SEHK:397

Stock Analysis Report

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Executive Summary

Power Financial Group Limited, an investment holding company, primarily engages in financial services business in Hong Kong.


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Power Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 397's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.3%

397

5.5%

HK Capital Markets

3.0%

HK Market


1 Year Return

-2.2%

397

30.5%

HK Capital Markets

-0.9%

HK Market

Return vs Industry: 397 underperformed the Hong Kong Capital Markets industry which returned 30.5% over the past year.

Return vs Market: 397 underperformed the Hong Kong Market which returned -0.9% over the past year.


Shareholder returns

397IndustryMarket
7 Day7.3%5.5%3.0%
30 Day2.3%28.9%6.1%
90 Day-14.6%48.4%12.1%
1 Year-2.2%-2.2%34.4%30.5%3.1%-0.9%
3 Year-13.7%-13.7%13.9%3.6%7.1%-4.4%
5 Year-95.8%-95.8%-14.5%-27.0%8.7%-9.4%

Price Volatility Vs. Market

How volatile is Power Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Power Financial Group undervalued compared to its fair value and its price relative to the market?

0.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 397's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 397's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 397 is unprofitable, so we can't compare its PE Ratio to the HK Capital Markets industry average.

PE vs Market: 397 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 397's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 397 is good value based on its PB Ratio (0.2x) compared to the HK Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Power Financial Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.1%

Forecasted Diversified Financials 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 Power Financial Group 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 Power Financial Group performed over the past 5 years?

-19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 397 is currently unprofitable.

Growing Profit Margin: 397 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 397 is unprofitable, and losses have increased over the past 5 years at a rate of -19.5% per year.

Accelerating Growth: Unable to compare 397's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 397 is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-8.1%).


Return on Equity

High ROE: 397 has a negative Return on Equity (-5.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Power Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 397's short term assets (HK$1.1B) exceed its short term liabilities (HK$50.6M).

Long Term Liabilities: 397's short term assets (HK$1.1B) exceed its long term liabilities (HK$162.0K).


Debt to Equity History and Analysis

Debt Level: 397's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: 397's debt to equity ratio has reduced from 2.5% to 1.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 397 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 397 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20% per year.


Next Steps

Dividend

What is Power Financial Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 397's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 397'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 397's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 397'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 397'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?

1.5yrs

Average management tenure


CEO

Danny Choi (59yo)

1.5yrs

Tenure

HK$12,018,000

Compensation

Mr. Chun Chung Choi, also known as Danny, has been Chief Executive Officer and Executive Director of Power Financial Group Limited (formerly, Jun Yang Financial Holdings Limited) since January 02, 2019 and ...


CEO Compensation Analysis

Compensation vs Market: Danny's total compensation ($USD1.55M) is above average for companies of similar size in the Hong Kong market ($USD228.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chun Chung Choi
Chairman & CEO1.5yrsHK$12.02m1.01% HK$2.5m
Guangdian Liu
Investor Relations Director7.42yrsHK$77.00kno data
Kam Chau Siu
Executive Director & Company Secretary0.25yrHK$213.00kno data

1.5yrs

Average Tenure

58yo

Average Age

Experienced Management: 397's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chun Chung Choi
Chairman & CEO1.5yrsHK$12.02m1.01% HK$2.5m
Kam Chau Siu
Executive Director & Company Secretary0.25yrHK$213.00kno data
Chun Kit Ho
Director of Power Securities Company Limitedno datano datano data
Kar Yin Chan
Independent Non-Executive Director0.25yrno datano data
Ka Wai Chiu
Independent Non-Executive Director0.25yrno datano data
Sze Kong Kwok
Independent Non-Executive Director0.17yrno datano data

0.3yrs

Average Tenure

56yo

Average Age

Experienced Board: 397's board of directors are not considered experienced ( 0.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Power Financial Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Power Financial Group Limited
  • Ticker: 397
  • Exchange: SEHK
  • Founded:
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: HK$244.953m
  • Shares outstanding: 2.78b
  • Website: https://www.powerfinancial.com.hk

Number of Employees


Location

  • Power Financial Group Limited
  • COSCO Tower
  • Units 3910-13, 39th Floor
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
397SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1994

Biography

Power Financial Group Limited, an investment holding company, primarily engages in financial services business in Hong Kong. It operates through Financial Services, Money Lending, and Assets Investment segments. The company offers securities brokerage, placing and underwriting, corporate finance advisory, and loan financing services; and invests in debt securities, listed and unlisted equity securities, and options and investment funds. It is also involved in the property holding, personnel management, and corporate financing activities. The company was formerly known as Jun Yang Financial Holdings Limited and changed its name to Power Financial Group Limited in March 2018. Power Financial Group Limited is headquartered in Sheung Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:42
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.