SEHK:1280

Stock Analysis Report

Huiyin Smart Community

Executive Summary

Huiyin Smart Community Co., Ltd., an investment holding company, engages in the retail and bulk distribution sale of household appliances; and e-commerce and import merchandise businesses in the People’s Republic of China.

Risk Analysis

Earnings have declined by -24.16% per year over past 5 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Huiyin Smart Community's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1280's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

1280

-0.9%

HK Specialty Retail

-0.4%

HK Market


1 Year Return

n/a

1280

19.8%

HK Specialty Retail

-0.4%

HK Market

Return vs Industry: Insufficient data to determine how 1280 performed against the Hong Kong Specialty Retail industry.

Return vs Market: Insufficient data to determine how 1280 performed against the Hong Kong Market.


Shareholder returns

1280IndustryMarket
7 Day-3.1%-0.9%-0.4%
30 Day2.6%4.2%-1.2%
90 Dayn/a8.5%4.2%
1 Yearn/a25.8%19.8%3.3%-0.4%
3 Year-80.8%-80.8%30.0%15.0%20.4%8.2%
5 Year-73.5%-73.5%13.2%-9.6%18.8%-1.0%

Price Volatility Vs. Market

How volatile is Huiyin Smart Community's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huiyin Smart Community undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Huiyin Smart Community is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Huiyin Smart Community has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 1280’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Huiyin Smart Community regulatory filings.
  • Explore potentially undervalued companies in the Retail industry.

Future Growth

How is Huiyin Smart Community forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.8%

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 Huiyin Smart Community 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 Huiyin Smart Community performed over the past 5 years?

-24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1280 is currently unprofitable.

Growing Profit Margin: 1280 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1280 is unprofitable, and losses have increased over the past 5 years at a rate of -24.2% per year.

Accelerating Growth: Unable to compare 1280's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1280 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-5.5%).


Return on Equity

High ROE: 1280's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Huiyin Smart Community's financial position?


Financial Position Analysis

Short Term Liabilities: 1280 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 1280 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1280 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 1280's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 1280 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1280 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1280 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1280 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4.4% each year


Next Steps

Dividend

What is Huiyin Smart Community's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.2%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1280's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1280'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 1280's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1280's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1280 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 1280'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 Huiyin Smart Community's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Kexia Xin (50yo)

1.6yrs

Tenure

CN¥396,000

Compensation

Mr. Kexia Xin serves as Chief Executive Officer and President of Hisap at Sanpower Group Co., Ltd. He has been an Executive Director and Chief Executive Officer of Huiyin Smart Community Co. Ltd. since Jun ...


CEO Compensation Analysis

Compensation vs Market: Kexia's total compensation ($USD57.48K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

Compensation vs Earnings: Insufficient data to compare Kexia's compensation with company performance.


Management Age and Tenure

2.1yrs

Average Tenure

42yo

Average Age

Experienced Management: 1280's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 1280's board of directors are not considered experienced ( 1.6 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 9.7%.


Management Team

  • Zhijin Wang (42yo)

    Chief Financial Officer

    • Tenure: 11.5yrs
    • Compensation: CN¥934.96k
  • Chihe Mo (47yo)

    Vice President of Operation

    • Compensation: CN¥321.42k
  • Zhenyu Gao (41yo)

    Senior Vice President

    • Kexia Xin (50yo)

      CEO & Executive Director

      • Tenure: 1.6yrs
      • Compensation: CN¥396.00k
    • Li Yuan (37yo)

      Chairman of the Board

      • Tenure: 2.1yrs
    • Xinying Xu (38yo)

      Executive Director

      • Tenure: 2.4yrs
    • Simei Liu (49yo)

      Executive Director

      • Tenure: 1.7yrs
      • Compensation: CN¥300.00k
    • Lejiu Sun (42yo)

      Senior Vice President

      • Jing Li (48yo)

        Vice President of Human Resources

        • Xiaofei Wang (42yo)

          Chief Technology Officer


          Board Members

          • Kexia Xin (50yo)

            CEO & Executive Director

            • Tenure: 1.6yrs
            • Compensation: CN¥396.00k
          • Li Yuan (37yo)

            Chairman of the Board

            • Tenure: 2.1yrs
          • Xinying Xu (38yo)

            Executive Director

            • Tenure: 2.4yrs
          • Simei Liu (49yo)

            Executive Director

            • Tenure: 1.7yrs
            • Compensation: CN¥300.00k
          • Jinyong Zhao (47yo)

            Independent Non-Executive Director

            • Tenure: 2.1yrs
            • Compensation: CN¥256.00k
          • Rui Chen (44yo)

            Independent Non-Executive Director

            • Tenure: 1.5yrs
            • Compensation: CN¥112.00k
          • Tak Choi Fung (60yo)

            Independent Non-Executive Director

            • Tenure: 0.8yrs
          • Honghong Xu (33yo)

            Non-Executive Director

            • Tenure: 0.8yrs

          Company Information

          Huiyin Smart Community Co., Ltd.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Huiyin Smart Community Co., Ltd.
          • Ticker: 1280
          • Exchange: SEHK
          • Founded: 1993
          • Industry: Home Improvement Retail
          • Sector: Retail
          • Market Cap: HK$376.887m
          • Shares outstanding: 126.90m
          • Website: https://www.hyjd.com

          Number of Employees


          Location

          • Huiyin Smart Community Co., Ltd.
          • Guotai Building
          • Tower 2
          • Yangzhou
          • Jiangsu Province
          • China

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          1280SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2010
          2965SEHK (The Stock Exchange of Hong Kong Ltd.)USD0.02 (PARALLEL 12/02/20)HKHKDJan 2020

          Biography

          Huiyin Smart Community Co., Ltd., an investment holding company, engages in the retail and bulk distribution sale of household appliances; and e-commerce and import merchandise businesses in the People’s Republic of China. It operates through two segments, Traditional Business and New Retail Business. The company is involved in the bulk distribution of air-conditioners, general merchandise, and food products; trading of food and other merchandise; and provision of after-sales, installation, and maintenance services for household appliances. It sells its household appliances merchandise by bulk distribution to retailers and distributors. The company also operates a chain of retail stores for selling household appliances, and import and general merchandises. In addition, it sells its products through an online platform. Further, Huiyin Smart Community Co., Ltd. provides community, logistics, and warehouse services. The company was formerly known as Huiyin Household Appliances (Holdings) Co., Ltd. and changed its name to Huiyin Smart Community Co., Ltd. in July 2015. Huiyin Smart Community Co., Ltd. was founded in 1993 and is headquartered in Yangzhou, the People’s Republic of China. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/29 12:58
          End of Day Share Price2020/01/29 00:00
          Earnings2019/06/30
          Annual Earnings2018/12/31


          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.