SEHK:128

Stock Analysis Report

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Executive Summary

ENM Holdings Limited, an investment holding company, engages in the wholesale and retail of fashion wear and accessories.


Snowflake Analysis

Excellent balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 128 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.5%

128

6.4%

HK Specialty Retail

5.8%

HK Market


1 Year Return

-27.2%

128

14.9%

HK Specialty Retail

-4.0%

HK Market

Return vs Industry: 128 underperformed the Hong Kong Specialty Retail industry which returned 13.7% over the past year.

Return vs Market: 128 underperformed the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

128IndustryMarket
7 Day13.5%6.4%5.8%
30 Day-1.7%14.9%4.0%
90 Day-4.8%13.3%-2.6%
1 Year-27.2%-27.2%19.6%14.9%-0.6%-4.0%
3 Year5.4%5.4%16.1%2.6%1.3%-9.2%
5 Year11.3%11.3%8.8%-10.8%-9.2%-23.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ENM Holdings undervalued compared to its fair value and its price relative to the market?

21.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 128 (HK$0.59) is trading above our estimate of fair value (HK$0.33)

Significantly Below Fair Value: 128 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 128 is poor value based on its PE Ratio (21.1x) compared to the Specialty Retail industry average (9.6x).

PE vs Market: 128 is poor value based on its PE Ratio (21.1x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 128's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 128 is overvalued based on its PB Ratio (1x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

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

22.8%

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 ENM 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 ENM Holdings performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 128 has a large one-off gain of HK$76.8M impacting its December 31 2019 financial results.

Growing Profit Margin: 128 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 128 has become profitable over the past 5 years, growing earnings by 8.5% per year.

Accelerating Growth: 128 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 128 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-15.2%).


Return on Equity

High ROE: 128's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is ENM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 128's short term assets (HK$819.8M) exceed its short term liabilities (HK$50.4M).

Long Term Liabilities: 128's short term assets (HK$819.8M) exceed its long term liabilities (HK$28.0M).


Debt to Equity History and Analysis

Debt Level: 128's debt to equity ratio (0.5%) is considered satisfactory.

Reducing Debt: 128's debt to equity ratio has reduced from 1.2% to 0.5% over the past 5 years.

Debt Coverage: 128's debt is well covered by operating cash flow (464.7%).

Interest Coverage: Insufficient data to determine if 128's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 128's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 128'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 128's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 128'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 128'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?

3.8yrs

Average management tenure


CEO

David Charles Parker (65yo)

3.42yrs

Tenure

HK$3,770,000

Compensation

Mr. David Charles Parker has been the Chief Executive Officer and Executive Director at ENM Holdings Limited since January 13, 2017. Mr. Parker served as Chief Executive Officer of Hans Energy Company Limi ...


CEO Compensation Analysis

Compensation vs Market: David Charles's total compensation ($USD486.44K) is above average for companies of similar size in the Hong Kong market ($USD229.19K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Charles Parker
CEO & Executive Director3.42yrsHK$3.77mno data
Siu Mei Lee
Chief Financial Officer3.83yrsno datano data
C. Yip
General Counsel16.75yrsno datano data
Pui-Man Cheng
Company Secretaryno datano datano data

3.8yrs

Average Tenure

46yo

Average Age

Experienced Management: 128's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Charles Parker
CEO & Executive Director3.42yrsHK$3.77mno data
Wai Choi Leung
Non-Executive Chairman3.42yrsHK$596.00kno data
Kin Hay Hong
Non-Executive Vice Chairman of The Swank Shop Limited and Director of The Swank Shop Limitedno datano datano data
Tak Tai Lee
Independent Non-Executive Director2.83yrsHK$402.00kno data
Kin Wing Cheung
Independent Non-Executive Director4yrsHK$405.00kno data
Kiu Sang Lee
Independent Non-Executive Director4yrsHK$461.00kno data
Sarah Young O'Donnell
Independent Non-Executive Director2.83yrsHK$346.00kno data

3.4yrs

Average Tenure

65yo

Average Age

Experienced Board: 128's board of directors are considered experienced (3.4 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

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


Key Information

  • Name: ENM Holdings Limited
  • Ticker: 128
  • Exchange: SEHK
  • Founded: 1966
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: HK$957.382m
  • Shares outstanding: 1.65b
  • Website: https://www.enmholdings.com

Number of Employees


Location

  • ENM Holdings Limited
  • Tower 2, Nina Tower
  • 33rd Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
128SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
ENMH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
EMDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

ENM Holdings Limited, an investment holding company, engages in the wholesale and retail of fashion wear and accessories. It operates through three segments: Wholesale and Retail of Fashion Wear and Accessories; Resort and Recreational Club Operations; and Investments. The company operates a chain of multi-label stores, as well as mono-brand boutiques under The Swank brand in Hong Kong and China; and Hilltop Country Club that provides conferences, dining, lodging, recreational, and outdoor activities for its members in Hong Kong; as well as offers menswear fashion products under the Cesare di Pino brand. It also holds and trades in investments for short term and long term investment returns. The company was formerly known as e-New Media Company Limited and changed its name to ENM Holdings Limited in June 2005. ENM Holdings Limited was incorporated in 1966 and is based in Tsuen Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 12:47
End of Day Share Price2020/06/04 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.