SEHK:851

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Weak fundamentals or lack of information.

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

23.1%

851

11.4%

HK Capital Markets

5.8%

HK Market


1 Year Return

-83.0%

851

6.0%

HK Capital Markets

-4.0%

HK Market

Return vs Industry: 851 underperformed the Hong Kong Capital Markets industry which returned 4.3% over the past year.

Return vs Market: 851 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

851IndustryMarket
7 Day23.1%11.4%5.8%
30 Day-68.9%12.3%4.0%
90 Day-71.2%1.0%-2.6%
1 Year-83.0%-83.0%8.8%6.0%-0.6%-4.0%
3 Year-87.5%-87.5%-12.8%-20.4%1.3%-9.2%
5 Year-90.4%-90.4%-46.6%-54.4%-9.2%-23.5%

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?


In this section, we usually try to help investors determine whether Sheng Yuan Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Sheng Yuan Holdings has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 851’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Sheng Yuan Holdings regulatory filings.
  • Explore potentially undervalued companies in the Diversified Financials industry.

Future Growth

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

12.3%

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

  • Take a look at our analysis of 851’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • Sheng Yuan Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Diversified Financials industry.

Past Performance

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

-30.2%

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 -30.2% 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 (-14%).


Return on Equity

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


Next Steps

Financial Health

How is Sheng Yuan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 851 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 851 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 851 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 851's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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: 851 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 851 has less than a year of cash runway if free cash flow continues to grow at historical rates of 27.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate 851'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 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?

0.3yrs

Average management tenure


CEO

Yang Liu (34yo)

0.42

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  ...


Leadership Team

NamePositionTenureCompensationOwnership
Yun Zhao
Executive Director1.08yrsHK$127.00kno data
Quan Zhou
Executive Director1.08yrsHK$559.50kno data
Yang Liu
Executive Chairman & CEO0.42yrno datano data
Minami Shunji
Director of Sales and Marketingno datano datano data
Ming King Chiu
Company Secretary0.083yrno datano data

0.3yrs

Average Tenure

35yo

Average Age

Experienced Management: 851's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yun Zhao
Executive Director1.08yrsHK$127.00kno data
Quan Zhou
Executive Director1.08yrsHK$559.50kno data
Yang Liu
Executive Chairman & CEO0.42yrno datano data
Tze Wa Fung
Independent Non-Executive Director2.08yrsHK$200.00kno data
Dong An
Independent Non-Executive Director0.58yrHK$27.00kno data
Shuanggang Huang
Non-Executive Director0.25yrno datano data
Jinfan Zhang
Independent Non-Executive Director0.083yrno datano data

0.6yrs

Average Tenure

38yo

Average Age

Experienced Board: 851's board of directors are not considered experienced ( 0.6 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

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$114.591m
  • 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 two segments, Securities Brokerage and Financial Services, and Asset Management Services. 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. It serves corporate clients and retail investors. 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 Analysis2020/06/05 12:58
End of Day Share Price2020/06/05 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.