China Wan Tong Yuan (Holdings) (SEHK:6966) - Share price, News & Analysis

Q: What is the Fair Price of 6966 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6966 (HK$0.4) is trading below our estimate of [[fair value]] (HK$5.63)

6966 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

6966 Stock Overview

China Wan Tong Yuan (Holdings) Limited, an investment holding company, provides burial services in the People’s Republic of China.

Rewards

Trading at 92.9% below our estimate of its fair value

Earnings grew by 46.4% over the past year

Risk Analysis

Does not have a meaningful market cap (HK$400M)

China Wan Tong Yuan (Holdings) Competitors

Anxian Yuan China Holdings

SEHK:922

HK$371.0m

Tokyo Chuo Auction Holdings

SEHK:1939

HK$360.0m

Qeeka Home (Cayman)

SEHK:1739

HK$508.5m

Miricor Enterprises Holdings

SEHK:1827

HK$480.0m

Price History & Performance

Summary of all time highs, changes and price drops for China Wan Tong Yuan (Holdings)
Historical stock prices
Current Share Price	HK$0.40
52 Week High	HK$3.30
52 Week Low	HK$0.34
Beta	-0.65
1 Month Change	-11.11%
3 Month Change	-5.88%
1 Year Change	-4.76%
3 Year Change	66.67%
5 Year Change	n/a
Change since IPO	3.90%

Recent News & Updates

Jul 27

China Wan Tong Yuan (Holdings) (HKG:6966) May Have Issues Allocating Its Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Shareholder Returns

	6966	HK Consumer Services	HK Market
7D	0%	-1.2%	-0.2%
1Y	-4.8%	-37.9%	-21.6%

Return vs Industry: 6966 exceeded the Hong Kong Consumer Services industry which returned -37.9% over the past year.

Return vs Market: 6966 exceeded the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 6966's price volatile compared to industry and market?
6966 volatility
6966 Average Weekly Movement	6.2%
Consumer Services Industry Average Movement	8.6%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6966 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6966's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	60	n/a	https://www.chinawty.com

China Wan Tong Yuan (Holdings) Limited, an investment holding company, provides burial services in the People’s Republic of China. The company sells burial plots and columbarium units, as well as offers cemetery maintenance and funeral services. It also provides other burial-related services, such as the organization and conducting of interment rituals; designs, constructs, and landscapes burial plots; and engraves inscriptions and ceramic photographs on the headstones.

China Wan Tong Yuan (Holdings) Fundamentals Summary

How do China Wan Tong Yuan (Holdings)'s earnings and revenue compare to its market cap?
6966 fundamental statistics
Market Cap	HK$400.00m
Earnings (TTM)	HK$28.03m
Revenue (TTM)	HK$54.39m

14.3x

P/E Ratio

7.4x

P/S Ratio

Is 6966 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6966 income statement (TTM)
Revenue	CN¥47.00m
Cost of Revenue	CN¥12.60m
Gross Profit	CN¥34.40m
Other Expenses	CN¥10.18m
Earnings	CN¥24.23m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.024
Gross Margin	73.19%
Net Profit Margin	51.54%
Debt/Equity Ratio	0%

How did 6966 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 6966 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6966?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6966. This is calculated by dividing 6966's market cap by their current preferred multiple.
What is 6966's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥345.65m

6966 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.4x
Enterprise Value/EBITDA	12.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6966's PE Ratio compare to its peers?

6966 PE Ratio vs Peers

The above table shows the PE ratio for 6966 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.2x
922 Anxian Yuan China Holdings	5.1x	n/a	HK$371.0m
1939 Tokyo Chuo Auction Holdings	42.7x	n/a	HK$360.0m
1739 Qeeka Home (Cayman)	5.9x	n/a	HK$508.5m
1827 Miricor Enterprises Holdings	18.9x	n/a	HK$480.0m
6966 China Wan Tong Yuan (Holdings)	14.3x	n/a	HK$400.0m

Price-To-Earnings vs Peers: 6966 is good value based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (18.2x).

Price to Earnings Ratio vs Industry

How does 6966's PE Ratio compare vs other companies in the HK Consumer Services Industry?

Price-To-Earnings vs Industry: 6966 is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the Hong Kong Consumer Services industry average (8.1x)

Price to Earnings Ratio vs Fair Ratio

What is 6966's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6966 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6966's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6966 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6966 (HK$0.4) is trading below our estimate of fair value (HK$5.63)

Significantly Below Fair Value: 6966 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is China Wan Tong Yuan (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

35.9%

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 China Wan Tong Yuan (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.

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Examine whether China Wan Tong Yuan (Holdings) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
China Wan Tong Yuan (Holdings) competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has China Wan Tong Yuan (Holdings) performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6966 has high quality earnings.

Growing Profit Margin: 6966's current net profit margins (51.5%) are higher than last year (40.8%).

Past Earnings Growth Analysis

Earnings Trend: 6966's earnings have grown by 7.5% per year over the past 5 years.

Accelerating Growth: 6966's earnings growth over the past year (46.4%) exceeds its 5-year average (7.5% per year).

Earnings vs Industry: 6966 earnings growth over the past year (46.4%) exceeded the Consumer Services industry 19.9%.

Return on Equity

High ROE: 6966's Return on Equity (12%) is considered low.

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Financial Health

How is China Wan Tong Yuan (Holdings)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6966's short term assets (CN¥227.8M) exceed its short term liabilities (CN¥18.7M).

Long Term Liabilities: 6966's short term assets (CN¥227.8M) exceed its long term liabilities (CN¥72.5M).

Debt to Equity History and Analysis

Debt Level: 6966 is debt free.

Reducing Debt: 6966 has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.

Debt Coverage: 6966 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6966 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is China Wan Tong Yuan (Holdings) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6966's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6966's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6966's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6966's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 6966 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure

CEO

China Wan Tong Yuan (Holdings) has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 6966's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: 6966's board of directors are considered experienced (4.9 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/16 00:00
End of Day Share Price	2022/08/16 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31