.14m
Earnings (TTM)HK$197.07m
Revenue (TTM)HK$2.33b

2.2x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
608 income statement (TTM)
RevenueHK$2.33b
Cost of RevenueHK$1.94b
Gross ProfitHK$389.30m
ExpensesHK$192.23m
EarningsHK$197.07m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.64
Gross Margin16.71%
Net Profit Margin8.46%
Debt/Equity Ratio57.3%

How did 608 perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

8%

Payout Ratio

Valuation

Is High Fashion International undervalued compared to its fair value and its price relative to the market?

2.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 608 (HK$1.45) is trading above our estimate of fair value (HK$0.69)

Significantly Below Fair Value: 608 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 608 is good value based on its PE Ratio (2.2x) compared to the Hong Kong Luxury industry average (9.1x).

PE vs Market: 608 is good value based on its PE Ratio (2.2x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 608's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 608 is good value based on its PB Ratio (0.1x) compared to the HK Luxury industry average (0.8x).


Future Growth

How is High Fashion International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.5%

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 High Fashion International 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 High Fashion International performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 608 has a large one-off gain of HK$209.5M impacting its June 30 2021 financial results.

Growing Profit Margin: 608's current net profit margins (8.5%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: 608's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: 608's earnings growth over the past year (625.6%) exceeds its 5-year average (30.1% per year).

Earnings vs Industry: 608 earnings growth over the past year (625.6%) exceeded the Luxury industry 40.3%.


Return on Equity

High ROE: 608's Return on Equity (6.6%) is considered low.


Financial Health

How is High Fashion International's financial position?


Financial Position Analysis

Short Term Liabilities: 608's short term assets (HK$2.3B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: 608's short term assets (HK$2.3B) exceed its long term liabilities (HK$1.5B).


Debt to Equity History and Analysis

Debt Level: 608's debt to equity ratio (57.3%) is considered high.

Reducing Debt: 608's debt to equity ratio has increased from 53.5% to 57.3% over the past 5 years.

Debt Coverage: 608's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 608's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


Dividend

What is High Fashion International current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 608's dividend (2.76%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 608's dividend (2.76%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

Stable Dividend: 608's dividend payments have been volatile in the past 10 years.

Growing Dividend: 608's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.8%), 608'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?

1.7yrs

Average management tenure


CEO

Will Lam (38 yo)

1.67yrs

Tenure

HK$4,947,000

Compensation

Mr. Gee Yu Lam, also known as Will, serves as Managing Director of High Fashion International Limited since February 1, 2020 and serves as its Executive Director since April 1, 2014. Mr. Lam is responsible...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD636.15K) is above average for companies of similar size in the Hong Kong market ($USD226.12K).

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


Leadership Team

Experienced Management: 608's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 608's board of directors are considered experienced (7.5 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

High Fashion International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: High Fashion International Limited
  • Ticker: 608
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$443.142m
  • Shares outstanding: 305.62m
  • Website: https://www.highfashion.com.hk

Number of Employees


Location

  • High Fashion International Limited
  • CITIC Telecom Tower
  • 22nd Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 10:08
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.