SEHK:2119

Stock Analysis Report

Tsit Wing International Holdings

Executive Summary

Tsit Wing International Holdings Limited, an investment holding company, provides beverages and food products in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

12.0%

2119

2.8%

HK Food

3.1%

HK Market


1 Year Return

10.9%

2119

17.2%

HK Food

0.5%

HK Market

Return vs Industry: 2119 underperformed the Hong Kong Food industry which returned 17.2% over the past year.

Return vs Market: 2119 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2119IndustryMarket
7 Day12.0%2.8%3.1%
30 Day-0.9%-0.7%-1.8%
90 Day-28.2%-4.9%-4.8%
1 Year17.1%10.9%20.5%17.2%4.1%0.5%
3 Yearn/a41.5%31.0%15.8%4.2%
5 Yearn/a4.2%-6.1%18.9%-0.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tsit Wing International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 2119 (HK$1.12) is trading below our estimate of fair value (HK$5.87)

Significantly Undervalued: 2119 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2119 is good value based on its PE Ratio (10.4x) compared to the Food industry average (14.9x).

PE vs Market: 2119 is good value based on its PE Ratio (10.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 2119 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 2119 is overvalued based on its PB Ratio (1.6x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Tsit Wing International Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2119's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: 2119's earnings (8.4% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 2119's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2119's revenue (7% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2119's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2119's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Tsit Wing International Holdings performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2119's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: 2119's earnings growth over the past year (79.3%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: 2119 earnings growth over the past year (79.3%) exceeded the Food industry 4.2%.


Return on Equity

High ROE: 2119's Return on Equity (15.3%) is considered low.


Return on Assets

ROA vs Industry: 2119 has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: 2119 has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tsit Wing International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2119's short term assets (HK$673.5M) exceeds its short term liabilities (HK$268.5M)

Long Term Liabilities: 2119's short term assets (673.5M) exceeds its long term liabilities (18.1M)


Debt to Equity History and Analysis

Debt Level: 2119's debt to equity ratio (21.8%) is considered satisfactory

Reducing Debt: 2119's debt to equity ratio has reduced from 34.1% to 21.8% over the past 5 years.

Debt Coverage: 2119's debt is well covered by operating cash flow (107.5%).

Interest Coverage: 2119's interest payments on its debt are well covered by EBIT (111.8x coverage).


Balance Sheet

Inventory Level: 2119 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2119's debt is covered by short term assets (assets are 5.582010x debt).


Next Steps

Dividend

What is Tsit Wing International Holdings's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Years6.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2119's dividend (4.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2119's dividend (4.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Too early to tell whether 2119's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2119's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.8%), 2119's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2119's dividends in 3 years are forecast to be covered by earnings (62.5% payout ratio).


Next Steps

Management

What is the CEO of Tsit Wing International Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Peter Wong (65yo)

0yrs

Tenure

HK$7,139,000

Compensation

Mr. Tat Tong Wong @ Wong Tak Tong serves as Chief Executive Officer of TSIT Wing International Holdings Ltd. at Tsit Wing (China) Holdings Limited and TSIT Wing (China) Investment Company Limited. Mr. Wong ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Peter's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Board Age and Tenure

1.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 2119's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Peter Wong (65yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$7.14m
  • Bernard Kam (63yo)

    Group Operating Officer of Marketing & Sales

    • Tenure: 0yrs
  • Wesley Chan

    Group Trading Business Director

    • Tenure: 0yrs
  • Keith Wu (44yo)

    Group COO

    • Tenure: 9.8yrs
    • Compensation: HK$3.88m
  • Yee-Man Fan (38yo)

    Group CFO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$2.61m
  • Sandy Law (43yo)

    Group Operating Officer of Compliance

    • Tenure: 0yrs

Board Members

  • Peter Wong (65yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: HK$7.14m
  • Keith Wu (44yo)

    Group COO

    • Tenure: 9.8yrs
    • Compensation: HK$3.88m
  • Kwai Chang Tang (66yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k
  • Alexander Chow (68yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k
  • Yee-Man Fan (38yo)

    Group CFO & Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$2.61m
  • Man Fai Wong (69yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$200.00k

Company Information

Tsit Wing International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tsit Wing International Holdings Limited
  • Ticker: 2119
  • Exchange: SEHK
  • Founded: 1932
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$786.642m
  • Shares outstanding: 763.73m
  • Website: https://www.twcoffee.com

Number of Employees


Location

  • Tsit Wing International Holdings Limited
  • Kwai Tak Industrial Centre
  • Flats F-J
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2119SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2018

Biography

Tsit Wing International Holdings Limited, an investment holding company, provides beverages and food products in the People’s Republic of China and internationally. The company operates in two segments, Be ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:59
End of Day Share Price2019/10/17 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.