SEHK:640

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Infinity Development Holdings

Executive Summary

Infinity Development Holdings Company Limited, an investment holding company, manufactures and sells adhesives, primers, hardeners, and vulcanized shoes adhesive related products used by the footwear manufacturers in the People’s Republic of China, Vietnam, Bangladesh, and Indonesia.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 640 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.1%

640

0.5%

HK Chemicals

4.1%

HK Market


1 Year Return

23.0%

640

-34.0%

HK Chemicals

-5.2%

HK Market

Return vs Industry: 640 exceeded the Hong Kong Chemicals industry which returned -35.3% over the past year.

Return vs Market: 640 exceeded the Hong Kong Market which returned -7.8% over the past year.


Shareholder returns

640IndustryMarket
7 Day7.1%0.5%4.1%
30 Day4.2%-5.0%3.5%
90 Day-11.8%-11.9%-5.3%
1 Year30.6%23.0%-29.7%-34.0%-2.0%-5.2%
3 Year7.4%-5.1%-32.3%-43.5%-0.4%-10.6%
5 Year-52.9%-60.1%-42.9%-53.3%-9.0%-23.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Infinity Development Holdings 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: 640 (HK$0.75) is trading below our estimate of fair value (HK$1.86)

Significantly Below Fair Value: 640 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 640 is good value based on its PE Ratio (6.4x) compared to the Chemicals industry average (6.6x).

PE vs Market: 640 is good value based on its PE Ratio (6.4x) compared to the Hong Kong market (9.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 640's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 640 is overvalued based on its PB Ratio (1.1x) compared to the HK Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Infinity Development 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 Infinity Development 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 Infinity Development Holdings performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 640 has high quality earnings.

Growing Profit Margin: 640's current net profit margins (10.9%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 640's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: 640's earnings growth over the past year (51.4%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: 640 earnings growth over the past year (51.4%) exceeded the Chemicals industry -9.9%.


Return on Equity

High ROE: 640's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Infinity Development Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 640's short term assets (HK$321.8M) exceed its short term liabilities (HK$127.2M).

Long Term Liabilities: 640's short term assets (HK$321.8M) exceed its long term liabilities (HK$17.1M).


Debt to Equity History and Analysis

Debt Level: 640's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 640's debt to equity ratio has reduced from 13.9% to 3.1% over the past 5 years.

Debt Coverage: 640's debt is well covered by operating cash flow (730%).

Interest Coverage: 640 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Infinity Development Holdings's current dividend yield, its reliability and sustainability?

6.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 640's dividend (6.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.55%).

High Dividend: 640's dividend (6.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.26%).


Stability and Growth of Payments

Stable Dividend: 640 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 640's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.4%), 640'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?

10.3yrs

Average board tenure


CEO

Ieong Un (64yo)

no data

Tenure

HK$5,090,000

Compensation

Mr. Un Ieong Founded Infinity Development Holdings Company Limited and serves as its Chairman and Chief Executive Officer. Mr. Ieong is responsible for Infinity Chemical Holdings' strategic planning, busin ...


CEO Compensation Analysis

Compensation vs Market: Ieong's total compensation ($USD656.65K) is above average for companies of similar size in the Hong Kong market ($USD228.12K).

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


Board Members

NamePositionTenureCompensationOwnership
Ieong Un
Founderno dataHK$5.09m74.8% HK$316.1m
Stephen Prince
Director of Business & Marketing and Executive Director10.25yrsHK$2.15m0.015% HK$63.0k
Chin Ip
Deputy GM & Executive Director10.25yrsHK$2.05m0.015% HK$63.0k
Ka Ip
Deputy GM & Executive Director10.25yrsHK$2.20m0.015% HK$63.0k
Wing Yau Chan
Independent Non-Executive Director10.25yrsHK$144.00k0.015% HK$63.0k
Hing Wah Tong
Independent Non-Executive Director6.58yrsHK$144.00kno data
Simon Luk
Independent Non-Executive Director6.58yrsHK$144.00kno data

10.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 640's board of directors are seasoned and experienced ( 10.3 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

Infinity Development Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Infinity Development Holdings Company Limited
  • Ticker: 640
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: HK$422.513m
  • Shares outstanding: 563.35m
  • Website: https://www.infinitydevelopment.com.hk

Number of Employees


Location

  • Infinity Development Holdings Company Limited
  • Rua de Pequim No. 202A–246
  • Macau Finance Centre
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
640SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2010
07FDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2010

Biography

Infinity Development Holdings Company Limited, an investment holding company, manufactures and sells adhesives, primers, hardeners, and vulcanized shoes adhesive related products used by the footwear manufacturers in the People’s Republic of China, Vietnam, Bangladesh, and Indonesia. The company also offers adhesives and other related chemical products for industrial use; operates as a sales agent for adhesives used in the production of electronic products; and trades in raw materials. In addition, it engages in the provision of promotion, marketing, research and development, technical assistance, and administrative support services; and processing and packaging of adhesive products. The company was formerly known as Infinity Chemical Holdings Company Limited and changed its name to Infinity Development Holdings Company Limited in February 2016. The company was founded in 1987 and is headquartered in Macau. Infinity Development Holdings Company Limited is a subsidiary of All Reach Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 13:19
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.