SEHK:468

Stock Analysis Report

Greatview Aseptic Packaging

Executive Summary

Greatview Aseptic Packaging Company Limited, an investment holding company, manufactures, distributes, and sells paper packaging products and filling machines to dairy and non-carbonated soft drink producers in the People's Republic of China and internationally.

Rewards

Trading at 9.4% below its fair value

Earnings are forecast to grow 7.25% per year

Earnings grew by 0.5% over the past year

Risk Analysis

Dividend of 7.46% is not well covered by earnings



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has Greatview Aseptic Packaging's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 468 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

468

0.5%

HK Packaging

2.2%

HK Market


1 Year Return

-25.3%

468

-22.1%

HK Packaging

-0.8%

HK Market

Return vs Industry: 468 underperformed the Hong Kong Packaging industry which returned -22.1% over the past year.

Return vs Market: 468 underperformed the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

468IndustryMarket
7 Day1.4%0.5%2.2%
30 Day0.3%-5.4%-0.6%
90 Day-17.7%-18.0%-0.9%
1 Year-20.4%-25.3%-17.1%-22.1%2.8%-0.8%
3 Year7.0%-9.4%-32.5%-39.8%19.5%7.4%
5 Year25.6%-4.3%-17.8%-33.1%20.7%0.5%

Price Volatility Vs. Market

How volatile is Greatview Aseptic Packaging's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Greatview Aseptic Packaging undervalued compared to its fair value and its price relative to the market?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 468 (HK$3.57) is trading below our estimate of fair value (HK$3.94)

Significantly Below Fair Value: 468 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 468 is poor value based on its PE Ratio (12.1x) compared to the Packaging industry average (10.6x).

PE vs Market: 468 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 468 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 468 is overvalued based on its PB Ratio (1.6x) compared to the HK Packaging industry average (0.6x).


Next Steps

Future Growth

How is Greatview Aseptic Packaging forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 468's forecast earnings growth (7.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 468's earnings (7.3% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 468's earnings are forecast to grow, but not significantly.

Revenue vs Market: 468's revenue (9.3% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 468's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 468's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Greatview Aseptic Packaging performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 468 has high quality earnings.

Growing Profit Margin: 468's current net profit margins (14.5%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 468's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: 468's earnings growth over the past year (0.5%) is below its 5-year average (4.6% per year).

Earnings vs Industry: 468 earnings growth over the past year (0.5%) exceeded the Packaging industry -13.2%.


Return on Equity

High ROE: 468's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Greatview Aseptic Packaging's financial position?


Financial Position Analysis

Short Term Liabilities: 468's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥668.8M).

Long Term Liabilities: 468's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥117.4M).


Debt to Equity History and Analysis

Debt Level: 468's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: 468's debt to equity ratio has reduced from 15.3% to 4.9% over the past 5 years.

Debt Coverage: 468's debt is well covered by operating cash flow (250.4%).

Interest Coverage: 468 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 468 has a high level of physical assets or inventory.

Debt Coverage by Assets: 468's debt is covered by short term assets (assets are 14.3x debt).


Next Steps

Dividend

What is Greatview Aseptic Packaging's current dividend yield, its reliability and sustainability?

7.46%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.3%markettop25%6.2%industryaverage5.4%forecastin3Years8.3%

Current dividend yield vs market & industry

Notable Dividend: 468's dividend (7.46%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 468's dividend (7.46%) is in the top 25% of dividend payers in the Hong Kong market (6.17%)


Stability and Growth of Payments

Stable Dividend: 468 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 468's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.6%), 468's dividend payments are not 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

What is the CEO of Greatview Aseptic Packaging's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Jeff Bi (56yo)

16.8yrs

Tenure

CN¥3,270,000

Compensation

Mr. Hua Bi, also known as Jeff, co-founded Greatview Aseptic Packaging Company Limited and has been its Chief Executive Officer since March 2003 and Executive Director since July 29, 2010. Mr. Bi joined th ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD464.57K) is about average for companies of similar size in the Hong Kong market ($USD481.92K).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 468's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

9.1yrs

Average Tenure

60yo

Average Age

Experienced Board: 468's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥3,464,15110 Dec 19
Edgbaston Investment Partners LLP
EntityCompany
Shares977,000
Max PriceCN¥3.55
BuyCN¥2,033,61921 Nov 19
M&G Investment Management Limited
EntityCompany
Shares597,000
Max PriceCN¥3.41
BuyCN¥17,449,03104 Oct 19
FMR LLC
EntityCompany
Shares4,506,000
Max PriceCN¥3.87
SellCN¥714,45516 Apr 19
Janus Henderson Group plc
EntityCompany
Shares149,000
Max PriceCN¥4.79
SellCN¥1,845,88203 Apr 19
Janus Henderson Group plc
EntityCompany
Shares389,000
Max PriceCN¥4.75
BuyCN¥3,294,20119 Dec 18
Janus Henderson Group plc
EntityCompany
Shares724,000
Max PriceCN¥4.55

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gang Hong (61yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
  • Guining Chen (64yo)

    Chief Technical Officer

    • Tenure: 0yrs
  • Jiuxian Yang (56yo)

    Sales Director

    • Tenure: 0yrs
  • Jeff Bi (56yo)

    Co-Founder

    • Tenure: 16.8yrs
    • Compensation: CN¥3.27m
  • Fuquan Chang (62yo)

    CFO & Executive Director

    • Tenure: 0.8yrs
  • Lai Shan So

    Joint Company Secretary

    • Tenure: 1.3yrs
  • Zhaohui QI

    Joint Company Secretary

    • Tenure: 0.8yrs
  • Victor Lee (38yo)

    International Business Director & Investor Relations Director

    • Tenure: 1.2yrs

Board Members

  • Jonathan Zhu (56yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥124.00k
  • David Hsu (60yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Allen Warren Lueth (50yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: CN¥169.00k
  • Ernst Hermann Behrens (71yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: CN¥169.00k
  • Gang Hong (61yo)

    Co-Founder & Chairman

    • Tenure: 0yrs
  • Jeff Bi (56yo)

    Co-Founder

    • Tenure: 16.8yrs
    • Compensation: CN¥3.27m
  • Fuquan Chang (62yo)

    CFO & Executive Director

    • Tenure: 0.8yrs

Company Information

Greatview Aseptic Packaging Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Greatview Aseptic Packaging Company Limited
  • Ticker: 468
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: HK$4.693b
  • Shares outstanding: 1.34b
  • Website: https://www.greatviewpack.com

Number of Employees


Location

  • Greatview Aseptic Packaging Company Limited
  • A4-2F No.14 Jiuxianqiao Road
  • Chaoyang District
  • Beijing
  • 100015
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
468SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2010
8GADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
GRVW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010
468SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2010

Biography

Greatview Aseptic Packaging Company Limited, an investment holding company, manufactures, distributes, and sells paper packaging products and filling machines to dairy and non-carbonated soft drink produce ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:54
End of Day Share Price2019/12/12 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.