SEHK:1828

Stock Analysis Report

Dah Chong Hong Holdings

Executive Summary

Dah Chong Hong Holdings Limited operates as an integrated motor and consumer products distribution company in Hong Kong, Macao, Mainland China, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Risks

  • Dah Chong Hong Holdings is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Dah Chong Hong Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

SEHK:1828

-4.0%

HK Retail Distributors

-0.6%

HK Market


1 Year Return

-34.1%

SEHK:1828

-24.2%

HK Retail Distributors

-9.8%

HK Market

1828 underperformed the Retail Distributors industry which returned -24.2% over the past year.

1828 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1828IndustryMarket
7 Day-2.6%-4.0%-0.6%
30 Day-7.0%-1.7%-9.6%
90 Day-11.4%-12.0%-7.5%
1 Year-29.8%-34.1%-22.1%-24.2%-6.5%-9.8%
3 Year-32.2%-40.4%-33.8%-39.3%12.8%1.6%
5 Year-41.8%-52.5%-72.8%-75.5%7.2%-10.6%

Price Volatility Vs. Market

How volatile is Dah Chong Hong Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Dah Chong Hong Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Dah Chong Hong Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Dah Chong Hong Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Dah Chong Hong Holdings is good value based on assets compared to the HK Retail Distributors industry average.


Next Steps

Future Growth

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

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Dah Chong Hong Holdings's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

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 growth is positive but not above the Hong Kong market average.

Dah Chong Hong Holdings's earnings growth is positive but not above the Hong Kong market average.

Dah Chong Hong Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Dah Chong Hong Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-2.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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%).


Return on Equity

Dah Chong Hong Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Dah Chong Hong Holdings used its assets more efficiently than the HK Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Dah Chong Hong Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dah Chong Hong Holdings's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.3x debt.


Next Steps

Dividend

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

7.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Dah Chong Hong Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

Dah Chong Hong Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.25%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

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).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Frank Lai (57yo)

2.4yrs

Tenure

HK$10,182,000

Compensation

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 sin ...


CEO Compensation Analysis

Frank's remuneration is higher than average for companies of similar size in Hong Kong.

Frank's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

55yo

Average Age

The tenure for the Dah Chong Hong Holdings management team is about average.


Board Age and Tenure

3.2yrs

Average Tenure

56.5yo

Average Age

The tenure for the Dah Chong Hong Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Dah Chong Hong Holdings individual insiders in the past 3 months.


Recent Insider Transactions

BuyHK$65,44823 Jul 19
Ni Hium Lai
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares27,601
Max PriceHK$2.37
BuyHK$36,78330 Oct 18
Ni Hium Lai
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares12,474
Max PriceHK$2.95

Ownership Breakdown


Management Team

  • Frank Lai (57yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$10.18m
  • Tak Wah Lee (54yo)

    Head of Motor

    • Tenure: 2.4yrs
    • Compensation: HK$6.91m
  • Ying Wu (55yo)

    Chief Corporate Officer & Senior Corporate Director

    • Tenure: 2.4yrs
  • Betty Leung (56yo)

    Head of Hong Kong Food Business & Corporate Director

    • Tenure: 2.6yrs
  • Florence Kam

    Company Secretary

    • Tenure: 3.4yrs
  • Timothy Collins (50yo)

    Corporate Director and CEO of DCH Auriga Healthcare & IMSA Southeast Asia

    • Tenure: 0.0yrs
  • Gwen Walters

    Head of Corporate Communications & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Kay-Cheung Chan (73yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: HK$420.00k
  • Frank Lai (57yo)

    CEO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: HK$10.18m
  • Doreen Chan (65yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: HK$420.00k
  • Ke Yin (56yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Chen Zeng (55yo)

    Chairman of the Board

    • Tenure: 0.0yrs
  • Steve Kwok (50yo)

    Non-Executive Director

    • Tenure: 12.1yrs
  • Yiping Fei (55yo)

    Non-Executive Director

    • Tenure: 9.6yrs
  • Tak Wah Lee (54yo)

    Head of Motor

    • Tenure: 2.4yrs
    • Compensation: HK$6.91m
  • Raymond Woo (65yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$420.00k
  • Lijun Zhang (64yo)

    Independent Non Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$315.00k

Company Information

Dah Chong Hong Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dah Chong Hong Holdings Limited
  • Ticker: 1828
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$4.161b
  • Shares outstanding: 1.89b
  • Website: https://www.dch.com.hk

Number of Employees


Location

  • Dah Chong Hong Holdings Limited
  • DCH Building
  • 8th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1828SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2007
49DDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2007
1828SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007
1828SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2007

Biography

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 Busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 12:46
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
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.