SEHK:8211

Stock Analysis Report

Zhejiang Yongan Rongtong Holdings

Executive Summary

Zhejiang Yongan Rongtong Holdings Co., Ltd., together with its subsidiaries, manufactures and sells woven fabrics in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8211's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

8211

-0.007%

HK Luxury

0.6%

HK Market


1 Year Return

-4.8%

8211

6.6%

HK Luxury

-5.7%

HK Market

Return vs Industry: 8211 underperformed the Hong Kong Luxury industry which returned 6.6% over the past year.

Return vs Market: 8211 matched the Hong Kong Market which returned -5.7% over the past year.


Shareholder returns

8211IndustryMarket
7 Day0%-0.007%0.6%
30 Day4.7%-5.8%-0.8%
90 Day-7.3%-5.0%4.1%
1 Year-4.8%-4.8%10.3%6.6%-2.2%-5.7%
3 Year-53.2%-53.2%41.0%24.5%13.8%2.3%
5 Year-6.3%-6.3%44.3%16.2%14.8%-4.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhejiang Yongan Rongtong Holdings undervalued compared to its fair value and its price relative to the market?

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8211's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8211's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8211 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 8211 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 8211's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8211 is good value based on its PB Ratio (0.6x) compared to the HK Luxury industry average (0.8x).


Next Steps

Future Growth

How is Zhejiang Yongan Rongtong Holdings 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 Zhejiang Yongan Rongtong Holdings 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 Zhejiang Yongan Rongtong Holdings performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8211 is currently unprofitable.

Growing Profit Margin: 8211 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8211 is unprofitable, but has reduced losses over the past 5 years at a rate of 9.4% per year.

Accelerating Growth: Unable to compare 8211's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8211 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-1.7%).


Return on Equity

High ROE: 8211 has a negative Return on Equity (-5.16%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Consumer Durables industry.

Financial Health

How is Zhejiang Yongan Rongtong Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8211's short term assets (CN¥182.4M) exceed its short term liabilities (CN¥35.3M).

Long Term Liabilities: 8211's short term assets (CN¥182.4M) exceed its long term liabilities (CN¥47.0M).


Debt to Equity History and Analysis

Debt Level: 8211's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: 8211's debt to equity ratio has reduced from 184.1% to 12.3% over the past 5 years.


Balance Sheet

Inventory Level: 8211 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8211's debt is covered by short term assets (assets are 5.1x 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: 8211 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8211 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -48.7% each year


Next Steps

Dividend

What is Zhejiang Yongan Rongtong Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8211's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8211'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 8211's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8211's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8211'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?

6.5yrs

Average management tenure


CEO

Lianfeng He (45yo)

5.9yrs

Tenure

CN¥650,000

Compensation

Ms. Lianfeng He serves as Chief Executive Officer of Zhejiang Yonglong Enterprises Co. Ltd. since March 10, 2014 and served as its Deputy Chairman since March 10, 2014 until February 28, 2017. 


CEO Compensation Analysis

Compensation vs Market: Lianfeng's total compensation ($USD92.55K) is below average for companies of similar size in the Hong Kong market ($USD226.09K).

Compensation vs Earnings: Lianfeng's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Lianfeng He
CEO, GM & Executive Director5.9yrsCN¥650.00kno data
Hua Hu
Compliance Officer & Executive Director7.3yrsCN¥141.00kno data
Hengzhuang Wang
Executive Chairman0.3yrsno datano data
Yen Yung Chen
Company Secretary17.7yrsno datano data

6.5yrs

Average Tenure

44yo

Average Age

Experienced Management: 8211's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lianfeng He
CEO, GM & Executive Director5.9yrsCN¥650.00kno data
Hua Hu
Compliance Officer & Executive Director7.3yrsCN¥141.00kno data
Hengzhuang Wang
Executive Chairman0.3yrsno datano data
Weizhou Zhu
Independent Non-Executive Director0.8yrsno datano data
Wei Chen
Supervisor7.3yrsCN¥212.00kno data
Xing Pan
Independent Supervisor7.3yrsCN¥12.00kno data
Ke Song
Independent Non-Executive Director2.2yrsCN¥100.00kno data
Peng Leng
Independent Non-Executive Director0.8yrsno datano data
Jinsong Ma
Non-Executive Deputy Chairman0.2yrsno datano data

2.2yrs

Average Tenure

43yo

Average Age

Experienced Board: 8211's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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.


Top Shareholders

Company Information

Zhejiang Yongan Rongtong Holdings Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang Yongan Rongtong Holdings Co., Ltd.
  • Ticker: 8211
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$189.303m
  • Shares outstanding: 1.06b
  • Website: https://www.zj-yongan.com

Number of Employees


Location

  • Zhejiang Yongan Rongtong Holdings Co., Ltd.
  • Shui On Centre
  • 33rd Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8211SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2002

Biography

Zhejiang Yongan Rongtong Holdings Co., Ltd., together with its subsidiaries, manufactures and sells woven fabrics in the People's Republic of China. It offers cotton, polyester, spandex, T/R, and fashion fabrics. The company also provides subcontracting, asset management, and investment advisory services. It also exports its products to the United States, Europe, Japan, South Africa, and Arabic countries. The company was formerly known as Zhejiang Yonglong Enterprises Co., Ltd. and changed its name to Zhejiang Yongan Rongtong Holdings Co., Ltd. in May 2017. The company was founded in 1998 and is headquartered in Wanchai, Hong Kong. Zhejiang Yongan Rongtong Holdings Co., Ltd. is a subsidiary of Guizhou Yongan Finance Holdings Company Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:40
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.