SEHK:1047

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Imperfect balance sheet and overvalued.

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

Stable Share Price: 1047 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1047

-1.9%

HK Chemicals

-2.7%

HK Market


1 Year Return

-28.8%

1047

-34.1%

HK Chemicals

-8.5%

HK Market

Return vs Industry: 1047 exceeded the Hong Kong Chemicals industry which returned -34.4% over the past year.

Return vs Market: 1047 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

1047IndustryMarket
7 Day0%-1.9%-2.7%
30 Day5.0%-3.6%-3.1%
90 Day-4.5%-1.6%2.4%
1 Year-28.8%-28.8%-29.2%-34.1%-5.2%-8.5%
3 Year-52.6%-56.3%-34.3%-44.7%12.0%0.7%
5 Year-21.8%-28.8%-20.9%-34.3%14.1%-4.7%

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 compared to its fair value and its price relative to the market?

19.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1047's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1047's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1047 is poor value based on its PE Ratio (19.9x) compared to the Chemicals industry average (7.3x).

PE vs Market: 1047 is poor value based on its PE Ratio (19.9x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1047's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1047 is good value based on its PB Ratio (0.3x) compared to the HK Chemicals industry average (0.8x).


Next Steps

Future Growth

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

20.6%

Forecasted Materials 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 Ngai Hing Hong 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.


Next Steps

Past Performance

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

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1047 has a large one-off gain of HK$16.0M impacting its June 30 2019 financial results.

Growing Profit Margin: 1047's current net profit margins (0.4%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 1047's earnings have grown significantly by 34.6% per year over the past 5 years.

Accelerating Growth: 1047's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1047 had negative earnings growth (-83.1%) over the past year, making it difficult to compare to the Chemicals industry average (21.4%).


Return on Equity

High ROE: 1047's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Ngai Hing Hong's financial position?


Financial Position Analysis

Short Term Liabilities: 1047's short term assets (HK$712.4M) exceed its short term liabilities (HK$500.6M).

Long Term Liabilities: 1047's short term assets (HK$712.4M) exceed its long term liabilities (HK$6.7M).


Debt to Equity History and Analysis

Debt Level: 1047's debt to equity ratio (79.4%) is considered high.

Reducing Debt: 1047's debt to equity ratio has increased from 59.8% to 79.4% over the past 5 years.

Debt Coverage: 1047's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1047's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet

Inventory Level: 1047 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1047's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1047's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1047's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1047's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1047's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1047 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 1047'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?

3.1yrs

Average board tenure


CEO

Kwok Kwong Hui (70yo)

HK$4,501,000

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

Compensation vs Market: Kwok Kwong's total compensation ($USD577.50K) is above average for companies of similar size in the Hong Kong market ($USD225.00K).

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


Board Members

NamePositionTenureCompensationOwnership
Sai Chung Hui
Co-Founder & Chairman0yrsHK$4.50m4.52% HK$7.0m
Kwok Kwong Hui
Co-Founder0yrsHK$4.50m5.38% HK$8.3m
Chi Ming Ng
Technology Development Director-Greater China Dept9.4yrsHK$2.03mno data
Yan Lung Hui
Executive Director & GM of Dongguan Ngai Hing Plastic Materials Limited1.2yrsHK$1.04mno data
Yan Kuen Hui
Executive Director3.1yrsHK$1.36mno data
Man Wai Hui
Executive Director1.2yrsHK$708.00k0.068% HK$105.0k
Chi Hang Wong
GM & Director of Ngai Hing Hong Plastic Materials (Hong Kong) Limited0yrsno datano data
Wai Chi Ho
Independent Non-Executive Director0yrsHK$250.00kno data
Yu Lung Ching
Independent Non-Executive Director11yrsHK$200.00kno data
Dit Lung Chan
Independent Non-Executive Director0yrsHK$200.00kno data

3.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1047's board of directors are considered experienced (3.1 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

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$155.064m
  • 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 plastic materials, pigments, colorants, compounded plastic resins, engineering plastics, and biodegradable plastics in the People’s Republic of China. The company operates through Trading, Colorants, Engineering Plastics, and Others segments. It is also involved in the property holding activities. The company was founded in 1970 and is headquartered in Shatin, Hong Kong. Ngai Hing Hong Company Limited is a subsidiary of Good Benefit Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:03
End of Day Share Price2020/02/26 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.