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Market Cap

HK$3.5b

Last Updated

2021/04/14 10:32 UTC

Data Sources

Company Financials +

Executive Summary

Shandong Fengxiang Co., Ltd. produces white-feathered broilers in the People’s Republic of China. More Details


Snowflake Analysis

High growth potential and fair value.

Share Price & News

How has Shandong Fengxiang's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 9977 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 9977's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

9977

-1.7%

HK Food

-2.5%

HK Market


1 Year Return

n/a

9977

22.6%

HK Food

26.4%

HK Market

Return vs Industry: Insufficient data to determine how 9977 performed against the Hong Kong Food industry.

Return vs Market: Insufficient data to determine how 9977 performed against the Hong Kong Market.


Shareholder returns

9977IndustryMarket
7 Day-2.8%-1.7%-2.5%
30 Day-0.8%-3.0%-1.8%
90 Day-26.6%-5.1%0.5%
1 Yearn/a26.5%22.6%31.2%26.4%
3 Yearn/a22.2%12.4%6.0%-5.2%
5 Yearn/a49.8%31.0%47.3%22.5%

Long-Term Price Volatility Vs. Market

How volatile is Shandong Fengxiang's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shandong Fengxiang undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 9977 (HK$2.47) is trading below our estimate of fair value (HK$6.94)

Significantly Below Fair Value: 9977 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9977 is poor value based on its PE Ratio (16.5x) compared to the HK Food industry average (11.1x).

PE vs Market: 9977 is poor value based on its PE Ratio (16.5x) compared to the Hong Kong market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: 9977 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 9977's PB Ratio (0.9x) is in line with the HK Food industry average.


Future Growth

How is Shandong Fengxiang forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

64.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9977's forecast earnings growth (64.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 9977's earnings (64.9% per year) are forecast to grow faster than the Hong Kong market (19.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9977's revenue (23% per year) is forecast to grow faster than the Hong Kong market (13.8% per year).

High Growth Revenue: 9977's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9977's Return on Equity is forecast to be low in 3 years time (18.7%).


Past Performance

How has Shandong Fengxiang performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9977 has a large one-off gain of CN¥34.9M impacting its December 31 2020 financial results.

Growing Profit Margin: 9977's current net profit margins (3.9%) are lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: 9977's earnings have grown significantly by 35.1% per year over the past 5 years.

Accelerating Growth: 9977's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 9977 had negative earnings growth (-81.8%) over the past year, making it difficult to compare to the Food industry average (12.8%).


Return on Equity

High ROE: 9977's Return on Equity (4.5%) is considered low.


Financial Health

How is Shandong Fengxiang's financial position?


Financial Position Analysis

Short Term Liabilities: 9977's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 9977's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥227.5M).


Debt to Equity History and Analysis

Debt Level: 9977's debt to equity ratio (46.8%) is considered high.

Reducing Debt: Insufficient data to determine if 9977's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 9977's debt is well covered by operating cash flow (44.7%).

Interest Coverage: 9977's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Shandong Fengxiang current dividend yield, its reliability and sustainability?

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 9977's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.97%).

High Dividend: 9977's dividend (1.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.01%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 9977's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 9977's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.7%), 9977's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 9977's dividends in 3 years are forecast to be well covered by earnings (33.6% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Dongsheng Xiao (48 yo)

3.17yrs

Tenure

Mr. Dongsheng Xiao has been the General Manager of Shandong Fengxiang Co., Ltd. since February 7, 2018 and has been its Executive Director since November 1, 2018. Mr. Xiao is primarily responsible for the ...


Leadership Team

Experienced Management: 9977's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: 9977's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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: 9977 only recently listed within the past 12 months.


Top Shareholders

Company Information

Shandong Fengxiang Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shandong Fengxiang Co., Ltd
  • Ticker: 9977
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$3.458b
  • Shares outstanding: 1.40b
  • Website: https://www.fengxiang.com

Number of Employees


Location

  • Shandong Fengxiang Co., Ltd
  • Liumiao Village
  • Anle Town
  • Liaocheng
  • Shandong Province
  • 252325
  • China

Listings


Biography

Shandong Fengxiang Co., Ltd. produces white-feathered broilers in the People’s Republic of China. It primarily engages in the chicken breeding, slaughtering, and processing, as well as sale of chicken meat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/14 10:32
End of Day Share Price2021/04/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.