SEHK:2023

Stock Analysis Report

China Ludao Technology

Executive Summary

China Ludao Technology Company Limited, an investment holding company, researches and develops, manufactures, and sells aerosol and related products in the People's Republic of China, Japan, Chile, Europe, the United States, and internationally.

Rewards

PE ratio (19.9x) is below the Household Products industry average (19.9x)

Earnings have grown 11.5% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Does not have a meaningful market cap (HK$487M)



Snowflake Analysis

Acceptable track record and slightly overvalued.

Share Price & News

How has China Ludao Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2023 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.1%

2023

-0.4%

HK Household Products

-4.1%

HK Market


1 Year Return

-13.6%

2023

7.3%

HK Household Products

-0.5%

HK Market

Return vs Industry: 2023 underperformed the Hong Kong Household Products industry which returned 5.7% over the past year.

Return vs Market: 2023 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

2023IndustryMarket
7 Day9.1%-0.4%-4.1%
30 Day8.0%2.8%-1.2%
90 Day11.3%-2.6%3.4%
1 Year-13.6%-13.6%9.2%7.3%3.2%-0.5%
3 Year-35.7%-35.7%59.2%51.7%20.4%8.2%
5 Year-14.3%-14.3%74.9%62.5%19.0%-0.9%

Price Volatility Vs. Market

How volatile is China Ludao Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Ludao Technology undervalued compared to its fair value and its price relative to the market?

19.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 2023's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 2023's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 2023 is good value based on its PE Ratio (19.9x) compared to the Household Products industry average (19.9x).

PE vs Market: 2023 is poor value based on its PE Ratio (17.4x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2023's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2023 is good value based on its PB Ratio (1x) compared to the XA Household Products industry average (1.5x).


Next Steps

Future Growth

How is China Ludao Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.5%

Forecasted Household 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 China Ludao Technology 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 China Ludao Technology performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2023 has high quality earnings.

Growing Profit Margin: 2023's current net profit margins (5.7%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: 2023's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: 2023's earnings growth over the past year (7.1%) is below its 5-year average (11.5% per year).

Earnings vs Industry: 2023 earnings growth over the past year (7.1%) underperformed the Household Products industry 8.8%.


Return on Equity

High ROE: 2023's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Ludao Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 2023's short term assets (CN¥494.0M) exceed its short term liabilities (CN¥393.5M).

Long Term Liabilities: 2023's short term assets (CN¥494.0M) exceed its long term liabilities (CN¥37.2M).


Debt to Equity History and Analysis

Debt Level: 2023's debt to equity ratio (67.9%) is considered high.

Reducing Debt: 2023's debt to equity ratio has increased from 7.9% to 67.9% over the past 5 years.

Debt Coverage: 2023's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2023's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: 2023 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2023's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is China Ludao Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2023's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2023's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2023's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2023's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2023's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Ludao Technology's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Yuerong Yu (52yo)

0yrs

Tenure

CN¥1,029,000

Compensation

Mr. Yuerong Yu is the Founder of China Ludao Technology Company Limited and serves as its Chief Executive Officer. Mr. Yu has over 20 years of extensive experience in PRC's factory operation and corporate  ...


CEO Compensation Analysis

Compensation vs Market: Yuerong's total compensation ($USD149.35K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

4.4yrs

Average Tenure

50yo

Average Age

Experienced Board: 2023's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: 2023 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$970,00118 Nov 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.97
BuyHK$874,00318 Nov 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares920,000
Max PriceHK$0.95
BuyHK$269,27904 Nov 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares288,000
Max PriceHK$0.93
BuyHK$1,842,93029 Oct 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,852,000
Max PriceHK$1.00
BuyHK$959,99729 Oct 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,000,000
Max PriceHK$0.96
BuyHK$1,987,39922 Oct 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares1,988,000
Max PriceHK$1.00
BuyHK$114,44301 Jul 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares112,000
Max PriceHK$1.02
BuyHK$131,64028 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares120,000
Max PriceHK$1.10
BuyHK$48,92121 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares48,000
Max PriceHK$1.02
BuyHK$141,83321 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares140,000
Max PriceHK$1.01
BuyHK$119,44521 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares116,000
Max PriceHK$1.03
BuyHK$126,32417 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares120,000
Max PriceHK$1.05
BuyHK$179,96017 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares176,000
Max PriceHK$1.02
BuyHK$306,48217 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares292,000
Max PriceHK$1.05
BuyHK$111,72011 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares100,000
Max PriceHK$1.12
BuyHK$42,36111 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares36,000
Max PriceHK$1.18
BuyHK$429,15605 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares364,000
Max PriceHK$1.18
BuyHK$437,18505 Jun 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares352,000
Max PriceHK$1.24
BuyHK$165,27831 May 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares132,000
Max PriceHK$1.25
BuyHK$185,60731 May 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares148,000
Max PriceHK$1.25
BuyHK$187,39831 May 19
Yuerong Yu
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares148,000
Max PriceHK$1.27

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Xiangdong Tan (64yo)

    Deputy Chairman

    • Tenure: 2.7yrs
    • Compensation: CN¥1.03m
  • Yuerong Yu (52yo)

    Executive Chairman & CEO

    • Compensation: CN¥1.03m
  • Yili Pan (44yo)

    Executive Director

    • Tenure: 6.3yrs
    • Compensation: CN¥127.00k
  • Yongfei Wang (44yo)

    Chief Production Officer

    • Xiaobing Wang (45yo)

      Head of Research & Development Department and Executive Director

      • Tenure: 5.7yrs
      • Compensation: CN¥256.00k
    • Baoyuan Chen (47yo)

      CFO & Executive Director

      • Tenure: 4.4yrs
      • Compensation: CN¥202.00k
    • Ka Wai Ho (36yo)

      Company Secretary

      • Tenure: 3yrs

    Board Members

    • Xiangdong Tan (64yo)

      Deputy Chairman

      • Tenure: 2.7yrs
      • Compensation: CN¥1.03m
    • Chris Chan (39yo)

      Independent Non-Executive Director

      • Tenure: 3.2yrs
      • Compensation: CN¥152.00k
    • Yuerong Yu (52yo)

      Executive Chairman & CEO

      • Compensation: CN¥1.03m
    • Yili Pan (44yo)

      Executive Director

      • Tenure: 6.3yrs
      • Compensation: CN¥127.00k
    • Lianfa Ruan (65yo)

      Independent Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: CN¥142.00k
    • Xiaobing Wang (45yo)

      Head of Research & Development Department and Executive Director

      • Tenure: 5.7yrs
      • Compensation: CN¥256.00k
    • Baoyuan Chen (47yo)

      CFO & Executive Director

      • Tenure: 4.4yrs
      • Compensation: CN¥202.00k
    • Jean Yau (50yo)

      Independent Non-Executive Director

      • Tenure: 2.5yrs
      • Compensation: CN¥152.00k
    • Tingshan Tian (62yo)

      Non-Executive Director

      • Tenure: 2.5yrs
      • Compensation: CN¥203.00k

    Company Information

    China Ludao Technology Company Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: China Ludao Technology Company Limited
    • Ticker: 2023
    • Exchange: SEHK
    • Founded: 2002
    • Industry: Household Products
    • Sector: Household
    • Market Cap: HK$531.144m
    • Shares outstanding: 491.80m
    • Website: https://www.ludaocn.com

    Number of Employees


    Location

    • China Ludao Technology Company Limited
    • 5 Sanmen Industry Road
    • Sanmen Industry Zone
    • Taizhou
    • Zhejiang Province
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    2023SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2013

    Biography

    China Ludao Technology Company Limited, an investment holding company, researches and develops, manufactures, and sells aerosol and related products in the People's Republic of China, Japan, Chile, Europe, the United States, and internationally. The company offers crystal beads air diffusers and fresheners, air fresheners, aerosol air fresheners, deco fresh air fresheners, gel air fresheners, and scented oil air fresheners. It also provides bathroom cleaners; shaving creams; car care products; and insecticides. The company sells its products through a network of distributors under the Green Island, Ludao, JIERJIA, and EAGLEIN KING brand names. In addition, the company is involved in the clean energy business of collection and utilization of sewage source thermal energy. The company was formerly known as China Ludao Holdings Limited and changed its name to China Ludao Technology Company Limited in July 2012. China Ludao Technology Company Limited was founded in 2002 and is headquartered in Taizhou, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 13:14
    End of Day Share Price2020/01/24 00:00
    Earnings2019/06/30
    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.