SEHK:8183

Stock Analysis Report

Executive Summary

Speed Apparel Holding Limited operates as an apparel supply chain management services provider primarily in Japan.

Snowflake

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Speed Apparel Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8183 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8183

0.2%

HK Luxury

-0.02%

HK Market


1 Year Return

6.0%

8183

20.9%

HK Luxury

0.6%

HK Market

Return vs Industry: 8183 underperformed the Hong Kong Luxury industry which returned 20.9% over the past year.

Return vs Market: 8183 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

8183IndustryMarket
7 Day0%0.2%-0.02%
30 Day1.9%2.5%1.4%
90 Day3.9%8.3%3.8%
1 Year9.4%6.0%25.1%20.9%4.2%0.6%
3 Yearn/a50.3%32.4%20.4%8.3%
5 Yearn/a43.7%15.8%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Speed Apparel Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Speed Apparel Holding undervalued compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8183 (HK$0.53) is trading below our estimate of fair value (HK$0.56)

Significantly Below Fair Value: 8183 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 8183 is good value based on its PE Ratio (7.6x) compared to the Luxury industry average (9.2x).

PE vs Market: 8183 is good value based on its PE Ratio (7.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8183's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8183 is overvalued based on its PB Ratio (2.2x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Speed Apparel Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.8%

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 Speed Apparel Holding 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 Speed Apparel Holding performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8183 has a high level of non-cash earnings.

Growing Profit Margin: 8183's current net profit margins (6.5%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 8183's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: 8183's earnings growth over the past year (41.7%) exceeds its 5-year average (35% per year).

Earnings vs Industry: 8183 earnings growth over the past year (41.7%) exceeded the Luxury industry -2.8%.


Return on Equity

High ROE: 8183's Return on Equity (28.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Speed Apparel Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 8183's short term assets (HK$261.5M) exceeds its short term liabilities (HK$142.9M)

Long Term Liabilities: 8183's short term assets (HK$261.5M) exceeds its long term liabilities (1.8M)


Debt to Equity History and Analysis

Debt Level: 8183 is debt free.

Reducing Debt: 8183 had no debt 5 years ago.

Debt Coverage: 8183 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8183 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8183 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8183's debt is covered by short term assets.


Next Steps

Dividend

What is Speed Apparel Holding's current dividend yield, its reliability and sustainability?

3.02%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8183's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 8183's dividend (3.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8183's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8183's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), 8183'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

What is the CEO of Speed Apparel Holding's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Wing Kai Chan (50yo)

3.4yrs

Tenure

HK$2,228,000

Compensation

Mr. Chan Wing Kai has been Chairman of the Board, Chief Executive Officer and Chief Compliance Officer at Speed Apparel Holding Limited since June 15, 2016. Mr. Chan has been an Executive Director of Speed ...


CEO Compensation Analysis

Compensation vs Market: Wing Kai's total compensation ($USD284.66K) is above average for companies of similar size in the Hong Kong market ($USD216.20K).

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


Board Age and Tenure

2.8yrs

Average Tenure

49yo

Average Age

Experienced Board: 8183's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Winnie Wu (44yo)

    CFO & Company Secretary

    • Tenure: 4.2yrs
  • Wing Kai Chan (50yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: HK$2.23m
  • Ming Ng (49yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: HK$728.00k

Board Members

  • Wilson Kwok (57yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$120.00k
  • Wing Kai Chan (50yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: HK$2.23m
  • Ming Ng (49yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: HK$728.00k
  • Siu Chan (49yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$120.00k
  • Edwin Ma (46yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$120.00k

Company Information

Speed Apparel Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Speed Apparel Holding Limited
  • Ticker: 8183
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$265.000m
  • Shares outstanding: 500.00m
  • Website: https://www.speedapparel.com.hk

Number of Employees


Location

  • Speed Apparel Holding Limited
  • Gemstar Tower
  • Flat A
  • Hung Hom
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8183SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2017

Biography

Speed Apparel Holding Limited operates as an apparel supply chain management services provider primarily in Japan. The company offers knitwear products comprising women’s wear and men’s wear; and apparel s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 13:00
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.