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.

Snowflake

Fundamentals

Imperfect balance sheet with concerning outlook.


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


Market Performance


7 Day Return

13.1%

1989

2.5%

HK Healthcare

0.9%

HK Market


1 Year Return

39.4%

1989

-24.7%

HK Healthcare

0.6%

HK Market

Return vs Industry: 1989 exceeded the Hong Kong Healthcare industry which returned -24.7% over the past year.

Return vs Market: 1989 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1989IndustryMarket
7 Day13.1%2.5%0.9%
30 Day16.9%0.07%0.5%
90 Day-9.2%-2.2%-4.3%
1 Year43.3%39.4%-23.1%-24.7%4.2%0.6%
3 Yearn/a-32.0%-36.0%15.6%4.0%
5 Yearn/a-28.6%-34.9%20.0%-0.08%

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?

46.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1989 (HK$0.69) is trading above our estimate of fair value (HK$0.19)

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 (46.4x) compared to the Healthcare industry average (16.7x).

PE vs Market: 1989 is poor value based on its PE Ratio (46.4x) compared to the Hong Kong market (10.3x).


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 (3.1x) compared to the HK Healthcare industry average (1.4x).


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?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1989's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: 1989's earnings (4.6% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1989's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1989's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1989's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1989's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pine Care Group performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1989's earnings have declined by -17.3% 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 (-18.2%) over the past year, making it difficult to compare to the Healthcare industry average (5.6%).


Return on Equity

High ROE: 1989's Return on Equity (6.5%) is considered low.


Return on Assets

ROA vs Industry: 1989's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: 1989's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pine Care Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1989's short term assets (HK$56.8M) do not cover its short term liabilities (HK$76.1M)

Long Term Liabilities: 1989's short term assets (56.8M) do not cover its long term liabilities (561.6M)


Debt to Equity History and Analysis

Debt Level: 1989's debt to equity ratio (286.6%) is considered high

Reducing Debt: 1989's debt to equity ratio has reduced from 430.1% to 286.6% over the past 5 years.

Debt Coverage: 1989's debt is not well covered by operating cash flow (3.1%).

Interest Coverage: 1989's interest payments on its debt are well covered by EBIT (7.3x 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?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1989's dividend (2.35%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1989's dividend (2.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1989 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1989 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (108.9%), 1989's dividend payments are not 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

What is the CEO of Pine Care Group's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

Billy Yim (41yo)

0yrs

Tenure

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: Insufficient data to establish whether Billy's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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 Age and Tenure

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 1989's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

BuyHK$127,19325 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares168,000
Max PriceHK$0.76
BuyHK$29,60025 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares40,000
Max PriceHK$0.74
BuyHK$146,24620 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares192,000
Max PriceHK$0.76
BuyHK$243,84115 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares320,000
Max PriceHK$0.76
BuyHK$136,32615 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares184,000
Max PriceHK$0.74
BuyHK$27,36013 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares40,000
Max PriceHK$0.68
BuyHK$241,34411 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares360,000
Max PriceHK$0.67
BuyHK$173,92611 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares256,000
Max PriceHK$0.68
BuyHK$209,27904 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares320,000
Max PriceHK$0.65
BuyHK$71,52301 Feb 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares112,000
Max PriceHK$0.64
BuyHK$183,28431 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares288,000
Max PriceHK$0.64
BuyHK$331,51330 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares544,000
Max PriceHK$0.61
BuyHK$203,75130 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares336,000
Max PriceHK$0.61
BuyHK$110,40030 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares192,000
Max PriceHK$0.57
BuyHK$248,56029 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares416,000
Max PriceHK$0.60
BuyHK$161,43828 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares296,000
Max PriceHK$0.55
BuyHK$118,80924 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares224,000
Max PriceHK$0.53
BuyHK$34,42624 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares64,000
Max PriceHK$0.54
BuyHK$114,56623 Jan 19
Ting Yim
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares216,000
Max PriceHK$0.53

Ownership Breakdown


Management Team

  • Elson Yim (69yo)

    Co-Founder & Chairman

    • Tenure: 3.1yrs
    • Compensation: HK$48.00k
  • Mona Cho (68yo)

    Head of Administration Affairs

    • Tenure: 0yrs
    • Compensation: HK$36.00k
  • Billy Yim (41yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$212.00k
  • Edwin Yim (31yo)

    Group Head of Operations & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$50.00k
  • Yip Keung Chan (35yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$738.00k
  • Lai Chu (66yo)

    Group Head of Human Resources

    • Tenure: 0yrs
    • Compensation: HK$50.00k
  • Maggie Woo

    Chief Accountant

    • Tenure: 0yrs

Board Members

  • Kwong Sang Liu (57yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$80.00k
  • Elson Yim (69yo)

    Co-Founder & Chairman

    • Tenure: 3.1yrs
    • Compensation: HK$48.00k
  • Billy Yim (41yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$212.00k
  • Edwin Yim (31yo)

    Group Head of Operations & Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$50.00k
  • Yip Keung Chan (35yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$738.00k
  • Alex Ng (72yo)

    Co-Founder & Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$240.00k
  • Yat Hon Lam (58yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$50.00k
  • John Wong (73yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$80.00k
  • Yuk Liu (50yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: HK$80.00k

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$622.987m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 13:03
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
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.