SEHK:6993

Stock Analysis Report

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Blue Moon Group Holdings

Market Cap

HK$41.0b

Last Updated

2021/07/30 18:24 UTC

Data Sources

Company Financials +

Executive Summary

Blue Moon Group Holdings Limited researches, designs, develops, manufactures, and sells personal hygiene, home care, and fabric care products in China. More Details

Rewards

Trading at 30% below our estimate of its fair value

Earnings are forecast to grow 16.68% per year

Risk Analysis

No risks detected for 6993 from our risk checks.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6993 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 6993's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-17.5%

6993

-9.0%

HK Household Products

-4.3%

HK Market


1 Year Return

n/a

6993

-8.7%

HK Household Products

8.2%

HK Market

Return vs Industry: Insufficient data to determine how 6993 performed against the Hong Kong Household Products industry.

Return vs Market: Insufficient data to determine how 6993 performed against the Hong Kong Market.


Shareholder returns

6993IndustryMarket
7 Day-17.5%-9.0%-4.3%
30 Day-36.2%-27.0%-9.4%
90 Day-35.4%-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 Blue Moon Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Blue Moon Group Holdings undervalued compared to its fair value and its price relative to the market?

30.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6993 (HK$7) is trading below our estimate of fair value (HK$10)

Significantly Below Fair Value: 6993 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6993 is poor value based on its PE Ratio (26.9x) compared to the Hong Kong Household Products industry average (13.2x).

PE vs Market: 6993 is poor value based on its PE Ratio (26.9x) compared to the Hong Kong market (10.7x).


Price to Earnings Growth Ratio

PEG Ratio: 6993 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 6993 is overvalued based on its PB Ratio (3.4x) compared to the HK Household Products industry average (2x).


Future Growth

How is Blue Moon Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6993's forecast earnings growth (16.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 6993's earnings (16.7% per year) are forecast to grow slower than the Hong Kong market (18.5% per year).

High Growth Earnings: 6993's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6993's revenue (14.8% per year) is forecast to grow faster than the Hong Kong market (12.4% per year).

High Growth Revenue: 6993's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6993's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

How has Blue Moon Group Holdings performed over the past 5 years?

21.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 6993 has high quality earnings.

Growing Profit Margin: 6993's current net profit margins (18.7%) are higher than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6993's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6993's past year earnings growth to its 5-year average.

Earnings vs Industry: 6993 earnings growth over the past year (21.2%) underperformed the Household Products industry 21.2%.


Return on Equity

High ROE: 6993's Return on Equity (11.2%) is considered low.


Financial Health

How is Blue Moon Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6993's short term assets (HK$13.7B) exceed its short term liabilities (HK$4.0B).

Long Term Liabilities: 6993's short term assets (HK$13.7B) exceed its long term liabilities (HK$168.4M).


Debt to Equity History and Analysis

Debt Level: 6993 is debt free.

Reducing Debt: 6993 had no debt 5 years ago.

Debt Coverage: 6993 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6993 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Blue Moon Group Holdings's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6993's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.07%).

High Dividend: 6993's dividend (0.99%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.47%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6993's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6993's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), 6993's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6993's dividends in 3 years are forecast to be well covered by earnings (26% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Qiuping Luo (57 yo)

13.33yrs

Tenure

Mr. Qiuping Luo serves as Chief Executive Officer at Blue Moon Group Holdings Limited. since February 12, 2008 and serves as its Executive Director since June 22, 2020. He is primarily responsible for the ...


Leadership Team

Experienced Management: 6993's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: 6993's board of directors are not considered experienced ( 1.1 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: 6993 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 6993 only recently listed within the past 12 months.


Top Shareholders

Company Information

Blue Moon Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Blue Moon Group Holdings Limited
  • Ticker: 6993
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Household Products
  • Sector: Household
  • Market Cap: HK$41.014b
  • Shares outstanding: 5.86b
  • Website: https://www.bluemoon.com.cn

Number of Employees


Location

  • Blue Moon Group Holdings Limited
  • Yun Pu Industrial Zone
  • No. 36, Pu Nan Road
  • Guangzhou
  • Guangdong Province
  • 510760
  • China

Listings


Biography

Blue Moon Group Holdings Limited researches, designs, develops, manufactures, and sells personal hygiene, home care, and fabric care products in China. The company offers fabric care products, including ma...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 18:24
End of Day Share Price2021/07/30 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.