SEHK:1989

Stock Analysis Report

Executive Summary

Pine Care Group Limited, together with its subsidiaries, engages in the provision of elderly home care services in Hong Kong.

Risk Analysis

Earnings have declined by -28.94% per year over past 5 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months



Snowflake Analysis

Imperfect balance sheet with poor track record.


Similar Companies

Share Price & News

How has Pine Care Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1989's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.6%

1989

0.8%

HK Healthcare

0.3%

HK Market


1 Year Return

129.2%

1989

-21.8%

HK Healthcare

-5.1%

HK Market

Return vs Industry: 1989 exceeded the Hong Kong Healthcare industry which returned -23.4% over the past year.

Return vs Market: 1989 exceeded the Hong Kong Market which returned -4.5% over the past year.


Shareholder returns

1989IndustryMarket
7 Day0.6%0.8%0.3%
30 Day19.6%-6.2%-3.9%
90 Day161.9%-5.4%4.4%
1 Year135.1%129.2%-20.0%-21.8%-1.6%-5.1%
3 Year38.7%27.9%-29.7%-33.9%13.4%1.9%
5 Yearn/a-23.0%-29.4%15.6%-3.6%

Price Volatility Vs. Market

How volatile is Pine Care Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pine Care Group undervalued compared to its fair value and its price relative to the market?

109.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1989 (HK$1.65) is trading above our estimate of fair value (HK$0.21)

Significantly Below Fair Value: 1989 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1989 is poor value based on its PE Ratio (109.4x) compared to the Healthcare industry average (16.6x).

PE vs Market: 1989 is poor value based on its PE Ratio (109.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1989's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1989 is overvalued based on its PB Ratio (7.4x) compared to the HK Healthcare industry average (1.5x).


Next Steps

Future Growth

How is Pine Care Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Healthcare 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 Pine Care Group 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 Pine Care Group performed over the past 5 years?

-28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1989 has high quality earnings.

Growing Profit Margin: 1989's current net profit margins (6.8%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: 1989's earnings have declined by -28.9% per year over the past 5 years.

Accelerating Growth: 1989's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1989 had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Healthcare industry average (10.4%).


Return on Equity

High ROE: 1989's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pine Care Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1989's short term assets (HK$44.2M) do not cover its short term liabilities (HK$76.5M).

Long Term Liabilities: 1989's short term assets (HK$44.2M) do not cover its long term liabilities (HK$665.1M).


Debt to Equity History and Analysis

Debt Level: 1989's debt to equity ratio (286.4%) is considered high.

Reducing Debt: 1989's debt to equity ratio has reduced from 353.8% to 286.4% over the past 5 years.

Debt Coverage: 1989's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: 1989's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: 1989 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1989's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Pine Care Group's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1989's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1989's dividend (0.95%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


Stability and Growth of Payments

Stable Dividend: 1989 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1989 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1989 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 1989's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Billy Yim (41yo)

HK$212,000

Compensation

Mr. Yim Pui Kei, also known as Billy, serves as Chief Executive Officer of Pine Care Group Limited and has been its Executive Director since May 04, 2009. Mr. Yim joined Pine Care Group in May 2009 and is  ...


CEO Compensation Analysis

Compensation vs Market: Billy's total compensation ($USD27.29K) is below average for companies of similar size in the Hong Kong market ($USD287.81K).

Compensation vs Earnings: Billy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Ting Yim
Co-Founder & Chairman3.4yrsHK$48.00k0.51% HK$7.5m
Pui Kei Yim
CEO & Executive Director0yrsHK$212.00k0.035% HK$528.0k
Yip Keung Chan
CFO, Company Secretary & Executive Director3.8yrsHK$738.00k0.21% HK$3.1m
Pui Yim
Group Head of Operations & Executive Director4.5yrsHK$50.00kno data
Kwong Sang Liu
Independent Non-Executive Director3.1yrsHK$80.00kno data
Kwok Fu Ng
Co-Founder & Non-Executive Director4.5yrsHK$240.00kno data
Yat Hon Lam
Non-Executive Director4.5yrsHK$50.00kno data
Ping Wong
Independent Non-Executive Director3.1yrsHK$80.00kno data
Yuk Liu
Independent Non-Executive Director3.1yrsHK$80.00kno data

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 1989's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1989 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

Pine Care Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pine Care Group Limited
  • Ticker: 1989
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: HK$1.490b
  • Shares outstanding: 902.88m
  • Website: https://www.pinecaregroup.com

Number of Employees


Location

  • Pine Care Group Limited
  • 68-72 Yuk Wah Street
  • Ground Floor
  • Tsz Wan Shan
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1989SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2017

Biography

Pine Care Group Limited, together with its subsidiaries, engages in the provision of elderly home care services in Hong Kong. The company offers residence, professional nursing and care taking, nutritional management, medical, and psychological and social care services, as well as individual care plans. It also provides repair and maintenance, property investment, and management services. The company was founded in 1989 and is based in Tsz Wan Shan, Hong Kong.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:18
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.