SEHK:1781

Stock Analysis Report

Sun Cheong Creative Development Holdings

Executive Summary

Sun Cheong Creative Development Holdings Limited designs, develops, manufactures, and sells plastic household products.


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Sun Cheong Creative Development Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1781's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

1781

0.5%

HK Packaging

-0.6%

HK Market


1 Year Return

-85.5%

1781

-26.6%

HK Packaging

-7.6%

HK Market

Return vs Industry: 1781 underperformed the Hong Kong Packaging industry which returned -26.6% over the past year.

Return vs Market: 1781 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1781IndustryMarket
7 Day-3.6%0.5%-0.6%
30 Day-5.3%0.2%-1.4%
90 Day-39.6%-9.8%2.0%
1 Year-84.2%-85.5%-21.6%-26.6%-4.2%-7.6%
3 Yearn/a-34.3%-41.0%12.9%1.5%
5 Yearn/a-27.4%-39.8%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Sun Cheong Creative Development Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun Cheong Creative Development Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1781 (HK$0.16) is trading below our estimate of fair value (HK$0.57)

Significantly Below Fair Value: 1781 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1781 is good value based on its PE Ratio (2.5x) compared to the Packaging industry average (11.2x).

PE vs Market: 1781 is good value based on its PE Ratio (2.5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1781's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1781 is good value based on its PB Ratio (0.4x) compared to the HK Packaging industry average (0.6x).


Next Steps

Future Growth

How is Sun Cheong Creative Development Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.1%

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 Sun Cheong Creative Development 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 Sun Cheong Creative Development Holdings performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1781 has a high level of non-cash earnings.

Growing Profit Margin: 1781's current net profit margins (9.2%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 1781's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: 1781's earnings growth over the past year (25.3%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: 1781 earnings growth over the past year (25.3%) exceeded the Packaging industry -13.2%.


Return on Equity

High ROE: 1781's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sun Cheong Creative Development Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1781's short term assets (HK$355.7M) exceed its short term liabilities (HK$314.6M).

Long Term Liabilities: 1781's short term assets (HK$355.7M) exceed its long term liabilities (HK$16.2M).


Debt to Equity History and Analysis

Debt Level: 1781's debt to equity ratio (106.4%) is considered high.

Reducing Debt: Insufficient data to determine if 1781's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1781's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1781's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: 1781 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1781's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Sun Cheong Creative Development Holdings's current dividend yield, its reliability and sustainability?

25.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1781's dividend (25%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1781's dividend (25%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1781's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1781's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.2%), 1781'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?

0.2yrs

Average board tenure


CEO

Billy Tong (41yo)

Mr. Bak Nam Tong, also known as Billy, is the Chief Executive Officer and has been an Executive Director of Sun Cheong Creative Development Holdings Limited since June 28, 2016. Mr. Tong joined Sun Cheong  ...


Board Members

NamePositionTenureCompensationOwnership
Bak Tong
CEO & Executive Director0yrsno datano data
Kam Chan
CFO & Executive Director3.7yrsno data18.26% HK$15.8m
Ga Wei Un
Executive Director0.2yrsno datano data
Jiselle Joey Chan
Executive Director0.2yrsno datano data
Chi Yan Hui
Independent Non-Executive Director0.2yrsno datano data
Chun Wai Sze
Independent Non Executive Director0yrsno datano data
Sai Chan
Non-Executive Director0yrsno datano data
Chun Ng
Independent Non-Executive Director0yrsno datano data

0.2yrs

Average Tenure

37.5yo

Average Age

Experienced Board: 1781's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24.8%.


Top Shareholders

Company Information

Sun Cheong Creative Development Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sun Cheong Creative Development Holdings Limited
  • Ticker: 1781
  • Exchange: SEHK
  • Founded: 1979
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: HK$86.400m
  • Shares outstanding: 540.00m
  • Website: https://www.clip-fresh.com

Number of Employees


Location

  • Sun Cheong Creative Development Holdings Limited
  • Flat B-F, Block 4
  • 23rd Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1781SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2018

Biography

Sun Cheong Creative Development Holdings Limited designs, develops, manufactures, and sells plastic household products. It offers plastic, glass, and ceramic food containers and drinkware under its clipfresh brand, as well as storage boxes, laundry and bathroom wares, food storage, rubbish bins, outdoor, gardenware and furniture, kitchenware, office solutions, tool boxes, pet accessories, aircraft meal trays, and seasonal goods. The company sells its products through direct sales to chain supermarkets, department stores, and household product retailers; and importers/exporters. It operates in Australia, Hong Kong, the United Kingdom, the United States, New Zealand, Germany, and internationally. Sun Cheong Creative Development Holdings Limited was founded in 1979 and is headquartered in Kwai Chung, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:13
End of Day Share Price2020/02/21 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.