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Market Cap

HK$3.7b

Last Updated

2021/04/11 10:11 UTC

Data Sources

Company Financials

Executive Summary

Lam Soon (Hong Kong) Limited, an investment holding company, engages in the manufacture, trading, and processing of edible oil, flour products, and home care products in Hong Kong, the People’s Republic of China, and Macau. More Details


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Lam Soon (Hong Kong)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 411 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 411's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.5%

411

-0.7%

HK Food

-1.1%

HK Market


1 Year Return

26.6%

411

24.7%

HK Food

28.6%

HK Market

Return vs Industry: 411 exceeded the Hong Kong Food industry which returned 24.7% over the past year.

Return vs Market: 411 underperformed the Hong Kong Market which returned 28.6% over the past year.


Shareholder returns

411IndustryMarket
7 Day-2.5%-0.7%-1.1%
30 Day-1.9%-3.7%-1.8%
90 Day7.5%-5.0%3.4%
1 Year31.0%26.6%28.7%24.7%33.5%28.6%
3 Year16.3%5.7%21.3%11.5%4.0%-6.9%
5 Year196.7%153.2%52.9%33.7%48.7%23.7%

Long-Term Price Volatility Vs. Market

How volatile is Lam Soon (Hong Kong)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lam Soon (Hong Kong) undervalued compared to its fair value and its price relative to the market?

23.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 411 (HK$15.7) is trading below our estimate of fair value (HK$20.59)

Significantly Below Fair Value: 411 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 411 is good value based on its PE Ratio (10.1x) compared to the HK Food industry average (11.2x).

PE vs Market: 411 is good value based on its PE Ratio (10.1x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 411's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 411 is overvalued based on its PB Ratio (1.3x) compared to the HK Food industry average (0.9x).


Future Growth

How is Lam Soon (Hong Kong) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.7%

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 Lam Soon (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.


Past Performance

How has Lam Soon (Hong Kong) performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 411 has high quality earnings.

Growing Profit Margin: 411's current net profit margins (6.9%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: 411's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: 411's earnings growth over the past year (12.8%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: 411 earnings growth over the past year (12.8%) underperformed the Food industry 12.8%.


Return on Equity

High ROE: 411's Return on Equity (13.2%) is considered low.


Financial Health

How is Lam Soon (Hong Kong)'s financial position?


Financial Position Analysis

Short Term Liabilities: 411's short term assets (HK$2.8B) exceed its short term liabilities (HK$773.9M).

Long Term Liabilities: 411's short term assets (HK$2.8B) exceed its long term liabilities (HK$28.7M).


Debt to Equity History and Analysis

Debt Level: 411 is debt free.

Reducing Debt: 411 has no debt compared to 5 years ago when its debt to equity ratio was 8.1%.

Debt Coverage: 411 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 411 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lam Soon (Hong Kong) current dividend yield, its reliability and sustainability?

2.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 411's dividend (2.87%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.96%).

High Dividend: 411's dividend (2.87%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.97%).


Stability and Growth of Payments

Stable Dividend: 411's dividend payments have been volatile in the past 10 years.

Growing Dividend: 411's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.6%), 411'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?

7.4yrs

Average board tenure


CEO

Cho Fai Wong (54 yo)

0.75

Tenure

Mr. Cho Fai Wong serves as Group Managing Director and Director at Lam Soon (Hong Kong) Limited since July 1, 2020. Prior to joining Lam Soon , Mr. Wong served as the President of Campbell Soup Greater Chi...


Board Members

Experienced Board: 411's board of directors are considered experienced (7.4 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

Lam Soon (Hong Kong) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lam Soon (Hong Kong) Limited
  • Ticker: 411
  • Exchange: SEHK
  • Founded: 1961
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$3.717b
  • Shares outstanding: 236.73m
  • Website: https://www.lamsoon.com

Number of Employees


Location

  • Lam Soon (Hong Kong) Limited
  • Lam Soon Building
  • 21 Dai Fu Street
  • Tai Po
  • New Territories
  • Hong Kong

Listings


Biography

Lam Soon (Hong Kong) Limited, an investment holding company, engages in the manufacture, trading, and processing of edible oil, flour products, and home care products in Hong Kong, the People’s Republic of...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 10:11
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.