SEHK:236

Stock Analysis Report

Executive Summary

San Miguel Brewery Hong Kong Limited manufactures and distributes bottled, canned, and draught beers under the San Miguel Pale Pilsen brand in Hong Kong, Mainland China, the Philippines, and internationally.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

How has San Miguel Brewery Hong Kong's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 236 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

236

-5.5%

HK Beverage

-4.1%

HK Market


1 Year Return

-20.5%

236

23.5%

HK Beverage

-0.5%

HK Market

Return vs Industry: 236 underperformed the Hong Kong Beverage industry which returned 31.5% over the past year.

Return vs Market: 236 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

236IndustryMarket
7 Day-1.1%-5.5%-4.1%
30 Day-5.1%-9.8%0.05%
90 Day-11.4%-13.4%4.3%
1 Year-20.5%-20.5%24.2%23.5%3.2%-0.5%
3 Year-25.0%-25.0%62.3%59.2%20.4%8.2%
5 Year-33.1%-33.6%15.7%-2.9%19.0%-0.9%

Price Volatility Vs. Market

How volatile is San Miguel Brewery Hong Kong's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is San Miguel Brewery Hong Kong undervalued compared to its fair value and its price relative to the market?

0.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 236 (HK$0.93) is trading above our estimate of fair value (HK$0.7)

Significantly Below Fair Value: 236 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 236 is unprofitable, so we can't compare its PE Ratio to the Beverage industry average.

PE vs Market: 236 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 236's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 236 is good value based on its PB Ratio (0.7x) compared to the HK Beverage industry average (0.8x).


Next Steps

Future Growth

How is San Miguel Brewery Hong Kong forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.2%

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 San Miguel Brewery Hong Kong 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 San Miguel Brewery Hong Kong performed over the past 5 years?

-67.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 236 is currently unprofitable.

Growing Profit Margin: 236 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 236 is unprofitable, and losses have increased over the past 5 years at a rate of -67.8% per year.

Accelerating Growth: Unable to compare 236's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 236 is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (-1.6%).


Return on Equity

High ROE: 236 has a negative Return on Equity (-15.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is San Miguel Brewery Hong Kong's financial position?


Financial Position Analysis

Short Term Liabilities: 236's short term assets (HK$232.9M) exceed its short term liabilities (HK$127.9M).

Long Term Liabilities: 236's short term assets (HK$232.9M) exceed its long term liabilities (HK$100.7M).


Debt to Equity History and Analysis

Debt Level: 236's debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: 236's debt to equity ratio has reduced from 36.1% to 20.8% over the past 5 years.

Debt Coverage: 236's debt is well covered by operating cash flow (36.3%).

Interest Coverage: 236 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 236 has a high level of physical assets or inventory.

Debt Coverage by Assets: 236's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is San Miguel Brewery Hong Kong's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 236's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 236's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 236's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 236's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 236 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 236's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of San Miguel Brewery Hong Kong's salary, the management and board of directors tenure and is there insider trading?

9.0yrs

Average management tenure


CEO

Filipin Torralba (62yo)

7yrs

Tenure

HK$2,642,000

Compensation

Mr. Ramon G. Torralba, also known as Filipino, B.Sc, CPA has been the Managing Director of San Miguel Brewery Hong Kong Ltd. since January 15, 2013. Mr. Torralba has been Vice President and Manager for Exp ...


CEO Compensation Analysis

Compensation vs Market: Filipin's total compensation ($USD339.79K) is above average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Management Age and Tenure

9.0yrs

Average Tenure

56yo

Average Age

Experienced Management: 236's management team is seasoned and experienced (9 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

68yo

Average Age

Experienced Board: 236's board of directors are considered experienced (8 years average tenure).


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ramon Ang (65yo)

    Non-Executive Chairman

    • Tenure: 14.6yrs
  • Chan Kwan

    Qualified Accountant & Financial Controller

    • Tenure: 12.3yrs
  • John Cheung (56yo)

    CFO & Company Secretary

    • Tenure: 12.3yrs
  • C. Ho (60yo)

    Senior Manager of Operations

    • Steven Co (49yo)

      Senior Manager of Corporate Development

      • Edith Ng (56yo)

        Senior Manager of Human Resources & Administration

        • Eric Lam (55yo)

          Marketing Director

          • Filipin Torralba (62yo)

            MD & Executive Director

            • Tenure: 7yrs
            • Compensation: HK$2.64m
          • Vincent Kwok (50yo)

            Managing Director of Guangzhou San Miguel Brewery Company Limited

            • Tenure: 9yrs
          • Richard Chan (51yo)

            General Sales Manager

            • Tenure: 3.8yrs

          Board Members

          • Ramon Ang (65yo)

            Non-Executive Chairman

            • Tenure: 14.6yrs
          • Carmelo Santiago (76yo)

            Independent Non-Executive Director

            • Tenure: 12.3yrs
          • May, Michelle Chan (54yo)

            Non-Executive Director

            • Tenure: 8.8yrs
          • Roberto Huang (71yo)

            Non-Executive Director

            • Tenure: 7.2yrs
          • David Li (80yo)

            Independent Non-Executive Director

            • Tenure: 28.8yrs
          • Alonzo Ancheta (87yo)

            Independent Non-Executive Director

            • Tenure: 2.9yrs
          • Carlos Antonio Berba (54yo)

            Deputy Chairman

            • Tenure: 9.4yrs
          • Filipin Torralba (62yo)

            MD & Executive Director

            • Tenure: 7yrs
            • Compensation: HK$2.64m
          • Ret Puno (79yo)

            Independent Non-Executive Director

            • Tenure: 7.2yrs
          • Fumiaki Ozawa (49yo)

            Non-Executive Director

            • Tenure: 2.8yrs

          Company Information

          San Miguel Brewery Hong Kong Limited's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: San Miguel Brewery Hong Kong Limited
          • Ticker: 236
          • Exchange: SEHK
          • Founded: 1948
          • Industry: Brewers
          • Sector: Food, Beverage & Tobacco
          • Market Cap: HK$347.421m
          • Shares outstanding: 373.57m
          • Website: https://info.sanmiguel.com.hk

          Number of Employees


          Location

          • San Miguel Brewery Hong Kong Limited
          • Citimark Building
          • 9th Floor
          • Shatin
          • New Territories
          • Hong Kong

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          236SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

          Biography

          San Miguel Brewery Hong Kong Limited manufactures and distributes bottled, canned, and draught beers under the San Miguel Pale Pilsen brand in Hong Kong, Mainland China, the Philippines, and internationally. The company also sells beers under the San Mig Light, Dragon, Red Horse, Guang's Pineapple Beer, Valor, Blue Ice, and San Miguel Cerveza Negra brands. It is also involved in property holding activities. The company was founded in 1948 and is based in Shatin, Hong Kong. San Miguel Brewery Hong Kong Limited is a subsidiary of Neptunia Corporation Limited. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/26 12:40
          End of Day Share Price2020/01/24 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.