SEHK:18

Stock Analysis Report

Oriental Press Group

Executive Summary

Oriental Press Group Limited, an investment holding company, engages in the publication of newspapers in Hong Kong and Australia.

Snowflake

Fundamentals

Adequate balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

18

5.6%

HK Media

0.9%

HK Market


1 Year Return

-30.6%

18

-27.2%

HK Media

0.6%

HK Market

Return vs Industry: 18 underperformed the Hong Kong Media industry which returned -27.2% over the past year.

Return vs Market: 18 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

18IndustryMarket
7 Day-1.7%5.6%0.9%
30 Day-4.8%4.2%0.4%
90 Day-22.4%-12.2%-5.5%
1 Year-27.5%-30.6%-26.0%-27.2%4.2%0.6%
3 Year24.5%-24.4%-46.8%-53.6%15.5%3.9%
5 Year21.6%-33.0%-56.0%-64.8%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 18 (HK$0.59) is trading above our estimate of fair value (HK$0.35)

Significantly Below Fair Value: 18 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 18 is good value based on its PE Ratio (17.4x) compared to the Media industry average (20x).

PE vs Market: 18 is poor value based on its PE Ratio (17.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 18's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 18 is overvalued based on its PB Ratio (0.8x) compared to the HK Media industry average (0.7x).


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 18's forecast earnings growth (10.2% per year) is above the savings rate (2%).

Earnings vs Market: 18's earnings (10.2% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 18's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 18's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 18's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 18's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Oriental Press Group performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 18's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 18's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 18 had negative earnings growth (-48.5%) over the past year, making it difficult to compare to the Media industry average (-15.7%).


Return on Equity

High ROE: 18's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: 18's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: 18 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oriental Press Group's financial position?


Financial Position Analysis

Short Term Liabilities: 18's short term assets (HK$907.1M) exceeds its short term liabilities (HK$85.8M)

Long Term Liabilities: 18's short term assets (907.1M) exceeds its long term liabilities (71.0M)


Debt to Equity History and Analysis

Debt Level: 18's debt to equity ratio (0.4%) is considered satisfactory

Reducing Debt: 18's debt to equity ratio has increased from 0.2% to 0.4% over the past 5 years.

Debt Coverage: 18's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 18's interest payments on its debt are well covered by EBIT (334.2x coverage).


Balance Sheet

Inventory Level: 18 has a high level of physical assets or inventory.

Debt Coverage by Assets: 18's debt is covered by short term assets (assets are 135.574950x debt).


Next Steps

Dividend

What is Oriental Press Group's current dividend yield, its reliability and sustainability?

5.08%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage5.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 18's dividend (5.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 18's dividend (5.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 18's dividend payments have been volatile in the past 10 years.

Growing Dividend: 18's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.4%), 18's payments are 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 Oriental Press Group's salary, the management and board of directors tenure and is there insider trading?

15.1yrs

Average board tenure


CEO

Shun-Chuen Lam (70yo)

0yrs

Tenure

HK$2,747,000

Compensation

Mr. Shun-Chuen Lam serves as the Chief Executive Officer of Oriental Press Group Limited and has been it's Executive Director since October 4, 1999. Mr. Lam served as Vice-Chairman at Oriental Press Group  ...


CEO Compensation Analysis

Compensation vs. Market: Shun-Chuen's total compensation ($USD350.29K) is about average for companies of similar size in the Hong Kong market ($USD286.45K).

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


Board Age and Tenure

15.1yrs

Average Tenure

70yo

Average Age

Experienced Board: 18's board of directors are seasoned and experienced ( 15.1 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.


Ownership Breakdown


Management Team

  • Shun-Chuen Lam (70yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.75m
  • Ching-Fat Ma (59yo)

    Chairman

    • Tenure: 14.4yrs
    • Compensation: HK$19.53m
  • Ching-Choi Ma (57yo)

    Vice-Chairman

    • Tenure: 14.1yrs
    • Compensation: HK$15.63m
  • Yu-shan TANG

    Company Secretary

    • Tenure: 1.3yrs

Board Members

  • Allen Cham (72yo)

    Independent Non Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$120.00k
  • Ping-Wing Pao (72yo)

    Independent Non-Executive Director

    • Tenure: 32.3yrs
    • Compensation: HK$140.00k
  • Shun-Chuen Lam (70yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$2.75m
  • Dominic Lai (72yo)

    Non-Executive Director

    • Tenure: 21.2yrs
    • Compensation: HK$130.00k
  • Yat-Fai Lam (53yo)

    Independent Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: HK$160.00k
  • Ching-Fat Ma (59yo)

    Chairman

    • Tenure: 14.4yrs
    • Compensation: HK$19.53m
  • Ching-Choi Ma (57yo)

    Vice-Chairman

    • Tenure: 14.1yrs
    • Compensation: HK$15.63m

Company Information

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


Key Information

  • Name: Oriental Press Group Limited
  • Ticker: 18
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Publishing
  • Sector: Media
  • Market Cap: HK$1.415b
  • Shares outstanding: 2.40b
  • Website: https://www.opg.com.hk

Number of Employees


Location

  • Oriental Press Group Limited
  • Oriental Press Centre
  • 23 Dai Cheong Street
  • Tai Po
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
18SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
OPQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Oriental Press Group Limited, an investment holding company, engages in the publication of newspapers in Hong Kong and Australia. The company operates in two segments, Publication of Newspapers and Money L ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:38
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.