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China Fortune Investments (Holding)

SEHK:8116
Snowflake Description

Undervalued with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8116
SEHK
HK$73M
Market Cap
  1. Home
  2. HK
  3. Consumer Retailing
Company description

China Fortune Investments (Holding) Limited, an investment holding company, engages in the wholesale and retail of wines and cigars, and golf products in Hong Kong. The last earnings update was 169 days ago. More info.


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8116 Share Price and Events
7 Day Returns
0%
SEHK:8116
1.3%
HK Consumer Retailing
2.2%
HK Market
1 Year Returns
-71.8%
SEHK:8116
-26.1%
HK Consumer Retailing
-18.9%
HK Market
8116 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Fortune Investments (Holding) (8116) 0% 0% 0% -71.8% -90% -95.6%
HK Consumer Retailing 1.3% -1.5% -4.1% -26.1% 32.7% -31%
HK Market 2.2% 7.2% 7.9% -18.9% 31.8% 17%
1 Year Return vs Industry and Market
  • 8116 underperformed the Consumer Retailing industry which returned -26.1% over the past year.
  • 8116 underperformed the Market in Hong Kong which returned -18.9% over the past year.
Price Volatility
8116
Industry
5yr Volatility vs Market

Value

 Is China Fortune Investments (Holding) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Fortune Investments (Holding) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Fortune Investments (Holding).

SEHK:8116 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 18%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:8116
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 8%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 1.01
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.008 (1 + (1- 25%) (420.71%))
4.191
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (2 * 8%)
18%

Discounted Cash Flow Calculation for SEHK:8116 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Fortune Investments (Holding) is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:8116 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (HKD, Millions) 46.63 43.73 41.02 38.48 36.09
Source Est @ -6.2% Est @ -6.2% Est @ -6.2% Est @ -6.2% Est @ -6.2%
Present Value
Discounted (@ 18%)
39.51 31.41 24.97 19.85 15.78
Present value of next 5 years cash flows HK$131.52
SEHK:8116 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= HK$36.09 × (1 + 2%) ÷ (18% – 2%)
HK$230.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= HK$230.18 ÷ (1 + 18%)5
HK$100.63
SEHK:8116 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= HK$131.52 + HK$100.63
HK$232.15
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$232.15 / 3,031.10
HK$0.08
SEHK:8116 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.08
Current discount Discount to share price of HK$0.02
= -1 x (HK$0.02 - HK$0.08) / HK$0.08
68.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Fortune Investments (Holding) is available for.
Intrinsic value
>50%
Share price is HK$0.024 vs Future cash flow value of HK$0.07659
Current Discount Checks
For China Fortune Investments (Holding) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Fortune Investments (Holding)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Fortune Investments (Holding)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Fortune Investments (Holding)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Fortune Investments (Holding)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8116 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in HKD HK$0.00
SEHK:8116 Share Price ** SEHK (2018-11-02) in HKD HK$0.02
Hong Kong Consumer Retailing Industry PE Ratio Median Figure of 21 Publicly-Listed Consumer Retailing Companies 17.88x
Hong Kong Market PE Ratio Median Figure of 1,479 Publicly-Listed Companies 10.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Fortune Investments (Holding).

SEHK:8116 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8116 Share Price ÷ EPS (both in HKD)

= 0.02 ÷ 0.00

6.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Fortune Investments (Holding) is good value based on earnings compared to the HK Consumer Retailing industry average.
  • China Fortune Investments (Holding) is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Fortune Investments (Holding)'s expected growth come at a high price?
Raw Data
SEHK:8116 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Asia Consumer Retailing Industry PEG Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 2.57x
Hong Kong Market PEG Ratio Median Figure of 464 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for China Fortune Investments (Holding), we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China Fortune Investments (Holding)'s assets?
Raw Data
SEHK:8116 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in HKD HK$0.14
SEHK:8116 Share Price * SEHK (2018-11-02) in HKD HK$0.02
Hong Kong Consumer Retailing Industry PB Ratio Median Figure of 32 Publicly-Listed Consumer Retailing Companies 1.09x
Hong Kong Market PB Ratio Median Figure of 2,116 Publicly-Listed Companies 0.93x
SEHK:8116 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8116 Share Price ÷ Book Value per Share (both in HKD)

= 0.02 ÷ 0.14

0.18x

* Primary Listing of China Fortune Investments (Holding).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Fortune Investments (Holding) is good value based on assets compared to the HK Consumer Retailing industry average.
X
Value checks
We assess China Fortune Investments (Holding)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. China Fortune Investments (Holding) has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is China Fortune Investments (Holding) expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 China Fortune Investments (Holding) 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.3%
Expected Consumer Retailing industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Fortune Investments (Holding) expected to grow at an attractive rate?
  • Unable to compare China Fortune Investments (Holding)'s earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare China Fortune Investments (Holding)'s earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare China Fortune Investments (Holding)'s revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8116 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 8.3%
Hong Kong Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:8116 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8116 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-06-30 272 25 11
2018-03-31 224 7
2017-12-31 224 18 2
2017-09-30 201 -8
2017-06-30 206 -161 -15
2017-03-31 190 -19
2016-12-31 180 -6 -19
2016-09-30 53 -38
2016-06-30 38 -71 -34
2016-03-31 12 -36
2015-12-31 -102 -48
2015-09-30 116 -34

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if China Fortune Investments (Holding) is high growth as no earnings estimate data is available.
  • Unable to determine if China Fortune Investments (Holding) is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:8116 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from China Fortune Investments (Holding) Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8116 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 -0.00
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 -0.01
2016-09-30 -0.02
2016-06-30 -0.01
2016-03-31 -0.02
2015-12-31 -0.02
2015-09-30 -0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if China Fortune Investments (Holding) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether China Fortune Investments (Holding) is trading at China Fortune Investments (Holding)'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. China Fortune Investments (Holding)'s future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Consumer Retailing companies here
  3. China Fortune Investments (Holding)'s competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess China Fortune Investments (Holding)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Fortune Investments (Holding) has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has China Fortune Investments (Holding) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Fortune Investments (Holding)'s growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Fortune Investments (Holding) has delivered over 20% year on year earnings growth in the past 5 years.
  • China Fortune Investments (Holding) has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • China Fortune Investments (Holding) has become profitable in the last year making it difficult to compare the HK Consumer Retailing industry average.
Earnings and Revenue History
China Fortune Investments (Holding)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Fortune Investments (Holding) Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8116 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 272.49 11.41 48.43
2018-03-31 224.05 6.62 44.36
2017-12-31 223.62 2.46 37.58
2017-09-30 200.79 -8.11 33.80
2017-06-30 205.72 -15.47 33.89
2017-03-31 190.15 -19.31 31.22
2016-12-31 179.79 -19.02 31.70
2016-09-30 53.43 -37.87 -0.41
2016-06-30 38.46 -33.96 4.22
2016-03-31 12.35 -36.09 7.31
2015-12-31 -47.78 19.70
2015-09-30 116.01 -34.01 69.39
2015-06-30 118.17 -38.57 71.64
2015-03-31 122.15 -40.62 74.14
2014-12-31 146.19 -20.70 76.74
2014-09-30 176.69 -243.99 86.13
2014-06-30 193.75 -235.52 88.21
2014-03-31 243.35 -217.28 96.46
2013-12-31 291.77 -208.61 100.20
2013-09-30 271.74 103.12 90.73
2013-06-30 341.97 112.19 92.71
2013-03-31 337.31 93.29 83.18
2012-12-31 235.73 42.09 90.50
2012-09-30 83.12 -53.13 28.89
2012-06-30 -35.14 -78.19 23.98
2012-03-31 -56.69 -79.05 21.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Fortune Investments (Holding) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Fortune Investments (Holding) used its assets less efficiently than the HK Consumer Retailing industry average last year based on Return on Assets.
  • China Fortune Investments (Holding) has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess China Fortune Investments (Holding)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Fortune Investments (Holding) has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is China Fortune Investments (Holding)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Fortune Investments (Holding)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Fortune Investments (Holding) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Fortune Investments (Holding)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Fortune Investments (Holding)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Fortune Investments (Holding) Company Filings, last reported 7 months ago.

SEHK:8116 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 414.07 306.05 65.37
2018-03-31 396.18 242.76 226.15
2017-12-31 396.18 242.76 226.15
2017-09-30 348.00 122.51 29.08
2017-06-30 348.00 122.51 29.08
2017-03-31 206.10 247.63 196.65
2016-12-31 206.10 247.63 196.65
2016-09-30
2016-06-30 260.54 296.24 102.32
2016-03-31 213.89 213.68 45.57
2015-12-31 213.89 213.68 45.57
2015-09-30
2015-06-30 626.71 231.03 193.33
2015-03-31 383.09 255.22 1.23
2014-12-31 383.09 255.22 1.23
2014-09-30
2014-06-30 412.36 274.99 1.68
2014-03-31 173.38 203.23 0.81
2013-12-31 173.38 203.23 0.81
2013-09-30
2013-06-30 379.75 152.59 8.52
2013-03-31 158.06 383.20 16.90
2012-12-31 158.06 383.20 16.90
2012-09-30
2012-06-30 870.22 337.49 37.60
2012-03-31 700.44 198.38 85.95
  • China Fortune Investments (Holding)'s level of debt (73.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.4% vs 73.9% today).
  • Debt is not well covered by operating cash flow (8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess China Fortune Investments (Holding)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Fortune Investments (Holding) has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is China Fortune Investments (Holding)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from China Fortune Investments (Holding) dividends.
If you bought HK$2,000 of China Fortune Investments (Holding) shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate China Fortune Investments (Holding)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate China Fortune Investments (Holding)'s dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:8116 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 916 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as China Fortune Investments (Holding) has not reported any payouts.
  • Unable to verify if China Fortune Investments (Holding)'s dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of China Fortune Investments (Holding)'s earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as China Fortune Investments (Holding) has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess China Fortune Investments (Holding)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Fortune Investments (Holding) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Fortune Investments (Holding) has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of China Fortune Investments (Holding)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Allan Cheung
AGE 41
TENURE AS CEO 0.8 years
CEO Bio

Mr. Ho Man Cheung, also known as Allan, is the Chief Executive Officer of China Fortune Investments (Holding) Ltd since April 13, 2018. Mr. Cheung has over 15 years experience in managing and operating retail and wholesale business; over 15 years experience in golf and over 8 years experience in wine products industries. Mr. Cheung has been a General Manager of the Group’s retail and trading of wine, cigar and golf products segments. Mr. Cheung did not hold any other directorship in any public listed companies in the last three years. He holds a Master Degree in Business Administration (MBA) from Cardiff University in United Kingdom (“UK”), a Bachelor Degree in Arts (Hons) Business Management from University of Wales Institute, Cardiff in UK and a Postgraduate Diploma in Marketing in UK.

CEO Compensation
  • Insufficient data for Allan to compare compensation growth.
  • Insufficient data for Allan to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team

Xiaodong Pan

TITLE
Chairman of the Board
AGE
49

Stephen Frostick

TITLE
Compliance Officer & Executive Director
AGE
68

Chun Cheng

TITLE
Executive Director
AGE
56

Ka Li

TITLE
Executive Director
COMPENSATION
HK$356K
AGE
31

Yunming Liu

TITLE
Executive Director
AGE
46

Allan Cheung

TITLE
Chief Executive Officer
AGE
41
TENURE
0.8 yrs

Zu Cai

TITLE
AGE
60

Kin Chow

TITLE
Company Secretary & CFO
AGE
36

Lei Mi

TITLE
Head of Research Centre - Hangzhou Neolink Communication Equipment Company Limited
AGE
54
Board of Directors Tenure

Average tenure and age of the China Fortune Investments (Holding) board of directors in years:

6.2
Average Tenure
49
Average Age
  • The tenure for the China Fortune Investments (Holding) board of directors is about average.
Board of Directors

Xiaodong Pan

TITLE
Chairman of the Board
AGE
49
TENURE
2.4 yrs

Stephen Frostick

TITLE
Compliance Officer & Executive Director
AGE
68
TENURE
11.8 yrs

Chun Cheng

TITLE
Executive Director
AGE
56
TENURE
7 yrs

Ka Li

TITLE
Executive Director
COMPENSATION
HK$356K
AGE
31
TENURE
1.4 yrs

Yunming Liu

TITLE
Executive Director
AGE
46
TENURE
1.3 yrs

Joshua Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$60K
AGE
44
TENURE
11.7 yrs

Jun Chang

TITLE
Independent Non Executive Director
COMPENSATION
HK$60K
AGE
49
TENURE
11.2 yrs

Shenglan Huang

TITLE
Non-Executive Director
COMPENSATION
HK$120K
AGE
67
TENURE
6.3 yrs

Wai Ching

TITLE
Independent Non-Executive Director
COMPENSATION
HK$60K
AGE
42
TENURE
6.1 yrs

Jingan Xu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$60K
AGE
76
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess China Fortune Investments (Holding)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Fortune Investments (Holding) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is China Fortune Investments (Holding) Limited's (HKG:8116) PE Ratio A Signal To Buy For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … China Fortune Investments (Holding) Limited (HKG:8116) is currently trading at a trailing P/E of 6.7, which is lower than the industry average of 14.2. … View our latest analysis for China Fortune Investments (Holding)

Simply Wall St -

What Are The Drivers Of China Fortune Investments (Holding) Limited's (HKG:8116) Risks?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Why China Fortune Investments (Holding) Limited (HKG:8116) May Not Be As Efficient As Its Industry

China Fortune Investments (Holding) Limited (HKG:8116) generated a below-average return on equity of 1.64% in the past 12 months, while its industry returned 6.41%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into 8116's past performance. … See our latest analysis for China Fortune Investments (Holding)

Simply Wall St -

What You Must Know About China Fortune Investments (Holding) Limited's (HKG:8116) Financial Strength

Investors are always looking for growth in small-cap stocks like China Fortune Investments (Holding) Limited (HKG:8116), with a market cap of HK$187.93m. … However, an important fact which most ignore is: how financially healthy is the business? … Companies operating in the Consumer Retailing industry facing headwinds from current disruption,.

Simply Wall St -

Who Are The Major Shareholders Of China Fortune Investments (Holding) Limited (HKG:8116)?

In this article, I will take a quick look at China Fortune Investments (Holding) Limited’s (SEHK:8116) recent ownership structure – an unconventional investing subject, but an important one. … View our latest analysis for China Fortune Investments (Holding) SEHK:8116 Ownership_summary Mar 2nd 18 Insider Ownership Another important group of shareholders are company insiders. … Insider ownership has to do more with how the company is managed and less to do with the direct impact of the magnitude of shares trading on the market.

Simply Wall St -

How Does Investing In China Fortune Investments (Holding) Limited (HKG:8116) Impact Your Portfolio?

With a market cap of HK$260.67M, 8116 falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies. … Thus, we can expect 8116 to be more stable in the face of market movements, relative to its peers of similar size but with a higher portion of fixed assets on their books. … However, this is the opposite to what 8116’s actual beta value suggests, which is higher stock volatility relative to the market.

Simply Wall St -

Does China Fortune Investments (Holding) Limited's (HKG:8116) Latest Financial Perfomance Look Strong?

When China Fortune Investments (Holding) Limited (SEHK:8116) released its most recent earnings update (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … For China Fortune Investments (Holding), its most recent twelve-month earnings is -HK$8.1M, which, in comparison to the prior year's level, has become less negative. … This means although China Fortune Investments (Holding) is presently loss-making, whatever recent headwind the industry is enduring, China Fortune Investments (Holding) is less exposed compared to its peers.What does this mean?

Simply Wall St -

What Investors Should Know About China Fortune Investments (Holding) Limited's (HKG:8116) Financial Strength

Looking at 8116’s most recent HK$88.2M liabilities, it seems that the business has been able to meet these obligations given the level of current assets of HK$407.8M, with a current ratio of 4.62x. … SEHK:8116 Historical Debt Dec 14th 17 Is 8116’s level of debt at an acceptable level? … Although 8116’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

Simply Wall St -

Company Info

Map
Description

China Fortune Investments (Holding) Limited, an investment holding company, engages in the wholesale and retail of wines and cigars, and golf products in Hong Kong. The company offers red wines, white wines, champagnes, whiskies, and other liquors and spirts; tobacco products; and golf related products, such as golf clubs, balls, shoes, gloves, clothing, and other accessories of various brands. It also provides money lending service; and consultancy service on P2P loan operations. In addition, China Fortune Investments (Holding) Limited offers travel agency service; and holds motor vehicles. Further, it trades in watches and jewelries. The company was formerly known as China Public Healthcare (Holding) Limited and changed its name to China Fortune Investments (Holding) Limited in June 2012. China Fortune Investments (Holding) Limited was incorporated in 1999 and is based in Central, Hong Kong.

Details
Name: China Fortune Investments (Holding) Limited
8116
Exchange: SEHK
Founded: 1999
HK$72,746,442
3,031,101,766
Website: http://www.cfihk.com.hk
Address: China Fortune Investments (Holding) Limited
China Merchants Tower,
Units 2601 & 2613, 26th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8116 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Jul 2000
BST NLY5 Ordinary Shares Boerse-Stuttgart DE EUR 26. Jul 2000
Number of employees
Current staff
Staff numbers
121
China Fortune Investments (Holding) employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/30 12:48
End of day share price update: 2018/11/02 00:00
Last earnings filing: 2018/08/14
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.