SEHK:8278

Stock Analysis Report

Executive Summary

CMON Limited, an investment holding company, engages in the design, development, and sale of board games, miniatures, and other hobby products in North America, Asia, Europe, Oceania, South America, and Africa.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8278's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.4%

8278

-0.4%

HK Leisure

-1.9%

HK Market


1 Year Return

-28.9%

8278

-19.5%

HK Leisure

1.1%

HK Market

Return vs Industry: 8278 underperformed the Hong Kong Leisure industry which returned -19.5% over the past year.

Return vs Market: 8278 underperformed the Hong Kong Market which returned 1.1% over the past year.


Shareholder returns

8278IndustryMarket
7 Day9.4%-0.4%-1.9%
30 Day15.3%-0.5%1.7%
90 Day24.3%-8.4%7.0%
1 Year-28.9%-28.9%-16.5%-19.5%4.7%1.1%
3 Yearn/a-32.4%-36.7%22.6%10.3%
5 Yearn/a-52.3%-54.8%19.8%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8278's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8278's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8278 is poor value based on its PE Ratio (29.5x) compared to the Leisure industry average (10.4x).

PE vs Market: 8278 is poor value based on its PE Ratio (29.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8278's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8278 is overvalued based on its PB Ratio (1.4x) compared to the HK Leisure industry average (0.8x).


Next Steps

Future Growth

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

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8278's forecast earnings growth (10.6% per year) is above the savings rate (2%).

Earnings vs Market: 8278's earnings (10.6% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 8278's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 8278's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8278's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8278's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CMON performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8278 has high quality earnings.

Growing Profit Margin: 8278's current net profit margins (3.2%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: 8278's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: 8278's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8278 had negative earnings growth (-69.5%) over the past year, making it difficult to compare to the Leisure industry average (7%).


Return on Equity

High ROE: 8278's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CMON's financial position?


Financial Position Analysis

Short Term Liabilities: 8278's short term assets ($16.9M) do not cover its short term liabilities ($18.1M)

Long Term Liabilities: 8278's short term assets (16.9M) exceeds its long term liabilities (5.2M)


Debt to Equity History and Analysis

Debt Level: 8278's debt to equity ratio (45.2%) is considered high

Reducing Debt: Insufficient data to determine if 8278's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8278's debt is well covered by operating cash flow (28.3%).

Interest Coverage: 8278's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: 8278 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8278's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8278's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8278'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 8278's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8278's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8278 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 8278's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Chern Ann Ng (44yo)

2.9yrs

Tenure

US$216,223

Compensation

Mr. Chern Ann Ng has been Chief Executive Officer at CMON Limited since December 02, 2016 and serves as its Chairman since December 02, 2016 and Compliance Officer. Mr. Ng is Co-Owner of Dakkon Holdings Li ...


CEO Compensation Analysis

Compensation vs Market: Chern Ann's total compensation ($USD216.22K) is about average for companies of similar size in the Hong Kong market ($USD216.21K).

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


Management Age and Tenure

2.9yrs

Average Tenure

44yo

Average Age

Experienced Management: 8278's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

53yo

Average Age

Experienced Board: 8278's board of directors are considered experienced (3 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

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


Management Team

  • David Preti (49yo)

    Chief Operating Officer

    • Tenure: 0.9yrs
  • Sau Mei Ng (42yo)

    Joint Company Secretary

    • Tenure: 4.3yrs
  • Chern Ann Ng (44yo)

    Chairman

    • Tenure: 2.9yrs
    • Compensation: US$216.22k
  • Zheng Koh (40yo)

    Financial Controller

    • Tenure: 4.3yrs
    • Compensation: US$154.31k
  • David Doust (55yo)

    Head of Asia Group & Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$190.03k

Board Members

  • Pheng Chong (53yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$36.00k
  • Chern Ann Ng (44yo)

    Chairman

    • Tenure: 2.9yrs
    • Compensation: US$216.22k
  • Zheng Koh (40yo)

    Financial Controller

    • Tenure: 4.3yrs
    • Compensation: US$154.31k
  • Frederick Chua (54yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: US$36.00k
  • Lip-Keat Tan (45yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$36.00k
  • Iain Seow (53yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$36.00k
  • David Doust (55yo)

    Head of Asia Group & Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$190.03k

Company Information

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


Key Information

  • Name: CMON Limited
  • Ticker: 8278
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$211.302m
  • Shares outstanding: 1.81b
  • Website: https://www.cmon.com

Number of Employees


Location

  • CMON Limited
  • Apex @ Henderson
  • 201 Henderson Road No. 07/08-01
  • Singapore
  • 159545
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8278SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016

Biography

CMON Limited, an investment holding company, engages in the design, development, and sale of board games, miniatures, and other hobby products in North America, Asia, Europe, Oceania, South America, and Af ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 12:51
End of Day Share Price2019/11/11 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.