SEHK:608

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High Fashion International

Executive Summary

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


Snowflake Analysis

Undervalued with acceptable track record.

Share Price & News

How has High Fashion International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 608 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

608

3.6%

HK Luxury

0.8%

HK Market


1 Year Return

-13.5%

608

-1.2%

HK Luxury

5.5%

HK Market

Return vs Industry: 608 underperformed the Hong Kong Luxury industry which returned -1.9% over the past year.

Return vs Market: 608 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

608IndustryMarket
7 Day0%3.6%0.8%
30 Day0%2.5%-2.4%
90 Day-7.0%7.0%7.6%
1 Year-10.2%-13.5%1.0%-1.2%9.8%5.5%
3 Year-20.8%-28.6%33.8%19.5%2.1%-8.9%
5 Year-31.2%-41.4%40.7%20.4%12.7%-6.2%

Price Volatility Vs. Market

How volatile is High Fashion International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is High Fashion International 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: 608 (HK$1.47) is trading below our estimate of fair value (HK$6.25)

Significantly Below Fair Value: 608 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 608 is good value based on its PE Ratio (6.2x) compared to the HK Luxury industry average (7.6x).

PE vs Market: 608 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (10.4x).


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 (0.2x) compared to the HK Luxury industry average (0.6x).


Next Steps

Future Growth

How is High Fashion International 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 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.


Next Steps

Past Performance

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

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 608 has a large one-off gain of HK$17.9M impacting its December 31 2019 financial results.

Growing Profit Margin: 608's current net profit margins (2.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 608's earnings have declined by 10.7% per year over the past 5 years.

Accelerating Growth: 608's earnings growth over the past year (64.9%) exceeds its 5-year average (-10.7% per year).

Earnings vs Industry: 608 earnings growth over the past year (64.9%) exceeded the Luxury industry -14.7%.


Return on Equity

High ROE: 608's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is High Fashion International's financial position?


Financial Position Analysis

Short Term Liabilities: 608's short term assets (HK$2.2B) exceed its short term liabilities (HK$1.7B).

Long Term Liabilities: 608's short term assets (HK$2.2B) exceed its long term liabilities (HK$850.9M).


Debt to Equity History and Analysis

Debt Level: 608's debt to equity ratio (56.2%) is considered high.

Reducing Debt: 608's debt to equity ratio has reduced from 87% to 56.2% over the past 5 years.

Debt Coverage: 608's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: 608's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 608's dividend (4.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 608's dividend (4.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.85%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.5%), 608'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?

0.5yrs

Average management tenure


CEO

Will Lam (37 yo)

0.50

Tenure

HK$6,122,000

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 ($USD789.91K) is above average for companies of similar size in the Hong Kong market ($USD230.44K).

Compensation vs Earnings: Will's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Foo Wah Lam
Co-Founder & Executive Chairmanno dataHK$8.27m51.98%
HK$ 233.5m
Gee Yu Lam
MD & Executive Director0.50yrHK$6.12mno data
Siu So
Executive Directorno dataHK$4.72m0.97%
HK$ 4.4m
Din Yu Lam
MD of China & Executive Director6.33yrsHK$5.22mno data
Ping Lin
Chairman & CEO of High Fashion Silk (Zhejiang) Co Ltdno datano datano data
Ellen Dawson-Bruckenthal
President of August Silk Inc and Chief Merchandise Officer of August Silk Incno datano datano data
Siu Chow
Chief Executive Officer of Knitwear Centre - High Fashion (China) Co Ltdno datano datano data
Valentine Dunne
CEO of High Fashion Garments Inc & August Silk Incno datano datano data
Pik Man Yung
Company Secretary0.083yrno datano data
Chun Chan
COO of August Silk Inc & COO of High Fashion International (USA) Incno datano datano data
Kin Pang
Chief Financial Officer of High Fashion (China) Co Ltd16.58yrsno datano data

0.5yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 608's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Foo Wah Lam
Co-Founder & Executive Chairmanno dataHK$8.27m51.98%
HK$ 233.5m
Gee Yu Lam
MD & Executive Director0.50yrHK$6.12mno data
Siu So
Executive Directorno dataHK$4.72m0.97%
HK$ 4.4m
Din Yu Lam
MD of China & Executive Director6.33yrsHK$5.22mno data
Ping Lin
Chairman & CEO of High Fashion Silk (Zhejiang) Co Ltdno datano datano data
Kwok Wing Yeung
Non-Executive Director13.42yrsHK$200.00kno data
Hok Lim Leung
Independent Non Executive Director15.83yrsHK$200.00kno data
Gen Ruan
GM & Director of Zhejiang High Fashion Culture Creativity and Vice Chairman of High Fashion (China)no datano datano data
Suk Leung
Vice Chairman of High Fashion (China) Co Ltd & Director of High Fashion Garments Company Limitedno datano datano data
Shiu Hoi Wong
Independent Non Executive Director16.08yrsHK$200.00kno data
Kwok Pan Chung
Independent Non Executive Director1.08yrsHK$87.00kno data
Ka Hai Hung
Non-Executive Director2.67yrsHK$1.04mno data

6.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 608's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 608 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 company bio, 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$449.255m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
608SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1992

Biography

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 op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:47
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.