SEHK:764

Stock Analysis Report

Executive Summary

Eternity Investment Limited, an investment holding company, primarily engages in the sale of financial assets and money lending businesses.

Risk Analysis

Earnings have declined by -58.14% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Global Mastermind Holdings

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Share Price & News

How has Eternity Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 764's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.6%

764

5.1%

HK Luxury

2.9%

HK Market


1 Year Return

-19.6%

764

8.4%

HK Luxury

-3.8%

HK Market

Return vs Industry: 764 underperformed the Hong Kong Luxury industry which returned 8.4% over the past year.

Return vs Market: 764 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

764IndustryMarket
7 Day-8.6%5.1%2.9%
30 Day3.9%-8.0%-4.1%
90 Day-11.1%-5.1%2.9%
1 Year-19.6%-19.6%12.1%8.4%-0.2%-3.8%
3 Year-34.4%-34.4%40.1%23.8%15.3%3.7%
5 Yearn/a47.6%18.9%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eternity Investment undervalued compared to its fair value and its price relative to the market?

0.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 764's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 764's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 764 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 764 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 764's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 764 is good value based on its PB Ratio (0.2x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

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

18.0%

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 Eternity Investment 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 Eternity Investment performed over the past 5 years?

-58.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 764 is currently unprofitable.

Growing Profit Margin: 764 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 764 is unprofitable, and losses have increased over the past 5 years at a rate of -58.1% per year.

Accelerating Growth: Unable to compare 764's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 764 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-1.7%).


Return on Equity

High ROE: 764 has a negative Return on Equity (-19.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eternity Investment's financial position?


Financial Position Analysis

Short Term Liabilities: 764's short term assets (HK$1.7B) exceed its short term liabilities (HK$593.0M).

Long Term Liabilities: 764's short term assets (HK$1.7B) exceed its long term liabilities (HK$874.9M).


Debt to Equity History and Analysis

Debt Level: 764's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: 764's debt to equity ratio has increased from 0.01% to 25.9% over the past 5 years.


Balance Sheet

Inventory Level: 764 has a high level of physical assets or inventory.

Debt Coverage by Assets: 764's debt is covered by short term assets (assets are 2.5x 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: 764 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 764 has less than a year of cash runway if free cash flow continues to grow at historical rates of 0% each year.


Next Steps

Dividend

What is Eternity Investment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 764's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 764's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 764's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 764's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 764 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 764's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average board tenure


CEO

Hong Wai Lei (51yo)

10.1yrs

Tenure

HK$18,527,000

Compensation

Mr. Hong Wai Lei has been the Chairman of Eternity Investment Limited since February 1, 2010. Mr. Lei has been Chief Executive Officer and Executive Director of Eternity Investment Limited since January 18 ...


CEO Compensation Analysis

Compensation vs Market: Hong Wai's total compensation ($USD2.38M) is above average for companies of similar size in the Hong Kong market ($USD225.53K).

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


Board Members

NamePositionTenureCompensationOwnership
Hong Wai Lei
Chairman & CEO10.1yrsHK$18.53m10.7% HK$65.4m
Kwok Cheung
Executive Director9yrsHK$18.53mno data
Kwok Cheung
Executive Director8.5yrsHK$1.15mno data
Kin Wah Chan
Company Secretary & Executive Director10.1yrsHK$9.18m0.17% HK$1.0m
Tak Chuen Wong
Independent Non-Executive Director8.3yrsHK$120.00kno data
Heung Ng
Independent Non-Executive Director8.5yrsHK$120.00kno data
Shing Wan
Independent Non-Executive Director9.8yrsHK$120.00kno data

9.0yrs

Average Tenure

52yo

Average Age

Experienced Board: 764's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 764 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

Eternity Investment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eternity Investment Limited
  • Ticker: 764
  • Exchange: SEHK
  • Founded:
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$611.137m
  • Shares outstanding: 3.82b
  • Website: https://null

Number of Employees


Location

  • Eternity Investment Limited
  • West Tower
  • Unit 1211
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
764SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2000

Biography

Eternity Investment Limited, an investment holding company, primarily engages in the sale of financial assets and money lending businesses. The company operates in four segments: Property Investment, Sale of Financial Assets, Money Lending, and Sale of Jewelry Products. It also designs and sells jewelry products; sells precious stones; and leases rental properties. In addition, the company manages membership-based golf club and resort that provides recreational and wellness services; trades in environmental protection products; provides property development and property management services; and manages and operates cultural forum and related cultural activities. It operates in Hong Kong, the People’s Republic of China, Australia, Europe, the Middle East, and the United States. The company was formerly known as China Star Investment Holdings Limited and changed its name to Eternity Investment Limited in June 2010. Eternity Investment Limited is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:08
End of Day Share Price2020/02/17 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.