SEHK:1389

Stock Analysis Report

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Executive Summary

Major Holdings Limited, an investment holding company, engages in the sale and distribution of premium wine and spirits in Hong Kong. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1389 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: 1389's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

0%

1389

2.4%

HK Consumer Retailing

0.7%

HK Market


1 Year Return

-41.5%

1389

-8.3%

HK Consumer Retailing

7.8%

HK Market

Return vs Industry: 1389 underperformed the Hong Kong Consumer Retailing industry which returned -8.3% over the past year.

Return vs Market: 1389 underperformed the Hong Kong Market which returned 7.8% over the past year.


Shareholder returns

1389IndustryMarket
7 Day0%2.4%0.7%
30 Day-5.0%-2.3%5.9%
90 Day-5.0%-17.4%4.7%
1 Year-41.5%-41.5%-6.9%-8.3%12.2%7.8%
3 Year-68.6%-68.6%-3.4%-8.4%-1.5%-11.7%
5 Year-97.0%-97.0%20.6%7.5%30.2%8.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1389's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1389's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1389 is unprofitable, so we can't compare its PE Ratio to the HK Consumer Retailing industry average.

PE vs Market: 1389 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 1389's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1389 is good value based on its PB Ratio (0.9x) compared to the HK Consumer Retailing industry average (1.1x).


Next Steps

Future Growth

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

20.0%

Forecasted Consumer Retailing 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 Major 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 Major Holdings performed over the past 5 years?

-73.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1389 is currently unprofitable.

Growing Profit Margin: 1389 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1389 is unprofitable, and losses have increased over the past 5 years at a rate of 73.6% per year.

Accelerating Growth: Unable to compare 1389's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1389 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-8.2%).


Return on Equity

High ROE: 1389 has a negative Return on Equity (-23.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is Major Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1389's short term assets (HK$173.3M) exceed its short term liabilities (HK$52.5M).

Long Term Liabilities: 1389's short term assets (HK$173.3M) exceed its long term liabilities (HK$4.6M).


Debt to Equity History and Analysis

Debt Level: 1389's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: 1389's debt to equity ratio has increased from 13.4% to 21.5% over the past 5 years.

Debt Coverage: 1389's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1389's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1389's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1389's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1389's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1389's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1389 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 1389'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?

6.9yrs

Average board tenure


CEO

Joseph Leung (41 yo)

no data

Tenure

HK$1,015,000

Compensation

Mr. Chi Kin Leung, also known as Joseph, has been an Executive Director and Chief Executive Officer at Major Holdings Limited since April 2013. Mr. Leung is primarily responsible for sourcing and pricing w...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD130.94K) is below average for companies of similar size in the Hong Kong market ($USD230.39K).

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


Board Members

NamePositionTenureCompensationOwnership
Chun Cheung
Chairmanno dataHK$1.02m23.22%
HK$ 29.3m
Chi Leung
CEO & Executive Directorno dataHK$1.02m22.23%
HK$ 28.1m
Kwai Wa Yue
Independent Non-Executive Director6.92yrsHK$121.00kno data
Hoi Ngai
Independent Non-Executive Director6.92yrsHK$121.00kno data
Shing Tak Siu
Independent Non-Executive Director2.67yrsHK$121.00kno data

6.9yrs

Average Tenure

41yo

Average Age

Experienced Board: 1389's board of directors are considered experienced (6.9 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

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


Key Information

  • Name: Major Holdings Limited
  • Ticker: 1389
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: HK$126.388m
  • Shares outstanding: 3.33b
  • Website: https://www.majorcellar.com

Number of Employees


Location

  • Major Holdings Limited
  • South Tower, World Finance Centre
  • 5th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1389SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2014

Biography

Major Holdings Limited, an investment holding company, engages in the sale and distribution of premium wine and spirits in Hong Kong. It offers red wine, white wine, sparkling wine, sake, wine accessory pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 12:58
End of Day Share Price2020/11/25 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.