SEHK:2255

Stock Analysis Report

Haichang Ocean Park Holdings

Executive Summary

Haichang Ocean Park Holdings Ltd., together with its subsidiaries, develops, constructs, and operates theme parks and ancillary commercial properties in the People’s Republic of China.

Snowflake

Fundamentals

Limited growth and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-14.1%

2255

1.1%

HK Hospitality

0.3%

HK Market


1 Year Return

-33.6%

2255

18.3%

HK Hospitality

1.3%

HK Market

Return vs Industry: 2255 underperformed the Hong Kong Hospitality industry which returned 18.3% over the past year.

Return vs Market: 2255 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

2255IndustryMarket
7 Day-14.1%1.1%0.3%
30 Day-24.1%1.3%0.5%
90 Day-29.8%-5.1%-4.6%
1 Year-33.6%-33.6%22.2%18.3%4.9%1.3%
3 Year-49.1%-49.1%23.9%12.3%15.3%3.7%
5 Year-26.7%-26.7%-5.7%-20.9%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Haichang Ocean Park Holdings undervalued compared to its fair value and its price relative to the market?

0.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 2255 (HK$0.85) is trading above our estimate of fair value (HK$0.22)

Significantly Below Fair Value: 2255 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2255 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 2255 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 2255's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2255 is good value based on its PB Ratio (0.7x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Haichang Ocean Park Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

77.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2255 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2255 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2255 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2255's revenue (22.7% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2255's revenue (22.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2255's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Haichang Ocean Park Holdings performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2255 is unprofitable, and losses have increased over the past 5 years at a rate of -14% per year.

Accelerating Growth: Unable to compare 2255's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2255 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-5.3%).


Return on Equity

High ROE: 2255 has a negative Return on Equity (-3.04%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2255 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2255 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Haichang Ocean Park Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2255's short term assets (CN¥3.4B) do not cover its short term liabilities (CN¥5.3B)

Long Term Liabilities: 2255's short term assets (3.4B) do not cover its long term liabilities (6.8B)


Debt to Equity History and Analysis

Debt Level: 2255's debt to equity ratio (186.4%) is considered high

Reducing Debt: 2255's debt to equity ratio has increased from 112% to 186.4% over the past 5 years.

Debt Coverage: 2255's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: 2255 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 2255 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2255's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Haichang Ocean Park Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 2255's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2255's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 2255's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2255'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 2255's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Haichang Ocean Park Holdings's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Xuguang Wang (50yo)

0yrs

Tenure

CN¥1,926,000

Compensation

Mr. Xuguang Wang serves the Chief Executive Officer of Haichang Holdings Ltd and has been its Executive Director since February 23, 2014. Mr. Wang worked in the Dalian Branch of the China Construction Bank ...


CEO Compensation Analysis

Compensation vs. Market: Xuguang's total compensation ($USD272.15K) is about average for companies of similar size in the Hong Kong market ($USD307.53K).

Compensation vs Earnings: Xuguang's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.9yrs

Average Tenure

46yo

Average Age

Experienced Management: 2255's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 2255's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥998,98502 Nov 18
Cheng Qu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares800,000
Max PriceCN¥1.25

Ownership Breakdown


Management Team

  • Xuguang Wang (50yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.93m
  • Xin Li (47yo)

    CFO & Financial Controller

    • Tenure: 3.9yrs
  • Jie Gao (46yo)

    Executive President & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥1.63m
  • Guangyuan Tan (46yo)

    Technical Director & Senior Operation Director

    • Tenure: 6.5yrs
  • Jiabin Liu (49yo)

    COO, Senior Project Manager & Senior Business Management Director

    • Tenure: 3.9yrs
  • Fang Zheng (41yo)

    Senior Marketing Director

    • Tenure: 6.5yrs
  • Cheng Qu (31yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥400.00k
  • Polien Kho (36yo)

    Company Secretary

    • Tenure: 0.9yrs
  • Lee Jun (37yo)

    Senior Director of Corporate Development Center

    • Tenure: 1.8yrs

Board Members

  • Jianyi Sun (66yo)

    Independent Non-Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥100.00k
  • Bing Yuan (51yo)

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: CN¥180.00k
  • Xuguang Wang (50yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.93m
  • Naijie Qu (58yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥180.00k
  • Jie Gao (46yo)

    Executive President & Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥1.63m
  • Guo Hui Chen (63yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥100.00k
  • Yoshihiko Miyauchi

    Honorary Chairman

    • Tenure: 4.6yrs
  • Cheng Qu (31yo)

    Executive Director

    • Tenure: 3.4yrs
    • Compensation: CN¥400.00k
  • Meng Zhang (55yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥100.00k
  • Hao Li (36yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥60.00k

Company Information

Haichang Ocean Park Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Haichang Ocean Park Holdings Ltd.
  • Ticker: 2255
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: HK$3.640b
  • Shares outstanding: 4.00b
  • Website: https://www.haichangoceanpark.com

Number of Employees


Location

  • Haichang Ocean Park Holdings Ltd.
  • Foreshore Beach World Trade Centre
  • 31rd Floor, Building A
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2255SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2014
2255SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2014
2255SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2014

Biography

Haichang Ocean Park Holdings Ltd., together with its subsidiaries, develops, constructs, and operates theme parks and ancillary commercial properties in the People’s Republic of China. The company operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:55
End of Day Share Price2019/10/23 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.