SEHK:1580

Stock Analysis Report

Da Sen Holdings Group

Executive Summary

Da Sen Holdings Group Limited, an investment holding company, manufactures and sells plywood products and biomass wood pellets in the People’s Republic of China.

Risk Analysis

Earnings have declined by -19.76% per year over past 5 years

Highly volatile share price over past 3 months

Profit margins (2.7%) are lower than last year (7.4%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Excellent balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1580's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.0%

1580

-3.6%

HK Forestry

-2.7%

HK Market


1 Year Return

-3.8%

1580

-16.1%

HK Forestry

-5.6%

HK Market

Return vs Industry: 1580 exceeded the Hong Kong Forestry industry which returned -16.1% over the past year.

Return vs Market: 1580 exceeded the Hong Kong Market which returned -5.6% over the past year.


Shareholder returns

1580IndustryMarket
7 Day-18.0%-3.6%-2.7%
30 Day-27.5%8.3%-4.6%
90 Day14.9%20.4%-1.0%
1 Year-3.8%-3.8%-10.6%-16.1%-2.2%-5.6%
3 Yearn/a6.6%-6.0%15.8%4.1%
5 Yearn/a22.6%14.3%15.4%-4.0%

Price Volatility Vs. Market

How volatile is Da Sen Holdings Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Da Sen Holdings Group undervalued compared to its fair value and its price relative to the market?

40.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1580's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1580's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1580 is poor value based on its PE Ratio (40.6x) compared to the Forestry industry average (13.5x).

PE vs Market: 1580 is poor value based on its PE Ratio (40.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1580's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1580 is overvalued based on its PB Ratio (0.9x) compared to the HK Forestry industry average (0.8x).


Next Steps

Future Growth

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

18.4%

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 Da Sen 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.


Next Steps

Past Performance

How has Da Sen Holdings Group performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1580 has high quality earnings.

Growing Profit Margin: 1580's current net profit margins (2.7%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 1580's earnings have declined by -19.8% per year over the past 5 years.

Accelerating Growth: 1580's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1580 had negative earnings growth (-70.5%) over the past year, making it difficult to compare to the Forestry industry average (-3.4%).


Return on Equity

High ROE: 1580's Return on Equity (2.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Da Sen Holdings Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1580's short term assets (CN¥379.4M) exceed its short term liabilities (CN¥60.0M).

Long Term Liabilities: 1580's short term assets (CN¥379.4M) exceed its long term liabilities (CN¥25.4M).


Debt to Equity History and Analysis

Debt Level: 1580's debt to equity ratio (12.3%) is considered satisfactory.

Reducing Debt: 1580's debt to equity ratio has reduced from 176.4% to 12.3% over the past 5 years.

Debt Coverage: 1580's debt is not well covered by operating cash flow (1.2%).

Interest Coverage: 1580's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: 1580 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1580's debt is covered by short term assets (assets are 6.4x debt).


Next Steps

Dividend

What is Da Sen Holdings Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1580's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1580'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 1580's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1580'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 1580's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Da Sen Holdings Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average board tenure


CEO

Songmao Wang (46yo)

0yrs

Tenure

CN¥682,000

Compensation

Mr. Wang Songmao serves as the Chief Executive Officer at Da Sen Holdings Group Limited and has been its Executive Director since December 24, 2015. Mr. Wang joined Da Sen Holdings Group Limited in Decembe ...


CEO Compensation Analysis

Compensation vs Market: Songmao's total compensation ($USD96.74K) is below average for companies of similar size in the Hong Kong market ($USD212.77K).

Compensation vs Earnings: Songmao's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

3.1yrs

Average Tenure

46yo

Average Age

Experienced Board: 1580's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: 1580 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥236,96129 Oct 19
Tseng Hon Wong
EntityIndividual
Shares400,000
Max PriceCN¥0.59
BuyCN¥1,379,99408 Oct 19
Tseng Hon Wong
EntityIndividual
Shares3,000,000
Max PriceCN¥0.46
BuyCN¥218,50030 Sep 19
Kaw Chai
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares500,000
Max PriceCN¥0.44
BuyCN¥2,498,40729 Jul 19
Kaw Chai
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,205,000
Max PriceCN¥0.48
SellCN¥2,400,00726 Jul 19
Songmao Wang
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,000,000
Max PriceCN¥0.48
SellCN¥1,424,98916 Jul 19
Songmao Wang
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares3,000,000
Max PriceCN¥0.47
SellCN¥1,899,98516 Jul 19
Shican Wu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares4,000,000
Max PriceCN¥0.47
BuyCN¥8,742,98515 Jul 19
Tseng Hon Wong
EntityIndividual
Shares18,245,000
Max PriceCN¥0.48
SellCN¥3,000,00511 Jul 19
Songmao Wang
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares6,000,000
Max PriceCN¥0.50
SellCN¥1,000,00210 Jul 19
Shican Wu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,000,000
Max PriceCN¥0.50
BuyCN¥4,390,00710 Jul 19
Tseng Hon Wong
EntityIndividual
Shares8,780,000
Max PriceCN¥0.50
BuyCN¥9,999,96702 May 19
Tseng Hon Wong
EntityIndividual
Shares20,000,000
Max PriceCN¥0.50
BuyCN¥500,00303 Apr 19
Tseng Hon Wong
EntityIndividual
Shares1,000,000
Max PriceCN¥0.50
BuyCN¥1,150,00702 Jan 19
Tseng Hon Wong
EntityIndividual
Shares2,300,000
Max PriceCN¥0.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.6%.


Management Team

  • Mingcai Ke (45yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.04m
  • Songmao Wang (46yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥682.00k
  • Ayang Zhang (43yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥682.00k
  • Shican Wu (46yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥682.00k
  • Zhibin Wu (40yo)

    Financial Controller

    • Tenure: 6.8yrs
  • Michael Chai (43yo)

    Executive Director

    • Tenure: 0.4yrs
  • Wing Lun Leung (37yo)

    Company Secretary

    • Tenure: 0.7yrs
  • Ben Wong (40yo)

    Executive Director

    • Tenure: 0.4yrs

Board Members

  • Mingcai Ke (45yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.04m
  • Songmao Wang (46yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥682.00k
  • Ayang Zhang (43yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥682.00k
  • Shican Wu (46yo)

    Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥682.00k
  • Wanlei Shao (51yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥120.00k
  • Triomphe Lin (51yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥120.00k
  • Yuzhao Wang (48yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥60.00k
  • Michael Chai (43yo)

    Executive Director

    • Tenure: 0.4yrs
  • Ben Wong (40yo)

    Executive Director

    • Tenure: 0.4yrs

Company Information

Da Sen Holdings Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Da Sen Holdings Group Limited
  • Ticker: 1580
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: HK$516.432m
  • Shares outstanding: 974.40m
  • Website: https://www.msdscn.com

Number of Employees


Location

  • Da Sen Holdings Group Limited
  • Economic Development Zone
  • Sunsi Town
  • Heze
  • Shandong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1580SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016

Biography

Da Sen Holdings Group Limited, an investment holding company, manufactures and sells plywood products and biomass wood pellets in the People’s Republic of China. It offers furniture board, ecological plywo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 13:03
End of Day Share Price2019/12/05 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.