SEHK:1689

Stock Analysis Report

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Executive Summary

Huaxi Holdings Company Limited, an investment holding company, manufactures and sells cigarette-related packaging materials in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1689 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

1689

-0.4%

HK Packaging

1.2%

HK Market


1 Year Return

-17.0%

1689

-16.7%

HK Packaging

5.4%

HK Market

Return vs Industry: 1689 matched the Hong Kong Packaging industry which returned -16.7% over the past year.

Return vs Market: 1689 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

1689IndustryMarket
7 Day-5.0%-0.4%1.2%
30 Day-3.4%5.0%-2.7%
90 Day-5.0%-3.2%6.9%
1 Year-12.2%-17.0%-12.8%-16.7%9.7%5.4%
3 Year16.0%5.2%-32.7%-41.4%3.5%-7.6%
5 Year37.4%15.2%-34.9%-47.1%12.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Huaxi Holdings undervalued compared to its fair value and its price relative to the market?

10.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1689 (HK$1.71) is trading above our estimate of fair value (HK$1.13)

Significantly Below Fair Value: 1689 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1689 is good value based on its PE Ratio (10.9x) compared to the HK Packaging industry average (11.9x).

PE vs Market: 1689 is poor value based on its PE Ratio (10.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1689's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1689 is overvalued based on its PB Ratio (3.1x) compared to the HK Packaging industry average (0.7x).


Next Steps

Future Growth

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

21.5%

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 Huaxi Holdings 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 Huaxi Holdings performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1689 has a high level of non-cash earnings.

Growing Profit Margin: 1689's current net profit margins (26%) are higher than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: 1689's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 1689's earnings growth over the past year (133.4%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: 1689 earnings growth over the past year (133.4%) exceeded the Packaging industry -12.1%.


Return on Equity

High ROE: 1689's Return on Equity (28.4%) is considered high.


Next Steps

Financial Health

How is Huaxi Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1689's short term assets (HK$450.4M) exceed its short term liabilities (HK$134.5M).

Long Term Liabilities: 1689's short term assets (HK$450.4M) exceed its long term liabilities (HK$12.2M).


Debt to Equity History and Analysis

Debt Level: 1689 is debt free.

Reducing Debt: 1689 had no debt 5 years ago.

Debt Coverage: 1689 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1689 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Huaxi Holdings's current dividend yield, its reliability and sustainability?

4.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1689's dividend (4.68%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1689's dividend (4.68%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.85%).


Stability and Growth of Payments

Stable Dividend: 1689 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1689's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.7%), 1689's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.1yrs

Average board tenure


CEO

Andy Zheng (59 yo)

7.08yrs

Tenure

HK$622,000

Compensation

Mr. Yi Sheng Zheng, also known as Andy, is founder and has been the Chief Executive Officer of Huaxi Holdings Company Limited since July 24, 2013. Mr. Zheng has been Chairman of Huaxi Holdings Company Limi ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD80.26K) is below average for companies of similar size in the Hong Kong market ($USD275.99K).

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


Board Members

NamePositionTenureCompensationOwnership
Yi Sheng Zheng
Chairman & CEO7.08yrsHK$622.00k64.15%
HK$ 769.5m
Minsheng Zheng
Deputy GM & Executive Director7.08yrsHK$531.00k0.17%
HK$ 2.1m
Kwok Hung Lau
Independent Non-Executive Director7.08yrsHK$123.00k0.057%
HK$ 684.0k
Po Tin Fok
Independent Non-Executive Director7.08yrsHK$123.00k0.057%
HK$ 684.0k
Jiming Hao
Non-Executive Director1.33yrsno datano data
Xiaowen Cai
Independent Non-Executive Director0.33yrno datano data

7.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 1689's board of directors are considered experienced (7.1 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

Huaxi Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huaxi Holdings Company Limited
  • Ticker: 1689
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: HK$1.199b
  • Shares outstanding: 701.43m
  • Website: https://www.huaxihds.com.hk

Number of Employees


Location

  • Huaxi Holdings Company Limited
  • Unit 1906-07, Cosco Tower
  • 19th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1689SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013

Biography

Huaxi Holdings Company Limited, an investment holding company, manufactures and sells cigarette-related packaging materials in the People’s Republic of China. The company offers inner frame, cigarette box ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 12:47
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.