SEHK:142

Stock Analysis Report

Executive Summary

First Pacific Company Limited, an investment management and holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Australasia, Singapore, and internationally.

Snowflake

Fundamentals

Second-rate dividend payer with worrying balance sheet.

Share Price & News

How has First Pacific's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.4%

142

-3.8%

HK Diversified Financial

2.2%

HK Market


1 Year Return

-26.2%

142

-13.5%

HK Diversified Financial

-1.3%

HK Market

Return vs Industry: 142 underperformed the Hong Kong Diversified Financial industry which returned -13.5% over the past year.

Return vs Market: 142 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

142IndustryMarket
7 Day-3.4%-3.8%2.2%
30 Day-10.8%-7.3%-2.9%
90 Day-14.3%-11.5%-5.8%
1 Year-23.3%-26.2%-10.7%-13.5%2.3%-1.3%
3 Year-46.8%-51.6%-39.1%-44.1%15.6%3.9%
5 Year-60.1%-65.8%-43.1%-50.1%20.1%0.06%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is First Pacific undervalued based on future cash flows and its price relative to the stock market?

0.52x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 142 (HK$2.82) is trading above our estimate of fair value (HK$1.83)

Significantly Undervalued: 142 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 142 is unprofitable, so we can't compare its PE Ratio to the Diversified Financial industry average.

PE vs Market: 142 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 142's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 142 is overvalued based on its PB Ratio (0.5x) compared to the HK Diversified Financial industry average (0.5x).


Next Steps

Future Growth

How is First Pacific expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

57.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 142 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 142 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 142 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 142's revenue (1.4% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 142's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 142's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has First Pacific performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 142 is unprofitable, and losses have increased over the past 5 years at a rate of -12.7% per year.

Accelerating Growth: Unable to compare 142's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 142 is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (-7.4%).


Return on Equity

High ROE: 142 has a negative Return on Equity (3.67%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 142 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 142 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is First Pacific's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 142 has a high level of physical assets or inventory.

Debt Coverage by Assets: 142's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: 142's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 142 has a sufficient allowance for bad loans.

Low Risk Liabilities: 142 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 142 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 142 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 142 has an appropriate level of bad loans.


Next Steps

Dividend

What is First Pacific's current dividend yield, its reliability and sustainability?

5.10%

Expected Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.8%forecastin3Years5.1%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 142's dividend (4.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 142's dividend (4.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 142's dividend payments have been volatile in the past 10 years.

Growing Dividend: 142's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 142 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 142's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

What is the CEO of First Pacific's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Manny Pangilinan (73yo)

16.3yrs

Tenure

US$6,296,000

Compensation

Mr. Manuel Velez Pangilinan, also known as Manny, founded First Pacific Company Limited in 1981 and has been its Managing Director and Chief Executive Officer since June 3, 2003. Mr. Pangilinan served as t ...


CEO Compensation Analysis

Compensation vs. Market: Manny's total compensation ($USD0.00) is too low to compare against companies of similar size in the Hong Kong market ($USD492.11K).

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


Management Age and Tenure

6.5yrs

Average Tenure

62yo

Average Age

Experienced Management: 142's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

67yo

Average Age

Experienced Board: 142's board of directors are considered experienced (6.8 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

SellUS$1,378,77623 Aug 19
Brandes Investment Partners, L.P.
EntityCompany
Shares450,580
Max PriceUS$3.06
BuyUS$10,033,39819 Jan 19
Brandes Investment Partners, L.P.
EntityCompany
Shares2,850,396
Max PriceUS$3.52
SellUS$13,072,37119 Dec 18
Brandes Investment Partners, L.P.
EntityCompany
Shares4,272,017
Max PriceUS$3.06
BuyUS$17,790,74001 Dec 18
Brandes Investment Partners, L.P.
EntityCompany
Shares6,092,716
Max PriceUS$2.92

Ownership Breakdown


Management Team

  • Manny Pangilinan (73yo)

    CEO, MD & Executive Director

    • Tenure: 16.3yrs
    • Compensation: US$6.30m
  • Maisie Lam (64yo)

    Executive Vice President of Group Human Resources

    • Tenure: 0yrs
  • Christopher Huxley Young (62yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$1.96m
  • Nancy Li (62yo)

    VP & Company Secretary

    • Tenure: 16.4yrs
  • Sara Cheung (55yo)

    Vice President of Group Corporate Communications

    • Tenure: 0yrs
  • Richard Chan (49yo)

    Executive VP & Group Financial Controller

    • Tenure: 5.8yrs
  • Peter Lin (49yo)

    Executive Vice President of Group Treasury & Tax

    • Tenure: 0.8yrs
  • Marilyn Victorio-Aquino (63yo)

    Associate Director & Chief Risk Officer

    • Tenure: 7.3yrs
  • Stanley H. Yang (42yo)

    Executive Vice President of Group Corporate Development

    • Tenure: 0yrs

Board Members

  • Manny Pangilinan (73yo)

    CEO, MD & Executive Director

    • Tenure: 16.3yrs
    • Compensation: US$6.30m
  • Edward Chen (74yo)

    Independent Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: US$336.00k
  • Tedy Djuhar (67yo)

    Non-Executive Director

    • Tenure: 38.8yrs
    • Compensation: US$36.00k
  • Christopher Huxley Young (62yo)

    CFO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$1.96m
  • Anthoni Salim (70yo)

    Chairman

    • Tenure: 16.3yrs
    • Compensation: US$3.14m
  • Benny Santoso (61yo)

    Non-Executive Director

    • Tenure: 0yrs
    • Compensation: US$322.00k
  • Philip Fan (70yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$371.00k
  • Margaret Leung Ko (67yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$361.00k
  • Madeleine Lee (57yo)

    Independent Non Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$314.00k

Company Information

First Pacific Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Pacific Company Limited
  • Ticker: 142
  • Exchange: SEHK
  • Founded: 1981
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: HK$12.119b
  • Shares outstanding: 4.34b
  • Website: https://www.firstpacific.com

Number of Employees


Location

  • First Pacific Company Limited
  • Two Exchange Square
  • 24th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FPAF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
142SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
FPCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
142SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
142SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
FPAF.YOTCPK (Pink Sheets LLC)SPON ADR REP 5 ORD SHS NPVUSUSDJul 1995

Biography

First Pacific Company Limited, an investment management and holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:39
End of Day Share Price2019/10/14 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.

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