SEHK:943

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Zhongzheng International

Market Cap

HK$268.0m

Last Updated

2021/07/29 15:32 UTC

Data Sources

Company Financials

Executive Summary

Zhongzheng International Company Limited, an investment holding company, manufactures, trades in, and sells healthcare and household products. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Zhongzheng International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 943 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: 943's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

0%

943

-3.7%

HK Personal Products

-4.3%

HK Market


1 Year Return

-75.7%

943

-3.0%

HK Personal Products

8.2%

HK Market

Return vs Industry: 943 underperformed the Hong Kong Personal Products industry which returned -3.9% over the past year.

Return vs Market: 943 underperformed the Hong Kong Market which returned 5.3% over the past year.


Shareholder returns

943IndustryMarket
7 Day0%-3.7%-4.3%
30 Day-16.7%-8.0%-9.4%
90 Day13.6%2.0%-9.8%
1 Year-75.7%-75.7%1.4%-3.0%12.0%8.2%
3 Year-85.1%-85.1%0.3%-10.2%10.0%-2.3%
5 Year-73.7%-75.7%-0.8%-16.5%38.9%14.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zhongzheng International undervalued compared to its fair value and its price relative to the market?

0.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 943's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 943's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 943 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Personal Products industry average.

PE vs Market: 943 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 943's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 943 is good value based on its PB Ratio (0.2x) compared to the HK Personal Products industry average (0.7x).


Future Growth

How is Zhongzheng International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.1%

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 Zhongzheng International 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.


Past Performance

How has Zhongzheng International performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 943 is currently unprofitable.

Growing Profit Margin: 943 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 943 is unprofitable, but has reduced losses over the past 5 years at a rate of 0.5% per year.

Accelerating Growth: Unable to compare 943's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 943 is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (-8%).


Return on Equity

High ROE: 943 has a negative Return on Equity (-4.72%), as it is currently unprofitable.


Financial Health

How is Zhongzheng International's financial position?


Financial Position Analysis

Short Term Liabilities: 943's short term assets (HK$2.3B) exceed its short term liabilities (HK$1.8B).

Long Term Liabilities: 943's short term assets (HK$2.3B) exceed its long term liabilities (HK$441.8M).


Debt to Equity History and Analysis

Debt Level: 943's debt to equity ratio (113.7%) is considered high.

Reducing Debt: 943's debt to equity ratio has increased from 86% to 113.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 943 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 943 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 13.3% each year


Dividend

What is Zhongzheng International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 943's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 943's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 943's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 943'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 943'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?

1.0yrs

Average management tenure


CEO

Qing Qiu (55 yo)

1

Tenure

HK$1,628,000

Compensation

Mr. Qing Qiu is Chief Executive Officer at Zhongzheng International Company Limited (formerly known as eForce Holdings Limited) since July 16, 2020 and served as its Executive Co-Chairman from July 16, 202...


CEO Compensation Analysis

Compensation vs Market: Qing's total compensation ($USD209.28K) is about average for companies of similar size in the Hong Kong market ($USD228.19K).

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


Leadership Team

Experienced Management: 943's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 943's board of directors are considered experienced (3.5 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.


Top Shareholders

Company Information

Zhongzheng International Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhongzheng International Company Limited
  • Ticker: 943
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: HK$268.042m
  • Shares outstanding: 10.72b
  • Website: https://www.zhongzheng.com.hk

Number of Employees


Location

  • Zhongzheng International Company Limited
  • Man Yee Building
  • Suite 3008
  • Central
  • Hong Kong

Listings


Biography

Zhongzheng International Company Limited, an investment holding company, manufactures, trades in, and sells healthcare and household products. The company is also involved in the money lending, trademark h...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 15:32
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.