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. More Details


Snowflake Analysis

Undervalued with adequate 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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 814's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0%

814

1.5%

HK Consumer Retailing

1.1%

HK Market


1 Year Return

-20.7%

814

-10.3%

HK Consumer Retailing

8.2%

HK Market

Return vs Industry: 814 underperformed the Hong Kong Consumer Retailing industry which returned -10.3% over the past year.

Return vs Market: 814 underperformed the Hong Kong Market which returned 8.2% over the past year.


Shareholder returns

814IndustryMarket
7 Day0%1.5%1.1%
30 Day1.9%-3.9%7.2%
90 Day-1.8%-19.3%5.2%
1 Year-14.5%-20.7%-8.9%-10.3%12.6%8.2%
3 Year-42.1%-51.4%-4.4%-9.3%0.4%-10.0%
5 Year-29.8%-44.6%21.9%8.7%30.6%8.5%

Long-Term 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$1.07) is trading below our estimate of fair value (HK$13.91)

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 (6x) compared to the HK Consumer Retailing industry average (17.2x).

PE vs Market: 814 is good value based on its PE Ratio (6x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 814's PEG Ratio to determine if it is good value.


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 (1.1x).


Next Steps

Future Growth

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

19.8%

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 Beijing Jingkelong 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 Beijing Jingkelong performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 814 has a large one-off gain of CN¥90.9M impacting its September 30 2020 financial results.

Growing Profit Margin: 814's current net profit margins (0.5%) are lower than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: 814's earnings have grown significantly by 23% 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 (-8.2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-8.2%).


Return on Equity

High ROE: 814's Return on Equity (4.6%) 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¥4.9B) exceed its short term liabilities (CN¥4.6B).

Long Term Liabilities: 814's short term assets (CN¥4.9B) exceed its long term liabilities (CN¥1.4B).


Debt to Equity History and Analysis

Debt Level: 814's debt to equity ratio (123.2%) is considered high.

Reducing Debt: 814's debt to equity ratio has reduced from 144.7% to 123.2% over the past 5 years.

Debt Coverage: 814's debt is well covered by operating cash flow (26.1%).

Interest Coverage: 814's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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

8.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 814's dividend (8.81%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 814's dividend (8.81%) is in the top 25% of dividend payers in the Hong Kong market (6.6%)


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 (53%), 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?

5.3yrs

Average management tenure


CEO

Liwei Zhang (42 yo)

0.33

Tenure

CN¥285,827

Compensation

Mr. Liwei Zhang has been General Manager at Beijing Jingkelong Company Limited since July 28, 2020. Mr. Zhang served as Assistant General Manager at Beijing Jingkelong Company Limited since August 2017 unt...


CEO Compensation Analysis

Compensation vs Market: Liwei's total compensation ($USD43.47K) is below average for companies of similar size in the Hong Kong market ($USD232.23K).

Compensation vs Earnings: Insufficient data to compare Liwei's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board7.42yrsCN¥1.04m0.49%
CN¥ 2.2m
Liwei Zhang
COO, GM & Executive Director0.33yrCN¥285.83k0.036%
CN¥ 160.5k
Chunyan Li
CFO, Deputy GM & Executive Director16yrsCN¥809.00k0.12%
CN¥ 541.4k
Shenlin Li
Deputy GM & Executive Director0.083yrno data0.10%
CN¥ 460.2k
Hong Wang
Assistant General Manager3.25yrsCN¥461.00k0.045%
CN¥ 199.8k
Hongbo Zhang
Assistant General Manager5.25yrsno data0.024%
CN¥ 107.0k
Bo Li
Company Secretary9.67yrsno datano data
Xuemin Pan
Board Secretary4.25yrsno datano data

5.3yrs

Average Tenure

48yo

Average Age

Experienced Management: 814's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianwen Li
Chairman of the Board7.42yrsCN¥1.04m0.49%
CN¥ 2.2m
Liwei Zhang
COO, GM & Executive Director0.33yrCN¥285.83k0.036%
CN¥ 160.5k
Chunyan Li
CFO, Deputy GM & Executive Director16yrsCN¥809.00k0.12%
CN¥ 541.4k
Shenlin Li
Deputy GM & Executive Director0.083yrno data0.10%
CN¥ 460.2k
Zhong Chen
Supervisor15.83yrsCN¥35.00kno data
Baoqun Yang
Supervisor16yrsno data0.25%
CN¥ 1.1m
Shunxiang Li
Non-Executive Director16yrsno data1.26%
CN¥ 5.6m
Onward Choi
Independent Non-Executive Director10.42yrsCN¥155.00kno data
Liping Wang
Independent Non-Executive Director10.42yrsCN¥42.00kno data
Liping Chen
Independent Non-Executive Director10.42yrsCN¥42.00kno data
Wenyu Liu
Chairman of the Supervisory Committee10.42yrsCN¥677.00k0.089%
CN¥ 390.7k
Yan Zhang
Non-Executive Director2.08yrsno datano data

10.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 814's board of directors are seasoned and experienced ( 10.4 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$441.075m
  • Shares outstanding: 412.22m
  • Website: https://www.jkl.com.cn

Number of Employees


Location

  • Beijing Jingkelong Company Limited
  • Block No. 45
  • XinYuan Street
  • Beijing
  • Beijing Province
  • 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, Wholesal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 10:15
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.