Winto Group (Holdings) (SEHK:8238) - Share price, News & Analysis

8238 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

8238 Stock Overview

Rewards

Trading at 98.2% below our estimate of its fair value

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

High level of non-cash earnings

Has a high level of debt

Shareholders have been diluted in the past year

+ 1 more risk

Price History & Performance

Summary of all time highs, changes and price drops for Winto Group (Holdings)
Historical stock prices
Current Share Price	HK$0.16
52 Week High	HK$0.25
52 Week Low	HK$0.069
Beta	-0.61
1 Month Change	-3.53%
3 Month Change	34.43%
1 Year Change	42.61%
3 Year Change	-58.48%
5 Year Change	-83.27%
Change since IPO	-97.94%

Recent News & Updates

Apr 07

We Think Shareholders Should Be Aware Of Some Factors Beyond Winto Group (Holdings)'s (HKG:8238) Profit

Even though Winto Group (Holdings) Limited ( HKG:8238 ) posted strong earnings recently, the stock hasn't reacted in a...

Shareholder Returns

	8238	HK Media	HK Market
7D	-2.4%	-5.9%	-4.2%
1Y	42.6%	-47.9%	-26.1%

Return vs Industry: 8238 exceeded the Hong Kong Media industry which returned -47.9% over the past year.

Return vs Market: 8238 exceeded the Hong Kong Market which returned -26.1% over the past year.

Price Volatility

Is 8238's price volatile compared to industry and market?
8238 volatility
8238 Average Weekly Movement	27.1%
Media Industry Average Movement	10.2%
Market Average Movement	7.8%
10% most volatile stocks in HK Market	14.5%
10% least volatile stocks in HK Market	3.8%

Stable Share Price: 8238 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 27% a week.

Volatility Over Time: 8238's weekly volatility (27%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
2012	27	Timmy Kwan	https://www.wintogroup.hk

Winto Group (Holdings) Limited, an investment holding company, engages in the provision of exhibition and trade show, and publication and media advertising services in Guangdong-Hong Kong-Macau Greater Bay Area. The company owns and publishes Exmoo News, a Chinese-language daily newspaper and covers various local and international news, finance and economy, entertainment, sports, fashion and lifestyle, cultural knowledge, etc.; Travel Macao, a Chinese-language travel leisure fortnightly magazine, which provides information to readers relating to travel, dining, shopping, culture, and entertainment in Macau; Motoz Trader, a fortnightly magazine that focuses on new car models, second-hand car market, and properties, as well as offers lifestyle information, including dinning, fashion, and beauty; Motoz Trader, a free fortnightly magazine; Shopping Monthly, a fortnightly magazine, which focuses on updated information on consumer products; and Shopping Monthly, a free fortnightly magazine. It also provides exhibition and trade show, print and online media advertising, and outdoor advertising services.

Winto Group (Holdings) Fundamentals Summary

How do Winto Group (Holdings)'s earnings and revenue compare to its market cap?
8238 fundamental statistics
Market Cap	HK$85.02m
Earnings (TTM)	HK$21.53m
Revenue (TTM)	HK$61.13m

3.9x

P/E Ratio

1.4x

P/S Ratio

Is 8238 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
8238 income statement (TTM)
Revenue	HK$61.13m
Cost of Revenue	HK$20.96m
Gross Profit	HK$40.17m
Other Expenses	HK$18.64m
Earnings	HK$21.53m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.042
Gross Margin	65.72%
Net Profit Margin	35.22%
Debt/Equity Ratio	144.7%

How did 8238 perform over the long term?

See historical performance and comparison

Valuation

Is Winto Group (Holdings) undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 8238 (HK$0.16) is trading below our estimate of fair value (HK$8.94)

Significantly Below Fair Value: 8238 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 8238 is good value based on its PE Ratio (3.9x) compared to the Hong Kong Media industry average (14.3x).

PE vs Market: 8238 is good value based on its PE Ratio (3.9x) compared to the Hong Kong market (9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8238's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 8238 is overvalued based on its PB Ratio (6.1x) compared to the HK Media industry average (0.9x).

Future Growth

How is Winto Group (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.3%

Forecasted Media 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 Winto Group (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.

Past Performance

How has Winto Group (Holdings) performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8238 has a high level of non-cash earnings.

Growing Profit Margin: 8238 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 8238 has become profitable over the past 5 years, growing earnings by 28.7% per year.

Accelerating Growth: 8238 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8238 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (45.9%).

Return on Equity

High ROE: Whilst 8238's Return on Equity (152.27%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Winto Group (Holdings)'s financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8238's short term assets (HK$35.6M) do not cover its short term liabilities (HK$35.9M).

Long Term Liabilities: 8238 has no long term liabilities.

Debt to Equity History and Analysis

Debt Level: 8238's net debt to equity ratio (52%) is considered high.

Reducing Debt: 8238's debt to equity ratio has increased from 37.8% to 144.7% over the past 5 years.

Debt Coverage: 8238's debt is well covered by operating cash flow (91.4%).

Interest Coverage: 8238's interest payments on its debt are well covered by EBIT (8.3x coverage).

Balance Sheet

Dividend

What is Winto Group (Holdings) current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8238's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8238'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 8238's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8238's dividend payments have been increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 8238 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

3.1yrs

Average management tenure

CEO

Timmy Kwan (41 yo)

no data

Tenure

HK$403,000

Compensation

Mr. Shun Keung Kwan, also known as Timmy serves as the Chief Executive Officer and Compliance Officer of Winto Group (Holdings) Limited. Mr. Kwan is a Co-Founder of the Winto Group. He commenced magazine b...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Timmy's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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

Leadership Team

Experienced Management: 8238's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: 8238's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 20%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/07 00:00
End of Day Share Price	2022/05/06 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31