SEHK:2222

Stock Analysis Report

NVC Lighting Holding

Executive Summary

NVC Lighting Holding Limited, an investment holding company, manufactures and sells lamps, luminaries, lighting electronic products, and related products in China and internationally.

Rewards

Trading at 77% below its fair value

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has NVC Lighting Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2222's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

2222

-0.4%

HK Household Products

3.7%

HK Market


1 Year Return

-60.8%

2222

1.2%

HK Household Products

2.4%

HK Market

Return vs Industry: 2222 underperformed the Hong Kong Household Products industry which returned 1.2% over the past year.

Return vs Market: 2222 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

2222IndustryMarket
7 Day2.5%-0.4%3.7%
30 Day-81.8%-2.5%4.2%
90 Day-79.8%2.8%1.1%
1 Year106.8%-60.8%2.9%1.2%6.0%2.4%
3 Year13.4%-79.0%61.1%53.5%25.6%12.9%
5 Yearn/a98.5%84.4%23.2%2.5%

Price Volatility Vs. Market

How volatile is NVC Lighting Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NVC Lighting Holding 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: 2222 (HK$0.21) is trading below our estimate of fair value (HK$0.9)

Significantly Below Fair Value: 2222 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2222 is unprofitable, so we can't compare its PE Ratio to the Household Products industry average.

PE vs Market: 2222 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2222's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2222 is good value based on its PB Ratio (0.2x) compared to the XA Household Products industry average (1.5x).


Next Steps

Future Growth

How is NVC Lighting Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

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 NVC Lighting Holding 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 NVC Lighting Holding performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2222 is currently unprofitable.

Growing Profit Margin: 2222 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2222 is unprofitable, but has reduced losses over the past 5 years at a rate of 17.6% per year.

Accelerating Growth: Unable to compare 2222's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2222 is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (6.6%).


Return on Equity

High ROE: 2222 has a negative Return on Equity (-0.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NVC Lighting Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2222's short term assets (CN¥3.5B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: 2222's short term assets (CN¥3.5B) exceed its long term liabilities (CN¥260.8M).


Debt to Equity History and Analysis

Debt Level: 2222's debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: 2222's debt to equity ratio has increased from 1.2% to 13.7% over the past 5 years.

Debt Coverage: 2222's debt is well covered by operating cash flow (115.3%).

Interest Coverage: 2222 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 2222 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2222's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is NVC Lighting Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 2222's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2222'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 2222's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2222's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2222 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 2222'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 NVC Lighting Holding's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average board tenure


CEO

Eva Chan (51yo)

0.8yrs

Tenure

CN¥4,856,000

Compensation

Ms. Chan Kim Yung, Eva has been Vice Chairman of NVC Lighting Holding Limited since November 25, 2018 and has been its Chief Executive Officer since February 22, 2019. From 1998 to 2004, Ms. Chan served as ...


CEO Compensation Analysis

Compensation vs Market: Eva's total compensation ($USD695.80K) is above average for companies of similar size in the Hong Kong market ($USD227.47K).

Compensation vs Earnings: Insufficient data to compare Eva's compensation with company performance.


Board Age and Tenure

5.6yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 2222's board of directors are considered experienced (5.6 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$120,70016 Apr 19
Ye Yong
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares170,000
Max PriceHK$0.71
BuyHK$161,00016 Apr 19
Ye Yong
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares230,000
Max PriceHK$0.70
BuyHK$49,00016 Apr 19
Ye Yong
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares70,000
Max PriceHK$0.70

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.2%.


Management Team

  • Dongming Wang (49yo)

    Executive Director

    • Tenure: 6.5yrs
    • Compensation: CN¥2.84m
  • Ying Tan (52yo)

    CFO & VP of Overseas Sales

    • Tenure: 0yrs
  • Ching Ching Leung (38yo)

    Company Secretary

    • Tenure: 5.7yrs
  • Yu Xiao (60yo)

    VP & Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥3.00m
  • Keven Wang (27yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥2.07m
  • Peng Zhang (46yo)

    President

    • Tenure: 0yrs
  • Qingbo Wang (43yo)

    VP & President of Commercial Lighting Business Department

    • Tenure: 0yrs
  • Eva Chan (51yo)

    CEO & Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥4.86m

Board Members

  • Conway Lee (65yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: CN¥423.00k
  • Donglei Wang (55yo)

    Chairman of the Board

    • Tenure: 6.7yrs
    • Compensation: CN¥7.93m
  • Dongming Wang (49yo)

    Executive Director

    • Tenure: 6.5yrs
    • Compensation: CN¥2.84m
  • Ling Su (54yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥423.00k
  • Yu Xiao (60yo)

    VP & Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥3.00m
  • Xuexian Wang (55yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥423.00k
  • Hongxiong Wei (45yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥423.00k
  • Keven Wang (27yo)

    Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥2.07m
  • Eva Chan (51yo)

    CEO & Vice Chairman

    • Tenure: 0.8yrs
    • Compensation: CN¥4.86m
  • Ye Yong (50yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥43.00k

Company Information

NVC Lighting Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NVC Lighting Holding Limited
  • Ticker: 2222
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Household Products
  • Sector: Household
  • Market Cap: HK$879.274m
  • Shares outstanding: 4.23b
  • Website: https://www.nvc-lighting.com.cn

Number of Employees


Location

  • NVC Lighting Holding Limited
  • NVC Industrial Park
  • Huicheng District
  • Huizhou
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2222SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2010

Biography

NVC Lighting Holding Limited, an investment holding company, manufactures and sells lamps, luminaries, lighting electronic products, and related products in China and internationally. It offers luminaire p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:51
End of Day Share Price2019/12/13 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.