Merdeka Financial Group Limited, an investment holding company, engages in trading, financial services, and information technology businesses in the People Republic of China.
Slightly overvalued with imperfect balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
HK Consumer Retailing
1 Year Return
HK Consumer Retailing
Return vs Industry: 8163 underperformed the Hong Kong Consumer Retailing industry which returned 19.1% over the past year.
Return vs Market: 8163 underperformed the Hong Kong Market which returned -7.6% over the past year.
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
1 week ago | Simply Wall StIs Merdeka Financial Group Limited's (HKG:8163) CEO Pay Fair?
1 month ago | Simply Wall StThe Merdeka Financial Group (HKG:8163) Share Price Is Down 95% So Some Shareholders Are Very Salty
2 months ago | Simply Wall StDo Insiders Own Lots Of Shares In Merdeka Financial Group Limited (HKG:8163)?
Is Merdeka Financial Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 8163 (HK$0.12) is trading below our estimate of fair value (HK$61.54)
Significantly Below Fair Value: 8163 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 8163 is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.
PE vs Market: 8163 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 8163's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 8163 has negative assets, so we can't compare its PB Ratio to the HK Consumer Retailing industry average.
How is Merdeka Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- 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.
How has Merdeka Financial Group performed over the past 5 years?
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 26% 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 (3.6%).
Return on Equity
High ROE: 8163's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
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.
Inventory Level: 8163 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 8163 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 36% per year.
What is Merdeka Financial Group's 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 payouts.
High Dividend: Unable to evaluate 8163's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Wilson Cheung (48yo)
Mr. Wai Yin Cheung, also known as Wilson, has been the Chairman, Chief Executive Officer and Compliance Officer at Merdeka Resources Holdings Limited since August 24, 2012. Mr. Cheung served as an Executiv ...
CEO Compensation Analysis
Compensation vs Market: Wilson's total compensation ($USD503.10K) is above average for companies of similar size in the Hong Kong market ($USD226.90K).
Compensation vs Earnings: Wilson's compensation has been consistent with company performance over the past year.
|Executive Director||0.8yrs||no data||no data|
|Company Secretary||0.9yrs||no data||no data|
Experienced Management: 8163's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
|Executive Director||0.8yrs||no data||no data|
|Independent Non-Executive Director||7.3yrs||HK$120.00k||no data|
|Independent Non-Executive Director||0.8yrs||no data||no data|
|Independent Non-Executive Director||0.3yrs||no data||no data|
Experienced Board: 8163's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.
Merdeka Financial Group Limited's company bio, employee growth, exchange listings and data sources
- Name: Merdeka Financial Group Limited
- Ticker: 8163
- Exchange: SEHK
- Industry: Food Distributors
- Sector: Consumer Retailing
- Market Cap: HK$30.157m
- Shares outstanding: 262.23m
- Website: https://www.merdeka.com.hk
Number of Employees
- Merdeka Financial Group Limited
- Room 1108
- 11th Floor
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|8163||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Mar 2002|
Merdeka Financial Group Limited, an investment holding company, engages in trading, financial services, and information technology businesses in the People Republic of China. Its Trading Business segment trades in goods, components, and accessories; and retails milk powder, dairy products, beauty and cosmetic products, and pharmaceutical OTC products. The company’s Financial Services Business segment provides financial leasing, money lending, asset management, and securities brokerage services; and operates as a book-runner, as well as a lead manager in respect of issuance of debts listed worldwide. Its Information Technology Business segment engages in the distribution of information technology products, and provision of relevant technical support services; developing mobile and cloud based application software; and operating related e-commence platform, as well as franchising a mobile game license. The company’s Other Business segment engages in servicing business, such as training course provision. The company was formerly known as Merdeka Financial Services Group Limited and changed its name to Merdeka Financial Group Limited in October 2019. Merdeka Financial Group Limited is headquartered in Central, Hong Kong. Merdeka Financial Group Limited is a subsidiary of Ivana Investments Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/24 13:07|
|End of Day Share Price||2020/02/24 00:00|
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.