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 Analysis

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

Stable Share Price: 1820 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

1820

-2.1%

HK Packaging

-3.3%

HK Market


1 Year Return

14.4%

1820

-27.8%

HK Packaging

-9.6%

HK Market

Return vs Industry: 1820 exceeded the Hong Kong Packaging industry which returned -27.8% over the past year.

Return vs Market: 1820 exceeded the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

1820IndustryMarket
7 Day-0.9%-2.1%-3.3%
30 Day-2.3%-2.6%-3.8%
90 Day2.2%-12.9%-0.2%
1 Year29.2%14.4%-22.9%-27.8%-6.3%-9.6%
3 Yearn/a-37.2%-43.7%11.2%-0.05%
5 Yearn/a-31.8%-43.2%12.7%-6.0%

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?

48.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1820 (HK$4.61) is trading below our estimate of fair value (HK$8.88)

Significantly Below Fair Value: 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 (15.4x) compared to the Packaging industry average (10.7x).

PE vs Market: 1820 is poor value based on its PE Ratio (15.4x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

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 (0.5x).


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 (1.6%).

Earnings vs Market: 1820's earnings (25.3% per year) are forecast to grow faster than the Hong Kong market (11.8% 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 (9.8% 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

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

Quality Earnings: 1820 has high quality earnings.

Growing Profit Margin: 1820's current net profit margins (3.4%) are lower than last year (4.1%).


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 (-13.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its short term liabilities (CN¥696.3M).

Long Term Liabilities: 1820's short term assets (CN¥891.1M) exceed its long term liabilities (CN¥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 3.9x debt).


Next Steps

Dividend

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

5.32%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.3%markettop25%6.4%industryaverage6.0%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: 1820's dividend (5.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 1820's dividend (5.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.42%).


Stability and Growth of Payments

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

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

2.1yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Hsien-Chun Cheng
Executive Chairman2.1yrsCN¥1.00mno data
Yanping Long
Corporate Controller2.1yrsno datano data
Tsung-Hsien Lan
Corporate Technical Director2.1yrsno datano data
Xiaogang Jiang
Corporate Human Resources & Administration Director2.1yrsno datano data
Kai Cheong Cheung
Company Secretary0yrsno datano data

2.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 1820's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hsien-Chun Cheng
Executive Chairman2.1yrsCN¥1.00mno data
Tien Sik Kiang
Independent Non-Executive Director1.3yrsCN¥6.00kno data
Jisheng Wang
Independent Non-Executive Director1.3yrsCN¥6.00kno data
Tien-Li Chow
Non-Executive Director2.1yrsCN¥6.00kno data
Chung Wu Su
Independent Non-Executive Director1.3yrsCN¥6.00kno data
Philip Tan
Non-Executive Director0.2yrsno datano data

1.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 1820's board of directors are not considered experienced ( 1.3 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 17.7%.


Top Shareholders

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$1.386b
  • Shares outstanding: 300.63m
  • Website: https://www.pmpgc.com

Number of Employees


Location

  • Pacific Millennium Packaging Group Corporation
  • 21 Floor, Tower 2
  • Suite 2104
  • Hong Kong
  • 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 corrugated boxes, display boxes, paper pallets, display stands, heavy duty packaging, and specialized packaging products; and corrugated sheet boards. The company also provides integrated packaging services. It serves customers in food and beverages, non-food and beverage consumables, home appliances and electronics, durable goods and garments, industry and machinery, e-commerce, and express delivery industries. The company was founded in 1994 and is headquartered in Shanghai, the People’s Republic of China. Pacific Millennium Packaging Group Corporation is a subsidiary of Pacific Millennium Holdings Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:05
End of Day Share Price2020/02/27 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.