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

Undervalued with excellent balance sheet.


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

1.1%

1828

1.1%

HK Retail Distributors

3.3%

HK Market


1 Year Return

-1.5%

1828

-6.7%

HK Retail Distributors

1.6%

HK Market

Return vs Industry: 1828 exceeded the Hong Kong Retail Distributors industry which returned -6.7% over the past year.

Return vs Market: 1828 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1828IndustryMarket
7 Day1.1%1.1%3.3%
30 Day15.9%-2.7%-0.009%
90 Day10.7%0.3%-5.1%
1 Year5.3%-1.5%-3.9%-6.7%5.3%1.6%
3 Year-4.2%-16.2%-25.7%-32.3%16.1%4.4%
5 Year-26.2%-39.8%-40.8%-50.4%20.4%0.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1828 (HK$2.69) is trading below our estimate of fair value (HK$7.79)

Significantly Undervalued: 1828 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1828 is good value based on its PE Ratio (6.9x) compared to the Retail Distributors industry average (12.5x).

PE vs Market: 1828 is good value based on its PE Ratio (6.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1828's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1828 is good value based on its PB Ratio (0.5x) compared to the HK Retail Distributors industry average (0.8x).


Next Steps

Future Growth

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

-5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1828's earnings are forecast to decline over the next 3 years (-5.3% per year).

Earnings vs Market: 1828's earnings are forecast to decline over the next 3 years (-5.3% per year).

High Growth Earnings: 1828's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1828's revenue (5.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1828's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1828's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1828's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: 1828's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1828 had negative earnings growth (-13.3%) over the past year, making it difficult to compare to the Retail Distributors industry average (-13.3%).


Return on Equity

High ROE: 1828's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: 1828's Return on Assets is below or equal to the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 1828's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Dah Chong Hong Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1828's short term assets (HK$16.4B) exceeds its short term liabilities (HK$11.3B)

Long Term Liabilities: 1828's short term assets (16.4B) exceeds its long term liabilities (9.4B)


Debt to Equity History and Analysis

Debt Level: 1828's debt to equity ratio (74.2%) is considered high

Reducing Debt: 1828's debt to equity ratio has reduced from 80% to 74.2% over the past 5 years.

Debt Coverage: 1828's debt is well covered by operating cash flow (27.3%).

Interest Coverage: 1828's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: 1828 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1828's debt is covered by short term assets (assets are 2.160750x debt).


Next Steps

Dividend

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

6.17%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.3%markettop25%6.3%industryaverage5.3%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1828's dividend (6.17%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1828's dividend (6.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1828's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1828's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.6%), 1828'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

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

2.7yrs

Average management tenure


CEO

Frank Lai (57yo)

2.6yrs

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

Compensation vs. Market: Frank's total compensation ($USD1.30M) is about average for companies of similar size in the Hong Kong market ($USD411.59K).

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


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 1828's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 1828's board of directors are considered experienced (3.3 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

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: 2.6yrs
    • Compensation: HK$10.18m
  • Tak Wah Lee (54yo)

    Head of Motor

    • Tenure: 2.6yrs
    • Compensation: HK$6.91m
  • Ying Wu (55yo)

    Chief Corporate Officer & Senior Corporate Director

    • Tenure: 2.6yrs
  • Betty Leung (56yo)

    Head of Hong Kong Food Business & Corporate Director

    • Tenure: 2.8yrs
  • Florence Kam

    Company Secretary

    • Tenure: 3.6yrs
  • Timothy Collins (50yo)

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

    • Tenure: 0yrs
  • Gwen Walters

    Head of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Mabel Cheung

    General Manager of Finance

    • Tenure: 0yrs

Board Members

  • Kay-Cheung Chan (73yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$420.00k
  • Frank Lai (57yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: HK$10.18m
  • Doreen Chan (65yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$420.00k
  • Ke Yin (56yo)

    Non-Executive Director

    • Tenure: 1yrs
  • Chen Zeng (55yo)

    Chairman of the Board

    • Tenure: 0.2yrs
  • Steve Kwok (50yo)

    Non-Executive Director

    • Tenure: 12.3yrs
  • Yiping Fei (55yo)

    Non-Executive Director

    • Tenure: 9.8yrs
  • Tak Wah Lee (54yo)

    Head of Motor

    • Tenure: 2.6yrs
    • Compensation: HK$6.91m
  • Raymond Woo (65yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$420.00k
  • Lijun Zhang (64yo)

    Independent Non Executive Director

    • Tenure: 1.5yrs
    • 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$5.087b
  • 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 Analysis2019/10/18 12:42
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.