SEHK:94

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Greenheart Group Limited, an investment holding company, provides forest-products.

Risk Analysis

Does not have a meaningful market cap (HK$356M)



Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 94 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

94

4.8%

HK Forestry

0.7%

HK Market


1 Year Return

-39.0%

94

18.0%

HK Forestry

0.4%

HK Market

Return vs Industry: 94 underperformed the Hong Kong Forestry industry which returned 18% over the past year.

Return vs Market: 94 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

94IndustryMarket
7 Day0%4.8%0.7%
30 Day7.9%8.8%-1.0%
90 Day-3.5%8.2%9.6%
1 Year-39.0%-39.0%23.2%18.0%4.5%0.4%
3 Year-74.9%-74.9%-24.2%-34.1%0.2%-10.6%
5 Year-80.4%-80.4%21.6%2.3%9.9%-8.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 94 (HK$0.19) is trading above our estimate of fair value (HK$0.06)

Significantly Below Fair Value: 94 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 94 is unprofitable, so we can't compare its PE Ratio to the XA Forestry industry average.

PE vs Market: 94 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 94's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 94 is good value based on its PB Ratio (0.4x) compared to the HK Forestry industry average (0.7x).


Next Steps

Future Growth

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

20.5%

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 Greenheart 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.


Next Steps

Past Performance

How has Greenheart Group performed over the past 5 years?

33.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 94 is currently unprofitable.

Growing Profit Margin: 94 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 94 is unprofitable, but has reduced losses over the past 5 years at a rate of 33.8% per year.

Accelerating Growth: Unable to compare 94's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 94 is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-4.8%).


Return on Equity

High ROE: 94 has a negative Return on Equity (-38.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is Greenheart Group's financial position?


Financial Position Analysis

Short Term Liabilities: 94's short term assets (HK$261.6M) exceed its short term liabilities (HK$114.3M).

Long Term Liabilities: 94's short term assets (HK$261.6M) do not cover its long term liabilities (HK$514.7M).


Debt to Equity History and Analysis

Debt Level: 94's debt to equity ratio (67.3%) is considered high.

Reducing Debt: 94's debt to equity ratio has reduced from 82.5% to 67.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 94 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 94 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 40.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 94's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 94's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 94's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 94's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 94's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average board tenure


CEO

Raphael Ding (60 yo)

1.75yrs

Tenure

HK$3,018,000

Compensation

Mr. Wai Chuen Ding, also known as Raphael, is the Chief Executive Officer of Greenheart Group Limited since 2018. He serves as a Partner of Grant Thornton, Certified Public Accountants. Mr. Ding served as ...


CEO Compensation Analysis

Compensation vs Market: Raphael's total compensation ($USD389.41K) is above average for companies of similar size in the Hong Kong market ($USD232.25K).

Compensation vs Earnings: Raphael's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Wai Chuen Ding
CEO & Executive Director1.75yrsHK$3.02mno data
Hoe Pin Lim
Executive Director5.17yrsHK$1.52mno data
Simon Murray
Non-Executive Director10yrsHK$240.00k0.12%
HK$ 430.0k
Man Chung Wong
Independent Non-Executive Director5.08yrsHK$240.00kno data
Chi-him Cheng
Non-Executive Chairman4.42yrsHK$240.00kno data
Pak To Cheung
Independent Non-Executive Director1.17yrsHK$137.00kno data
On Yip Tsang
Non-Executive Director5.17yrsHK$240.00kno data
Yang Cheng
Non-Executive Director2.08yrsHK$240.00kno data

4.8yrs

Average Tenure

53yo

Average Age

Experienced Board: 94's board of directors are considered experienced (4.8 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

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


Key Information

  • Name: Greenheart Group Limited
  • Ticker: 94
  • Exchange: SEHK
  • Founded:
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: HK$356.158m
  • Shares outstanding: 1.85b
  • Website: https://www.greenheartgroup.com

Number of Employees


Location

  • Greenheart Group Limited
  • Fortis Tower
  • 32nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
94SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
OMNR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Greenheart Group Limited, an investment holding company, provides forest-products. It operates in two segments, Suriname and New Zealand. The company is involved in hardwood log harvesting, timber processi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 12:56
End of Day Share Price2020/07/31 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.