SEHK:8163

Stock Analysis Report

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Executive Summary

Merdeka Financial Group Limited, an investment holding company, engages in trading, financial services, and information technology businesses in Hong Kong and the People Republic of China. More Details


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Merdeka Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8163's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

8163

10.0%

HK Consumer Retailing

-0.3%

HK Market


1 Year Return

-83.8%

8163

1.9%

HK Consumer Retailing

0.7%

HK Market

Return vs Industry: 8163 underperformed the Hong Kong Consumer Retailing industry which returned 5.5% over the past year.

Return vs Market: 8163 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

8163IndustryMarket
7 Day-5.6%10.0%-0.3%
30 Day-10.5%-0.9%0.2%
90 Day-19.0%-20.2%0.3%
1 Year-82.5%-83.8%3.6%1.9%4.9%0.7%
3 Year-97.7%-97.9%0.4%-4.6%-5.8%-16.1%
5 Year-99.0%-99.1%22.3%8.8%14.0%-5.4%

Price Volatility Vs. Market

How volatile is Merdeka Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Merdeka Financial Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Merdeka Financial Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Merdeka Financial Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 8163's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Merdeka Financial Group regulatory filings.
  • Explore potentially undervalued companies in the Consumer Retailing industry.

Future Growth

How is Merdeka Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.1%

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 Merdeka Financial Group 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

  • Take a look at our analysis of 8163’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Merdeka Financial Group competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Consumer Retailing industry.

Past Performance

How has Merdeka Financial Group performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8163 is currently unprofitable.

Growing Profit Margin: 8163 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8163 is unprofitable, but has reduced losses over the past 5 years at a rate of 16.4% per year.

Accelerating Growth: Unable to compare 8163's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8163 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-8.5%).


Return on Equity

High ROE: 8163's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Merdeka Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8163 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 8163 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 8163 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 8163's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8163 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8163 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 29.7% per year.


Next Steps

Dividend

What is Merdeka Financial Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8163's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8163'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 8163's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8163's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8163'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?

0.08yrs

Average management tenure


CEO

Hans Wong (50 yo)

0.083

Tenure

Mr. Hin Shek Wong, also known as Hans, serves as Chairman and Chief Executive Officer at Merdeka Financial Group Limited since September 1, 2020 and also serves as its Executive Director since September 1, ...


Leadership Team

NamePositionTenureCompensationOwnership
Kwai Ping Tsang
Compliance Officer & Executive Director1.5yrsHK$205.00kno data
Wai Yin Cheung
Executive Director8.17yrsHK$1.09m0.0043%
HK$ 947.2
Hin Shek Wong
Chairman & CEO0.083yrno data3.6%
HK$ 801.8k
Hei Hau
Company Secretary1.58yrsno datano data

0.08yrs

Average Tenure

49yo

Average Age

Experienced Management: 8163's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kwai Ping Tsang
Compliance Officer & Executive Director1.5yrsHK$205.00kno data
Wai Yin Cheung
Executive Director8.17yrsHK$1.09m0.0043%
HK$ 947.2
Hin Shek Wong
Chairman & CEO0.083yrno data3.6%
HK$ 801.8k
Mo Sheung Yeung
Independent Non-Executive Director8yrsHK$120.00kno data
Ka Sim Ng
Independent Non-Executive Director1.42yrsHK$78.00kno data
Wing Wong
Independent Non-Executive Director1yrHK$26.00kno data

1.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 8163's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 435.5%.


Top Shareholders

Company Information

Merdeka Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Merdeka Financial Group Limited
  • Ticker: 8163
  • Exchange: SEHK
  • Founded:
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: HK$22.287m
  • Shares outstanding: 1.31b
  • Website: https://www.merdeka.com.hk

Number of Employees


Location

  • Merdeka Financial Group Limited
  • Room 1108
  • 11th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8163SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2002

Biography

Merdeka Financial Group Limited, an investment holding company, engages in trading, financial services, and information technology businesses in Hong Kong and the People Republic of China. Its Trading Busi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:42
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.