SHSC:3360

Stock Analysis Report

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Executive Summary

Far East Horizon Limited, together with its subsidiaries, provides various financial services in Mainland China, Hong Kong, and internationally. More Details


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Far East Horizon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3360 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 3360's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.8%

3360

-4.2%

HK Diversified Financial

-3.5%

HK Market


1 Year Return

27.0%

3360

9.7%

HK Diversified Financial

19.4%

HK Market

Return vs Industry: 3360 exceeded the Hong Kong Diversified Financial industry which returned 9.7% over the past year.

Return vs Market: 3360 exceeded the Hong Kong Market which returned 19.4% over the past year.


Shareholder returns

3360IndustryMarket
7 Day3.8%-4.2%-3.5%
30 Day1.4%5.5%-0.7%
90 Day5.1%7.5%10.8%
1 Year33.2%27.0%15.7%9.7%24.0%19.4%
3 Year29.3%13.5%-9.7%-18.9%5.5%-5.4%
5 Year75.5%42.9%-25.3%-32.9%64.0%36.2%

Long-Term Price Volatility Vs. Market

How volatile is Far East Horizon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Far East Horizon 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: 3360 (HK$8.66) is trading below our estimate of fair value (HK$25.78)

Significantly Below Fair Value: 3360 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3360 is good value based on its PE Ratio (6.6x) compared to the HK Diversified Financial industry average (7.7x).

PE vs Market: 3360 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (12x).


Price to Earnings Growth Ratio

PEG Ratio: 3360 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 3360's PB Ratio (0.7x) is in line with the HK Diversified Financial industry average.


Next Steps

Future Growth

How is Far East Horizon forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3360's forecast earnings growth (14.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 3360's earnings (14.5% per year) are forecast to grow slower than the Hong Kong market (21.2% per year).

High Growth Earnings: 3360's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3360's revenue (14.3% per year) is forecast to grow faster than the Hong Kong market (13.5% per year).

High Growth Revenue: 3360's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3360's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Far East Horizon performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3360 has high quality earnings.

Growing Profit Margin: 3360's current net profit margins (17.5%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: 3360's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: 3360's earnings growth over the past year (0.2%) is below its 5-year average (12.8% per year).

Earnings vs Industry: 3360 earnings growth over the past year (0.2%) exceeded the Diversified Financial industry -0.3%.


Return on Equity

High ROE: 3360's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Far East Horizon's financial position?


Financial Position Analysis

Short Term Liabilities: 3360's short term assets (CN¥234.3B) exceed its short term liabilities (CN¥128.0B).

Long Term Liabilities: 3360's short term assets (CN¥234.3B) exceed its long term liabilities (CN¥115.6B).


Debt to Equity History and Analysis

Debt Level: 3360's debt to equity ratio (412.2%) is considered high.

Reducing Debt: 3360's debt to equity ratio has reduced from 425.6% to 412.2% over the past 5 years.

Debt Coverage: 3360's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 3360's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Far East Horizon current dividend yield, its reliability and sustainability?

3.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3360's dividend (3.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.02%).

High Dividend: 3360's dividend (3.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.26%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3360 has been paying a dividend for less than 10 years.

Growing Dividend: 3360's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), 3360's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3360's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Fanxing Kong (56 yo)

11.5yrs

Tenure

CN¥7,333,000

Compensation

Mr. Fanxing Kong has been the Chief Executive Officer of Far East Horizon Limited since September 2009 and served as its President since September 2009. Mr. Kong serves as the Chairman and the Chief Execut...


CEO Compensation Analysis

Compensation vs Market: Fanxing's total compensation ($USD1.13M) is above average for companies of similar size in the Hong Kong market ($USD687.24K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fanxing Kong
Vice Chairman & CEO11.5yrsCN¥7.33m0.28%
CN¥ 101.6m
Mingzhe Wang
Executive Director & CFO11.42yrsCN¥4.70m0.047%
CN¥ 16.8m
Jianjun Cai
Chief Information Officer6.92yrsno datano data
Jian Cao
Senior Vice President8.17yrsno datano data
Sze Man Mak
Company Secretaryno datano datano data

9.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 3360's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fanxing Kong
Vice Chairman & CEO11.5yrsCN¥7.33m0.28%
CN¥ 101.6m
Mingzhe Wang
Executive Director & CFO11.42yrsCN¥4.70m0.047%
CN¥ 16.8m
Haifeng Liu
Non-Executive Director11.42yrsCN¥372.00k0.026%
CN¥ 9.2m
Gaoning Ning
Chairman5yrsno datano data
Xiaojing Han
Independent Non-Executive Director10yrsCN¥372.00kno data
Wai Ming Yip
Independent Non-Executive Director10yrsCN¥372.00kno data
Ming-Jian Kuo
Non-Executive Director8yrsno datano data
Jialin Liu
Independent Non-Executive Director10yrsCN¥372.00k0.0060%
CN¥ 2.2m
John Law
Non-Executive Director8.42yrsno datano data
Lin Yang
Non-Executive Director11.42yrsno datano data
Cunqiang Cai
Independent Non-Executive Director10yrsCN¥372.00kno data

10.0yrs

Average Tenure

57yo

Average Age

Experienced Board: 3360's board of directors are seasoned and experienced ( 10 years average tenure).


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 5%.


Top Shareholders

Company Information

Far East Horizon Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Far East Horizon Limited
  • Ticker: 3360
  • Exchange: SHSC
  • Founded: 2008
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: HK$36.020b
  • Shares outstanding: 4.16b
  • Website: https://www.fehorizon.com

Number of Employees


Location

  • Far East Horizon Limited
  • Unit 6608, International Commerce Centre
  • 66th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3360SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2011
F6HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2011
3360SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2011
3360SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2011

Biography

Far East Horizon Limited, together with its subsidiaries, provides various financial services in Mainland China, Hong Kong, and internationally. It operates in two segments, Financial, Lease and Advisory; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 10:19
End of Day Share Price2021/03/04 00:00
Earnings2020/06/30
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.