SEHK:851

Stock Analysis Report

Executive Summary

Sheng Yuan Holdings Limited, an investment holding company, provides various financial services in Hong Kong and Mainland China.


Snowflake Analysis

Slightly overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 851's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

39.3%

851

5.0%

HK Capital Markets

2.9%

HK Market


1 Year Return

-22.0%

851

-7.1%

HK Capital Markets

-3.8%

HK Market

Return vs Industry: 851 underperformed the Hong Kong Capital Markets industry which returned -6.3% over the past year.

Return vs Market: 851 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

851IndustryMarket
7 Day39.3%5.0%2.9%
30 Day34.5%-4.2%-4.1%
90 Day-3.3%8.8%2.9%
1 Year-22.0%-22.0%-4.3%-7.1%-0.2%-3.8%
3 Year-73.4%-73.4%-15.1%-22.9%15.3%3.7%
5 Year-37.1%-37.1%-10.5%-25.2%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sheng Yuan Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 851 (HK$0.12) is trading below our estimate of fair value (HK$0.25)

Significantly Below Fair Value: 851 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 851 is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: 851 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 851's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 851 has negative assets, so we can't compare its PB Ratio to the HK Capital Markets industry average.


Next Steps

Future Growth

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

8.5%

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 Sheng 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.


Next Steps

Past Performance

How has Sheng Yuan Holdings performed over the past 5 years?

-33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 851 is currently unprofitable.

Growing Profit Margin: 851 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 851 is unprofitable, and losses have increased over the past 5 years at a rate of -33.5% per year.

Accelerating Growth: Unable to compare 851's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 851 is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-24.5%).


Return on Equity

High ROE: 851's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sheng Yuan 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: 851 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 851 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: 851 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 851 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 30.1% each year


Financial Institutions Analysis

Asset Level: 851's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 851 has a sufficient allowance for bad loans.

Low Risk Liabilities: 851 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 851 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 851 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 851 has an appropriate level of bad loans.


Next Steps

Dividend

What is Sheng Yuan Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 851's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 851's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 851's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 851'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 851'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?

0.8yrs

Average board tenure


CEO

Yang Liu (34yo)

0.08yrs

Tenure

Mr. Yang Liu has been Chairman, Chief Executive Officer and Executive Director at Sheng Yuan Holdings Limited since January 31, 2020. Mr. Liu serves as Executive Director and the Chief Executive Director  ...


Board Members

NamePositionTenureCompensationOwnership
Yang Liu
Chairman & CEO0.08yrsno datano data
Quan Zhou
Executive Director0.8yrsno datano data
Tze Wa Fung
Independent Non-Executive Director1.8yrsHK$119.00kno data
Fang Fang
Independent Non Executive Director0.8yrsno datano data
Dong An
Independent Non-Executive Director0.3yrsno datano data
Hao Mu
Non-Executive Director0.8yrsno datano data
Yun Zhao
Non-Executive Director0.8yrsno datano data

0.8yrs

Average Tenure

35yo

Average Age

Experienced Board: 851's board of directors are not considered experienced ( 0.8 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 been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

Sheng Yuan Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheng Yuan Holdings Limited
  • Ticker: 851
  • Exchange: SEHK
  • Founded:
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: HK$431.627m
  • Shares outstanding: 3.82b
  • Website: https://www.shengyuan.hk

Number of Employees


Location

  • Sheng Yuan Holdings Limited
  • No. 238 Des Voeux Road
  • 26th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MH9DBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 1998
851SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1998

Biography

Sheng Yuan Holdings Limited, an investment holding company, provides various financial services in Hong Kong and Mainland China. It operates through Securities Brokerage and Financial Services, Asset Management Services, Proprietary Trading, and Trading Business segments. The company offers discretionary and non-discretionary dealing services for securities and futures contracts; securities placing and underwriting services; margin financing and money lending services; and corporate finance advisory and general advisory services. It is also involved in the provision of fund management and discretionary portfolio management, and investment advisory services; securities trading business; and trading of chemical products, and energy and minerals products. In addition, the company engages in the brokerage business that facilitates trading of securities through conventional channels, as well as through Internet-based electronic trading platform. It serves corporate and retail clients. The company is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:53
End of Day Share Price2020/02/17 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.