SEHK:1771

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Sunfonda Group Holdings

Executive Summary

Sunfonda Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1771 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

1771

2.9%

HK Specialty Retail

6.6%

HK Market


1 Year Return

-21.7%

1771

21.4%

HK Specialty Retail

0.6%

HK Market

Return vs Industry: 1771 underperformed the Hong Kong Specialty Retail industry which returned 21.4% over the past year.

Return vs Market: 1771 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1771IndustryMarket
7 Day1.1%2.9%6.6%
30 Day2.2%6.4%8.1%
90 Day1.1%31.8%13.9%
1 Year-18.3%-21.7%26.7%21.4%4.7%0.6%
3 Year-36.4%-46.3%25.7%11.1%9.7%-2.2%
5 Year-59.2%-65.9%44.5%17.2%12.5%-6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1771 (HK$0.94) is trading above our estimate of fair value (HK$0.46)

Significantly Below Fair Value: 1771 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1771 is good value based on its PE Ratio (4.2x) compared to the HK Specialty Retail industry average (10.9x).

PE vs Market: 1771 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1771's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1771 is good value based on its PB Ratio (0.3x) compared to the HK Specialty Retail industry average (0.7x).


Next Steps

Future Growth

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

22.1%

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 Sunfonda 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.


Next Steps

Past Performance

How has Sunfonda Group Holdings performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1771 has high quality earnings.

Growing Profit Margin: 1771's current net profit margins (1.3%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: 1771's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: 1771's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1771 had negative earnings growth (-43.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-24.9%).


Return on Equity

High ROE: 1771's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Sunfonda Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1771's short term assets (CN¥3.3B) exceed its short term liabilities (CN¥3.1B).

Long Term Liabilities: 1771's short term assets (CN¥3.3B) exceed its long term liabilities (CN¥220.1M).


Debt to Equity History and Analysis

Debt Level: 1771's debt to equity ratio (108.5%) is considered high.

Reducing Debt: 1771's debt to equity ratio has reduced from 116.2% to 108.5% over the past 5 years.

Debt Coverage: 1771's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: 1771's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1771's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1771's dividend (4.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.67%).


Stability and Growth of Payments

Stable Dividend: 1771 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1771 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), 1771's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Man Chiu (56yo)

9.5yrs

Tenure

CN¥810,000

Compensation

Ms. Man Chiu has been the Chief Executive Officer and Executive Director of Sunfonda Group Holdings Limited since January 13, 2011. Ms. Chiu has been a Director of Sunfonda (Hong Kong) Limited since April  ...


CEO Compensation Analysis

Compensation vs Market: Man's total compensation ($USD115.82K) is below average for companies of similar size in the Hong Kong market ($USD230.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tak Lam Wu
Chairman of the Board9.5yrsCN¥1.51mno data
Man Chiu
CEO & Executive Director9.5yrsCN¥810.00kno data
Wei Chen
Executive Director & Group Financial Controller1.67yrsCN¥430.00k0.014% CN¥77.1k
Xinfeng Gou
VP of Operations & Executive Director3.67yrsCN¥885.00k0.017% CN¥94.0k
Sze Ting Chan
Company Secretary1.08yrsno datano data

4.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 1771's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tak Lam Wu
Chairman of the Board9.5yrsCN¥1.51mno data
Man Chiu
CEO & Executive Director9.5yrsCN¥810.00kno data
Wei Chen
Executive Director & Group Financial Controller1.67yrsCN¥430.00k0.014% CN¥77.1k
Xinfeng Gou
VP of Operations & Executive Director3.67yrsCN¥885.00k0.017% CN¥94.0k
Xiaofeng Liu
Independent Non-Executive Director3.17yrsCN¥224.00kno data
Jie Liu
Independent Non Executive Director8.08yrsCN¥170.00kno data
Tao Song
Independent Non-Executive Director3.17yrsCN¥170.00kno data

3.7yrs

Average Tenure

56yo

Average Age

Experienced Board: 1771's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Sunfonda Group Holdings Limited
  • Ticker: 1771
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: HK$564.000m
  • Shares outstanding: 600.00m
  • Website: https://www.sunfonda.com.cn

Number of Employees


Location

  • Sunfonda Group Holdings Limited
  • Sunfonda Automobile Center
  • Beichen Avenue
  • Xi'an
  • Shaanxi Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1771SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2014

Biography

Sunfonda Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China. The company sells imported and domestically manufactured luxury and ultra-luxury automobiles. It also offers after-sales services comprising maintenance and repair services, sale of spare parts, and automobile detailing services; and other value-added services, such as automobile insurance agency, automobile financing, automobile licensing, and automobile survey services. In addition, the company provides logistics and storage services; technology development and Internet services; and sale and service of second-hand cars. The company was founded in 2000 and is headquartered in Xi'an, the People’s Republic of China. Sunfonda Group Holdings Limited is a subsidiary of Top Wheel Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 12:51
End of Day Share Price2020/07/09 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.