SEHK:635

Stock Analysis Report

Executive Summary

Playmates Holdings Limited, an investment holding company, primarily engages in the creation, design, development, marketing, and distribution of toys in Europe, the Americas, the Asia Pacific, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

635

0.03%

HK Leisure

3.1%

HK Market


1 Year Return

0%

635

-17.0%

HK Leisure

0.5%

HK Market

Return vs Industry: 635 exceeded the Hong Kong Leisure industry which returned -17% over the past year.

Return vs Market: 635 matched the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

635IndustryMarket
7 Day1.0%0.03%3.1%
30 Day-1.9%-8.1%-1.8%
90 Day-16.3%-13.6%-4.8%
1 Year14.3%0%-14.0%-17.0%4.1%0.5%
3 Year52.3%10.8%-33.3%-37.9%15.8%4.2%
5 Year90.5%28.9%-52.1%-54.6%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 635 (HK$1.03) is trading below our estimate of fair value (HK$2.25)

Significantly Undervalued: 635 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 635 is good value based on its PE Ratio (4.4x) compared to the Leisure industry average (9.7x).

PE vs Market: 635 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 635's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 635 is good value based on its PB Ratio (0.3x) compared to the HK Leisure industry average (0.7x).


Next Steps

Future Growth

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

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 635's forecast earnings growth (12.4% per year) is above the savings rate (2%).

Earnings vs Market: 635's earnings (12.4% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 635's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 635's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 635's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 635's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Playmates Holdings performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 635's earnings have declined by -17.3% per year over the past 5 years.

Accelerating Growth: 635's earnings growth over the past year (10.5%) exceeds its 5-year average (-17.3% per year).

Earnings vs Industry: 635 earnings growth over the past year (10.5%) exceeded the Leisure industry 7%.


Return on Equity

High ROE: 635's Return on Equity (6.9%) is considered low.


Return on Assets

ROA vs Industry: 635's Return on Assets is below or equal to the Leisure industry average last year.


Return on Capital Employed

ROCE Improving: 635's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Playmates Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 635's short term assets (HK$1.8B) exceeds its short term liabilities (HK$783.1M)

Long Term Liabilities: 635's short term assets (1.8B) exceeds its long term liabilities (271.5M)


Debt to Equity History and Analysis

Debt Level: 635's debt to equity ratio (11.1%) is considered satisfactory

Reducing Debt: 635's debt to equity ratio has increased from 7.5% to 11.1% over the past 5 years.

Debt Coverage: 635's debt is well covered by operating cash flow (40%).

Interest Coverage: 635's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet

Inventory Level: 635 has a high level of physical assets or inventory.

Debt Coverage by Assets: 635's debt is covered by short term assets (assets are 2.374130x debt).


Next Steps

Dividend

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

14.08%

Current Dividend Yield


Dividend Yield vs Market

company14.1%marketbottom25%2.3%markettop25%6.3%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 635's dividend (14.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 635's dividend (14.08%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 635's dividend payments have been volatile in the past 10 years.

Growing Dividend: 635's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.9%), 635'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

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

17.2yrs

Average board tenure


CEO

Playmates Holdings has no CEO, or we have no data on them.


Board Age and Tenure

17.2yrs

Average Tenure

68yo

Average Age

Experienced Board: 635's board of directors are seasoned and experienced ( 17.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Sidney To (61yo)

    Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: HK$4.44m
  • Ed Chanda (65yo)

    Senior Vice President of Operations for Toy Division

    • Tenure: 0yrs
  • Alain Cheng (56yo)

    Legal Counsel & Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$2.58m
  • Ka Yan Ng (44yo)

    Company Secretary

    • Tenure: 0yrs
  • Lynn Morrison (75yo)

    President of Asian operations - Toy Division

    • Tenure: 0yrs
  • Helen Chan (40yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$2.60m

Board Members

  • Dominic Tsim (72yo)

    Deputy Chairman

    • Tenure: 0yrs
    • Compensation: HK$300.00k
  • Charles Ip (68yo)

    Independent Non-Executive Director

    • Tenure: 20.8yrs
    • Compensation: HK$200.00k
  • David Yu (71yo)

    Independent Non Executive Director

    • Tenure: 24.8yrs
    • Compensation: HK$260.00k
  • Sidney To (61yo)

    Executive Chairman

    • Tenure: 2.4yrs
    • Compensation: HK$4.44m
  • Anthony Lo (70yo)

    Independent Non Executive Director

    • Tenure: 26.8yrs
    • Compensation: HK$360.00k
  • Alain Cheng (56yo)

    Legal Counsel & Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$2.58m
  • Helen Chan (40yo)

    Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$2.60m

Company Information

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


Key Information

  • Name: Playmates Holdings Limited
  • Ticker: 635
  • Exchange: SEHK
  • Founded: 1966
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$2.146b
  • Shares outstanding: 2.04b
  • Website: https://www.playmates.net

Number of Employees


Location

  • Playmates Holdings Limited
  • The Toy House
  • 23rd Floor
  • Tsimshatsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PYHO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1994
PLJ2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1994
635SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1994

Biography

Playmates Holdings Limited, an investment holding company, primarily engages in the creation, design, development, marketing, and distribution of toys in Europe, the Americas, the Asia Pacific, and interna ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.