SEHK:8413

Stock Analysis Report

Asia Grocery Distribution

Executive Summary

Asia Grocery Distribution Limited, an investment holding company, trades in and distributes food and beverage groceries in Hong Kong.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Asia Grocery Distribution's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8413's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

8413

3.4%

HK Consumer Retailing

-0.4%

HK Market


1 Year Return

187.8%

8413

25.3%

HK Consumer Retailing

-22.7%

HK Market

Return vs Industry: 8413 exceeded the Hong Kong Consumer Retailing industry which returned 30.2% over the past year.

Return vs Market: 8413 exceeded the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

8413IndustryMarket
7 Day2.6%3.4%-0.4%
30 Day-19.2%5.8%-11.2%
90 Day-28.6%11.1%-17.3%
1 Year187.8%187.8%28.2%25.3%-19.9%-22.7%
3 Yearn/a13.8%6.9%-4.8%-14.4%
5 Yearn/a14.4%0.6%-12.3%-26.3%

Price Volatility Vs. Market

How volatile is Asia Grocery Distribution's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Asia Grocery Distribution undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8413 (HK$0.4) is trading below our estimate of fair value (HK$0.43)

Significantly Below Fair Value: 8413 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 8413 is poor value based on its PE Ratio (210.4x) compared to the Consumer Retailing industry average (19.7x).

PE vs Market: 8413 is poor value based on its PE Ratio (210.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8413's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8413 is overvalued based on its PB Ratio (4.4x) compared to the HK Consumer Retailing industry average (0.9x).


Next Steps

Future Growth

How is Asia Grocery Distribution forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.5%

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 Asia Grocery Distribution 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 Asia Grocery Distribution performed over the past 5 years?

-34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8413 has a large one-off loss of HK$927.0K impacting its December 31 2019 financial results.

Growing Profit Margin: 8413's current net profit margins (1%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 8413's earnings have declined by -34.2% per year over the past 5 years.

Accelerating Growth: 8413's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8413 had negative earnings growth (-28.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (3.6%).


Return on Equity

High ROE: 8413's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Asia Grocery Distribution's financial position?


Financial Position Analysis

Short Term Liabilities: 8413's short term assets (HK$109.3M) exceed its short term liabilities (HK$10.3M).

Long Term Liabilities: 8413's short term assets (HK$109.3M) exceed its long term liabilities (HK$184.0K).


Debt to Equity History and Analysis

Debt Level: 8413 is debt free.

Reducing Debt: 8413 had no debt 5 years ago.

Debt Coverage: 8413 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8413 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8413 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8413's debt is covered by short term assets.


Next Steps

Dividend

What is Asia Grocery Distribution's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8413's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8413'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 8413's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8413'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 8413'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?

3.1yrs

Average management tenure


CEO

Andy Wong (50yo)

3.08s

Tenure

HK$1,363,000

Compensation

Mr. Siu Wa Wong also known as Andy, has been Chief Executive Officer and Executive Director at Asia Grocery Distribution Limited since March 27, 2017 and September 29, 2016 respectively. Mr. Wong is a Co-O ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD228.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Siu Man Wong
Chairman3.58yrsHK$1.36mno data
Siu Wa Wong
CEO & Executive Director3.08yrsHK$1.36mno data
Kam Cheong Yip
Compliance Officer & Executive Director3.58yrsHK$773.00kno data
Lai In Chan
Financial Controller2.67yrsno datano data
Chun Fung Wong
Sales Manager9.33yrsno datano data
Ching Han Cheung
Business Development Managerno datano datano data
Yin Ping Lau
Company Secretary1.67yrsno datano data

3.1yrs

Average Tenure

36yo

Average Age

Experienced Management: 8413's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siu Man Wong
Chairman3.58yrsHK$1.36mno data
Siu Wa Wong
CEO & Executive Director3.08yrsHK$1.36mno data
Kam Cheong Yip
Compliance Officer & Executive Director3.58yrsHK$773.00kno data
Chun Hung Wong
Non-Executive Director3.58yrsHK$46.00kno data
Kar Ho Wong
Independent Non-Executive Director3.08yrsHK$120.00kno data
Fan Kay Ng
Independent Non-Executive Director1.67yrsno datano data
Zhaobin Wang
Independent Non-Executive Director0.42yrno datano data

3.6yrs

Average Tenure

44yo

Average Age

Experienced Board: 8413's board of directors are considered experienced (3.6 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

Asia Grocery Distribution Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asia Grocery Distribution Limited
  • Ticker: 8413
  • Exchange: SEHK
  • Founded: 1975
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: HK$464.800m
  • Shares outstanding: 1.16b
  • Website: https://www.agdl.com.hk

Number of Employees


Location

  • Asia Grocery Distribution Limited
  • Mai Tong Industrial Building
  • The Whole of Upper Ground Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8413SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2017

Biography

Asia Grocery Distribution Limited, an investment holding company, trades in and distributes food and beverage groceries in Hong Kong. The company offers commodities and cereal products, such as rice, wheat flour, noodle products, edible oil, sugar, and salt; and packaged food products, including meat and vegetables in preserved, canned, frozen, and other forms, as well as snacks and pre-packaged food items. It also provides sauces and condiments; dairy products and eggs; beverages and wines; and kitchen products comprising cling films, baking sheets, foils, detergents, bleach products, liquid soaps, tissue papers, toothpicks, and towels. In addition, the company offers product sourcing, repackaging, quality assurance, warehousing and storage, transportation, and other value-added services. Its customers include restaurants, non-commercial dining establishments, hotels and private clubs, food processing operators, and wholesalers. The company was founded in 1975 and is headquartered in Kowloon, Hong Kong. Asia Grocery Distribution Limited is a subsidiary of Sky Alpha Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 14:21
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.