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Dah Chong Hong Holdings

SEHK:1828
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1828
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Retail
Company description

Dah Chong Hong Holdings Limited operates as an integrated motor and consumer products distribution company in Hong Kong, Macao, Mainland China, and internationally. The last earnings update was 83 days ago. More info.


Add to Portfolio Compare Print
  • Dah Chong Hong Holdings has significant price volatility in the past 3 months.
1828 Share Price and Events
7 Day Returns
0%
SEHK:1828
-2%
HK Retail Distributors
-2%
HK Market
1 Year Returns
-40.8%
SEHK:1828
-25.9%
HK Retail Distributors
-13.2%
HK Market
1828 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dah Chong Hong Holdings (1828) 0% -13% -18.4% -40.8% -34.9% -49.2%
HK Retail Distributors -2% -4.9% -10.5% -25.9% -34.2% -62.8%
HK Market -2% -2.7% -9.8% -13.2% 18.1% 4.3%
1 Year Return vs Industry and Market
  • 1828 underperformed the Retail Distributors industry which returned -25.9% over the past year.
  • 1828 underperformed the Market in Hong Kong which returned -13.2% over the past year.
Price Volatility
1828
Industry
5yr Volatility vs Market

1828 Value

 Is Dah Chong Hong Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dah Chong Hong Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dah Chong Hong Holdings.

SEHK:1828 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1828
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.813 (1 + (1- 25%) (160.1%))
1.528
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.53
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.528 * 6.65%)
12.17%

Discounted Cash Flow Calculation for SEHK:1828 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dah Chong Hong Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1828 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 12.17%)
2019 586.19 Est @ -21.05% 522.61
2020 503.34 Est @ -14.13% 400.07
2021 456.56 Est @ -9.29% 323.53
2022 429.60 Est @ -5.9% 271.41
2023 414.43 Est @ -3.53% 233.43
2024 406.67 Est @ -1.87% 204.21
2025 403.79 Est @ -0.71% 180.77
2026 404.21 Est @ 0.1% 161.34
2027 406.93 Est @ 0.67% 144.81
2028 411.30 Est @ 1.07% 130.49
Present value of next 10 years cash flows HK$2,572.68
SEHK:1828 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$411.30 × (1 + 2%) ÷ (12.17% – 2%)
HK$4,128.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$4,128.26 ÷ (1 + 12.17%)10
HK$1,309.70
SEHK:1828 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$2,572.68 + HK$1,309.70
HK$3,882.37
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$3,882.37 / 1,886.02
HK$2.06
SEHK:1828 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$2.06
Current discount Discount to share price of HK$2.35
= -1 x (HK$2.35 - HK$2.06) / HK$2.06
-14.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Dah Chong Hong Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dah Chong Hong Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dah Chong Hong Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1828 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.44
SEHK:1828 Share Price ** SEHK (2019-06-18) in HKD HK$2.35
Hong Kong Retail Distributors Industry PE Ratio Median Figure of 16 Publicly-Listed Retail Distributors Companies 13.05x
Hong Kong Market PE Ratio Median Figure of 1,488 Publicly-Listed Companies 10.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dah Chong Hong Holdings.

SEHK:1828 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1828 Share Price ÷ EPS (both in HKD)

= 2.35 ÷ 0.44

5.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dah Chong Hong Holdings is good value based on earnings compared to the HK Retail Distributors industry average.
  • Dah Chong Hong Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Dah Chong Hong Holdings's expected growth come at a high price?
Raw Data
SEHK:1828 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
4.9%per year
Global Retail Distributors Industry PEG Ratio Median Figure of 20 Publicly-Listed Retail Distributors Companies 1.18x
Hong Kong Market PEG Ratio Median Figure of 467 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

SEHK:1828 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.33x ÷ 4.9%

1.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dah Chong Hong Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dah Chong Hong Holdings's assets?
Raw Data
SEHK:1828 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$5.45
SEHK:1828 Share Price * SEHK (2019-06-18) in HKD HK$2.35
Hong Kong Retail Distributors Industry PB Ratio Median Figure of 30 Publicly-Listed Retail Distributors Companies 0.99x
Hong Kong Market PB Ratio Median Figure of 2,170 Publicly-Listed Companies 0.93x
SEHK:1828 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1828 Share Price ÷ Book Value per Share (both in HKD)

= 2.35 ÷ 5.45

0.43x

* Primary Listing of Dah Chong Hong Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dah Chong Hong Holdings is good value based on assets compared to the HK Retail Distributors industry average.
X
Value checks
We assess Dah Chong Hong Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. Dah Chong Hong Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1828 Future Performance

 How is Dah Chong Hong Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dah Chong Hong Holdings expected to grow at an attractive rate?
  • Dah Chong Hong Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Dah Chong Hong Holdings's earnings growth is positive but not above the Hong Kong market average.
  • Dah Chong Hong Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1828 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1828 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 4.9%
SEHK:1828 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 5.8%
Hong Kong Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average 3.6%
Global Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1828 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1828 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 57,111 903 1
2019-12-31 53,998 812 1
SEHK:1828 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 50,878 1,641 820
2018-09-30 51,619 1,736 833
2018-06-30 51,628 1,830 845
2018-03-31 51,067 1,918 824
2017-12-31 51,238 2,005 802
2017-09-30 50,466 1,661 663
2017-06-30 49,693 1,317 523
2017-03-31 48,078 1,776 517
2016-12-31 46,462 2,234 511
2016-09-30 44,773 1,979 511
2016-06-30 43,084 1,724 510
2016-03-31 43,944 2,377 540

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dah Chong Hong Holdings's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
  • Dah Chong Hong Holdings's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1828 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Dah Chong Hong Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1828 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.49 0.49 0.49 1.00
2019-12-31 0.44 0.44 0.44 1.00
SEHK:1828 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.44
2018-09-30 0.45
2018-06-30 0.46
2018-03-31 0.45
2017-12-31 0.44
2017-09-30 0.36
2017-06-30 0.29
2017-03-31 0.28
2016-12-31 0.28
2016-09-30 0.28
2016-06-30 0.28
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Dah Chong Hong Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Dah Chong Hong Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dah Chong Hong Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1828 Past Performance

  How has Dah Chong Hong Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dah Chong Hong Holdings's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dah Chong Hong Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Dah Chong Hong Holdings's 1-year earnings growth exceeds its 5-year average (2.2% vs -2.1%)
  • Dah Chong Hong Holdings's earnings growth has exceeded the HK Retail Distributors industry average in the past year (2.2% vs -1.7%).
Earnings and Revenue History
Dah Chong Hong Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dah Chong Hong Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1828 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 50,878.00 820.00 6,009.00
2018-09-30 51,619.00 832.50 5,976.50
2018-06-30 51,628.00 845.00 5,963.00
2018-03-31 51,067.00 823.50 5,894.50
2017-12-31 51,238.00 802.00 5,807.00
2017-09-30 50,465.50 662.50 5,956.00
2017-06-30 49,693.00 523.00 6,105.00
2017-03-31 48,077.50 517.00 5,813.00
2016-12-31 46,462.00 511.00 5,521.00
2016-09-30 44,773.00 510.50 5,094.50
2016-06-30 43,084.00 510.00 4,668.00
2016-03-31 43,943.50 540.00 4,783.50
2015-12-31 44,803.00 570.00 4,899.00
2015-09-30 45,519.00 585.00 4,936.00
2015-06-30 46,235.00 600.00 4,973.00
2015-03-31 46,362.00 675.00 4,868.00
2014-12-31 46,489.00 750.00 4,763.00
2014-09-30 45,954.50 840.00 4,621.50
2014-06-30 45,420.00 930.00 4,480.00
2014-03-31 43,840.50 915.50 4,360.00
2013-12-31 42,261.00 901.00 4,240.00
2013-09-30 42,787.00 848.50 4,311.50
2013-06-30 43,313.00 796.00 4,383.00
2013-03-31 45,663.50 920.50 4,437.00
2012-12-31 48,014.00 1,045.00 4,491.00
2012-09-30 48,972.50 1,108.50 4,335.50
2012-06-30 49,931.00 1,172.00 4,180.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Dah Chong Hong Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Dah Chong Hong Holdings used its assets less efficiently than the HK Retail Distributors industry average last year based on Return on Assets.
  • Dah Chong Hong Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dah Chong Hong Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dah Chong Hong Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1828 Health

 How is Dah Chong Hong Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dah Chong Hong Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dah Chong Hong Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dah Chong Hong Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Dah Chong Hong Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dah Chong Hong Holdings Company Filings, last reported 5 months ago.

SEHK:1828 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,793.00 7,096.00 1,015.00
2018-09-30 10,793.00 7,096.00 1,015.00
2018-06-30 10,622.00 7,173.00 1,002.00
2018-03-31 10,622.00 7,173.00 1,002.00
2017-12-31 10,712.00 7,023.00 1,078.00
2017-09-30 10,712.00 7,023.00 1,078.00
2017-06-30 9,721.00 7,019.00 1,625.00
2017-03-31 9,721.00 7,019.00 1,625.00
2016-12-31 9,244.00 7,488.00 1,097.00
2016-09-30 9,244.00 7,488.00 1,097.00
2016-06-30 9,476.00 8,312.00 1,969.00
2016-03-31 9,476.00 8,312.00 1,969.00
2015-12-31 9,488.00 6,579.00 985.00
2015-09-30 9,488.00 6,579.00 985.00
2015-06-30 9,926.00 6,214.00 991.00
2015-03-31 9,926.00 6,214.00 991.00
2014-12-31 9,763.00 8,695.00 1,243.00
2014-09-30 9,763.00 8,695.00 1,243.00
2014-06-30 9,582.00 7,655.00 1,165.00
2014-03-31 9,582.00 7,655.00 1,165.00
2013-12-31 9,373.00 7,694.00 1,920.00
2013-09-30 9,373.00 7,694.00 1,920.00
2013-06-30 9,138.00 6,008.00 2,227.00
2013-03-31 9,138.00 6,008.00 2,227.00
2012-12-31 8,904.00 6,641.00 2,966.00
2012-09-30 8,904.00 6,641.00 2,966.00
2012-06-30 8,800.00 7,288.00 1,732.00
  • Dah Chong Hong Holdings's level of debt (65.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (82.1% vs 65.7% today).
  • Debt is well covered by operating cash flow (23.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).
X
Financial health checks
We assess Dah Chong Hong Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dah Chong Hong Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1828 Dividends

 What is Dah Chong Hong Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.42%
Current annual income from Dah Chong Hong Holdings dividends. Estimated to be 7.66% next year.
If you bought HK$2,000 of Dah Chong Hong Holdings shares you are expected to receive HK$148 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dah Chong Hong Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.1%).
  • Dah Chong Hong Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1828 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Hong Kong Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 5.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1828 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.19 1.00
2019-12-31 0.17 1.00
SEHK:1828 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.174 6.535
2019-02-26 0.174 5.977
2018-03-08 0.170 5.101
2017-08-28 0.087 2.314
2017-03-29 0.084 2.343
2017-02-28 0.084 2.432
2016-03-23 0.125 3.795
2016-03-01 0.125 4.021
2015-03-27 0.159 4.391
2015-02-27 0.159 4.043
2014-03-25 0.194 4.203
2014-02-20 0.194 4.137
2013-09-04 0.174 3.001
2013-08-15 0.174 2.891
2013-03-28 0.178 2.704
2013-02-27 0.178 2.361
2012-03-01 0.270 3.511
2011-08-17 0.271 2.852
2011-03-02 0.235 2.645
2010-08-16 0.220 2.685
2010-04-07 0.158 3.150
2010-03-08 0.158 3.049

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dah Chong Hong Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Dah Chong Hong Holdings only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Dah Chong Hong Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Dah Chong Hong Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dah Chong Hong Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dah Chong Hong Holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1828 Management

 What is the CEO of Dah Chong Hong Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Frank Lai
COMPENSATION HK$10,182,000
AGE 56
TENURE AS CEO 2.3 years
CEO Bio

Mr. Ni Hium Lai, also known as Frank, has been the Chief Executive Officer at Dah Chong Hong Holdings Limited since March 1, 2017. Mr. Lai has been Executive Director at Dah Chong Hong Holdings Limited since June 1, 2016. Mr. Lai served as deputy chief executive officer at Dah Chong Hong Holdings Limited since June 1, 2016. Mr. Lai served as the Chief Financial Officer of China Resources Beer (Holdings) Company Limited from June 2009 to June 1, 2016 and its Company Secretary from August 20, 2009 to June 1, 2016. He served as a Deputy Managing Director of China Resources Beer (Holdings) Company Limited since June 30, 2009. He served as Group Chief Financial Officer, Qualified Accountant and Secretary of China Resources Microelectronics Limited (formerly known as CSMC Technologies Corp) until June 1, 2009. He served as the Chief Executive Officer of Logic International Ltd. and the Chief Financial Officer of Eagle Brand Holdings Ltd. He joined CSMC Technologies Corp. in May 2000. He has been Independent Non-Executive Director of China Auto System Technologies Limited since November 9, 2010. He has been a Non-Executive Director of China Resources Beer (Holdings) Company Limited since June 1, 2016. He serves as a Member of The Advisory Board of Business week Asia Chief Financial Officer Forum. He is a Member of the Hong Kong Institute of Certified Public Accountant and a Fellow Member of CPA Australia. He served as an Executive Director of China Resources Beer (Holdings) Company Limited from June 30, 2009 to June 1, 2016. He served as Non-Executive Director of China Resources Microelectronics Limited until August 24, 2010. He served as an Executive Director of China Resources Microelectronics Limited from March 20, 2008 to June 1, 2009 and Logic International Holdings Ltd. Mr. Lai holds a Bachelor of Commerce degree from the University of Western Australia in 1982 and a Graduate Diploma in Business and Administration from the Curtin University of Technology of Western Australia in 1988.

CEO Compensation
  • Frank's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Frank's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Dah Chong Hong Holdings management team in years:

2.3
Average Tenure
54
Average Age
  • The tenure for the Dah Chong Hong Holdings management team is about average.
Management Team

Frank Lai

TITLE
CEO & Executive Director
COMPENSATION
HK$10M
AGE
56
TENURE
2.3 yrs

Tak Wah Lee

TITLE
Head of Motor
COMPENSATION
HK$7M
AGE
53

Gwen Walters

TITLE
Head of Corporate Communications & Investor Relations

Betty Leung

TITLE
Head of Hong Kong Food Business & Corporate Director
AGE
55
TENURE
2.4 yrs

Ying Wu

TITLE
Chief Corporate Officer & Senior Corporate Director
AGE
54
TENURE
2.3 yrs

Florence Kam

TITLE
Company Secretary
TENURE
3.3 yrs

Timothy Collins

TITLE
Corporate Director and CEO of DCH Auriga Healthcare & IMSA Southeast Asia
AGE
49
Board of Directors Tenure

Average tenure and age of the Dah Chong Hong Holdings board of directors in years:

3.1
Average Tenure
59
Average Age
  • The tenure for the Dah Chong Hong Holdings board of directors is about average.
Board of Directors

Jijing Zhang

TITLE
Non-Executive Chairman of the Board
AGE
62
TENURE
5.4 yrs

Frank Lai

TITLE
CEO & Executive Director
COMPENSATION
HK$10M
AGE
56
TENURE
3 yrs

Tak Wah Lee

TITLE
Head of Motor
COMPENSATION
HK$7M
AGE
53
TENURE
2.3 yrs

Doreen Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$420K
AGE
64
TENURE
3.3 yrs

Raymond Woo

TITLE
Independent Non-Executive Director
COMPENSATION
HK$420K
AGE
64
TENURE
2.9 yrs

Steve Kwok

TITLE
Non-Executive Director
AGE
49
TENURE
11.9 yrs

Ke Yin

TITLE
Non-Executive Director
AGE
55
TENURE
0.7 yrs

Yiping Fei

TITLE
Non-Executive Director
AGE
54
TENURE
9.4 yrs

Kay-Cheung Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$420K
AGE
72
TENURE
6.5 yrs

Lijun Zhang

TITLE
Independent Non Executive Director
COMPENSATION
HK$315K
AGE
63
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
30. Oct 18 Buy Ni Hium Lai Individual 25. Oct 18 25. Oct 18 12,474 HK$2.95 HK$36,783
23. Jul 18 Buy Ni Hium Lai Individual 18. Jul 18 18. Jul 18 21,263 HK$3.96 HK$84,153
20. Jul 18 Buy Kit Yi Fung Individual 18. Jul 18 18. Jul 18 13,531 HK$3.96 HK$53,552
03. Jul 18 Buy Kit Yi Fung Individual 28. Jun 18 28. Jun 18 35,000 HK$3.75 HK$131,250
28. Jun 18 Buy Kit Yi Fung Individual 26. Jun 18 26. Jun 18 100,000 HK$3.82 HK$381,500
26. Jun 18 Buy Kit Yi Fung Individual 22. Jun 18 22. Jun 18 50,000 HK$3.85 HK$192,500
25. Jun 18 Buy Kit Yi Fung Individual 21. Jun 18 21. Jun 18 50,000 HK$3.90 HK$195,000
X
Management checks
We assess Dah Chong Hong Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dah Chong Hong Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1828 News

Simply Wall St News

A Look At The Intrinsic Value Of Dah Chong Hong Holdings Limited (HKG:1828)

In this article we are going to estimate the intrinsic value of Dah Chong Hong Holdings Limited (HKG:1828) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (HK$, Millions) HK$586.19 HK$503.34 HK$456.56 HK$429.60 HK$414.43 HK$406.67 HK$403.79 HK$404.21 HK$406.93 HK$411.30 Growth Rate Estimate Source Est @ -21.05% Est @ -14.13% Est @ -9.29% Est @ -5.9% Est @ -3.53% Est @ -1.87% Est @ -0.71% Est @ 0.1% Est @ 0.67% Est @ 1.07% Present Value (HK$, Millions) Discounted @ 12.17% HK$522.58 HK$400.02 HK$323.46 HK$271.33 HK$233.34 HK$204.13 HK$180.68 HK$161.24 HK$144.71 HK$130.39 Present Value of 10-year Cash Flow (PVCF)= HK$2.57b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = HK$411m × (1 + 2%) ÷ (12.2% – 2%) = HK$4.1b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = HK$HK$4.1b ÷ ( 1 + 12.2%)10 = HK$1.31b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is HK$3.88b.

Simply Wall St -

How Does Dah Chong Hong Holdings Limited (HKG:1828) Fare As A Dividend Stock?

Today we'll take a closer look at Dah Chong Hong Holdings Limited (HKG:1828) from a dividend investor's perspective. … Looking at the last decade of data, we can see that Dah Chong Hong Holdings paid its first dividend at least nine years ago. … It's good to see that Dah Chong Hong Holdings has been paying a dividend for a number of years.

Simply Wall St -

Are Dah Chong Hong Holdings Limited's (HKG:1828) Interest Costs Too High?

Additionally, 1828 has generated HK$1.6b in operating cash flow in the last twelve months, leading to an operating cash to total debt ratio of 23%, indicating that 1828’s debt is appropriately covered by operating cash. … Looking at 1828’s HK$12b in current liabilities, it appears that the company has been able to meet these commitments with a current assets level of HK$16b, leading to a 1.34x current account ratio. … Next Steps: Although 1828’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

A Spotlight On Dah Chong Hong Holdings Limited's (HKG:1828) Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … In the case of Dah Chong Hong Holdings Limited (HKG:1828), there's … that has been able to sustain great financial health over the past.

Simply Wall St -

Does Dah Chong Hong Holdings Limited's (HKG:1828) Past Performance Indicate A Stronger Future?

After looking at Dah Chong Hong Holdings Limited's (HKG:1828) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … I also compare against an industry benchmark to check whether Dah Chong Hong Holdings's performance has been impacted by industry movements. … View our latest analysis for Dah Chong Hong Holdings?

Simply Wall St -

Need To Know: Dah Chong Hong Holdings Limited (HKG:1828) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in Dah Chong Hong Holdings Limited (HKG:1828). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While Dah Chong Hong Holdings insiders bought shares last year, they didn't sell

Simply Wall St -

Do Institutions Own Shares In Dah Chong Hong Holdings Limited (HKG:1828)?

A look at the shareholders of Dah Chong Hong Holdings Limited (HKG:1828) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of HK$5.5b, Dah Chong Hong Holdings is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Does Dah Chong Hong Holdings Limited (HKG:1828) Have A Good P/E Ratio?

To keep it practical, we'll show how Dah Chong Hong Holdings Limited's (HKG:1828) P/E ratio could help you assess the value on offer. … Dah Chong Hong Holdings has a price to earnings ratio of 6.55, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Investors Who Bought Dah Chong Hong Holdings (HKG:1828) Shares Five Years Ago Are Now Down 37%

At this point some shareholders may be questioning their investment in Dah Chong Hong Holdings Limited (HKG:1828), since the last five years saw the share price fall 37%. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … During the five years over which the share price declined, Dah Chong Hong Holdings's earnings per share (EPS) dropped by 2.2% each year.

Simply Wall St -

Does Dah Chong Hong Holdings Limited (HKG:1828) Have A High Beta?

If you're interested in Dah Chong Hong Holdings Limited (HKG:1828), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

1828 Company Info

Description

Dah Chong Hong Holdings Limited operates as an integrated motor and consumer products distribution company in Hong Kong, Macao, Mainland China, and internationally. The company operates through Motor Business, Consumer Products Business, and Other Businesses segments. The Motor Business segment is involved in the motor vehicle distribution and dealership business; operation of independent service outlets, original equipment parts and used car trading, provision of after-sales services, motor leasing, sale of yachts, and environmental and engineering businesses; and airport and aviation support businesses. The Consumer Products Business segment engages in the trading and distribution of food commodities, fast moving consumer goods, consumer and healthcare products; food manufacturing and the retail of food products; and provision of integrated professional logistics and supply chain management solutions, and cold chain management services. The Other Businesses segment is involved in the property and other miscellaneous businesses. The company also provides management and finance leasing services; imports and exports garments; and imports, retails, and exports electrical appliances. The company was incorporated in 1949 and is headquartered in Kowloon Bay, Hong Kong. Dah Chong Hong Holdings Limited is a subsidiary of CITIC Limited.

Details
Name: Dah Chong Hong Holdings Limited
1828
Exchange: SEHK
Founded: 1949
HK$4,432,155,988
1,886,023,825
Website: http://www.dch.com.hk
Address: Dah Chong Hong Holdings Limited
DCH Building,
8th Floor,
Kowloon Bay,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1828 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 17. Oct 2007
DB 49D Ordinary Shares Deutsche Boerse AG DE EUR 17. Oct 2007
SHSC 1828 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 17. Oct 2007
SZSC 1828 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 17. Oct 2007
OTCPK DAHC.Y UNSPONSORED ADR Pink Sheets LLC US USD 23. Jan 2012
Number of employees
Current staff
Staff numbers
17,596
Dah Chong Hong Holdings employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 12:48
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/02/27
Last earnings filing: 2019/03/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.