SEHK:546

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Executive Summary

Fufeng Group Limited, an investment holding company, engages in the manufacture and sale of fermentation-based food additive, and biochemical and starch-based products in the People’s Republic of China and internationally. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 546 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

546

0.3%

HK Chemicals

1.9%

HK Market


1 Year Return

-29.0%

546

-12.4%

HK Chemicals

1.5%

HK Market

Return vs Industry: 546 underperformed the Hong Kong Chemicals industry which returned -12.3% over the past year.

Return vs Market: 546 underperformed the Hong Kong Market which returned 2% over the past year.


Shareholder returns

546IndustryMarket
7 Day7.0%0.3%1.9%
30 Day6.6%3.3%3.6%
90 Day-6.2%-10.0%2.8%
1 Year-25.0%-29.0%-7.0%-12.4%5.8%1.5%
3 Year-48.5%-56.8%-38.7%-49.3%-5.0%-15.4%
5 Year-19.0%-35.3%-13.4%-32.9%17.1%-2.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fufeng Group 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: 546 (HK$2.59) is trading below our estimate of fair value (HK$11.32)

Significantly Below Fair Value: 546 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 546 is good value based on its PE Ratio (6.2x) compared to the HK Chemicals industry average (7.1x).

PE vs Market: 546 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 546 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 546 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.6x).


Next Steps

Future Growth

How is Fufeng Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 546's forecast earnings growth (18.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 546's earnings (18.4% per year) are forecast to grow slower than the Hong Kong market (22.3% per year).

High Growth Earnings: 546's earnings are forecast to grow, but not significantly.

Revenue vs Market: 546's revenue (2.7% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 546's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 546's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fufeng Group performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 546 has high quality earnings.

Growing Profit Margin: 546's current net profit margins (5.4%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: 546's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 546's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 546 had negative earnings growth (-57.7%) over the past year, making it difficult to compare to the Chemicals industry average (-33.5%).


Return on Equity

High ROE: 546's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Fufeng Group's financial position?


Financial Position Analysis

Short Term Liabilities: 546's short term assets (CN¥8.4B) exceed its short term liabilities (CN¥5.0B).

Long Term Liabilities: 546's short term assets (CN¥8.4B) exceed its long term liabilities (CN¥2.9B).


Debt to Equity History and Analysis

Debt Level: 546's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: 546's debt to equity ratio has reduced from 73.4% to 34.1% over the past 5 years.

Debt Coverage: 546's debt is well covered by operating cash flow (32.9%).

Interest Coverage: 546's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Fufeng Group current dividend yield, its reliability and sustainability?

4.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 546's dividend (4.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 546's dividend (4.7%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


Stability and Growth of Payments

Stable Dividend: 546's dividend payments have been volatile in the past 10 years.

Growing Dividend: 546's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), 546'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?

3.3yrs

Average management tenure


CEO

Deheng Li (52 yo)

0.33

Tenure

CN¥1,212,000

Compensation

Mr. Deheng Li serves as Chief Executive Officer at Fufeng Group Limited since June 1, 2020. He has been an Executive Director of Fufeng Group Limited since January 10, 2007. He served as Deputy Executive G ...


CEO Compensation Analysis

Compensation vs Market: Deheng's total compensation ($USD182.25K) is below average for companies of similar size in the Hong Kong market ($USD476.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xuechun Li
Principal Founder & Chairmanno dataCN¥2.80m39.28%
CN¥ 2.5b
Deheng Li
CEO & Executive Director0.33yrCN¥1.21m1.39%
CN¥ 87.6m
Guangyu Li
Vice GM & Executive Director10.5yrsCN¥653.00kno data
Yuan Chen
Chief Financial Officer3.25yrsCN¥3.95mno data
Wai Yin Lee
Company Secretary12.17yrsno datano data
Lingguo Xu
Logistic Operations Officerno datano datano data
Fengtang Lai
General Manager of Shandong Fufengno datano datano data

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 546's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuechun Li
Principal Founder & Chairmanno dataCN¥2.80m39.28%
CN¥ 2.5b
Deheng Li
CEO & Executive Director0.33yrCN¥1.21m1.39%
CN¥ 87.6m
Guangyu Li
Vice GM & Executive Director10.5yrsCN¥653.00kno data
Zheng Yu
Independent Non-Executive Director7.83yrsCN¥268.00k0.0090%
CN¥ 563.0k
Zheng Hong Xu
Independent Non-Executive Director1.83yrsno datano data
Chung Wai Lau
Independent Non-Executive Director1.33yrsno datano data

7.8yrs

Average Tenure

50.5yo

Average Age

Experienced Board: 546's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 546 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Fufeng Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fufeng Group Limited
  • Ticker: 546
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: HK$6.283b
  • Shares outstanding: 2.53b
  • Website: https://www.fufeng-group.com

Number of Employees


Location

  • Fufeng Group Limited
  • Western Section of Huaihai Road
  • Junan
  • Linyi
  • Shandong Province
  • 276600
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
546SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2007
FFO1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2007
FFO1MUN (Boerse Muenchen)YesOrdinary SharesDEEURFeb 2007
546SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2007
546SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDFeb 2007

Biography

Fufeng Group Limited, an investment holding company, engages in the manufacture and sale of fermentation-based food additive, and biochemical and starch-based products in the People’s Republic of China and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 12:35
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.