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Honma Golf

SEHK:6858
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6858
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Consumer Durables
Company description

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally. The last earnings update was 20 days ago. More info.


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6858 Share Price and Events
7 Day Returns
-2.6%
SEHK:6858
0.1%
HK Leisure
0.5%
HK Market
1 Year Returns
-17.6%
SEHK:6858
-29.2%
HK Leisure
-15.9%
HK Market
6858 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Honma Golf (6858) -2.6% -4.6% -16.3% -17.6% - -
HK Leisure 0.1% -4.2% -11.1% -29.2% -31% -44.4%
HK Market 0.5% -4% -8.6% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 6858 outperformed the Leisure industry which returned -29.2% over the past year.
  • 6858 underperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
6858
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Honma Golf's competitors could be found in our database.

Value

 Is Honma Golf undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Honma Golf to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Honma Golf.

SEHK:6858 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:6858
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Leisure Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.95 (1 + (1- 30.86%) (6.44%))
0.995
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.995 * 5.96%)
7.93%

Discounted Cash Flow Calculation for SEHK:6858 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Honma Golf is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:6858 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 7.93%)
2019 5,827.00 Analyst x2 5,398.73
2020 3,025.00 Analyst x1 2,596.68
2021 5,154.50 Analyst x2 4,099.46
2022 5,650.00 Analyst x1 4,163.28
2023 6,046.95 Est @ 7.03% 4,128.29
2024 6,380.67 Est @ 5.52% 4,035.96
2025 6,665.51 Est @ 4.46% 3,906.25
2026 6,913.85 Est @ 3.73% 3,754.00
2027 7,135.71 Est @ 3.21% 3,589.70
2028 7,338.88 Est @ 2.85% 3,420.56
Present value of next 10 years cash flows ¥39,092.91
SEHK:6858 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥7,338.88 × (1 + 2%) ÷ (7.93% – 2%)
¥126,242.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥126,242.61 ÷ (1 + 7.93%)10
¥58,840.11
SEHK:6858 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥39,092.91 + ¥58,840.11
¥97,933.02
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥97,933.02 / 609.05
¥160.8
SEHK:6858 Discount to Share Price
Calculation Result
Exchange Rate JPY/HKD
(Reporting currency to currency of SEHK:6858)
0.072
Value per Share
(HKD)
= Value per Share in JPY x Exchange Rate (JPY/HKD)
= ¥160.8 x 0.072
HK$11.61
Value per share (HKD) From above. HK$11.61
Current discount Discount to share price of HK$7.00
= -1 x (HK$7.00 - HK$11.61) / HK$11.61
39.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Honma Golf is available for.
Intrinsic value
40%
Share price is HK$7 vs Future cash flow value of HK$11.61
Current Discount Checks
For Honma Golf to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Honma Golf's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Honma Golf's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Honma Golf's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Honma Golf's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6858 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in JPY ¥6.91
SEHK:6858 Share Price ** SEHK (2019-06-14) in HKD HK$7
SEHK:6858 Share Price converted to JPY reporting currency Exchange rate (HKD/ JPY) 13.847 ¥96.93
Hong Kong Leisure Industry PE Ratio Median Figure of 12 Publicly-Listed Leisure Companies 11.86x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Honma Golf.

SEHK:6858 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6858 Share Price ÷ EPS (both in JPY)

= 96.93 ÷ 6.91

14.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honma Golf is overvalued based on earnings compared to the HK Leisure industry average.
  • Honma Golf is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Honma Golf's expected growth come at a high price?
Raw Data
SEHK:6858 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
20.5%per year
Global Leisure Industry PEG Ratio Median Figure of 28 Publicly-Listed Leisure Companies 1.26x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:6858 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.02x ÷ 20.5%

0.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honma Golf is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Honma Golf's assets?
Raw Data
SEHK:6858 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in JPY ¥48.01
SEHK:6858 Share Price * SEHK (2019-06-14) in HKD HK$7
SEHK:6858 Share Price converted to JPY reporting currency Exchange rate (HKD/ JPY) 13.847 ¥96.93
Hong Kong Leisure Industry PB Ratio Median Figure of 21 Publicly-Listed Leisure Companies 0.98x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:6858 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6858 Share Price ÷ Book Value per Share (both in JPY)

= 96.93 ÷ 48.01

2.02x

* Primary Listing of Honma Golf.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Honma Golf is overvalued based on assets compared to the HK Leisure industry average.
X
Value checks
We assess Honma Golf's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Leisure industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Leisure industry average (and greater than 0)? (1 check)
  5. Honma Golf has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Honma Golf expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Honma Golf expected to grow at an attractive rate?
  • Honma Golf's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Honma Golf's earnings growth is expected to exceed the Hong Kong market average.
  • Honma Golf's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:6858 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6858 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 20.5%
SEHK:6858 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 13.2%
Hong Kong Leisure Industry Earnings Growth Rate Market Cap Weighted Average 18.8%
Global Leisure Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:6858 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6858 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 42,116 6,140 6,921 1
2021-03-31 36,037 5,675 7,054 3
2020-03-31 31,081 3,515 4,554 1
SEHK:6858 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-03-31 27,771 2,609 4,209
2018-12-31 27,524 2,758 4,583
2018-09-30 27,278 2,906 4,957
2018-06-30 26,787 2,420 4,446
2018-03-31 26,296 1,935 3,934
2017-12-31 25,427 2,966 4,654
2017-09-30 24,559 3,997 5,373
2017-06-30 24,400 3,858 4,971
2017-03-31 24,242 3,719 4,570
2016-12-31 23,471 3,383 3,858
2016-09-30 22,700 3,047 3,147
2016-06-30 22,534 2,239 3,358

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Honma Golf's earnings are expected to grow significantly at over 20% yearly.
  • Honma Golf's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:6858 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Honma Golf Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6858 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 11.36 11.36 11.36 1.00
2021-03-31 11.58 13.17 9.15 3.00
2020-03-31 7.48 7.48 7.48 1.00
SEHK:6858 Past Financials Data
Date (Data in JPY Millions) EPS *
2019-03-31 6.91
2018-12-31 7.53
2018-09-30 8.14
2018-06-30 7.30
2018-03-31 6.46
2017-12-31 7.66
2017-09-30 8.86
2017-06-30 8.67
2017-03-31 8.47
2016-12-31 7.60
2016-09-30 6.62
2016-06-30 7.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Honma Golf is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Honma Golf's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Honma Golf has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Honma Golf performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Honma Golf's growth in the last year to its industry (Leisure).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Honma Golf's year on year earnings growth rate has been positive over the past 5 years.
  • Honma Golf's 1-year earnings growth is less than its 5-year average (7% vs 12.4%)
  • Honma Golf's earnings growth has exceeded the HK Leisure industry average in the past year (7% vs -9%).
Earnings and Revenue History
Honma Golf's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Honma Golf Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6858 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 27,770.70 4,209.37 10,866.25
2018-12-31 27,524.13 4,583.32 10,476.74
2018-09-30 27,277.56 4,957.26 10,087.24
2018-06-30 26,786.86 4,445.78 10,009.85
2018-03-31 26,296.16 3,934.29 9,932.46
2017-12-31 25,427.34 4,653.56 9,580.84
2017-09-30 24,558.53 5,372.83 9,229.23
2017-06-30 24,400.48 4,971.39 9,539.63
2017-03-31 24,242.44 4,569.95 9,850.03
2016-12-31 23,471.17 3,858.30 9,941.34
2016-09-30 22,699.90 3,146.65 10,032.65
2016-06-30 22,534.33 3,357.93 9,726.64
2016-03-31 22,368.76 3,569.20 9,420.63
2015-03-31 18,525.09 2,303.78 8,947.74
2014-03-31 15,713.46 2,594.13 7,511.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Honma Golf has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Honma Golf used its assets more efficiently than the HK Leisure industry average last year based on Return on Assets.
  • Honma Golf's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Honma Golf's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Leisure industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Honma Golf has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Honma Golf's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Honma Golf's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Honma Golf is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Honma Golf's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Honma Golf's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 8.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Honma Golf Company Filings, last reported 2 months ago.

SEHK:6858 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 29,192.73 3,800.00 14,674.12
2018-12-31 29,192.73 3,800.00 14,674.12
2018-09-30 28,289.26 3,000.00 18,443.90
2018-06-30 28,289.26 3,000.00 18,443.90
2018-03-31 28,004.91 2,500.00 14,147.32
2017-12-31 28,004.91 2,500.00 14,147.32
2017-09-30 27,002.99 1,450.00 16,091.99
2017-06-30 27,002.99 1,450.00 16,091.99
2017-03-31 25,729.28 291.29 12,712.51
2016-12-31 25,729.28 291.29 12,712.51
2016-09-30 3,807.71 9,505.69 2,615.38
2016-06-30 3,807.71 9,505.69 2,615.38
2016-03-31 5,527.30 9,077.71 1,825.81
2015-03-31 3,515.79 1,317.68 2,315.07
2014-03-31 8,608.85 603.47 3,018.00
  • Honma Golf's level of debt (13%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (7% vs 13% today).
  • Debt is well covered by operating cash flow (68.7%, greater than 20% of total debt).
  • Honma Golf earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Honma Golf's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Honma Golf has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Honma Golf's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.51%
Current annual income from Honma Golf dividends. Estimated to be 5.27% next year.
If you bought HK$2,000 of Honma Golf shares you are expected to receive HK$70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Honma Golf's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Honma Golf's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Upcoming dividend payment

Purchase Honma Golf before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:6858 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Hong Kong Leisure Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:6858 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 5.68 1.00
2021-03-31 5.38 3.00
2020-03-31 3.74 1.00
SEHK:6858 Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-05-27 3.400 3.381
2018-12-28 3.500 3.061
2018-11-20 3.500 3.011
2018-09-12 3.230 3.288
2017-07-24 3.000 2.646

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Honma Golf has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Honma Golf only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Honma Golf's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Honma Golf's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Honma Golf afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Honma Golf has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jianguo Liu
COMPENSATION ¥29,109,000
AGE 49
TENURE AS CEO 3 years
CEO Bio

Mr. Jianguo Liu has been Chairman of the Board and President of Honma Golf Limited and Honma Golf Co., Ltd., since June 14, 2016. Mr. Liu is responsible for formulating the overall development strategies and business plans of Honma Group and overseeing the management and strategic development of Honma. Mr. Liu has been Executive Director of Honma Golf Limited and Honma Golf Co., Ltd. since June 14, 2016. He has over 25 years of experience in business management. From May 1991 to August 2000, he served as the General Manager of Zhejiang Changjiang Electronical Industry Co., Ltd., where he was responsible for general management and daily operations of the company. He has been the Chairman of Shanghai POVOS Enterprise (Group) Co., Ltd. since January 2002 and has been Chairman of Zhejiang POVOS Appliance Co., Ltd. since September 2000. Mr. Liu has been the Chairman of Honma Japan since June 2010 and serves as its Representative Director. He serves as a Director of Honma Holdings. Mr. Liu obtained an Executive Master of Business Administration degree from Guanghua School of Management, Peking University, PRC in January 2007.

CEO Compensation
  • Jianguo's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jianguo's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Honma Golf management team in years:

3
Average Tenure
57
Average Age
  • The tenure for the Honma Golf management team is about average.
Management Team

Jianguo Liu

TITLE
Chairman & President
COMPENSATION
¥29M
AGE
49
TENURE
3 yrs

Yasuki Ito

TITLE
Chief Marketing Officer
COMPENSATION
¥37M
AGE
57
TENURE
3 yrs

Jun Zuo

TITLE
Chief Administrative Officer
COMPENSATION
¥21M
AGE
45
TENURE
3 yrs

Yuji Murai

TITLE
Chief Sales Officer
COMPENSATION
¥26M
AGE
58
TENURE
3 yrs

Weiwen Bian

TITLE
Chief Financial Officer
AGE
48
TENURE
3 yrs

Hiroshi Suwa

TITLE
Managing Executive Officer of Product Development
AGE
62
TENURE
3 yrs

Ying Sham

TITLE
Company Secretary
TENURE
0.6 yrs

Kenji Ueda

TITLE
Director of Golf Club Manufacturing & Procurement Dept. and Executive Officer of Production
AGE
61
TENURE
4.1 yrs
Board of Directors Tenure

Average tenure and age of the Honma Golf board of directors in years:

2.8
Average Tenure
57
Average Age
  • The average tenure for the Honma Golf board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jianguo Liu

TITLE
Chairman & President
COMPENSATION
¥29M
AGE
49
TENURE
3 yrs

Yasuki Ito

TITLE
Chief Marketing Officer
COMPENSATION
¥37M
AGE
57
TENURE
3 yrs

Jun Zuo

TITLE
Chief Administrative Officer
COMPENSATION
¥21M
AGE
45
TENURE
3 yrs

Yuji Murai

TITLE
Chief Sales Officer
COMPENSATION
¥26M
AGE
58
TENURE
3 yrs

Christopher Lu

TITLE
Independent Non-Executive Director
COMPENSATION
¥4M
AGE
59
TENURE
2.8 yrs

Jianguo Wang

TITLE
Independent Non-Executive Director
COMPENSATION
¥2M
AGE
58
TENURE
2.8 yrs

Hui Xu

TITLE
Independent Non-Executive Director
COMPENSATION
¥2M
AGE
45
TENURE
2.8 yrs

Xiaoping Yang

TITLE
Non Executive Director
AGE
54
TENURE
1.1 yrs

Robert Ho

TITLE
Non-Executive Director
AGE
69
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • Honma Golf insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
25. Mar 19 Sell Yasuki Ito Individual 22. Mar 19 22. Mar 19 -97,000 HK$8.34 HK$-808,980
22. Mar 19 Sell Yasuki Ito Individual 19. Mar 19 19. Mar 19 -2,500 HK$8.65 HK$-21,625
22. Mar 19 Sell Yasuki Ito Individual 20. Mar 19 20. Mar 19 -20,500 HK$8.31 HK$-170,355
X
Management checks
We assess Honma Golf's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Honma Golf has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why You Should Like Honma Golf Limited’s (HKG:6858) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Taking A Look At Honma Golf Limited's (HKG:6858) ROE

Honma Golf has a ROE of 14%, based on the last twelve months. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Honma Golf Limited (HKG:6858): Is It A Good Long Term Opportunity?

Honma Golf Limited's (HKG:6858) latest earnings announcement in March 2018a … showed

Simply Wall St -

Investors Are Undervaluing Honma Golf Limited (HKG:6858) By 25.84%

I am going to run you through how I calculated the intrinsic value of Honma Golf Limited (HKG:6858). … by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF).

Simply Wall St -

Should Honma Golf Limited (HKG:6858) Be Part Of Your Portfolio?

Honma Golf Limited (HKG:6858) has returned an average dividend yield of 3.00% annually to shareholders. … Does Honma Golf tick all the boxes of a great dividend stock? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Who Really Owns Honma Golf Limited (HKG:6858)?

In this analysis, my focus will be on developing a perspective on Honma Golf Limited’s (HKG:6858) latest ownership structure, a less discussed, but important factor. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Check out our latest analysis for Honma Golf

Simply Wall St -

What Should You Know About Honma Golf Limited's (HKG:6858) Capital Returns?

and want a simplistic look at the return on Honma Golf Limited (HKG:6858) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

Should You Expect Honma Golf Limited (HKG:6858) To Continue Delivering An ROE Of 14.05%?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between Honma Golf Limited (HKG:6858)’s return fundamentals and stock market performance. … With an ROE of 14.05%, Honma Golf Limited (HKG:6858) returned in-line to its own industry which delivered 11.89% over the past year.

Simply Wall St -

Honma Golf Limited (HKG:6858): Poised For Long Term Success?

Since Honma Golf Limited (HKG:6858) released its earnings in March 2018,. … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of 17.19%

Simply Wall St -

Honma Golf Limited (HKG:6858) Has Attractive Fundamentals, Here's Why

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Honma Golf Limited (HKG:6858) due to its excellent fundamentals in more than one area. … a excellent

Simply Wall St -

Company Info

Description

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally. It offers drivers and fairway woods, irons, wedges, utilities, putters, golf balls, apparel and footwear products, golf bags, golf club head covers, gloves, head wears, and other golf-related accessories under the BERES, TOUR WORLD, Be ZEAL, and HONMA brands. The company distributes its products through HONMA-branded self-operated stores; direct third-party retailers, including sports megastores; and wholesale distributors that on-sell its products to other third parties. As of March 31, 2017, it had 84 HONMA-branded self-operated stores. The company was founded in 1959 and is headquartered in Tokyo, Japan.

Details
Name: Honma Golf Limited
6858
Exchange: SEHK
Founded: 1959
HK$4,263,350,000
609,050,000
Website: http://www.honmagolf.co.jp
Address: Honma Golf Limited
Roppongi Hills Mori Tower,
35th Floor,
Tokyo,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6858 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 06. Oct 2016
OTCPK HNMG.F Ordinary Shares Pink Sheets LLC US USD 06. Oct 2016
DB HF5 Ordinary Shares Deutsche Boerse AG DE EUR 06. Oct 2016
Number of employees
Current staff
Staff numbers
870
Honma Golf employees.
Industry
Leisure Products
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 12:58
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/28
Last earnings filing: 2019/05/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.