SEHK:1047

Stock Analysis Report

Executive Summary

Ngai Hing Hong Company Limited, an investment holding company, manufactures and trades in plastic materials, pigments, colorants, compounded plastic resins, engineering plastics, and biodegradable plastics in the People’s Republic of China.

Snowflake

Fundamentals

Slightly overvalued with limited growth.

Risks

  • Ngai Hing Hong is not covered by any analysts.

Share Price & News

How has Ngai Hing Hong's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:1047

1.4%

HK Chemicals

2.2%

HK Market


1 Year Return

-30.9%

SEHK:1047

-32.5%

HK Chemicals

-11.1%

HK Market

1047 outperformed the Chemicals industry which returned -32.5% over the past year.

1047 underperformed the Market in Hong Kong which returned -11.1% over the past year.


Share holder returns

1047IndustryMarket
7 Day0%1.4%2.2%
30 Day-5.1%-8.5%-7.3%
90 Day-12.5%-15.9%-4.8%
1 Year-28.6%-30.9%-27.7%-32.5%-7.9%-11.1%
3 Year-19.1%-25.3%-7.4%-21.3%15.5%4.1%
5 Year-2.4%-11.1%-8.5%-24.3%10.0%-8.2%

Price Volatility Vs. Market

How volatile is Ngai Hing Hong's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ngai Hing Hong undervalued based on future cash flows and its price relative to the stock market?

8.11x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Ngai Hing Hong to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Ngai Hing Hong to establish if it is available at substantial discount.


Price Based on Earnings

Ngai Hing Hong is overvalued based on earnings compared to the HK Chemicals industry average.

Ngai Hing Hong is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Ngai Hing Hong, we can't assess if its growth is good value.


Price Based on Value of Assets

Ngai Hing Hong is good value based on assets compared to the HK Chemicals industry average.


Next Steps

Future Growth

How is Ngai Hing Hong expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Ngai Hing Hong is high growth as no revenue estimate data is available.

Ngai Hing Hong's earnings are expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Ngai Hing Hong's revenue growth to the Hong Kong market average as no estimate data is available.

Ngai Hing Hong's earnings growth is expected to exceed the Hong Kong market average.

Ngai Hing Hong's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ngai Hing Hong will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Ngai Hing Hong performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ngai Hing Hong has delivered over 20% year on year earnings growth in the past 5 years.

Ngai Hing Hong's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ngai Hing Hong's 1-year earnings growth is negative, it can't be compared to the HK Chemicals industry average.


Return on Equity

Ngai Hing Hong has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ngai Hing Hong used its assets less efficiently than the HK Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Ngai Hing Hong has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ngai Hing Hong's financial position?


Financial Position Analysis

Ngai Hing Hong is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ngai Hing Hong's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ngai Hing Hong's level of debt (79.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (63.5% vs 79.8% today).

Debt is not well covered by operating cash flow (4.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

What is Ngai Hing Hong's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Ngai Hing Hong's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Ngai Hing Hong's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Ngai Hing Hong has not reported any payouts.

Unable to verify if Ngai Hing Hong's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Ngai Hing Hong has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Ngai Hing Hong's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average board tenure


CEO

Kwok Kwong Hui (70yo)

0.0yrs

Tenure

HK$4,066,000

Compensation

Mr. Kwok Kwong Hui is a Co-founder of Ngai Hing Hong Co. Ltd. and serves as its Deputy Chairman and Managing Director. Mr. Hui is responsible for the overall operations and administration of Ngai Hing Hong ...


CEO Compensation Analysis

Kwok Kwong's remuneration is higher than average for companies of similar size in Hong Kong.

Kwok Kwong's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.6yrs

Average Tenure

51.5yo

Average Age

The average tenure for the Ngai Hing Hong board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$116,00026 Oct 18
Sai Chung Hui
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares200,000
Max PriceHK$0.58
BuyHK$112,80024 Oct 18
Sai Chung Hui
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares188,000
Max PriceHK$0.60
BuyHK$31,20015 Oct 18
Sai Chung Hui
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares52,000
Max PriceHK$0.60
BuyHK$120,00012 Oct 18
Sai Chung Hui
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares200,000
Max PriceHK$0.60
BuyHK$36,00012 Oct 18
Sai Chung Hui
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman
Shares60,000
Max PriceHK$0.60

Ownership Breakdown


Management Team

  • Chi Ming Ng (54yo)

    Technology Development Director-Greater China Dept

    • Tenure: 8.9yrs
    • Compensation: HK$1.84m
  • Sau Lai Liu (61yo)

    Assistant to Chairman

    • Tenure: 0.8yrs
    • Compensation: HK$1.86m
  • Kwok Kwong Hui (70yo)

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: HK$4.07m
  • Eric Wong (48yo)

    GM & Director of Ngai Hing Hong Plastic Materials (Hong Kong) Limited

    • Tenure: 0.0yrs
  • Sai Chung Hui (72yo)

    Co-Founder & Chairman

    • Tenure: 0.0yrs
    • Compensation: HK$4.07m
  • Ben Ng (64yo)

    President of Ngai Hing Engg Plastic Materials Ltd & Ngai Hing Engg Plastic (Shanghai) Co Ltd

    • Tenure: 0.0yrs
  • Ka Ho Chan (46yo)

    CFO & Company Secretary

    • Tenure: 0.0yrs
  • Geoffrey Hui (45yo)

    Executive Director & GM of Dongguan Ngai Hing Plastic Materials Limited

    • Tenure: 0.7yrs
  • Michael Hui (42yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$1.21m
  • Man Wai Hui (49yo)

    Executive Director

    • Tenure: 0.7yrs

Board Members

  • Paul Ho (68yo)

    Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: HK$250.00k
  • Chi Ming Ng (54yo)

    Technology Development Director-Greater China Dept

    • Tenure: 8.9yrs
    • Compensation: HK$1.84m
  • Anthony Ching (49yo)

    Independent Non-Executive Director

    • Tenure: 10.5yrs
    • Compensation: HK$200.00k
  • Kwok Kwong Hui (70yo)

    Co-Founder

    • Tenure: 0.0yrs
    • Compensation: HK$4.07m
  • Eric Wong (48yo)

    GM & Director of Ngai Hing Hong Plastic Materials (Hong Kong) Limited

    • Tenure: 0.0yrs
  • Sai Chung Hui (72yo)

    Co-Founder & Chairman

    • Tenure: 0.0yrs
    • Compensation: HK$4.07m
  • Dit Lung Chan (69yo)

    Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: HK$200.00k
  • Geoffrey Hui (45yo)

    Executive Director & GM of Dongguan Ngai Hing Plastic Materials Limited

    • Tenure: 0.7yrs
  • Michael Hui (42yo)

    Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$1.21m
  • Man Wai Hui (49yo)

    Executive Director

    • Tenure: 0.7yrs

Company Information

Ngai Hing Hong Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ngai Hing Hong Company Limited
  • Ticker: 1047
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$206.752m
  • Shares outstanding: 369.20m
  • Website: https://www.nhh.com.hk

Number of Employees


Location

  • Ngai Hing Hong Company Limited
  • Hopeful Factory Centre
  • Unit 3, 6th Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1047SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1994

Biography

Ngai Hing Hong Company Limited, an investment holding company, manufactures and trades in plastic materials, pigments, colorants, compounded plastic resins, engineering plastics, and biodegradable plastics ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:40
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.