Golden Throat Holdings Group (SEHK:6896) - Share price, News & Analysis

Q: What is the Fair Price of 6896 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6896 (HK$1.8) is trading above our estimate of [[fair value]] (HK$1.2)

6896 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	3/6

6896 Stock Overview

Golden Throat Holdings Group Company Limited, an investment holding company, manufactures and sells pharmaceutical, healthcare food, and other products in the People’s Republic of China.

Rewards

Price-To-Earnings ratio (6.1x) is below the Hong Kong market (8.6x)

Earnings grew by 21.8% over the past year

Risk Analysis

Dividend of 9.56% is not well covered by earnings

Golden Throat Holdings Group Competitors

Evergreen Products Group

SEHK:1962

HK$569.4m

Fourace Industries Group Holdings

SEHK:1455

HK$265.9m

China Golden Classic Group

SEHK:8281

HK$198.0m

Takbo Group Holdings

SEHK:8436

HK$70.0m

Price History & Performance

Summary of all time highs, changes and price drops for Golden Throat Holdings Group
Historical stock prices
Current Share Price	HK$1.80
52 Week High	HK$2.74
52 Week Low	HK$1.35
Beta	-0.54
1 Month Change	-15.09%
3 Month Change	-1.10%
1 Year Change	-19.28%
3 Year Change	-7.22%
5 Year Change	-28.85%
Change since IPO	-63.04%

Recent News & Updates

May 11

Estimating The Intrinsic Value Of Golden Throat Holdings Group Company Limited (HKG:6896)

Does the May share price for Golden Throat Holdings Group Company Limited ( HKG:6896 ) reflect what it's really worth...

Shareholder Returns

	6896	HK Personal Products	HK Market
7D	-4.8%	3.2%	1.5%
1Y	-19.3%	-12.9%	-22.7%

Return vs Industry: 6896 underperformed the Hong Kong Personal Products industry which returned -12.9% over the past year.

Return vs Market: 6896 exceeded the Hong Kong Market which returned -22.7% over the past year.

Price Volatility

Is 6896's price volatile compared to industry and market?
6896 volatility
6896 Average Weekly Movement	6.0%
Personal Products Industry Average Movement	7.5%
Market Average Movement	6.6%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6896 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: 6896's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1956	937	Yong Zeng	https://www.goldenthroat.com

Golden Throat Holdings Group Company Limited, an investment holding company, manufactures and sells pharmaceutical, healthcare food, and other products in the People’s Republic of China. It offers Golden Throat lozenges over-the-counter medicine to relive symptoms of sore and dry throat, and hoarse voice caused by acute pharyngitis. It also provides Golden Throat lozenge series products that include Dule lozenges and sugar-free Dule lozenges in various flavors, such as orange, fructus momordicae, chrysanthemum, American ginseng, and hawthorn; Yinxingye tablet, which is designed to facilitate blood circulation, remove blood stasis, and dredge energy channels; and herbal vegetable beverages for soothing voice and relieving sore throats.

Golden Throat Holdings Group Fundamentals Summary

How do Golden Throat Holdings Group's earnings and revenue compare to its market cap?
6896 fundamental statistics
Market Cap	CN¥1.14b
Earnings (TTM)	CN¥187.64m
Revenue (TTM)	CN¥820.54m

6.1x

P/E Ratio

1.4x

P/S Ratio

Is 6896 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6896 income statement (TTM)
Revenue	CN¥820.54m
Cost of Revenue	CN¥242.81m
Gross Profit	CN¥577.74m
Other Expenses	CN¥390.09m
Earnings	CN¥187.64m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	70.41%
Net Profit Margin	22.87%
Debt/Equity Ratio	17.2%

How did 6896 perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

58%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6896 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6896?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6896. This is calculated by dividing 6896's market cap by their current preferred multiple.
What is 6896's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥1.14b

6896 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	2.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6896's PE Ratio compare to its peers?

6896 PE Ratio vs Peers

The above table shows the PE ratio for 6896 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.3x
1962 Evergreen Products Group	10.5x	n/a	HK$569.4m
1455 Fourace Industries Group Holdings	4.5x	n/a	HK$265.9m
8281 China Golden Classic Group	14.5x	n/a	HK$198.0m
8436 Takbo Group Holdings	39.7x	n/a	HK$70.0m
6896 Golden Throat Holdings Group	6.1x	n/a	HK$1.3b

Price-To-Earnings vs Peers: 6896 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the peer average (17.3x).

Price to Earnings Ratio vs Industry

How does 6896's PE Ratio compare vs other companies in the Asian Personal Products Industry?

Price-To-Earnings vs Industry: 6896 is good value based on its Price-To-Earnings Ratio (6.1x) compared to the Hong Kong Personal Products industry average (11.5x)

Price to Earnings Ratio vs Fair Ratio

What is 6896's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6896 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6896's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6896 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6896 (HK$1.8) is trading above our estimate of fair value (HK$1.2)

Significantly Below Fair Value: 6896 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.6%

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 Golden Throat Holdings Group 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.

Discover growth companies

Examine Golden Throat Holdings Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Golden Throat Holdings Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Golden Throat Holdings Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6896 has high quality earnings.

Growing Profit Margin: 6896's current net profit margins (22.9%) are lower than last year (23.8%).

Past Earnings Growth Analysis

Earnings Trend: 6896's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: 6896's earnings growth over the past year (21.8%) is below its 5-year average (26.3% per year).

Earnings vs Industry: 6896 earnings growth over the past year (21.8%) exceeded the Personal Products industry -13%.

Return on Equity

High ROE: 6896's Return on Equity (13.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Golden Throat Holdings Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6896's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥579.2M).

Long Term Liabilities: 6896's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥8.8M).

Debt to Equity History and Analysis

Debt Level: 6896 has more cash than its total debt.

Reducing Debt: 6896's debt to equity ratio has increased from 6.7% to 17.2% over the past 5 years.

Debt Coverage: 6896's debt is well covered by operating cash flow (70.3%).

Interest Coverage: 6896 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Golden Throat Holdings Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

9.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6896's dividend (9.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 6896's dividend (9.56%) is in the top 25% of dividend payers in the Hong Kong market (8.35%)

Stability and Growth of Payments

Stable Dividend: 6896 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6896's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.8%), 6896's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (94.1%), 6896's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average board tenure

CEO

Yong Zeng (48 yo)

no data

Tenure

CN¥5,525,000

Compensation

Mr. Yong Zeng serves as Vice Chairman of the Board and General Manager at Golden Throat Holdings Group Company Limited. Mr. ZENG is primarily responsible for overseeing the management and strategic develop...

CEO Compensation Analysis

Compensation vs Market: Yong's total compensation ($USD818.19K) is above average for companies of similar size in the Hong Kong market ($USD303.06K).

Compensation vs Earnings: Yong's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 6896's board of directors are considered experienced (7.5 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31