SEHK:181

Stock Analysis Report

Executive Summary

Fujian Holdings Limited, an investment holding company, engages in the operation of hotels in Mainland China and Hong Kong.

Rewards

Trading at 18.1% below its fair value

Earnings grew by 17.6% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap (HK$166M)



Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has Fujian Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 181's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

35.7%

181

2.8%

HK Hospitality

1.7%

HK Market


1 Year Return

-17.9%

181

5.6%

HK Hospitality

-2.9%

HK Market

Return vs Industry: 181 underperformed the Hong Kong Hospitality industry which returned 5.6% over the past year.

Return vs Market: 181 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

181IndustryMarket
7 Day35.7%2.8%1.7%
30 Day15.6%-10.0%-4.8%
90 Day-2.5%0.3%3.4%
1 Year-17.9%-17.9%8.8%5.6%0.7%-2.9%
3 Year-64.5%-64.5%23.6%12.5%15.3%3.6%
5 Year-77.1%-77.1%9.6%-7.7%15.9%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fujian Holdings undervalued compared to its fair value and its price relative to the market?

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 181 (HK$0.16) is trading below our estimate of fair value (HK$0.19)

Significantly Below Fair Value: 181 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 181 is poor value based on its PE Ratio (17.5x) compared to the Hospitality industry average (12.1x).

PE vs Market: 181 is poor value based on its PE Ratio (17.5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 181's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 181 is good value based on its PB Ratio (0.4x) compared to the HK Hospitality industry average (0.8x).


Next Steps

Future Growth

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

14.1%

Forecasted Consumer Services 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 Fujian Holdings 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 Fujian Holdings performed over the past 5 years?

68.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 181 has a large one-off gain of HK$8.0M impacting its June 30 2019 financial results.

Growing Profit Margin: 181's current net profit margins (24.9%) are higher than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: 181 has become profitable over the past 5 years, growing earnings by 68.5% per year.

Accelerating Growth: 181's earnings growth over the past year (17.6%) is below its 5-year average (68.5% per year).

Earnings vs Industry: 181 earnings growth over the past year (17.6%) exceeded the Hospitality industry -2.1%.


Return on Equity

High ROE: 181's Return on Equity (2.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fujian Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 181's short term assets (HK$55.3M) exceed its short term liabilities (HK$13.2M).

Long Term Liabilities: 181's short term assets (HK$55.3M) exceed its long term liabilities (HK$3.7M).


Debt to Equity History and Analysis

Debt Level: 181 is debt free.

Reducing Debt: 181 has not had any debt for past 5 years.

Debt Coverage: 181 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 181 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 181 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 181's debt is covered by short term assets.


Next Steps

Dividend

What is Fujian Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 181's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 181'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 181's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 181'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 181'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?

4.5yrs

Average board tenure


CEO

Danyun Chen (54yo)

4.3yrs

Tenure

HK$710,000

Compensation

Ms. Danyun Chen has been the General Manager of Fujian Holdings Limited since October 19, 2015. Ms. Chen has been an Executive Director of Fujian Group Ltd. since August 7, 2015 and previously served as it ...


CEO Compensation Analysis

Compensation vs Market: Danyun's total compensation ($USD91.41K) is below average for companies of similar size in the Hong Kong market ($USD225.53K).

Compensation vs Earnings: Danyun's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Yangbiao Chen
Chairman of the Board1.5yrsHK$984.60kno data
Danyun Chen
GM & Executive Director4.3yrsHK$710.00k0.037% HK$60.9k
Yang Chen
Vice GM & Executive Director4.3yrsHK$609.46kno data
Kwong Siu Lam
Independent Non-Executive Director16.2yrsHK$120.00kno data
Qiang Feng
Non-Executive Director15.1yrsno datano data
Ruilian Wang
Non-Executive Director13.6yrsno datano data
Mei Ling Liu
Independent Non Executive Director1.1yrsno datano data
Man Ng
Independent Non Executive Director5.7yrsHK$120.00kno data
Weng Weijian
Non-Executive Director1.4yrsno datano data

4.5yrs

Average Tenure

55yo

Average Age

Experienced Board: 181's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fujian Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fujian Holdings Limited
  • Ticker: 181
  • Exchange: SEHK
  • Founded: 1958
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$166.104m
  • Shares outstanding: 1.15b
  • Website: https://www.fujianholdings.com

Number of Employees


Location

  • Fujian Holdings Limited
  • West Tower
  • Room 3306-3308, 33rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
181SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Fujian Holdings Limited, an investment holding company, engages in the operation of hotels in Mainland China and Hong Kong. The company operates through Property Investment and Hotel Operations segments. It is also involved in the rental of investment properties. The company was founded in 1958 and is headquartered in Central, Hong Kong. Fujian Holdings Limited is a subsidiary of HC Technology Capital Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:33
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.