SEHK:8372

Stock Analysis Report

Grand Brilliance Group Holdings

Executive Summary

Grand Brilliance Group Holdings Limited, an investment holding company, supplies medical devices in Hong Kong.

Rewards

Trading at 61% below its fair value

Earnings grew by 141.3% over the past year

Risk Analysis

Earnings have declined by -27.54% per year over past 5 years

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$78M)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Grand Brilliance Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8372 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.4%

8372

-1.4%

HK Healthcare

1.7%

HK Market


1 Year Return

-6.7%

8372

-24.6%

HK Healthcare

-2.9%

HK Market

Return vs Industry: 8372 exceeded the Hong Kong Healthcare industry which returned -24.6% over the past year.

Return vs Market: 8372 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

8372IndustryMarket
7 Day11.4%-1.4%1.7%
30 Day14.0%-9.1%-4.2%
90 Day18.1%-5.5%4.6%
1 Year-2.0%-6.7%-22.9%-24.6%0.7%-2.9%
3 Yearn/a-30.4%-34.6%15.3%3.6%
5 Yearn/a-24.0%-30.3%15.9%-3.5%

Price Volatility Vs. Market

How volatile is Grand Brilliance Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grand Brilliance Group Holdings 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: 8372 (HK$0.1) is trading below our estimate of fair value (HK$0.25)

Significantly Below Fair Value: 8372 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8372 is good value based on its PE Ratio (9.3x) compared to the Healthcare industry average (16.7x).

PE vs Market: 8372 is good value based on its PE Ratio (9.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8372's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8372 is good value based on its PB Ratio (0.9x) compared to the HK Healthcare industry average (1.4x).


Next Steps

Future Growth

How is Grand Brilliance Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.1%

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 Grand Brilliance Group 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 Grand Brilliance Group Holdings performed over the past 5 years?

-27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8372 has a high level of non-cash earnings.

Growing Profit Margin: 8372's current net profit margins (12.9%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 8372's earnings have declined by -27.5% per year over the past 5 years.

Accelerating Growth: 8372's earnings growth over the past year (141.3%) exceeds its 5-year average (-27.5% per year).

Earnings vs Industry: 8372 earnings growth over the past year (141.3%) exceeded the Healthcare industry 10.4%.


Return on Equity

High ROE: 8372's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grand Brilliance Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8372's short term assets (HK$90.5M) exceed its short term liabilities (HK$15.9M).

Long Term Liabilities: 8372's short term assets (HK$90.5M) exceed its long term liabilities (HK$61.0K).


Debt to Equity History and Analysis

Debt Level: 8372 is debt free.

Reducing Debt: 8372 had no debt 5 years ago.

Debt Coverage: 8372 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8372 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8372 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8372's debt is covered by short term assets.


Next Steps

Dividend

What is Grand Brilliance Group Holdings's current dividend yield, its reliability and sustainability?

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8372's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 8372's dividend (1.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8372's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8372's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), 8372's dividend payments are thoroughly 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?

3.5yrs

Average management tenure


CEO

Bikie Wong (50yo)

1.9yrs

Tenure

HK$3,292,000

Compensation

Ms. Wong Bik Kwan, also known as Bikie, has been Chairman and Chief Executive Officer at Grand Brilliance Group Holdings Limited March 1, 2018 and has been its Executive Director September 18, 2017. Ms. Wo ...


CEO Compensation Analysis

Compensation vs Market: Bikie's total compensation ($USD423.85K) is above average for companies of similar size in the Hong Kong market ($USD225.53K).

Compensation vs Earnings: Bikie's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bik-Kwan Wong
Chairman1.9yrsHK$3.29m69.68% HK$54.6m
Oi Lin Lam
Sales Manager5.8yrsno datano data
Wai Man Lau
Manager of Market5yrsno datano data
Ka Lee
Company Secretary0.4yrsno datano data

3.5yrs

Average Tenure

42yo

Average Age

Experienced Management: 8372's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bik-Kwan Wong
Chairman1.9yrsHK$3.29m69.68% HK$54.6m
Leung-Sing Ng
Independent Non-Executive Director1.9yrsHK$120.00kno data
Yin Shun Miu
Non-Executive Director2.4yrsHK$120.00kno data
Man Wai Chiu
Non-Executive Director2.4yrsHK$120.00k3.09% HK$2.4m
Lung Wo Wong
Independent Non-Executive Director1.9yrsHK$120.00kno data
Ping Keung Chan
Independent Non-Executive Director1.9yrsHK$120.00kno data

1.9yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 8372's board of directors are not considered experienced ( 1.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Top Shareholders

Company Information

Grand Brilliance Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grand Brilliance Group Holdings Limited
  • Ticker: 8372
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: HK$78.400m
  • Shares outstanding: 800.00m
  • Website: https://www.grandbrilliancegroup.com

Number of Employees


Location

  • Grand Brilliance Group Holdings Limited
  • The Octagon
  • 29th Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8372SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2018

Biography

Grand Brilliance Group Holdings Limited, an investment holding company, supplies medical devices in Hong Kong. The company offers medical consumables, including enteral feeding products, airway management anesthetic products, urology products, ligation clips, biopsy needles, drapes used in operation, suction liners, suction tubings, wound drain products, and respiratory and feeding products; and medical equipment, such as electric beds and mattresses, stretchers, furniture used in wards, vacuum-assisted breast biopsy systems, respiratory care products, and blood warmers It also provides medical instruments comprising anterior cervical retractor systems for neurosurgery and laparoscopic instruments for minimally invasive surgery; and other healthcare products that include hand sanitizers. In addition, the company offers medical device solutions, which comprise market trend analysis, sourcing of medical devices, after-sale services, technical support and training services, medical devices leasing services, and quality assurance services; develops healthcare products; and holds trademarks. It sells its products to various private hospitals, public hospitals, private clinics, non-profit organizations, universities, and individual end-users. The company was founded in 1998 and is based in Tsuen Wan, Hong Kong. Grand Brilliance Group Holdings Limited is a subsidiary of B&A Success Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 13:13
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
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.