First Pacific (SEHK:142) - Share price, News & Analysis

Q: What is the Fair Price of 142 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

142 (HK$3.18) is trading below our estimate of [[fair value]] (HK$29.03)

142 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	2/6
Dividends	3/6

142 Stock Overview

Rewards

Trading at 89% below our estimate of its fair value

Earnings are forecast to grow 26.17% per year

Earnings grew by 84.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

First Pacific Competitors

Zhou Hei Ya International Holdings

SEHK:1458

HK$12.1b

Ausnutria Dairy

SEHK:1717

HK$14.8b

China Youran Dairy Group

SEHK:9858

HK$12.4b

Health and Happiness (H&H) International Holdings

SEHK:1112

HK$6.6b

Price History & Performance

Summary of all time highs, changes and price drops for First Pacific
Historical stock prices
Current Share Price	HK$3.18
52 Week High	HK$3.63
52 Week Low	HK$2.41
Beta	0.98
1 Month Change	-4.79%
3 Month Change	0%
1 Year Change	20.00%
3 Year Change	-1.24%
5 Year Change	-44.01%
Change since IPO	218.00%

Recent News & Updates

Jun 17

First Pacific (HKG:142) Is Increasing Its Dividend To HK$0.10

First Pacific Company Limited ( HKG:142 ) will increase its dividend on the 8th of July to HK$0.10. This will take the...

Jun 11

Is Now An Opportune Moment To Examine First Pacific Company Limited (HKG:142)?

While First Pacific Company Limited ( HKG:142 ) might not be the most widely known stock at the moment, it received a...

May 02

Shareholders Can Be Confident That First Pacific's (HKG:142) Earnings Are High Quality

Even though First Pacific Company Limited's ( HKG:142 ) recent earnings release was robust, the market didn't seem to...

Shareholder Returns

	142	HK Food	HK Market
7D	-1.5%	4.6%	1.7%
1Y	20.0%	-22.4%	-21.2%

Return vs Industry: 142 exceeded the Hong Kong Food industry which returned -22.4% over the past year.

Return vs Market: 142 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 142's price volatile compared to industry and market?
142 volatility
142 Average Weekly Movement	4.4%
Food Industry Average Movement	5.7%
Market Average Movement	6.9%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.4%

Stable Share Price: 142 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 142's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1981	100,120	Manny Pangilinan	https://www.firstpacific.com

First Pacific Company Limited, an investment management and holding company, engages in the consumer food products, telecommunications, infrastructure, and natural resources businesses in the Philippines, Indonesia, Singapore, the Middle East, Africa, and internationally. The company offers a range of telecommunications and digital services, including fiber optic backbone, and fixed line and mobile networks. It also manufactures and distributes a range of food products, including noodles, dairy products, snack foods, food seasonings, nutrition and special foods, beverages, wheat flour, and pasta; breeds seeds; cultivates oil palm, rubber, sugar cane, and other crops; and offers cooking oils, margarines, and shortenings.

First Pacific Fundamentals Summary

How do First Pacific's earnings and revenue compare to its market cap?
142 fundamental statistics
Market Cap	US$1.64b
Earnings (TTM)	US$244.50m
Revenue (TTM)	US$9.10b

7.1x

P/E Ratio

0.2x

P/S Ratio

Is 142 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
142 income statement (TTM)
Revenue	US$9.10b
Cost of Revenue	US$6.28b
Gross Profit	US$2.83b
Other Expenses	US$2.58b
Earnings	US$244.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 26, 2022

Earnings per share (EPS)	0.057
Gross Margin	31.07%
Net Profit Margin	2.69%
Debt/Equity Ratio	106.4%

How did 142 perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

43%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 142 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 142?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 142. This is calculated by dividing 142's market cap by their current preferred multiple.
What is 142's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.64b

142 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	9.4x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 142's PE Ratio compare to its peers?

142 PE Ratio vs Peers

The above table shows the PE ratio for 142 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14.9x
1458 Zhou Hei Ya International Holdings	30.2x	33.1%	HK$12.1b
1717 Ausnutria Dairy	12.1x	12.5%	HK$14.8b
9858 China Youran Dairy Group	6.8x	28.3%	HK$12.4b
1112 Health and Happiness (H&H) International Holdings	11.1x	23.4%	HK$6.6b
142 First Pacific	7.1x	26.2%	HK$13.6b

Forward PE

Price-To-Earnings vs Peers: 142 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

How does 142's PE Ratio compare vs other companies in the HK Food Industry?

Price-To-Earnings vs Industry: 142 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the Hong Kong Food industry average (11.1x)

Price to Earnings Ratio vs Fair Ratio

What is 142's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

142 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.1x
Fair PE Ratio	17.7x

Price-To-Earnings vs Fair Ratio: 142 is good value based on its Price-To-Earnings Ratio (7.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).

Share Price vs Fair Value

What is the Fair Price of 142 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 142 (HK$3.18) is trading below our estimate of fair value (HK$29.03)

Significantly Below Fair Value: 142 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 142 is good value based on its PEG Ratio (0.3x)

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Future Growth

How is First Pacific forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 142's forecast earnings growth (26.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 142's earnings (26.2% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: 142's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 142's revenue (4.1% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 142's revenue (4.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 142's Return on Equity is forecast to be low in 3 years time (15.2%).

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Past Performance

How has First Pacific performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 142 has high quality earnings.

Growing Profit Margin: 142's current net profit margins (2.7%) are higher than last year (1.9%).

Past Earnings Growth Analysis

Earnings Trend: 142's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: 142's earnings growth over the past year (84.5%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: 142 earnings growth over the past year (84.5%) exceeded the Food industry 1.6%.

Return on Equity

High ROE: 142's Return on Equity (7.6%) is considered low.

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Financial Health

How is First Pacific's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 142's short term assets ($5.8B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: 142's short term assets ($5.8B) do not cover its long term liabilities ($11.3B).

Debt to Equity History and Analysis

Debt Level: 142's net debt to equity ratio (74.3%) is considered high.

Reducing Debt: 142's debt to equity ratio has increased from 76.2% to 106.4% over the past 5 years.

Debt Coverage: 142's debt is not well covered by operating cash flow (11%).

Interest Coverage: 142's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

What is First Pacific current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 142's dividend (6.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 142's dividend (6.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.78%).

Stability and Growth of Payments

Stable Dividend: 142's dividend payments have been volatile in the past 10 years.

Growing Dividend: 142's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.9%), 142's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (77%), 142's dividend payments are covered by cash flows.

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Management

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

6.8yrs

Average management tenure

CEO

Manny Pangilinan (75 yo)

19yrs

Tenure

US$10,091,000

Compensation

Mr. Manuel Velez Pangilinan, also known as Manny, founded First Pacific Company Limited in May 1981 and has been its Managing Director and Chief Executive Officer since June 3, 2003. Mr. Pangilinan served...

CEO Compensation Analysis

Compensation vs Market: Manny's total compensation ($USD10.09M) is above average for companies of similar size in the Hong Kong market ($USD602.75K).

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

Leadership Team

Experienced Management: 142's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: 142's board of directors are considered experienced (9.5 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31