SEHK:6601

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

HK$7.9b

Last Updated

2021/07/29 15:52 UTC

Data Sources

Company Financials +

Executive Summary

Cheerwin Group Limited, together with its subsidiaries, designs, develops, manufactures, and sells household care, personal care, and pet care products in China. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6601 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: Insufficient data to determine 6601's volatility change over the past year.


Market Performance


7 Day Return

-10.3%

6601

-9.0%

HK Household Products

-4.3%

HK Market


1 Year Return

n/a

6601

-8.7%

HK Household Products

8.2%

HK Market

Return vs Industry: Insufficient data to determine how 6601 performed against the Hong Kong Household Products industry.

Return vs Market: Insufficient data to determine how 6601 performed against the Hong Kong Market.


Shareholder returns

6601IndustryMarket
7 Day-10.3%-9.0%-4.3%
30 Day-30.7%-27.0%-9.4%
90 Day-27.1%-29.1%-9.8%
1 Yearn/a-7.1%-8.7%12.0%8.2%
3 Yearn/a14.5%9.0%10.0%-2.3%
5 Yearn/a68.9%55.8%38.9%14.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6601 (HK$5.92) is trading above our estimate of fair value (HK$4.39)

Significantly Below Fair Value: 6601 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6601 is poor value based on its PE Ratio (22x) compared to the Hong Kong Household Products industry average (12.8x).

PE vs Market: 6601 is poor value based on its PE Ratio (22x) compared to the Hong Kong market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: 6601 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 6601 is overvalued based on its PB Ratio (26.6x) compared to the HK Household Products industry average (2x).


Future Growth

How is Cheerwin Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6601's forecast earnings growth (30.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 6601's earnings (30.2% per year) are forecast to grow faster than the Hong Kong market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6601's revenue (23.3% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 6601's revenue (23.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6601's Return on Equity is forecast to be low in 3 years time (14.2%).


Past Performance

How has Cheerwin Group performed over the past 5 years?

20.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 6601 has high quality earnings.

Growing Profit Margin: 6601's current net profit margins (13.1%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6601's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6601's past year earnings growth to its 5-year average.

Earnings vs Industry: 6601 earnings growth over the past year (20.8%) underperformed the Household Products industry 21.2%.


Return on Equity

High ROE: Whilst 6601's Return on Equity (92.97%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Cheerwin Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6601's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥1.4B).

Long Term Liabilities: 6601's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥5.1M).


Debt to Equity History and Analysis

Debt Level: 6601's debt to equity ratio (119.7%) is considered high.

Reducing Debt: Insufficient data to determine if 6601's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6601's debt is well covered by operating cash flow (127.6%).

Interest Coverage: 6601 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Cheerwin Group current dividend yield, its reliability and sustainability?

0.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6601's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.12%).

High Dividend: 6601's dividend (0.89%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).


Stability and Growth of Payments

Stable Dividend: 6601 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6601 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: 6601 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 6601'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?

0.6yrs

Average board tenure


CEO

Danxia Chen (41 yo)

no data

Tenure

Ms. Danxia Chen serves as the Chairman of the Board and Chief Executive Officer at Cheerwin Group Limited and has been its Executive Director since September 27, 2018. Ms. Chen was the Independent Non-Exec...


Board Members

Experienced Board: 6601's board of directors are not considered experienced ( 0.6 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: 6601 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 6601 only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: Cheerwin Group Limited
  • Ticker: 6601
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Household Products
  • Sector: Household
  • Market Cap: HK$7.893b
  • Shares outstanding: 1.33b
  • Website: https://www.cheerwin.com

Number of Employees


Location

  • Cheerwin Group Limited
  • No. 2, Luju Road
  • Liwan District
  • Guangzhou
  • Guangdong Province
  • China

Listings


Biography

Cheerwin Group Limited, together with its subsidiaries, designs, develops, manufactures, and sells household care, personal care, and pet care products in China. The company offers household cleaning produ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 15:52
End of Day Share Price2021/07/29 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.