SEHK:8406

Stock Analysis Report

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 and Oceania, North America, Asia, Central and South America, and Africa.

Rewards

Trading at 53.6% below its fair value

Earnings grew by 163% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


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

-12.1%

8406

-3.8%

HK Leisure

0.9%

HK Market


1 Year Return

-27.5%

8406

-21.3%

HK Leisure

-1.5%

HK Market

Return vs Industry: 8406 underperformed the Hong Kong Leisure industry which returned -21.3% over the past year.

Return vs Market: 8406 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

8406IndustryMarket
7 Day-12.1%-3.8%0.9%
30 Day-22.7%-9.7%-3.7%
90 Day5.5%-14.0%-0.1%
1 Year-23.8%-27.5%-18.1%-21.3%2.0%-1.5%
3 Yearn/a-38.2%-42.4%17.3%5.4%
5 Yearn/a-51.5%-54.0%17.1%-2.2%

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$0.12) is trading below our estimate of fair value (HK$0.25)

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 (3.4x) compared to the Leisure industry average (7.7x).

PE vs Market: 8406 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (10.1x).


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 is overvalued based on its PB Ratio (0.9x) compared to the HK Leisure industry average (0.8x).


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?

15.3%

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?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8406 has a high level of non-cash earnings.

Growing Profit Margin: 8406's current net profit margins (10.7%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 8406's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: 8406's earnings growth over the past year (163%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: 8406 earnings growth over the past year (163%) exceeded the Leisure industry -9.2%.


Return on Equity

High ROE: 8406's Return on Equity (27.1%) is considered high.


Return on Assets


Return on Capital Employed


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¥104.7M) exceed its short term liabilities (CN¥21.5M).

Long Term Liabilities: 8406's short term assets (CN¥104.7M) exceed its long term liabilities (CN¥2.0M).


Debt to Equity History and Analysis

Debt Level: 8406 is debt free.

Reducing Debt: 8406 had no debt 5 years ago.

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

Inventory Level: 8406 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8406's debt is covered by short term assets.


Next Steps

Dividend

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

6.13%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%2.2%markettop25%6.3%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8406's dividend (6.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 8406's dividend (6.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8406's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8406's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.3%), 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

What is the CEO of Alpha Era International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average board tenure


CEO

Jiansheng Xiao (56yo)

3.8yrs

Tenure

CN¥373,000

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 ($USD53.02K) is below average for companies of similar size in the Hong Kong market ($USD213.05K).

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


Board Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

Experienced Board: 8406's board of directors are considered experienced (3.1 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 been diluted in the past year, with total shares outstanding growing by 2.8%.


Management Team

  • Hon Keung Wan (57yo)

    CFO & Company Secretary

    • Tenure: 3.8yrs
  • Xiaodong Huang (56yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: CN¥442.00k
  • Jiansheng Xiao (56yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥373.00k
  • Haifeng Wang (48yo)

    Financial Controller

    • Tenure: 0yrs
  • Yannong Lin (46yo)

    Marketing Director

    • Tenure: 0yrs
  • Qiuhong Li (47yo)

    Head of the Production Department

    • Tenure: 0yrs

Board Members

  • Kevin Lee (55yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥202.00k
  • Xiaodong Huang (56yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: CN¥442.00k
  • Jiansheng Xiao (56yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥373.00k
  • Guohua Mao (52yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥51.00k
  • Minqing Gan (53yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥51.00k
  • Hin Chung Ho (47yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: CN¥14.00k

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$104.000m
  • 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 Analysis2019/12/09 12:59
End of Day Share Price2019/12/09 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.