SEHK:2182

Stock Analysis Report

Tian Chang Group Holdings

Executive Summary

Tian Chang Group Holdings Ltd., an investment holding company, provides integrated plastic solutions and e-cigarette products in Hong Kong, the People's Republic of China, the United States, the United Kingdom, and internationally.

Rewards

Trading at 98.1% below its fair value

Earnings grew by 733.5% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$322M)



Snowflake Analysis

Outstanding track record and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2182 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

2182

1.0%

HK Chemicals

0.6%

HK Market


1 Year Return

0%

2182

-31.7%

HK Chemicals

-4.5%

HK Market

Return vs Industry: 2182 exceeded the Hong Kong Chemicals industry which returned -31.2% over the past year.

Return vs Market: 2182 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

2182IndustryMarket
7 Day-1.9%1.0%0.6%
30 Day-5.5%-7.0%-5.2%
90 Day10.6%-1.5%2.3%
1 Year8.4%0%-26.7%-31.7%-1.0%-4.5%
3 Yearn/a-33.9%-44.3%14.4%2.9%
5 Yearn/a-18.4%-31.9%15.5%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tian Chang Group 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: 2182 (HK$0.52) is trading below our estimate of fair value (HK$27.86)

Significantly Below Fair Value: 2182 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2182 is good value based on its PE Ratio (2.3x) compared to the Chemicals industry average (7.1x).

PE vs Market: 2182 is good value based on its PE Ratio (2.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2182's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2182 is good value based on its PB Ratio (0.6x) compared to the HK Chemicals industry average (0.8x).


Next Steps

Future Growth

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

20.8%

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 Tian Chang Group 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 Tian Chang Group Holdings performed over the past 5 years?

26.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2182 has high quality earnings.

Growing Profit Margin: 2182's current net profit margins (10.2%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 2182's earnings have grown significantly by 26.7% per year over the past 5 years.

Accelerating Growth: 2182's earnings growth over the past year (733.5%) exceeds its 5-year average (26.7% per year).

Earnings vs Industry: 2182 earnings growth over the past year (733.5%) exceeded the Chemicals industry 21.4%.


Return on Equity

High ROE: 2182's Return on Equity (27.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tian Chang Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2182's short term assets (HK$314.4M) do not cover its short term liabilities (HK$350.8M).

Long Term Liabilities: 2182's short term assets (HK$314.4M) exceed its long term liabilities (HK$54.2M).


Debt to Equity History and Analysis

Debt Level: 2182's debt to equity ratio (23.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2182's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2182's debt is well covered by operating cash flow (257.7%).

Interest Coverage: 2182's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet

Inventory Level: 2182 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2182's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Tian Chang Group Holdings's current dividend yield, its reliability and sustainability?

5.77%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.3%markettop25%6.4%industryaverage9.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 2182's dividend (5.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 2182's dividend (5.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2182's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2182's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), 2182's dividend payments are well 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?

1.4yrs

Average board tenure


CEO

Tsan Lam Chan (58yo)

HK$11,999,000

Compensation

Mr. Tsan Lam Chan is the Founder of Tian Chang Group Holdings Ltd (the “Company”). Mr. Chan is an Executive Director, Chairman and Chief Executive Officer of the Company. Mr. Chan is also Director of all o ...


CEO Compensation Analysis

Compensation vs Market: Tsan Lam's total compensation ($USD1.54M) is above average for companies of similar size in the Hong Kong market ($USD225.53K).

Compensation vs Earnings: Tsan Lam's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Tsan Lam Chan
Chairman & CEO0yrsHK$12.00m60.23% HK$194.2m
Yin Yan Chan
VP of Marketing & Executive Director0yrsHK$2.90mno data
Po Han Poon
Company Secretary0.8yrsno datano data
Chun Leung Hung
Independent Non-Executive Director2yrsHK$110.00kno data
Bing Kai Chan
Independent Non-Executive Director2yrsHK$110.00kno data
Chi Ng
Independent Non-Executive Director0.8yrsno datano data

1.4yrs

Average Tenure

54yo

Average Age

Experienced Board: 2182's board of directors are not considered experienced ( 1.4 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 20.7%.


Top Shareholders

Company Information

Tian Chang Group Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tian Chang Group Holdings Ltd.
  • Ticker: 2182
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$322.400m
  • Shares outstanding: 620.00m
  • Website: https://www.hktcgroup.com

Number of Employees


Location

  • Tian Chang Group Holdings Ltd.
  • Hoi Luen Industrial Centre
  • Workshop Unit 6
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2182SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2018

Biography

Tian Chang Group Holdings Ltd., an investment holding company, provides integrated plastic solutions and e-cigarette products in Hong Kong, the People's Republic of China, the United States, the United Kingdom, and internationally. The company's Integrated Plastic Solutions segment designs, manufactures, and fabricates printer, copier, and air-conditioner parts; office chair backs and accessories; engine covers and dash boards; router, camera, and mobile power bank parts; and PET products and molds. Its E-Cigarettes Products segment manufactures and sells disposable e-cigarettes, refillable e-cigarettes, battery rods, clearomisers, liquidpods, and pro-kit sets to original equipment manufacturers under the blu brand name. The company was founded in 2000 and is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:32
End of Day Share Price2020/02/18 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.