SEHK:752

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Pico Far East Holdings

Executive Summary

Pico Far East Holdings Limited, an investment holding company, engages in the exhibition and event marketing services, visual branding experiences, museum, themed environment, interior and retail, conference and show management, and related businesses worldwide.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Pico Far East Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 752's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.0%

752

2.5%

HK Media

5.8%

HK Market


1 Year Return

-49.2%

752

12.9%

HK Media

-4.0%

HK Market

Return vs Industry: 752 underperformed the Hong Kong Media industry which returned 12.3% over the past year.

Return vs Market: 752 underperformed the Hong Kong Market which returned -5.3% over the past year.


Shareholder returns

752IndustryMarket
7 Day22.0%2.5%5.8%
30 Day9.9%19.2%4.0%
90 Day-33.3%15.5%-2.6%
1 Year-44.8%-49.2%14.9%12.9%-0.6%-4.0%
3 Year-56.2%-63.6%-59.6%-64.5%1.3%-9.2%
5 Year-24.9%-45.0%-73.3%-75.5%-9.2%-23.5%

Price Volatility Vs. Market

How volatile is Pico Far East Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pico Far East 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: 752 (HK$1.22) is trading below our estimate of fair value (HK$3.38)

Significantly Below Fair Value: 752 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 752 is good value based on its PE Ratio (5.9x) compared to the Media industry average (11.8x).

PE vs Market: 752 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 752 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 752 is overvalued based on its PB Ratio (0.8x) compared to the HK Media industry average (0.6x).


Next Steps

Future Growth

How is Pico Far East Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 752's forecast earnings growth (11.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 752's earnings (11.9% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 752's earnings are forecast to grow, but not significantly.

Revenue vs Market: 752's revenue (6.6% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 752's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 752's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Pico Far East Holdings performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 752 has high quality earnings.

Growing Profit Margin: 752's current net profit margins (5.1%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: 752's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: 752's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 752 had negative earnings growth (-5.4%) over the past year, making it difficult to compare to the Media industry average (-19.3%).


Return on Equity

High ROE: 752's Return on Equity (12.3%) is considered low.


Next Steps

Financial Health

How is Pico Far East Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 752's short term assets (HK$3.2B) exceed its short term liabilities (HK$2.2B).

Long Term Liabilities: 752's short term assets (HK$3.2B) exceed its long term liabilities (HK$532.4M).


Debt to Equity History and Analysis

Debt Level: 752's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: 752's debt to equity ratio has increased from 0.4% to 28.4% over the past 5 years.

Debt Coverage: 752's debt is well covered by operating cash flow (56.7%).

Interest Coverage: 752's interest payments on its debt are well covered by EBIT (47x coverage).


Balance Sheet


Next Steps

Dividend

What is Pico Far East Holdings's current dividend yield, its reliability and sustainability?

11.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 752's dividend (11.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.46%).

High Dividend: 752's dividend (11.07%) is in the top 25% of dividend payers in the Hong Kong market (7.13%)


Stability and Growth of Payments

Stable Dividend: 752's dividend payments have been volatile in the past 10 years.

Growing Dividend: 752's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), 752's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 752's dividends in 3 years are forecast to be covered by earnings (64% payout ratio).


Next Steps

Management

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

17.5yrs

Average board tenure


CEO

Lawrence Chia (58yo)

no data

Tenure

HK$14,893,000

Compensation

Mr. Song Huat Chia, also known as Lawrence, serves as the Chief Executive Officer of Pico Far East Holdings Ltd. and has been its Chairman since 1994. Mr. Chia joined the Pico Far East Group in 1984. He ha ...


CEO Compensation Analysis

Compensation vs Market: Lawrence's total compensation ($USD1.92M) is above average for companies of similar size in the Hong Kong market ($USD279.69K).

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


Board Members

NamePositionTenureCompensationOwnership
Song Huat Chia
Chairman & CEOno dataHK$14.89m0.15% HK$1.9m
Pui Keung Mok
Executive Director10.25yrsHK$2.61m0.053% HK$701.7k
Yuan Jiun Chia
Executive Director & President of South East Asia4.33yrsHK$6.16mno data
Gregory Robert Crichton
Independent Non-Executive Director21.75yrsHK$213.00kno data
Kee Wai Lee
Independent Non-Executive Director28.42yrsHK$213.00kno data
Yucheng Shi
Independent Non-Executive Director17.5yrsHK$243.00kno data
James Patrick Cunningham
Independent Non-Executive Director15.67yrsHK$213.00kno data
Siong Lim Chia
Honorary Chairmanno datano datano data

17.5yrs

Average Tenure

59yo

Average Age

Experienced Board: 752's board of directors are seasoned and experienced ( 17.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Pico Far East Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pico Far East Holdings Limited
  • Ticker: 752
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Advertising
  • Sector: Media
  • Market Cap: HK$1.312b
  • Shares outstanding: 1.24b
  • Website: https://www.pico.com

Number of Employees


Location

  • Pico Far East Holdings Limited
  • Pico House
  • 4 Dai Fu Street
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
752SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1992
PJFBDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1992
PCOF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1992

Biography

Pico Far East Holdings Limited, an investment holding company, engages in the exhibition and event marketing services, visual branding experiences, museum, themed environment, interior and retail, conference and show management, and related businesses worldwide. It also offers visual identity and content, and digital marketing and content solutions; brand management, design and consultancy, interior renovation, promotion, exhibition and event fabrication, electrical specialist, corporate, and image consultancy and project management services; and construction, interior designing, decoration, and turnkey services, as well as technology solutions for exhibitions, events, museums, and interior and themed environment. In addition, the company provides design, lifestyle, and business innovation communications agency services; designs, develops, operates, and manages exhibition and convention center; produces exhibition, event, and interior fit-out products; and organizes and manages exhibitions, conferences, trade fairs, convention conferences, seminars, and events. Further, it offers freight forwarding, exhibition logistics, and transportation service for exhibitors; media planning, procurement, and optimization services in social video; services to organizers; and exhibition booth fabrication, event planning, design consultancy, themed designing, brand marketing and creative agency, brand strategy, engagement marketing, and public relations services. Additionally, the company offers engagement marketing, brand strategy and public relations, brand marketing and creative agency service, cultural intelligence and social listening, media planning, social video procurement and optimization, innovative and disruptive technologies, design and technology solutions for interactive experience, and management development programs and courses. It is also involved in the property holding business. Pico Far East Holdings Limited was founded in 1969 and is based in Tai Po, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 13:02
End of Day Share Price2020/06/05 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.