SEHK:136

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HengTen Networks Group

Executive Summary

HengTen Networks Group Limited, an investment holding company, engages in internet community and related businesses in the People's Republic of China, Hong Kong, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has HengTen Networks Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 136's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

136

11.2%

HK Online Retail

9.1%

HK Market


1 Year Return

-13.0%

136

151.9%

HK Online Retail

0.9%

HK Market

Return vs Industry: 136 underperformed the Hong Kong Online Retail industry which returned 149.8% over the past year.

Return vs Market: 136 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

136IndustryMarket
7 Day4.8%11.2%9.1%
30 Day-6.7%18.9%8.2%
90 Day111.0%91.6%13.8%
1 Year-13.0%-13.0%151.9%151.9%4.6%0.9%
3 Year51.0%51.0%4.3%4.0%13.1%1.4%
5 Year-73.0%-73.0%-70.0%-70.3%10.8%-7.1%

Price Volatility Vs. Market

How volatile is HengTen Networks Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HengTen Networks Group undervalued compared to its fair value and its price relative to the market?

137.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 136 (HK$0.15) is trading above our estimate of fair value (HK$0.01)

Significantly Below Fair Value: 136 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 136 is poor value based on its PE Ratio (137.9x) compared to the Online Retail industry average (88.5x).

PE vs Market: 136 is poor value based on its PE Ratio (137.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 136's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 136 is overvalued based on its PB Ratio (10.1x) compared to the HK Online Retail industry average (2.2x).


Next Steps

Future Growth

How is HengTen Networks Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

67.7%

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 HengTen Networks Group 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 HengTen Networks Group performed over the past 5 years?

61.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 136 has a large one-off gain of CN¥22.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 136's current net profit margins (26.7%) are higher than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: 136 has become profitable over the past 5 years, growing earnings by 61.9% per year.

Accelerating Growth: 136's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 136 had negative earnings growth (-27.7%) over the past year, making it difficult to compare to the Online Retail industry average (-6.1%).


Return on Equity

High ROE: 136's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is HengTen Networks Group's financial position?


Financial Position Analysis

Short Term Liabilities: 136's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥389.6M).

Long Term Liabilities: 136's short term assets (CN¥1.5B) exceed its long term liabilities (CN¥6.7M).


Debt to Equity History and Analysis

Debt Level: 136's debt to equity ratio (4.7%) is considered satisfactory.

Reducing Debt: 136 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 136's debt is well covered by operating cash flow (182.5%).

Interest Coverage: 136 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is HengTen Networks Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 136's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 136'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 136's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 136'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 136'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?

3.3yrs

Average management tenure


CEO

HengTen Networks Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Wen Xu
Chairman of the Board3.25yrsCN¥11.62m0.0034% CN¥382.4k
Xiangui Huang
Executive Director4.75yrsCN¥189.00kno data
Oi Ling Chan
no dataCN¥79.00kno data
Zhi Gao
Executive Officer of Sales and Marketing Operationno datano datano data
Chao Wan
Executive Director0.083yrno data0.048% CN¥5.5m
Kar Chun Fong
Company Secretary4.75yrsno datano data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: 136's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wen Xu
Chairman of the Board3.25yrsCN¥11.62m0.0034% CN¥382.4k
Xiangui Huang
Executive Director4.75yrsCN¥189.00kno data
Chao Wan
Executive Director0.083yrno data0.048% CN¥5.5m
Peter Whitelam
Emeritus Chairman6.42yrsCN¥473.00kno data
Shing Yim Chau
Independent Non-Executive Director4.75yrsCN¥300.00k0.0013% CN¥153.0k
Zhixin Nie
Independent Non-Executive Director4.75yrsCN¥300.00kno data
Haiquan Chen
Independent Non-Executive Director4.75yrsCN¥300.00kno data
Zhuomin Shi
Independent Non-Executive Director3.83yrsCN¥300.00kno data

4.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 136's board of directors are considered experienced (4.8 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

HengTen Networks Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HengTen Networks Group Limited
  • Ticker: 136
  • Exchange: SEHK
  • Founded:
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$11.416b
  • Shares outstanding: 74.61b
  • Website: https://www.htmimi.com

Number of Employees


Location

  • HengTen Networks Group Limited
  • China Evergrande Centre
  • 23rd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
136SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 1997
136SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 1997

Biography

HengTen Networks Group Limited, an investment holding company, engages in internet community and related businesses in the People's Republic of China, Hong Kong, Europe, and internationally. It operates HengTen Mimi, a smart community services platform to support communities through its property services platform by providing support to property fee payment, event reporting, repair reporting, and community intelligentisation. The company is also involved in internet home furnishing business; and internet materials logistics business that covers building materials, furniture, customization, home appliances, and various soft decorations for consumers, small and medium-sized properties, and decoration companies. In addition, it invests and trades in securities; provides loan financing services; and manufactures, sells, and trades in accessories for photographic, electrical, and multimedia products. The company was formerly known as Mascotte Holdings Limited and changed its name to HengTen Networks Group Limited in October 2015. HengTen Networks Group Limited is headquartered in Wanchai, Hong Kong. HengTen Networks Group Limited is a subsidiary of China Evergrande Group. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:38
End of Day Share Price2020/07/06 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.