company background image
701

CNT GroupSEHK:701 Stock Report

Market Cap

HK$742.4m

7D

1.3%

1Y

8.3%

Updated

19 Oct, 2021

Data

Company Financials
701 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health3/6
Dividends2/6

701 Overview

CNT Group Limited, an investment holding company, manufactures and sells paint and coating products in Hong Kong and Mainland China.

CNT Group Competitors

Chuang's Consortium International

SEHK:367

HK$1.4b

Magnus Concordia Group

SEHK:1172

HK$427.7m

Price History & Performance

Summary of all time highs, changes and price drops for CNT Group
Historical stock prices
Current Share PriceHK$0.39
52 Week HighHK$0.29
52 Week LowHK$0.44
Beta0.35
1 Month Change-2.50%
3 Month Change-1.27%
1 Year Change8.33%
3 Year Change13.04%
5 Year Change-47.30%
Change since IPO-72.85%

Recent News & Updates

Shareholder Returns

701HK ChemicalsHK Market
7D1.3%6.4%2.8%
1Y8.3%94.7%6.6%

Return vs Industry: 701 underperformed the Hong Kong Chemicals industry which returned 91.9% over the past year.

Return vs Market: 701 exceeded the Hong Kong Market which returned 5.7% over the past year.

Price Volatility

Is 701's price volatile compared to industry and market?
701 volatility
701 Beta0.35
Industry Beta1.04
Market Beta1

Stable Share Price: 701 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 701's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1991813Chi Kwan Chonghttps://www.cntgroup.com.hk

CNT Group Limited, an investment holding company, manufactures and sells paint and coating products in Hong Kong and Mainland China. It operates through four segments: Paint Products, Property Investment, Iron and Steel Trading, and Others. The company invests in residential, commercial, hotel, serviced apartment, and industrial properties; develops and sells properties; and provides fund management, management, and consulting services.

CNT Group Fundamentals Summary

How do CNT Group's earnings and revenue compare to its market cap?
701 fundamental statistics
Market CapHK$742.44m
Earnings (TTM)-HK$26.50m
Revenue (TTM)HK$920.27m

0.8x

P/S Ratio

-28.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
701 income statement (TTM)
RevenueHK$920.27m
Cost of RevenueHK$658.66m
Gross ProfitHK$261.61m
ExpensesHK$288.11m
Earnings-HK$26.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.014
Gross Margin28.43%
Net Profit Margin-2.88%
Debt/Equity Ratio16.3%

How did 701 perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

-144%

Payout Ratio

Valuation

Is CNT Group undervalued compared to its fair value and its price relative to the market?

0.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 701 (HK$0.39) is trading above our estimate of fair value (HK$0.24)

Significantly Below Fair Value: 701 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 701 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Chemicals industry average.

PE vs Market: 701 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 701's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 701 is good value based on its PB Ratio (0.5x) compared to the HK Chemicals industry average (0.8x).


Future Growth

How is CNT Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.7%

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 CNT Group 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 CNT Group performed over the past 5 years?

-25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 701 is currently unprofitable.

Growing Profit Margin: 701 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 701 is unprofitable, and losses have increased over the past 5 years at a rate of 25.5% per year.

Accelerating Growth: Unable to compare 701's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 701 is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (60.9%).


Return on Equity

High ROE: 701 has a negative Return on Equity (-1.65%), as it is currently unprofitable.


Financial Health

How is CNT Group's financial position?


Financial Position Analysis

Short Term Liabilities: 701's short term assets (HK$1.0B) exceed its short term liabilities (HK$608.5M).

Long Term Liabilities: 701's short term assets (HK$1.0B) exceed its long term liabilities (HK$39.6M).


Debt to Equity History and Analysis

Debt Level: 701's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: 701's debt to equity ratio has increased from 8.9% to 16.3% over the past 5 years.

Debt Coverage: 701's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 701's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

5.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 701's dividend (5.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 701's dividend (5.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 701's dividend payments have been volatile in the past 10 years.

Growing Dividend: 701's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 701 is paying a dividend but the company is unprofitable.


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?

7.3yrs

Average management tenure


CEO

Chi Kwan Chong (53 yo)

4.25yrs

Tenure

HK$2,385,000

Compensation

Mr. Chi Kwan Chong has been Managing Director of CNT Group Limited since July 10, 2017 and its Executive Director since September 1, 2008. Mr. Chong served as the Finance Director of CNT Group Ltd. since...


CEO Compensation Analysis

Compensation vs Market: Chi Kwan's total compensation ($USD306.60K) is above average for companies of similar size in the Hong Kong market ($USD228.44K).

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


Leadership Team

Experienced Management: 701's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: 701's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 701 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

CNT Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: CNT Group Limited
  • Ticker: 701
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: HK$742.437m
  • Shares outstanding: 1.90b
  • Website: https://www.cntgroup.com.hk

Number of Employees


Location

  • CNT Group Limited
  • CNT Tower
  • Unit E
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:33
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
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.