NOT FOR DISTRIBUTION
Header cover image

Huabao International Holdings

Market Cap

HK$25.5b

Last Updated

2021/04/21 10:26 UTC

Data Sources

Company Financials

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


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

336IndustryMarket
7 Day12.5%3.1%0.2%
30 Day5.5%-0.5%-0.9%
90 Day-37.5%-5.0%-3.7%
1 Year206.1%193.5%51.7%43.6%34.4%29.5%
3 Year108.8%68.7%-17.9%-32.0%6.5%-4.7%
5 Year294.4%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

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

TodayApr 22 2021Ex Dividend DateMay 21 2021Dividend Pay DateJun 09 202119 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/21 10:26
End of Day Share Price2021/04/21 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.