SEHK:602

Stock Analysis Report

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Executive Summary

Jiahua Stores Holdings Limited, an investment holding company, operates and manages retail stores and other related businesses in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 602 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

602

-5.1%

HK Consumer Retailing

4.1%

HK Market


1 Year Return

-35.9%

602

44.1%

HK Consumer Retailing

-4.7%

HK Market

Return vs Industry: 602 underperformed the Hong Kong Consumer Retailing industry which returned 44.1% over the past year.

Return vs Market: 602 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

602IndustryMarket
7 Day-0.6%-5.1%4.1%
30 Day-13.1%5.9%5.3%
90 Day-13.1%5.8%13.5%
1 Year-35.9%-35.9%46.8%44.1%-1.2%-4.7%
3 Year-54.1%-59.8%48.1%40.9%7.7%-3.5%
5 Year-51.7%-61.6%59.5%41.7%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jiahua Stores 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: 602 (HK$0.17) is trading below our estimate of fair value (HK$0.97)

Significantly Below Fair Value: 602 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 602 is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: 602 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 602's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 602 is good value based on its PB Ratio (0.3x) compared to the HK Consumer Retailing industry average (0.9x).


Next Steps

Future Growth

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

14.0%

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 Jiahua Stores 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 Jiahua Stores Holdings performed over the past 5 years?

-29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 602 is currently unprofitable.

Growing Profit Margin: 602 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 602 is unprofitable, and losses have increased over the past 5 years at a rate of -29.4% per year.

Accelerating Growth: Unable to compare 602's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 602 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (6.6%).


Return on Equity

High ROE: 602 has a negative Return on Equity (-9.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is Jiahua Stores Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 602's short term assets (CN¥268.7M) do not cover its short term liabilities (CN¥341.6M).

Long Term Liabilities: 602's short term assets (CN¥268.7M) do not cover its long term liabilities (CN¥630.1M).


Debt to Equity History and Analysis

Debt Level: 602 is debt free.

Reducing Debt: 602 has no debt compared to 5 years ago when its debt to equity ratio was 18.3%.

Debt Coverage: 602 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 602 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 602's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 602'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 602's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 602's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 602 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 602'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?

13.3yrs

Average board tenure


CEO

Xiao Xiong Zhuang (37yo)

no data

Tenure

CN¥969,000

Compensation

Mr. Xiao Xiong Zhuang serves as General Manager of Jiahua Stores Holdings Limited. Mr. Zhuang joined Jiahua Stores in 2006 and serves as its Manager of the Category Management Department and Sales Centre.  ...


CEO Compensation Analysis

Compensation vs Market: Xiao Xiong's total compensation ($USD137.13K) is below average for companies of similar size in the Hong Kong market ($USD226.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Lu Kun Zhuang
Founder & Chairman13.83yrsno data51.61% CN¥92.6m
Xiao Xiong Zhuang
GM & Executive Directorno dataCN¥969.00k7.23% CN¥13.0m
Pei Zhong Zhuang
CFO & Executive Director13.83yrsCN¥739.00kno data
Ju Yi Sun
Independent Non-Executive Director7.17yrsCN¥151.00kno data
Kam Cheung Chin
Independent Non-Executive Director13.25yrsCN¥152.00kno data
Ji Ai
Independent Non-Executive Director13.25yrsCN¥151.00kno data

13.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 602's board of directors are seasoned and experienced ( 13.3 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

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


Key Information

  • Name: Jiahua Stores Holdings Limited
  • Ticker: 602
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: HK$179.488m
  • Shares outstanding: 1.04b
  • Website: https://www.szbjh.com

Number of Employees


Location

  • Jiahua Stores Holdings Limited
  • Ocean Centre
  • Suite 715
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
602SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2007
DG9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007

Biography

Jiahua Stores Holdings Limited, an investment holding company, operates and manages retail stores and other related businesses in the People’s Republic of China. The company also provides commercial factoring and supply chain financing services, as well as operates and manages a shopping mall. As of December 31, 2019, it operated 11 retail stores and 2 shopping malls with a total gross floor area of approximately 214,000 square meters located primarily in Guangdong province and Guangxi Autonomy Zone. The company was founded in 1995 and is headquartered in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:46
End of Day Share Price2020/07/03 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.