SEHK:1820

Stock Analysis Report

Pacific Millennium Packaging Group

Executive Summary

Pacific Millennium Packaging Group Corporation, an investment holding company, manufactures and sells packaging materials in the People’s Republic of China.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Pacific Millennium Packaging Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

1820

1.1%

HK Packaging

0.9%

HK Market


1 Year Return

n/a

1820

-20.5%

HK Packaging

0.6%

HK Market

Return vs Industry: Insufficient data to determine how 1820 performed against the Hong Kong Packaging industry.

Return vs Market: Insufficient data to determine how 1820 performed against the Hong Kong Market.


Shareholder returns

1820IndustryMarket
7 Day-0.2%1.1%0.9%
30 Day0%-0.5%0.4%
90 Day-2.4%-11.5%-5.5%
1 Yearn/a-15.5%-20.5%4.2%0.6%
3 Yearn/a-30.6%-38.0%15.5%3.9%
5 Yearn/a-20.9%-36.1%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Pacific Millennium Packaging Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Millennium Packaging Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1820 (HK$4.49) is trading below our estimate of fair value (HK$9)

Significantly Undervalued: 1820 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1820 is poor value based on its PE Ratio (15.1x) compared to the Packaging industry average (12.8x).

PE vs Market: 1820 is poor value based on its PE Ratio (15.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1820 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1820 is overvalued based on its PB Ratio (2x) compared to the HK Packaging industry average (0.6x).


Next Steps

Future Growth

How is Pacific Millennium Packaging Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1820's forecast earnings growth (25.3% per year) is above the savings rate (2%).

Earnings vs Market: 1820's earnings (25.3% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1820's revenue (21.4% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1820's revenue (21.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1820's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Pacific Millennium Packaging Group performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1820's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: 1820's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1820 had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Packaging industry average (-9.4%).


Return on Equity

High ROE: 1820's Return on Equity (11.5%) is considered low.


Return on Assets

ROA vs Industry: 1820 has a higher Return on Assets than the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: 1820 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Pacific Millennium Packaging Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1820's short term assets (CN¥891.1M) exceeds its short term liabilities (CN¥696.3M)

Long Term Liabilities: 1820's short term assets (891.1M) exceeds its long term liabilities (230.8M)


Debt to Equity History and Analysis

Debt Level: 1820's debt to equity ratio (36.5%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1820's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1820's debt is well covered by operating cash flow (53.6%).

Interest Coverage: 1820's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: 1820 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1820's debt is covered by short term assets (assets are 3.941700x debt).


Next Steps

Dividend

What is Pacific Millennium Packaging Group's current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%2.3%markettop25%6.3%industryaverage5.0%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1820's dividend (2.17%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1820's dividend (2.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Too early to tell whether 1820's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1820's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.6%), 1820's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1820's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

What is the CEO of Pacific Millennium Packaging Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Pacific Millennium Packaging Group has no CEO, or we have no data on them.


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 1820's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

63yo

Average Age

Experienced Board: 1820's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Willie Cheung (44yo)

    Company Secretary

    • Tenure: 0yrs
  • Jerry Cheng (63yo)

    Executive Chairman

    • Tenure: 1.8yrs
  • Bruce Lan (63yo)

    Corporate Technical Director

    • Tenure: 1.8yrs
  • Kelly Long (55yo)

    Corporate Controller

    • Tenure: 1.8yrs
  • Justin Jiang (55yo)

    Corporate Human Resources & Administration Director

    • Tenure: 1.8yrs

Board Members

  • David Kiang (72yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Jisheng Wang (66yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Jerry Cheng (63yo)

    Executive Chairman

    • Tenure: 1.8yrs
  • Tenor Chow (62yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Morley Su (63yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs

Company Information

Pacific Millennium Packaging Group Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Millennium Packaging Group Corporation
  • Ticker: 1820
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: HK$1.350b
  • Shares outstanding: 300.63m
  • Website: https://www.pmpgc.com

Number of Employees


Location

  • Pacific Millennium Packaging Group Corporation
  • A303, Block 2
  • 3rd Floor
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1820SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2018

Biography

Pacific Millennium Packaging Group Corporation, an investment holding company, manufactures and sells packaging materials in the People’s Republic of China. It offers corrugated packaging products, such as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 13:01
End of Day Share Price2019/10/18 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.