SEHK:1173

Stock Analysis Report

Veeko International Holdings

Executive Summary

Veeko International Holdings Limited, an investment holding company, engages in the cosmetics and fashion businesses.

Rewards

Trading at 95% below its fair value

Risk Analysis

Earnings have declined by -69.12% per year over past 5 years

Has a high level of debt

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$209M)



Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has Veeko International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1173 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

1173

1.6%

HK Specialty Retail

-0.2%

HK Market


1 Year Return

-51.8%

1173

27.4%

HK Specialty Retail

4.5%

HK Market

Return vs Industry: 1173 underperformed the Hong Kong Specialty Retail industry which returned 28.9% over the past year.

Return vs Market: 1173 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1173IndustryMarket
7 Day5.1%1.6%-0.2%
30 Day22.4%9.0%3.6%
90 Day-5.7%13.5%7.8%
1 Year-51.2%-51.8%33.7%27.4%8.4%4.5%
3 Year-52.8%-56.6%34.6%19.2%26.8%13.9%
5 Year-67.2%-73.1%17.9%-5.6%21.0%0.9%

Price Volatility Vs. Market

How volatile is Veeko International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veeko International 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: 1173 (HK$0.08) is trading below our estimate of fair value (HK$1.67)

Significantly Below Fair Value: 1173 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1173 is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: 1173 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 1173's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1173 is good value based on its PB Ratio (0.4x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Veeko International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.4%

Forecasted Retail 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 Veeko International 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.


Next Steps

Past Performance

How has Veeko International Holdings performed over the past 5 years?

-69.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1173 is currently unprofitable.

Growing Profit Margin: 1173 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1173 is unprofitable, and losses have increased over the past 5 years at a rate of -69.1% per year.

Accelerating Growth: Unable to compare 1173's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1173 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-5.5%).


Return on Equity

High ROE: 1173 has a negative Return on Equity (-34.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veeko International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1173's short term assets (HK$564.8M) do not cover its short term liabilities (HK$566.5M).

Long Term Liabilities: 1173's short term assets (HK$564.8M) exceed its long term liabilities (HK$139.4M).


Debt to Equity History and Analysis

Debt Level: 1173's debt to equity ratio (87.2%) is considered high.

Reducing Debt: 1173's debt to equity ratio has increased from 17.1% to 87.2% over the past 5 years.

Debt Coverage: 1173's debt is well covered by operating cash flow (20.8%).

Interest Coverage: Insufficient data to determine if 1173's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1173 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1173's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Veeko International Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.1%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1173's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1173's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1173's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1173's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1173 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1173's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Veeko International Holdings's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average board tenure


CEO

Yuk Sum Lam (59yo)

0yrs

Tenure

HK$691,000

Compensation

Mrs. Yuk Sum Lam serves as Chief Executive Officer at Veeko International Holdings Ltd and served as its Managing Director and Head of Strategic Planning. Mrs. Lam is responsible for the overall strategic  ...


CEO Compensation Analysis

Compensation vs Market: Yuk Sum's total compensation ($USD88.87K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

2.7yrs

Average Tenure

64yo

Average Age

Experienced Board: 1173's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Management Team

  • Johnny Cheng (62yo)

    Founder & Chairman

    • Compensation: HK$1.58m
  • Chi Wong (50yo)

    Financial Controller & Company Secretary

    • Yuk Sum Lam (59yo)

      CEO & Executive Director

      • Compensation: HK$691.00k

    Board Members

    • Man Tin Lam (60yo)

      Non-Executive Director

      • Tenure: 3.9yrs
      • Compensation: HK$130.00k
    • Johnny Cheng (62yo)

      Founder & Chairman

      • Compensation: HK$1.58m
    • Yuk Sum Lam (59yo)

      CEO & Executive Director

      • Compensation: HK$691.00k
    • Wing Kay Yeung (66yo)

      Independent Non-Executive Director

      • Tenure: 15.3yrs
      • Compensation: HK$150.00k
    • Hau Cheong Au-Yeung (70yo)

      Independent Non-Executive Director

      • Tenure: 1.5yrs
      • Compensation: HK$93.00k
    • Monty Cheng (73yo)

      Independent Non-Executive Director

      • Tenure: 0.3yrs

    Company Information

    Veeko International Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Veeko International Holdings Limited
    • Ticker: 1173
    • Exchange: SEHK
    • Founded: 1984
    • Industry: Specialty Stores
    • Sector: Retail
    • Market Cap: HK$178.778m
    • Shares outstanding: 2.52b
    • Website: https://www.veeko.com.hk

    Number of Employees


    Location

    • Veeko International Holdings Limited
    • Wyler Centre Phase II
    • 10th Floor
    • Kwai Chung
    • New Territories
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1173SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 1999

    Biography

    Veeko International Holdings Limited, an investment holding company, engages in the cosmetics and fashion businesses. The company sells skin care, fragrance, make-up, hairdressing, body care, and cosmeceutical and health food products through its Colourmix and MORIMOR stores. It also manufactures and sells ladies fashion products. In addition, the company is involved in property holding business. It also sells its products online. As of March 31, 2019, it had 82 Colourmix and 5 MORIMOR stores, including 80 stores in Hong Kong, 6 stores in Macau, and 1 store in China; and 84 fashion stores comprising 67 stores in Hong Kong and Macau, and 17 stores in China under the Veeko and Wanko brands. The company was founded in 1984 and is headquartered in Kwai Chung, Hong Kong. Veeko International Holdings Limited is a subsidiary of Silver Crown Profits Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 12:40
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    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.