SEHK:408

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Yip's Chemical Holdings

Executive Summary

Yip's Chemical Holdings Limited, an investment holding company, produces and sells petrochemical products in the People’s Republic of China.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Yip's Chemical Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 408 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

408

4.4%

HK Chemicals

5.8%

HK Market


1 Year Return

-6.6%

408

-31.4%

HK Chemicals

-4.0%

HK Market

Return vs Industry: 408 exceeded the Hong Kong Chemicals industry which returned -31.4% over the past year.

Return vs Market: 408 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

408IndustryMarket
7 Day2.1%4.4%5.8%
30 Day2.1%-0.9%4.0%
90 Day3.4%-9.4%-2.6%
1 Year0.2%-6.6%-26.8%-31.4%-0.6%-4.0%
3 Year-14.8%-28.4%-30.7%-42.2%1.3%-9.2%
5 Year-32.0%-46.3%-43.0%-53.5%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Yip's Chemical Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yip's Chemical Holdings undervalued compared to its fair value and its price relative to the market?

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 408 (HK$2.4) is trading below our estimate of fair value (HK$4.43)

Significantly Below Fair Value: 408 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 408 is good value based on its PE Ratio (5x) compared to the Chemicals industry average (6.6x).

PE vs Market: 408 is good value based on its PE Ratio (5x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 408's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 408 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Yip's Chemical Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.0%

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 Yip's Chemical 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 Yip's Chemical Holdings performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 408 has a large one-off gain of HK$107.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 408's current net profit margins (2.6%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 408's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: 408's earnings growth over the past year (47.7%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: 408 earnings growth over the past year (47.7%) exceeded the Chemicals industry -9.9%.


Return on Equity

High ROE: 408's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Yip's Chemical Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 408's short term assets (HK$5.2B) exceed its short term liabilities (HK$3.0B).

Long Term Liabilities: 408's short term assets (HK$5.2B) exceed its long term liabilities (HK$1.2B).


Debt to Equity History and Analysis

Debt Level: 408's debt to equity ratio (55.6%) is considered high.

Reducing Debt: 408's debt to equity ratio has reduced from 91.5% to 55.6% over the past 5 years.

Debt Coverage: 408's debt is well covered by operating cash flow (31.2%).

Interest Coverage: 408's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Yip's Chemical Holdings's current dividend yield, its reliability and sustainability?

8.33%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 408's dividend (8.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 408's dividend (8.33%) is in the top 25% of dividend payers in the Hong Kong market (7.03%)


Stability and Growth of Payments

Stable Dividend: 408's dividend payments have been volatile in the past 10 years.

Growing Dividend: 408's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), 408'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?

5.6yrs

Average management tenure


CEO

Stephen Yip (61yo)

1.42yrs

Tenure

HK$5,433,000

Compensation

Mr. Tsz Hin Yip, also known as Stephen, has been Chief Executive Officer of Yip's Chemical Holdings Ltd. since January 1, 2019. Mr. Yip served as Co-Chief Executive Officer of Yip's Chemical Holdings Ltd.  ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD701.03K) is above average for companies of similar size in the Hong Kong market ($USD279.62K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chi Shing Ip
Co-Founder & Non-Executive Chairman8.42yrsHK$1.48m29.05% HK$393.2m
Tsz Hin Yip
CEO & Deputy Chairman1.42yrsHK$5.43m8.03% HK$108.8m
Sai Hou Ho
CFO, Company Secretary & Executive Director9.42yrsHK$3.40mno data
Kwan Ip
Deputy CEO & Executive Director1.42yrsHK$2.49m1.97% HK$26.6m
Yik Chu Tse
Director of Group Human Resources & Corporate Communicationsno datano datano data
Chuen Sang Chan
Co-President of Bauhinia Coatings Groupno datano datano data
Ping Kwong Fung
Co-President of the Bauhinia Coatings Groupno datano datano data
Chu Bang Zhao
Managing Director of the Jiangmen Handsome Chemical Development Limited15.17yrsno datano data

5.6yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 408's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chi Shing Ip
Co-Founder & Non-Executive Chairman8.42yrsHK$1.48m29.05% HK$393.2m
Tsz Hin Yip
CEO & Deputy Chairman1.42yrsHK$5.43m8.03% HK$108.8m
Sai Hou Ho
CFO, Company Secretary & Executive Director9.42yrsHK$3.40mno data
Kwan Ip
Deputy CEO & Executive Director1.42yrsHK$2.49m1.97% HK$26.6m
Wong Kong Chi
Independent Non-Executive Director27.42yrsHK$200.00k0.018% HK$240.0k
Yuen Fun Ku
Independent Non-Executive Director11.92yrsHK$200.00k0.0062% HK$83.3k
Yuk Wong
Non-Executive Director4.42yrsHK$200.00kno data
Pak Chuen Ho
Independent Non-Executive Director2yrsHK$200.00kno data

8.4yrs

Average Tenure

61yo

Average Age

Experienced Board: 408's board of directors are considered experienced (8.4 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

Yip's Chemical Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yip's Chemical Holdings Limited
  • Ticker: 408
  • Exchange: SEHK
  • Founded: 1971
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$1.354b
  • Shares outstanding: 564.03m
  • Website: https://www.yipschemical.com

Number of Employees


Location

  • Yip's Chemical Holdings Limited
  • Fortis Tower
  • 27th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YIPC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
408SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

Yip's Chemical Holdings Limited, an investment holding company, produces and sells petrochemical products in the People’s Republic of China. It operates through Solvents, Coatings, Inks, Lubricants, and Properties segments. The Solvents segment produces industrial organic solvents, such as ethyl acetate, normal butyl acetate, mixed butyl acetate, ethanol, and butyl acrylate for use in coatings, tannery, medicine, and adhesives industries. The Coatings segment provides architectural coatings, including inner and outer emulsion wall paints, and water-based emulsion wood paints for the household paints market; industrial coatings comprising coatings for furniture and plastic products; and resins, which include alkyd, acrylic, UV, amino, and water-based resins, as well as PU hardeners. This segment primarily offers its products under the Camel, Aquapro, and VIVA brands. The Inks segment provides plastic printing inks and paper printing inks for use in food, drinks and gift packaging, and paper printing applications under the Bauhinia Variegata brand name. The Lubricants segment offers automotive and industrial lubricants, including engine oils, antifreezes, system coolants, brake fluids, greases, gear oils, automatic transmission fluids, hydraulic oils, turbine oils, heat conducting oils, slideway oils, compressor oils, and circulating oils under the Hercules brand name. It also provides specialty lubricants under the Pacoil brand name to the metal processing, automobiles, home appliances, electronics, steel, toys, power generation, cement, textiles, foundry, plastics, chemicals, paper making, glass, and wires and cables industries. The Properties segment invests in properties. The company also trades in coatings, solvents, resins, inks, and lubricants; offers treasury and car services; and generates and sells electricity. The company was formerly known as Hang Cheung Hong. Yip's Chemical Holdings Limited was founded in 1971 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 12:36
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.