Executive Summary
Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavors and fragrances, aroma and tobacco raw materials, and condiment products primarily in the People’s Republic of China. More Details
Risk Analysis
Snowflake Analysis
Excellent balance sheet not a dividend payer.
Share Price & News
How has Huabao International Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 336 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: 336's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
12.5%
336
3.1%
HK Chemicals
0.2%
HK Market
1 Year Return
193.5%
336
43.6%
HK Chemicals
29.5%
HK Market
Return vs Industry: 336 exceeded the Hong Kong Chemicals industry which returned 46.8% over the past year.
Return vs Market: 336 exceeded the Hong Kong Market which returned 32.2% over the past year.
Shareholder returns
| 336 | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.5% | 3.1% | 0.2% |
| 30 Day | 5.5% | -0.5% | -0.9% |
| 90 Day | -37.5% | -5.0% | -3.7% |
| 1 Year | 206.1%193.5% | 51.7%43.6% | 34.4%29.5% |
| 3 Year | 108.8%68.7% | -17.9%-32.0% | 6.5%-4.7% |
| 5 Year | 294.4%196.5% | 23.7%-4.5% | 51.6%26.0% |
Long-Term Price Volatility Vs. Market
How volatile is Huabao International Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Huabao International Holdings (HKG:336) A Risky Investment?4 weeks ago | Simply Wall St
How Does Huabao International Holdings Limited (HKG:336) Fare As A Dividend Stock?1 month ago | Simply Wall St
Our Take On The Returns On Capital At Huabao International Holdings (HKG:336)Valuation
Is Huabao International Holdings undervalued compared to its fair value and its price relative to the market?
53.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 336 (HK$8.57) is trading above our estimate of fair value (HK$6.38)
Significantly Below Fair Value: 336 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 336 is poor value based on its PE Ratio (53.3x) compared to the HK Chemicals industry average (10.1x).
PE vs Market: 336 is poor value based on its PE Ratio (53.3x) compared to the Hong Kong market (12x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 336's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 336 is overvalued based on its PB Ratio (1.9x) compared to the HK Chemicals industry average (0.8x).
Future Growth
How is Huabao International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
27.5%
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 Huabao International 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.
Past Performance
How has Huabao International Holdings performed over the past 5 years?
-11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 336 has a large one-off loss of CN¥502.2M impacting its December 31 2020 financial results.
Growing Profit Margin: 336's current net profit margins (10.9%) are lower than last year (26.2%).
Past Earnings Growth Analysis
Earnings Trend: 336's earnings have declined by 11.5% per year over the past 5 years.
Accelerating Growth: 336's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 336 had negative earnings growth (-62.3%) over the past year, making it difficult to compare to the Chemicals industry average (-11.9%).
Return on Equity
High ROE: 336's Return on Equity (4.9%) is considered low.
Financial Health
How is Huabao International Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 336's short term assets (CN¥9.1B) exceed its short term liabilities (CN¥2.0B).
Long Term Liabilities: 336's short term assets (CN¥9.1B) exceed its long term liabilities (CN¥2.0B).
Debt to Equity History and Analysis
Debt Level: 336's debt to equity ratio (19.8%) is considered satisfactory.
Reducing Debt: 336's debt to equity ratio has increased from 0.2% to 19.8% over the past 5 years.
Debt Coverage: 336's debt is well covered by operating cash flow (53.7%).
Interest Coverage: 336 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Huabao International Holdings's current dividend yield, its reliability and sustainability?
1.05%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 336's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.93%).
High Dividend: 336's dividend (1.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6%).
Stability and Growth of Payments
Stable Dividend: 336's dividend payments have been volatile in the past 10 years.
Growing Dividend: 336's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56.3%), 336'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?
6.7yrs
Average management tenure
CEO
Lam Chu (50 yo)
8yrs
Tenure
CN¥19,456,000
Compensation
Ms. Lam Yiu Chu has been an Interim Chief Executive Officer of Huabao International Holdings Ltd. ((formerly Leaptek Ltd) since April 9, 2013 and served as its Chief Executive Officer until April 9, 2008. ...
Leadership Team
Experienced Management: 336's management team is seasoned and experienced (6.7 years average tenure).
Board Members
Experienced Board: 336's board of directors are considered experienced (7.4 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
Huabao International Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Huabao International Holdings Limited
- Ticker: 336
- Exchange: SEHK
- Founded: 1996
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: HK$25.484b
- Shares outstanding: 3.11b
- Website: https://www.hbglobal.com
Number of Employees
Location
- Huabao International Holdings Limited
- Central Plaza
- Suite 3008
- Wan Chai
- Hong Kong
Listings
Biography
Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavors and fragrances, aroma and tobacco raw materials, and condiment products ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/21 10:26 |
| End of Day Share Price | 2021/04/21 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.