SEHK:8439

Stock Analysis Report

Executive Summary

Somerley Capital Holdings Limited, an investment holding company, provides corporate finance advisory services in Hong Kong.


Snowflake Analysis

Worrying balance sheet not a dividend payer.

Share Price & News

How has Somerley Capital Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8439 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8439

-2.5%

HK Capital Markets

-3.3%

HK Market


1 Year Return

-10.2%

8439

-16.3%

HK Capital Markets

-9.6%

HK Market

Return vs Industry: 8439 exceeded the Hong Kong Capital Markets industry which returned -16.7% over the past year.

Return vs Market: 8439 matched the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

8439IndustryMarket
7 Day0%-2.5%-3.3%
30 Day-12.8%-1.2%-3.8%
90 Day-16.7%9.5%-0.2%
1 Year-7.6%-10.2%-13.8%-16.3%-6.3%-9.6%
3 Yearn/a-14.8%-22.7%11.2%-0.05%
5 Yearn/a-12.4%-26.9%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Somerley Capital Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Somerley Capital Holdings undervalued compared to its fair value and its price relative to the market?

473.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8439 (HK$1.5) is trading above our estimate of fair value (HK$0.41)

Significantly Below Fair Value: 8439 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8439 is poor value based on its PE Ratio (473.6x) compared to the Capital Markets industry average (11.6x).

PE vs Market: 8439 is poor value based on its PE Ratio (473.6x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8439's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8439 is overvalued based on its PB Ratio (2.1x) compared to the HK Capital Markets industry average (0.6x).


Next Steps

Future Growth

How is Somerley Capital Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

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 Somerley Capital 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 Somerley Capital Holdings performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8439 has a large one-off loss of HK$341.0K impacting its December 31 2019 financial results.

Growing Profit Margin: 8439's current net profit margins (0.6%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: 8439's earnings have declined by -8.6% per year over the past 5 years.

Accelerating Growth: 8439's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8439 had negative earnings growth (-96.4%) over the past year, making it difficult to compare to the Capital Markets industry average (-24.2%).


Return on Equity

High ROE: 8439's Return on Equity (-0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Somerley Capital Holdings'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: 8439 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8439's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 8439's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 8439 has a sufficient allowance for bad loans.

Low Risk Liabilities: 8439 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 8439 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8439 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 8439 has an appropriate level of bad loans.


Next Steps

Dividend

What is Somerley Capital Holdings's current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.3%markettop25%6.4%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8439's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 8439's dividend (3.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 8439 has been paying a dividend for less than 10 years.

Growing Dividend: 8439's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1578.8%), 8439's dividend payments are not 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?

1.5yrs

Average management tenure


CEO

Somerley Capital Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Nevil Sabine
Chairman & Compliance Officer2.9yrsHK$3.94mno data
Tei Cheung
Executive Director3.8yrsHK$3.18m1.58% HK$3.7m
Wai Chow
Executive Director3.8yrsHK$3.32m2.66% HK$6.2m
Mo Pang
Joint Company Secretary & Financial Controller1.8yrsno datano data
Yuen Ling Lam
Joint Company secretary2.9yrsno datano data
Chi Wong
Managing Director of Somerley Capital Limited0.8yrsno datano data
Gia Kuang
Director & GM of Somerley Capital (Beijing) Limited1.1yrsno datano data

1.5yrs

Average Tenure

48yo

Average Age

Experienced Management: 8439's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Nevil Sabine
Chairman & Compliance Officer2.9yrsHK$3.94mno data
Tei Cheung
Executive Director3.8yrsHK$3.18m1.58% HK$3.7m
Wai Chow
Executive Director3.8yrsHK$3.32m2.66% HK$6.2m
Kam Yuen
Independent Non-Executive Director2.9yrsno datano data
Yuk Wo Cheng
Independent Non-Executive Director2.9yrsno datano data
Cheuk Kin Law
Independent Non-Executive Director1yrsno datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 8439's board of directors are not considered experienced ( 2.9 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

Somerley Capital Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Somerley Capital Holdings Limited
  • Ticker: 8439
  • Exchange: SEHK
  • Founded: 2016
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: HK$234.589m
  • Shares outstanding: 141.32m
  • Website: https://www.somerleycapital.com

Number of Employees


Location

  • Somerley Capital Holdings Limited
  • China Building
  • 20th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8439SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2017

Biography

Somerley Capital Holdings Limited, an investment holding company, provides corporate finance advisory services in Hong Kong. The company acts as a financial adviser to Hong Kong public listed companies, various shareholders, and investors, as well as parties seeking to control or invest in listed companies in Hong Kong; and financial adviser to independent board committees and/or independent shareholders of listed companies in Hong Kong. It also acts as a compliance adviser primarily for newly listed companies in Hong Kong; and a sponsor to initial public offerings and listings of shares of companies on the Stock Exchange in Hong Kong, as well as provides advisory services on secondary equity issues and asset management services. The company offers advisory services related to takeovers of listed companies, whitewash waivers, acquisitions and disposals, connected transactions, spin-offs and reorganizations, privatizations, initial public offerings, and secondary issues. It serves the conglomerate, consumer, energy, natural resources and infrastructure, renewables, financial institutions and insurance, industrial, property and construction, gaming and hospitality, and TMT industries. The company was incorporated in 2016 and is headquartered in Central, Hong Kong. Somerley Capital Holdings Limited is a subsidiary of Somerley Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:24
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.