SEHK:1446

Stock Analysis Report

Hung Fook Tong Group Holdings

Executive Summary

Hung Fook Tong Group Holdings Limited, an investment holding company, engages in the production, retail, wholesale, and distribution of herbal and non-herbal products in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Hung Fook Tong Group Holdings is not covered by any analysts.

Share Price & News

How has Hung Fook Tong Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.6%

SEHK:1446

6.3%

HK Beverage

-0.7%

HK Market


1 Year Return

-9.5%

SEHK:1446

18.6%

HK Beverage

-9.8%

HK Market

1446 underperformed the Beverage industry which returned 18.6% over the past year.

1446 matched the Hong Kong Market (-9.8%) over the past year.


Share holder returns

1446IndustryMarket
7 Day5.6%6.3%-0.7%
30 Day-12.3%7.4%-9.3%
90 Day0%7.6%-8.4%
1 Year-8.3%-9.5%19.2%18.6%-6.6%-9.8%
3 Year-15.9%-18.6%54.6%52.5%12.8%1.6%
5 Year-58.7%-60.4%58.5%21.5%7.3%-10.5%

Price Volatility Vs. Market

How volatile is Hung Fook Tong Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hung Fook Tong Group Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hung Fook Tong Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Hung Fook Tong Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Hung Fook Tong Group Holdings is good value based on earnings compared to the HK Beverage industry average.

Hung Fook Tong Group Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hung Fook Tong Group Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Hung Fook Tong Group Holdings is overvalued based on assets compared to the HK Beverage industry average.


Next Steps

Future Growth

How is Hung Fook Tong Group Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hung Fook Tong Group Holdings is high growth as no revenue estimate data is available.

Hung Fook Tong Group Holdings's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare Hung Fook Tong Group Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Hung Fook Tong Group Holdings's earnings growth is positive but not above the Hong Kong market average.

Hung Fook Tong Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hung Fook Tong Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hung Fook Tong Group Holdings performed over the past 5 years?

13.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hung Fook Tong Group Holdings's year on year earnings growth rate has been positive over the past 5 years.

Hung Fook Tong Group Holdings's 1-year earnings growth exceeds its 5-year average (31.8% vs 13.7%)

Hung Fook Tong Group Holdings's earnings growth has exceeded the HK Beverage industry average in the past year (31.8% vs 12.2%).


Return on Equity

Hung Fook Tong Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hung Fook Tong Group Holdings used its assets less efficiently than the HK Beverage industry average last year based on Return on Assets.


Return on Capital Employed

Hung Fook Tong Group Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hung Fook Tong Group Holdings's financial position?


Financial Position Analysis

Hung Fook Tong Group Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Hung Fook Tong Group Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hung Fook Tong Group Holdings's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (96.7% vs 34.6% today).

Debt is well covered by operating cash flow (77%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 64.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

What is Hung Fook Tong Group Holdings's current dividend yield, its reliability and sustainability?

1.39%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hung Fook Tong Group Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.28%).

Hung Fook Tong Group Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.25%).

Whilst dividend payments have been stable, Hung Fook Tong Group Holdings has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hung Fook Tong Group Holdings only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hung Fook Tong Group Holdings's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average board tenure


CEO

Wing Fu Szeto (57yo)

HK$2,465,000

Compensation

Dr. Wing Fu Szeto serves as General Manager of Hung Fook Tong Group Holdings Limited and has been its Executive Director since March 10, 2014. Dr. Szeto is in charge of sales and marketing, human resources ...


CEO Compensation Analysis

Wing Fu's remuneration is higher than average for companies of similar size in Hong Kong.

Wing Fu's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

5.2yrs

Average Tenure

61.5yo

Average Age

The tenure for the Hung Fook Tong Group Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Hung Fook Tong Group Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyHK$619,99803 Jun 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares1,000,000
Max PriceHK$0.62
BuyHK$610,00431 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares1,000,000
Max PriceHK$0.61
BuyHK$14,56029 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares26,000
Max PriceHK$0.56
BuyHK$107,52128 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares192,000
Max PriceHK$0.56
BuyHK$32,48024 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares58,000
Max PriceHK$0.56
BuyHK$17,60022 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares32,000
Max PriceHK$0.55
BuyHK$30,80021 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares56,000
Max PriceHK$0.55
BuyHK$550,00120 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares1,000,000
Max PriceHK$0.55
BuyHK$42,00017 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares84,000
Max PriceHK$0.50
BuyHK$421,74007 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares852,000
Max PriceHK$0.49
BuyHK$94,80907 May 19
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares192,000
Max PriceHK$0.49
BuyHK$31,68019 Dec 18
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares64,000
Max PriceHK$0.49
BuyHK$61,38014 Dec 18
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares124,000
Max PriceHK$0.50
BuyHK$72,27014 Dec 18
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares146,000
Max PriceHK$0.50
BuyHK$33,95012 Dec 18
Pui Chu Wong
EntityIndividual
Role
Executive Director
Member of the Board of Directors
Shares70,000
Max PriceHK$0.49

Ownership Breakdown


Management Team

  • Chi Wang Lo (41yo)

    Financial Controller

  • Hiu Cheuk Chan (39yo)

    Senior Manager of Logistics & Procurement

  • Vivian Chou (42yo)

    Senior Manager of Marketing

  • Tse Tai

    Executive

  • Sonia Tsang (42yo)

    Senior Manager of Human Resource Management & People Development

  • Pui Chu Wong (59yo)

    Executive Director

    • Compensation: HK$2.17m
  • Po Tat Tse (65yo)

    Chairman

    • Compensation: HK$2.17m
  • Ellen Chan (45yo)

    Manager

  • Wing Fu Szeto (57yo)

    GM & Executive Director

    • Compensation: HK$2.47m
  • Kevin Lau (61yo)

    Company Secretary

    • Tenure: 4.3yrs

Board Members

  • Yat Ming Sin (64yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$252.00k
  • Andrew Look (54yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$252.00k
  • Kenneth Kiu (70yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: HK$252.00k
  • Po Tat Tse (65yo)

    Chairman

    • Compensation: HK$2.17m
  • Pui Chu Wong (59yo)

    Executive Director

    • Tenure: 5.4yrs
    • Compensation: HK$2.17m
  • Wing Fu Szeto (57yo)

    GM & Executive Director

    • Tenure: 5.4yrs
    • Compensation: HK$2.47m

Company Information

Hung Fook Tong Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hung Fook Tong Group Holdings Limited
  • Ticker: 1446
  • Exchange: SEHK
  • Founded: 1986
  • Industry: soft drinks
  • Sector: food, beverage & tobacco
  • Market Cap: HK$373.888m
  • Shares outstanding: 655.94m
  • Website: Click here

Number of Employees


Location

  • Hung Fook Tong Group Holdings Limited
  • Tai Po Industrial Estate
  • 11 Dai King Street
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1446SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2014
1H1MUN (Boerse Muenchen)YesOrdinary SharesDEEURJul 2014

Biography

Hung Fook Tong Group Holdings Limited, an investment holding company, engages in the production, retail, wholesale, and distribution of herbal and non-herbal products in the People’s Republic of China and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company AnalysisN/A
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.