SEHK:1120

Stock Analysis Report

Arts Optical International Holdings

Executive Summary

Arts Optical International Holdings Limited, an investment holding company, manufactures and trades in prescription frames and sunglasses in Europe, the United States, Asia, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Arts Optical International Holdings is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:1120

0.6%

HK Medical Equipment

-0.6%

HK Market


1 Year Return

-18.8%

SEHK:1120

-6.4%

HK Medical Equipment

-9.8%

HK Market

1120 underperformed the Medical Equipment industry which returned -6.4% over the past year.

1120 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1120IndustryMarket
7 Day0%0.6%-0.6%
30 Day1.8%-2.4%-8.8%
90 Day-7.7%-5.0%-8.4%
1 Year-16.8%-18.8%-5.4%-6.4%-6.5%-9.8%
3 Year-37.9%-45.8%4.6%1.2%12.8%1.6%
5 Year-43.5%-53.1%-13.1%-17.5%7.2%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Arts Optical International Holdings undervalued based on future cash flows and its price relative to the stock market?

0.62x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Arts Optical International Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Arts Optical International Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Arts Optical International Holdings is loss making, we can't compare its value to the HK Medical Equipment industry average.

Arts Optical International Holdings is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Arts Optical International Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Arts Optical International Holdings is good value based on assets compared to the HK Medical Equipment industry average.


Next Steps

Future Growth

How is Arts Optical International Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.5%

Forecasted Medical Equipment 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 Arts Optical International 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 Arts Optical International Holdings performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arts Optical International Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Arts Optical International Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Arts Optical International Holdings's 1-year growth to the HK Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Arts Optical International Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Arts Optical International Holdings has efficiently used its assets last year compared to the HK Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Arts Optical International Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Arts Optical International Holdings's financial position?


Financial Position Analysis

Arts Optical International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Arts Optical International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Arts Optical International Holdings's level of debt (2.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (3.2% vs 2.9% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Arts Optical International Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 24.9x debt.


Next Steps

Dividend

What is Arts Optical International Holdings's current dividend yield, its reliability and sustainability?

2.98%

Current Dividend Yield


Dividend Yield and Payments Analysis

Arts Optical International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.29%).

Arts Optical International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.26%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Arts Optical International Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

14.9yrs

Average board tenure


CEO

Arts Optical International Holdings has no CEO, or we have no data on them.


Board Age and Tenure

14.9yrs

Average Tenure

55yo

Average Age

The average tenure for the Arts Optical International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$172,02026 Apr 19
David Webb
EntityIndividual
Shares94,000
Max PriceHK$1.83
SellHK$91,50023 Apr 19
David Webb
EntityIndividual
Shares50,000
Max PriceHK$1.83
SellHK$98,03428 Jan 19
FMR LLC
EntityCompany
Shares53,000
Max PriceHK$1.85
BuyHK$4,991,99201 Nov 18
Hoi Ying Ng
EntityIndividual
Role
Founder & Executive Chairman
Chairman of the Board
Shares2,600,000
Max PriceHK$1.92

Ownership Breakdown


Management Team

  • Michael Ng (64yo)

    Founder & Executive Chairman

    • Compensation: HK$1.63m
  • Kim Ying Ng (63yo)

    Executive Director

    • Compensation: HK$476.00k
  • Pui Yiu Choi (54yo)

    Group CFO & Company Secretary

    • Tenure: 2.2yrs

Board Members

  • Michael Ng (64yo)

    Founder & Executive Chairman

    • Compensation: HK$1.63m
  • Kim Ying Ng (63yo)

    Executive Director

    • Compensation: HK$476.00k
  • Albert Wong (53yo)

    Independent Non-Executive Director

    • Tenure: 14.9yrs
    • Compensation: HK$144.00k
  • Yu Lung Lam (55yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: HK$144.00k
  • Eric Chung (54yo)

    Independent Non-Executive Director

    • Tenure: 14.9yrs
    • Compensation: HK$144.00k

Company Information

Arts Optical International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arts Optical International Holdings Limited
  • Ticker: 1120
  • Exchange: SEHK
  • Founded: 1973
  • Industry: health care supplies
  • Sector: healthcare
  • Market Cap: HK$648.922m
  • Shares outstanding: 386.26m
  • Website: Click here

Number of Employees


Location

  • Arts Optical International Holdings Limited
  • Sunbeam Centre
  • 3rd Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1120SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1996

Biography

Arts Optical International Holdings Limited, an investment holding company, manufactures and trades in prescription frames and sunglasses in Europe, the United States, Asia, and internationally. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 12:37
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
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.