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 bottled drinks and other herbal products in the People’s Republic of China, Hong Kong, and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.

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

Stable Share Price: 1446 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

1446

2.4%

HK Beverage

-0.6%

HK Market


1 Year Return

-26.9%

1446

12.8%

HK Beverage

-7.6%

HK Market

Return vs Industry: 1446 underperformed the Hong Kong Beverage industry which returned 12.8% over the past year.

Return vs Market: 1446 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1446IndustryMarket
7 Day-7.3%2.4%-0.6%
30 Day-1.3%-1.5%-1.4%
90 Day-1.3%-14.9%2.0%
1 Year-26.0%-26.9%13.4%12.8%-4.2%-7.6%
3 Year-43.9%-45.7%37.1%34.6%12.9%1.5%
5 Year-49.1%-51.3%-0.2%-14.1%13.1%-5.6%

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 compared to its fair value and its price relative to the market?

42.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1446 (HK$0.38) is trading below our estimate of fair value (HK$0.66)

Significantly Below Fair Value: 1446 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1446 is good value based on its PE Ratio (19.9x) compared to the Beverage industry average (24.7x).

PE vs Market: 1446 is poor value based on its PE Ratio (19.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1446's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1446 is overvalued based on its PB Ratio (0.9x) compared to the HK Beverage industry average (0.7x).


Next Steps

Future Growth

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

18.1%

Forecasted Food, Beverage & Tobacco 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 Hung Fook Tong Group 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 Hung Fook Tong Group Holdings performed over the past 5 years?

45.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1446 has high quality earnings.

Growing Profit Margin: 1446's current net profit margins (1.6%) are lower than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: 1446's earnings have grown significantly by 45.3% per year over the past 5 years.

Accelerating Growth: 1446's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1446 had negative earnings growth (-9.2%) over the past year, making it difficult to compare to the Beverage industry average (-1.6%).


Return on Equity

High ROE: 1446's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 1446's short term assets (HK$216.5M) do not cover its short term liabilities (HK$358.3M).

Long Term Liabilities: 1446's short term assets (HK$216.5M) exceed its long term liabilities (HK$94.8M).


Debt to Equity History and Analysis

Debt Level: 1446's debt to equity ratio (31.4%) is considered satisfactory.

Reducing Debt: 1446's debt to equity ratio has reduced from 263.3% to 31.4% over the past 5 years.

Debt Coverage: 1446's debt is well covered by operating cash flow (84.7%).

Interest Coverage: 1446's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: 1446 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1446's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

2.08%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.3%markettop25%6.3%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1446's dividend (2.08%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1446's dividend (2.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1446 has been paying a dividend for less than 10 years.

Growing Dividend: 1446's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), 1446's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.7yrs

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

Compensation vs Market: Wing Fu's total compensation ($USD316.52K) is above average for companies of similar size in the Hong Kong market ($USD226.90K).

Compensation vs Earnings: Wing Fu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Po Tat Tse
Chairman0yrsHK$2.17m16.64% HK$41.5m
Wing Fu Szeto
GM & Executive Director0yrsHK$2.47m3.77% HK$9.4m
Pui Chu Wong
Executive Director5.9yrsHK$2.17m30.24% HK$75.4m
Yat Ming Sin
Independent Non-Executive Director5.7yrsHK$252.00kno data
Andrew Look
Independent Non-Executive Director5.7yrsHK$252.00kno data
Wai Ming Kiu
Independent Non-Executive Director5.7yrsHK$252.00kno data

5.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1446's board of directors are considered experienced (5.7 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.


Top Shareholders

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$249.259m
  • Shares outstanding: 655.94m
  • Website: https://www.hungfooktong.com

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 bottled drinks and other herbal products in the People’s Republic of China, Hong Kong, and internationally. It offers Chinese herbal drinks and other drink products, Chinese-style soups, herbal tortoise plastron jelly, and other food products under the Hung Fook Tong brand name; and snacks, desserts, rice, noodles, and food products for Chinese festivals and other occasions. The company is also involved in manufacturing, trading, importing, wholesaling, and distributing bottled drinks; the property investment, coupons wholesaling, catering, and plastics bottles manufacturing activities; providing training courses; and offering logistics and trading services. In addition, it engages in the restaurant management activities; and import and export of general merchandise. As of December 31, 2018, the company operated 115 retail shops in Hong Kong. It also sells its wellness drinks to distributors in Macau, the United States, Canada, Malaysia, Australia, Singapore, Taiwan, the Philippines, New Zealand, Britain, the Netherlands, Spain, etc. Hung Fook Tong Group Holdings Limited was founded in 1986 and is based in Tai Po, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:04
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
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.