SEHK:178

Stock Analysis Report

Sa Sa International Holdings

Executive Summary

Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products.

Rewards

Trading at 2.2% below its fair value

Earnings are forecast to grow 42.5% per year

Risk Analysis

Profit margins (3%) are lower than last year (6.4%)



Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 178 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

178

0.8%

HK Specialty Retail

0.9%

HK Market


1 Year Return

-43.9%

178

9.8%

HK Specialty Retail

-1.5%

HK Market

Return vs Industry: 178 underperformed the Hong Kong Specialty Retail industry which returned 9.8% over the past year.

Return vs Market: 178 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

178IndustryMarket
7 Day-2.8%0.8%0.9%
30 Day-15.8%-1.8%-4.2%
90 Day-5.5%4.3%-0.2%
1 Year-40.8%-43.9%15.4%9.8%2.0%-1.5%
3 Year-38.9%-47.4%27.2%13.2%17.3%5.4%
5 Year-60.4%-70.7%3.2%-16.9%17.1%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 178 (HK$1.71) is trading below our estimate of fair value (HK$1.75)

Significantly Below Fair Value: 178 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 178 is poor value based on its PE Ratio (22.8x) compared to the Specialty Retail industry average (10.8x).

PE vs Market: 178 is poor value based on its PE Ratio (22.8x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 178 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 178 is overvalued based on its PB Ratio (2.2x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Sa Sa International Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 178's forecast earnings growth (42.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 178's earnings (42.5% per year) are forecast to grow faster than the Hong Kong market (11.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 178's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 178's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 178's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

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

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 178 has high quality earnings.

Growing Profit Margin: 178's current net profit margins (3%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 178's earnings have declined by -16.7% per year over the past 5 years.

Accelerating Growth: 178's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 178 had negative earnings growth (-57.7%) over the past year, making it difficult to compare to the Specialty Retail industry average (-6.3%).


Return on Equity

High ROE: 178's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sa Sa International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 178's short term assets (HK$2.6B) exceed its short term liabilities (HK$1.2B).

Long Term Liabilities: 178's short term assets (HK$2.6B) exceed its long term liabilities (HK$989.0M).


Debt to Equity History and Analysis

Debt Level: 178 is debt free.

Reducing Debt: 178 has no debt compared to 5 years ago when its debt to equity ratio was 3.5%.

Debt Coverage: 178 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 178 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 178 has a high level of physical assets or inventory.

Debt Coverage by Assets: 178's debt is not covered by short term assets (assets are -1.1390153213434E+16x debt).


Next Steps

Dividend

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

4.46%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage4.5%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 178's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 178'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 178's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 178's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 178 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 178'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 Sa Sa International Holdings's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Simon Kwok (66yo)

23yrs

Tenure

HK$3,096,000

Compensation

Dr. Siu Ming Kwok, also known as Simon, BBS, JP serves as an Executive Chairman and Chief Executive Officer of Sa Sa International Holdings Ltd. Dr. Kwok co-Founded Sa Sa International Holdings Ltd. in 197 ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD395.44K) is about average for companies of similar size in the Hong Kong market ($USD461.77K).

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


Management Age and Tenure

5.2yrs

Average Tenure

59yo

Average Age

Experienced Management: 178's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 178's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$5,667,36629 Oct 19
Invesco Ltd.
EntityCompany
Shares2,926,000
Max PriceHK$1.94
BuyHK$6,136,73325 Oct 19
Invesco Ltd.
EntityCompany
Shares3,218,000
Max PriceHK$1.91
BuyHK$155,84728 Dec 18
Wai Chu Tam
EntityIndividual
Shares51,949
Max PriceHK$3.00

Ownership Breakdown

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


Management Team

  • Simon Kwok (66yo)

    Executive Chairman & CEO

    • Tenure: 23yrs
    • Compensation: HK$3.10m
  • Eleanor Kwok Law (65yo)

    Vice-Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.93m
  • Peter Law (63yo)

    Senior Vice President of Category Management & Product Development

    • Tenure: 11.9yrs
  • Guy Look (62yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
    • Compensation: HK$3.51m
  • Simmy Mak (53yo)

    Senior VP

    • Tenure: 5.2yrs
  • Andy Tsoi (49yo)

    Senior VP of Finance & Accounting and Group Financial Controller

    • Tenure: 3.7yrs
  • Tony Yung (56yo)

    Senior Vice President of eCommerce

    • Tenure: 3.5yrs
  • Ming Chan

    Director of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Melody Kwok (41yo)

    Executive Director

    • Tenure: 0.3yrs

Board Members

  • Simon Kwok (66yo)

    Executive Chairman & CEO

    • Tenure: 23yrs
    • Compensation: HK$3.10m
  • Eleanor Kwok Law (65yo)

    Vice-Chairman

    • Tenure: 0yrs
    • Compensation: HK$2.93m
  • Leonie Ki (72yo)

    Independent Non-Executive Director

    • Tenure: 13yrs
    • Compensation: HK$412.00k
  • Guy Look (62yo)

    CFO & Executive Director

    • Tenure: 17.3yrs
    • Compensation: HK$3.51m
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: HK$481.00k
  • Marie-Christine Lee (59yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$332.00k
  • Melody Kwok (41yo)

    Executive Director

    • Tenure: 0.3yrs
  • Nicholas Chan (45yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Sa Sa International Holdings Limited
  • Ticker: 178
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$5.151b
  • Shares outstanding: 3.10b
  • Website: https://corp.sasa.com/en/home

Number of Employees


Location

  • Sa Sa International Holdings Limited
  • MP Industrial Centre
  • 8th Floor
  • Chai Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
178SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1997
SSWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1997
178SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1997
178SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1997
SAXJ.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 2010

Biography

Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products. The company offers approximately 700 brands of skincare, fragrance, make-up, b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 12:35
End of Day Share Price2019/12/06 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.