SEHK:704

Stock Analysis Report

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Executive Summary

Huscoke Holdings Limited, an investment holding company, produces and trades in coke in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 704's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

704

4.3%

HK Oil and Gas

4.1%

HK Market


1 Year Return

-66.8%

704

-32.5%

HK Oil and Gas

-4.7%

HK Market

Return vs Industry: 704 underperformed the Hong Kong Oil and Gas industry which returned -32.6% over the past year.

Return vs Market: 704 underperformed the Hong Kong Market which returned -4.9% over the past year.


Shareholder returns

704IndustryMarket
7 Day-5.0%4.3%4.1%
30 Day-6.2%-1.5%5.3%
90 Day-21.6%-6.0%13.5%
1 Year-66.8%-66.8%-27.7%-32.5%-1.2%-4.7%
3 Year-67.4%-67.4%-21.7%-34.4%7.7%-3.5%
5 Year-86.5%-86.5%-38.8%-50.6%7.2%-10.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 704's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 704's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 704 is poor value based on its PE Ratio (21.6x) compared to the Oil and Gas industry average (6.2x).

PE vs Market: 704 is poor value based on its PE Ratio (21.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 704's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 704 is good value based on its PB Ratio (0.4x) compared to the HK Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

37.5%

Forecasted Energy 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 Huscoke 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 Huscoke Holdings performed over the past 5 years?

73.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 704 has a high level of non-cash earnings.

Growing Profit Margin: 704's current net profit margins (0.6%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: 704 has become profitable over the past 5 years, growing earnings by 73.1% per year.

Accelerating Growth: 704's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 704 had negative earnings growth (-92.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (1.8%).


Return on Equity

High ROE: 704's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Huscoke Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 704's short term assets (HK$1.5B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 704's short term assets (HK$1.5B) exceed its long term liabilities (HK$219.1M).


Debt to Equity History and Analysis

Debt Level: 704's debt to equity ratio (36.7%) is considered satisfactory.

Reducing Debt: 704's debt to equity ratio has reduced from 75% to 36.7% over the past 5 years.

Debt Coverage: 704's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 704's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 704's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 704'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 704's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 704's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 704 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 704'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?

3.2yrs

Average management tenure


CEO

Xu Guang Zhao (56yo)

3.17yrs

Tenure

HK$4,178,000

Compensation

Mr. Xu Guang Zhao has been Chief Executive Officer of Huscoke Holdings Limited (formerly known as Huscoke Resources Holdings Limited) since May 2, 2017. Mr. Zhao has been the Executive Chairman of Huscoke  ...


CEO Compensation Analysis

Compensation vs Market: Xu Guang's total compensation ($USD539.09K) is above average for companies of similar size in the Hong Kong market ($USD227.61K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xu Guang Zhao
Executive Chairman & CEO3.17yrsHK$4.18m51.15% HK$111.6m
Yijun Wang
Executive Director1yrHK$517.00kno data
Chi Chung Li
Company Secretary3.67yrsno datano data

3.2yrs

Average Tenure

56yo

Average Age

Experienced Management: 704's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xu Guang Zhao
Executive Chairman & CEO3.17yrsHK$4.18m51.15% HK$111.6m
Yijun Wang
Executive Director1yrHK$517.00kno data
Lam Hoy Lee
Independent Non-Executive Director11.83yrsHK$120.00kno data
Wing Tim To
Independent Non-Executive Director10.75yrsHK$120.00k0.0085% HK$18.5k
Wei Hsin Wang
Independent Non-Executive Director1.58yrsHK$120.00kno data
Siu Hung Wong
Non Executive Director2.25yrsHK$180.00kno data
Man Yem Huang
Non-Executive Director3.67yrsHK$180.00kno data
Jiansheng Jiang
Non-Executive Director0.50yrno datano data

3.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 704's board of directors are not considered experienced ( 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Huscoke Holdings Limited
  • Ticker: 704
  • Exchange: SEHK
  • Founded:
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: HK$218.174m
  • Shares outstanding: 2.87b
  • Website: https://www.huscoke.com

Number of Employees


Location

  • Huscoke Holdings Limited
  • Tower One
  • Lippo Centre
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
704SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Huscoke Holdings Limited, an investment holding company, produces and trades in coke in the People’s Republic of China. The company operates through three segments: Coke Trading, Coal-Related Ancillary, and Coke Production. The Coke Trading segment purchases and sells coal and coke. The Coal-Related Ancillary segment is involved in the washing of raw coal into refined coal for sale and processing, as well as sale of electricity and heat, which are generated as the by-products during the washing of raw coal. The Coke Production segment processes refined coal into coke for sale, as well as sells coke by-products. Huscoke Resources Holdings Limited also holds assets. The company was formerly known as Huscoke Resources Holdings Limited and changed its name to Huscoke Holdings Limited in December 2018. The company is based in Admiralty, Hong Kong. Huscoke Holdings Limited is a subsidiary of Shun Wang Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 12:45
End of Day Share Price2020/07/03 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.