SEHK:1389

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.6%

1389

1.8%

HK Consumer Retailing

2.9%

HK Market


1 Year Return

-3.8%

1389

-11.9%

HK Consumer Retailing

0.7%

HK Market

Return vs Industry: 1389 exceeded the Hong Kong Consumer Retailing industry which returned -11.9% over the past year.

Return vs Market: 1389 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1389IndustryMarket
7 Day8.6%1.8%2.9%
30 Day-2.6%-0.3%-2.5%
90 Day16.9%6.7%-5.4%
1 Year-3.8%-3.8%-10.0%-11.9%4.4%0.7%
3 Year-96.3%-96.3%16.0%9.1%17.0%5.2%
5 Year-47.5%-49.7%-6.0%-17.9%20.2%0.2%

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?

1.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 1389 (HK$0.08) is trading above our estimate of fair value (HK$0.02)

Significantly Undervalued: 1389 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1389 is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 overvalued based on its PB Ratio (1.6x) compared to the HK Consumer Retailing industry average (0.9x).


Next Steps

Future Growth

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

31.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1389 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1389 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1389 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1389's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1389's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1389's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Major Holdings performed over the past 5 years?

-44.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1389 is unprofitable, and losses have increased over the past 5 years at a rate of -44.1% 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 (7.4%).


Return on Equity

High ROE: 1389 has a negative Return on Equity (-0.72%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1389 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1389 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Major Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1389's short term assets (HK$152.3M) exceeds its short term liabilities (HK$34.3M)

Long Term Liabilities: 1389's short term assets (152.3M) exceeds its long term liabilities (3.1M)


Debt to Equity History and Analysis

Debt Level: 1389's debt to equity ratio (9.7%) is considered satisfactory

Reducing Debt: 1389's debt to equity ratio has increased from 7% to 9.7% over the past 5 years.

Debt Coverage: 1389's debt is well covered by operating cash flow (70.5%).

Interest Coverage: 1389 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 1389 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1389's debt is covered by short term assets (assets are 11.275650x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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 .


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

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

5.8yrs

Average board tenure


CEO

Joseph Leung (40yo)

0yrs

Tenure

HK$1,718,000

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 ($USD219.00K) is about average for companies of similar size in the Hong Kong market ($USD211.63K).

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


Board Age and Tenure

5.8yrs

Average Tenure

40yo

Average Age

Experienced Board: 1389's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

BuyHK$49,919,45422 Dec 18
Huanming Zheng
EntityIndividual
Shares480,000,000
Max PriceHK$0.10

Ownership Breakdown


Management Team

  • Chun Cheung (40yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.82m
  • Joseph Leung (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.72m
  • Wing Cheung (38yo)

    Compliance Officer & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$978.00k
  • Chi Sin (57yo)

    CFO & Company Secretary

    • Tenure: 2.5yrs

Board Members

  • Ken Yue (54yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$132.00k
  • Chun Cheung (40yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$1.82m
  • Joseph Leung (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$1.72m
  • Wing Cheung (38yo)

    Compliance Officer & Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$978.00k
  • Hoi Ngai (62yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: HK$132.00k
  • Shing Tak Siu (35yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$132.00k

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$218.880m
  • Shares outstanding: 2.88b
  • Website: https://www.majorcellar.com

Number of Employees


Location

  • Major Holdings Limited
  • Ocean Centre
  • Suite 822
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1389SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2014
8209SEHK (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, champagne, wine a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:50
End of Day Share Price2019/10/14 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.