SEHK:8406

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Alpha Era International Holdings

Executive Summary

Alpha Era International Holdings Limited, an investment holding company, designs, manufactures, and markets inflatable products and related accessories in the People’s Republic of China, Europe, Australia, Oceania, North America, Asia, Central and South America, and Africa. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Alpha Era International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8406's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

8406

-1.9%

HK Leisure

1.2%

HK Market


1 Year Return

-12.2%

8406

-31.1%

HK Leisure

2.3%

HK Market

Return vs Industry: 8406 exceeded the Hong Kong Leisure industry which returned -31.1% over the past year.

Return vs Market: 8406 underperformed the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

8406IndustryMarket
7 Day-6.1%-1.9%1.2%
30 Day-13.6%-0.7%7.0%
90 Day-18.8%-0.3%3.6%
1 Year-5.2%-12.2%-28.8%-31.1%6.6%2.3%
3 Yearn/a-52.0%-55.5%-4.7%-15.1%
5 Yearn/a-63.4%-65.4%19.1%-1.1%

Price Volatility Vs. Market

How volatile is Alpha Era International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alpha Era International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8406 (HK$0.11) is trading below our estimate of fair value (HK$1.53)

Significantly Below Fair Value: 8406 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8406 is good value based on its PE Ratio (2.7x) compared to the HK Leisure industry average (7.5x).

PE vs Market: 8406 is good value based on its PE Ratio (2.7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8406's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8406's PB Ratio (0.6x) is in line with the HK Leisure industry average.


Next Steps

Future Growth

How is Alpha Era International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

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 Alpha Era International 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 Alpha Era International Holdings performed over the past 5 years?

30.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8406 has high quality earnings.

Growing Profit Margin: 8406's current net profit margins (11%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: 8406's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: 8406's earnings growth over the past year (11.1%) is below its 5-year average (30.8% per year).

Earnings vs Industry: 8406 earnings growth over the past year (11.1%) exceeded the Leisure industry -27.7%.


Return on Equity

High ROE: 8406's Return on Equity (23%) is considered high.


Next Steps

Financial Health

How is Alpha Era International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8406's short term assets (CN¥157.0M) exceed its short term liabilities (CN¥51.3M).

Long Term Liabilities: 8406's short term assets (CN¥157.0M) exceed its long term liabilities (CN¥22.5M).


Debt to Equity History and Analysis

Debt Level: 8406 is debt free.

Reducing Debt: 8406 has no debt compared to 5 years ago when its debt to equity ratio was 74.2%.

Debt Coverage: 8406 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8406 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Alpha Era International Holdings's current dividend yield, its reliability and sustainability?

6.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8406's dividend (6.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 8406's dividend (6.91%) is in the top 25% of dividend payers in the Hong Kong market (6.77%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 8406 has been paying a dividend for less than 10 years.

Growing Dividend: 8406's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), 8406'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

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

4.0yrs

Average board tenure


CEO

Jiansheng Xiao (57 yo)

4.58yrs

Tenure

CN¥516,000

Compensation

Mr. Jiansheng Xiao is the Chief Executive Officer and Executive Director at Alpha Era International Holdings Limited since February 1, 2016 serves as its Compliance Officer. Mr. Xiao was appointed as the C ...


CEO Compensation Analysis

Compensation vs Market: Jiansheng's total compensation ($USD77.17K) is below average for companies of similar size in the Hong Kong market ($USD233.00K).

Compensation vs Earnings: Jiansheng's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Xiaodong Huang
Executive Chairman of the Board4.58yrsCN¥467.00kno data
Jiansheng Xiao
CEO, Compliance Officer & Executive Director4.58yrsCN¥516.00kno data
Kin Kee Lee
Non-Executive Director4.58yrsCN¥211.00k21.53%
CN¥ 18.6m
Guohua Mao
Independent Non-Executive Director3.33yrsCN¥51.00kno data
Hin Chung Ho
Independent Non-Executive Director1.83yrsCN¥211.00kno data
Zexing Liu
Independent Non-Executive Director0.58yrno datano data

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: 8406's board of directors are considered experienced (4 years average tenure).


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

Alpha Era International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alpha Era International Holdings Limited
  • Ticker: 8406
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$86.400m
  • Shares outstanding: 800.00m
  • Website: https://www.alpha-era.co

Number of Employees


Location

  • Alpha Era International Holdings Limited
  • Dongcheng Industrial Zone
  • Xinping Road
  • Zhongshan
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8406SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2017

Biography

Alpha Era International Holdings Limited, an investment holding company, designs, manufactures, and markets inflatable products and related accessories in the People’s Republic of China, Europe, Australia, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 13:11
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.