SEHK:814

Stock Analysis Report

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Executive Summary

Beijing Jingkelong Company Limited engages in the retail and wholesale distribution of daily consumer products in the People's Republic of China.


Snowflake Analysis

Undervalued with mediocre balance sheet.

Share Price & News

How has Beijing Jingkelong's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 814 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.1%

814

-8.2%

HK Consumer Retailing

-3.7%

HK Market


1 Year Return

-28.8%

814

39.1%

HK Consumer Retailing

-10.4%

HK Market

Return vs Industry: 814 underperformed the Hong Kong Consumer Retailing industry which returned 39.4% over the past year.

Return vs Market: 814 underperformed the Hong Kong Market which returned -10% over the past year.


Shareholder returns

814IndustryMarket
7 Day-7.1%-8.2%-3.7%
30 Day-8.0%-14.0%-3.0%
90 Day-14.1%1.9%-7.6%
1 Year-28.8%-28.8%41.7%39.1%-7.4%-10.4%
3 Year-49.6%-54.4%18.8%13.2%-4.5%-14.2%
5 Year-52.3%-59.4%34.0%19.4%-16.2%-29.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Beijing Jingkelong 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: 814 (HK$1.04) is trading below our estimate of fair value (HK$6.65)

Significantly Below Fair Value: 814 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 814 is good value based on its PE Ratio (7.5x) compared to the Consumer Retailing industry average (17.3x).

PE vs Market: 814 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: 814's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 814 is good value based on its PB Ratio (0.2x) compared to the HK Consumer Retailing industry average (0.9x).


Next Steps

Future Growth

How is Beijing Jingkelong forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 814's earnings are forecast to decline over the next 3 years (-9.3% per year).

Earnings vs Market: 814's earnings are forecast to decline over the next 3 years (-9.3% per year).

High Growth Earnings: 814's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 814's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: 814's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 814's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Beijing Jingkelong performed over the past 5 years?

22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 814 has high quality earnings.

Growing Profit Margin: 814's current net profit margins (0.5%) are lower than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: 814's earnings have grown significantly by 22.6% per year over the past 5 years.

Accelerating Growth: 814's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 814 had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (5.3%).


Return on Equity

High ROE: 814's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Beijing Jingkelong's financial position?


Financial Position Analysis

Short Term Liabilities: 814's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥4.9B).

Long Term Liabilities: 814's short term assets (CN¥5.2B) exceed its long term liabilities (CN¥1.4B).


Debt to Equity History and Analysis

Debt Level: 814's debt to equity ratio (135.6%) is considered high.

Reducing Debt: 814's debt to equity ratio has reduced from 144.9% to 135.6% over the past 5 years.

Debt Coverage: 814's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 814's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Beijing Jingkelong's current dividend yield, its reliability and sustainability?

8.32%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 814's dividend (8.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.61%).

High Dividend: 814's dividend (8.32%) is in the top 25% of dividend payers in the Hong Kong market (7.3%)


Stability and Growth of Payments

Stable Dividend: 814's dividend payments have been volatile in the past 10 years.

Growing Dividend: 814's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), 814's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Yongtian Shang (57yo)

5yrs

Tenure

CN¥1,036,000

Compensation

Mr. Yongtian Shang has been General Manager of Beijing Jingkelong Co. Ltd. since May 2015. Mr. Shang has been Executive Director of Beijing Jingkelong Co. Ltd. since November 5, 2015. He served as an Assis ...


CEO Compensation Analysis

Compensation vs Market: Yongtian's total compensation ($USD144.52K) is below average for companies of similar size in the Hong Kong market ($USD225.40K).

Compensation vs Earnings: Yongtian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board6.92yrsCN¥1.04m0.49% CN¥2.1m
Yongtian Shang
GM & Executive Director5yrsCN¥1.04m0.24% CN¥1.0m
Chunyan Li
CFO, Deputy GM & Executive Director15.5yrsCN¥809.00k0.12% CN¥526.2k
Liwei Zhang
Assistant GM & Executive Director1yrCN¥285.83k0.036% CN¥156.0k
Shenlin Li
Assistant General Manager10.75yrsno data0.10% CN¥447.3k
Hong Wang
Assistant General Manager2.75yrsCN¥461.00k0.045% CN¥194.2k
Hongbo Zhang
Assistant General Manager4.75yrsno data0.024% CN¥104.0k
Bo Li
Company Secretary9.17yrsno datano data
Xuemin Pan
Board Secretary3.75yrsno datano data

4.9yrs

Average Tenure

48yo

Average Age

Experienced Management: 814's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board6.92yrsCN¥1.04m0.49% CN¥2.1m
Yongtian Shang
GM & Executive Director5yrsCN¥1.04m0.24% CN¥1.0m
Chunyan Li
CFO, Deputy GM & Executive Director15.5yrsCN¥809.00k0.12% CN¥526.2k
Liwei Zhang
Assistant GM & Executive Director1yrCN¥285.83k0.036% CN¥156.0k
Shunxiang Li
Non-Executive Director15.5yrsno data1.26% CN¥5.4m
Onward Choi
Independent Non-Executive Director9.92yrsCN¥155.00kno data
Liping Wang
Independent Non-Executive Director9.92yrsCN¥42.00kno data
Liping Chen
Independent Non-Executive Director9.92yrsCN¥42.00kno data
Wenyu Liu
Chairman of the Supervisory Committee9.92yrsCN¥677.00k0.089% CN¥379.8k
Yan Zhang
Non-Executive Director1.58yrsno datano data

9.9yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 814's board of directors are considered experienced (9.9 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

Beijing Jingkelong Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Jingkelong Company Limited
  • Ticker: 814
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: HK$428.709m
  • Shares outstanding: 412.22m
  • Website: https://www.jkl.com.cn

Number of Employees


Location

  • Beijing Jingkelong Company Limited
  • Block No. 45
  • XinYuan Street
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
814SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2006
G2MDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2006

Biography

Beijing Jingkelong Company Limited engages in the retail and wholesale distribution of daily consumer products in the People's Republic of China. The company operates in three segments: Retailing, Wholesaling, and Others. It is involved in the operation of hypermarkets, supermarkets, convenience stores, and department stores. The company offers food products, untagged food products, daily necessities, drinks and cigarettes, beverages, hardware products, and household appliances. It also provides plastic packing products; hotel services; and school training services. As of December 31, 2019, the company operated 178 retail outlets. Beijing Jingkelong Company Limited was founded in 1994 and is based in Beijing, the People's Republic of China. Beijing Jingkelong Company Limited is a subsidiary of Beijing Chaoyang Auxiliary Food Company. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 12:58
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
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.