SEHK:1939

Stock Analysis Report

Tokyo Chuo Auction Holdings

Executive Summary

Tokyo Chuo Auction Holdings Limited, an investment holding company, provides auction and related services, and artwork sales services in Hong Kong and Japan.

Rewards

PE ratio (12.6x) is below the Consumer Services industry average (15.7x)

Earnings grew by 15.7% over the past year

Risk Analysis

Earnings have declined by -6.39% per year over past 5 years

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1939's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

1939

-0.5%

HK Consumer Services

2.9%

HK Market


1 Year Return

-50.3%

1939

-1.5%

HK Consumer Services

-3.8%

HK Market

Return vs Industry: 1939 underperformed the Hong Kong Consumer Services industry which returned -1.5% over the past year.

Return vs Market: 1939 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

1939IndustryMarket
7 Day-5.3%-0.5%2.9%
30 Day1.4%-1.9%-4.1%
90 Day2.9%8.5%2.9%
1 Year-49.2%-50.3%0.5%-1.5%-0.2%-3.8%
3 Yearn/a-5.1%-10.0%15.3%3.7%
5 Yearn/a28.3%17.8%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tokyo Chuo Auction Holdings undervalued compared to its fair value and its price relative to the market?

12.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1939 (HK$0.72) is trading above our estimate of fair value (HK$0.39)

Significantly Below Fair Value: 1939 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1939 is good value based on its PE Ratio (12.6x) compared to the Consumer Services industry average (15.7x).

PE vs Market: 1939 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1939's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1939 is good value based on its PB Ratio (1.3x) compared to the HK Consumer Services industry average (2x).


Next Steps

Future Growth

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

28.7%

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 Tokyo Chuo Auction 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 Tokyo Chuo Auction Holdings performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1939 has a large one-off gain of HK$12.3M impacting its September 30 2019 financial results.

Growing Profit Margin: 1939's current net profit margins (16.5%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 1939's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: 1939's earnings growth over the past year (15.7%) exceeds its 5-year average (-6.4% per year).

Earnings vs Industry: 1939 earnings growth over the past year (15.7%) exceeded the Consumer Services industry 15.4%.


Return on Equity

High ROE: 1939's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tokyo Chuo Auction Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1939's short term assets (HK$500.6M) exceed its short term liabilities (HK$244.9M).

Long Term Liabilities: 1939's short term assets (HK$500.6M) exceed its long term liabilities (HK$25.0M).


Debt to Equity History and Analysis

Debt Level: 1939's debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1939's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1939's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1939 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1939 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1939's debt is covered by short term assets (assets are 13x debt).


Next Steps

Dividend

What is Tokyo Chuo Auction Holdings's current dividend yield, its reliability and sustainability?

2.78%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.2%markettop25%6.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1939's dividend (2.78%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1939's dividend (2.78%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1939's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1939's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.9%), 1939's dividend payments are well 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?

1.4yrs

Average board tenure


CEO

Tokyo Chuo Auction Holdings has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Shokei Ando
Chairman of Board0yrsHK$8.83m74.99% HK$266.2m
Eri Ando
Vice Chairlady of the Board0yrsHK$2.87mno data
Bunkai Katsu
COO & Executive Director1.8yrsHK$1.11mno data
Hongyue Sun
Executive Director1.8yrsHK$1.66mno data
Kwok Mo Chung
Independent Non-Executive Director1.4yrsHK$120.00kno data
Suk Ling Lam
Independent Non-Executive Director1.4yrsHK$120.00kno data
Chi Man Chun
Independent Non-Executive Director1.4yrsHK$120.00kno data

1.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 1939's board of directors are not considered experienced ( 1.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.3%.


Top Shareholders

Company Information

Tokyo Chuo Auction Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tokyo Chuo Auction Holdings Limited
  • Ticker: 1939
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: HK$355.000m
  • Shares outstanding: 500.00m
  • Website: https://www.chuo-auction.com.hk

Number of Employees


Location

  • Tokyo Chuo Auction Holdings Limited
  • Kyobashi-Square
  • 2nd and 3rd Floor
  • Tokyo
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1939SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2018

Biography

Tokyo Chuo Auction Holdings Limited, an investment holding company, provides auction and related services, and artwork sales services in Hong Kong and Japan. The company provides auctions for Chinese and Japanese artworks, such as paintings, calligraphies, antiques, and tea wares. It is also involved in promotion and related activities. The Company was formerly known as Tokyo Chuo Auction (Hong Kong) Co., Limited and changed its name to Tokyo Chuo Auction Holdings Limited in February 2018. Tokyo Chuo Auction Holdings Limited was founded in 2010 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:22
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
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.