SEHK:8377

Stock Analysis Report

Executive Summary

Shen You Holdings Limited, an investment holding company, manufactures and trades in sewing threads and garment accessories in the People's Republic of China, Hong Kong, and internationally.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Shen You Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8377's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

8377

0.4%

HK Luxury

2.7%

HK Market


1 Year Return

-71.8%

8377

-21.0%

HK Luxury

-19.8%

HK Market

Return vs Industry: 8377 underperformed the Hong Kong Luxury industry which returned -23.5% over the past year.

Return vs Market: 8377 underperformed the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

8377IndustryMarket
7 Day0%0.4%2.7%
30 Day-30.0%-14.5%-7.2%
90 Day-42.4%-24.5%-12.1%
1 Year-71.8%-71.8%-18.8%-21.0%-16.9%-19.8%
3 Yearn/a10.1%-2.8%0.9%-9.3%
5 Yearn/a6.0%-10.5%-12.6%-26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Shen You Holdings undervalued compared to its fair value and its price relative to the market?

0.92x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8377's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8377's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8377 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 8377 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 8377's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8377 is overvalued based on its PB Ratio (0.9x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

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

15.2%

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 Shen You 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 Shen You Holdings performed over the past 5 years?

-37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8377 is currently unprofitable.

Growing Profit Margin: 8377 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8377 is unprofitable, and losses have increased over the past 5 years at a rate of -37.8% per year.

Accelerating Growth: Unable to compare 8377's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8377 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (0.6%).


Return on Equity

High ROE: 8377 has a negative Return on Equity (-45.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Shen You Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8377's short term assets (HK$61.1M) exceed its short term liabilities (HK$33.2M).

Long Term Liabilities: 8377's short term assets (HK$61.1M) exceed its long term liabilities (HK$3.9M).


Debt to Equity History and Analysis

Debt Level: 8377's debt to equity ratio (47%) is considered high.

Reducing Debt: Insufficient data to determine if 8377's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: 8377 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 8377 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -32% each year


Next Steps

Dividend

What is Shen You Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8377's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8377'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 8377's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8377'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 8377'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?

2.1yrs

Average board tenure


CEO

Albert Wong (60yo)

no data

Tenure

HK$1,881,000

Compensation

Mr. Wong Kwok Wai, also known as Albert, has been Chairman of Shen You Holdings Limited since August 18, 2016 and also its Chief Executive Officer. Mr. Wong is also chief executive officer and a director o ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD242.64K) is about average for companies of similar size in the Hong Kong market ($USD232.17K).

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


Board Members

NamePositionTenureCompensationOwnership
Kwok Wai Wong
Chairman & CEOno dataHK$1.88m75% HK$29.4m
Yiu Tung Chan
Company Secretary0.17yrno datano data
Lee Ming Sung
Independent Non-Executive Director2.42yrsno datano data
Ngai Man Yeung
Independent Non-Executive Director2.42yrsno datano data
Biao Gao
Non-Executive Director1.83yrsHK$120.00kno data
Guofu Zhang
Independent Non-Executive Director1.58yrsno datano data

2.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 8377's board of directors are not considered experienced ( 2.1 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

Shen You Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shen You Holdings Limited
  • Ticker: 8377
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$39.200m
  • Shares outstanding: 800.00m
  • Website: https://www.shenyouholdings.com

Number of Employees


Location

  • Shen You Holdings Limited
  • Unit 1006, Harbour Crystal Centre
  • 10th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8377SEHK (The Stock Exchange of Hong Kong Ltd.)YesShare CapitalHKHKDDec 2017

Biography

Shen You Holdings Limited, an investment holding company, manufactures and trades in sewing threads and garment accessories in the People's Republic of China, Hong Kong, and internationally. The company provides spun polyester sewing threads for garments; and sewing threads, such as textured polyester series, elastic filament sewing threads, weft yarns, and nylon threads. It serves garment manufacturers and wholesalers. The company was founded in 1978 and is based in Tsim Sha Tsui East, Hong Kong. Shen You Holdings Limited is a subsidiary of Three Gates Investment Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:43
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.