SEHK:1929

Stock Analysis Report

Chow Tai Fook Jewellery Group

Executive Summary

Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products.

Snowflake

Fundamentals

Proven track record with adequate balance sheet and pays a dividend.

Share Price & News

How has Chow Tai Fook Jewellery Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

1929

1.0%

HK Specialty Retail

3.1%

HK Market


1 Year Return

-2.8%

1929

1.4%

HK Specialty Retail

0.5%

HK Market

Return vs Industry: 1929 underperformed the Hong Kong Specialty Retail industry which returned 1.4% over the past year.

Return vs Market: 1929 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1929IndustryMarket
7 Day2.8%1.0%3.1%
30 Day-4.2%-3.9%-1.8%
90 Day-23.6%-9.1%-4.8%
1 Year6.7%-2.8%6.8%1.4%4.1%0.5%
3 Year51.1%20.1%20.1%6.5%15.8%4.2%
5 Year-8.4%-38.7%-9.6%-27.4%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Chow Tai Fook Jewellery Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chow Tai Fook Jewellery Group undervalued compared to its fair value and its price relative to the market?

26.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1929 (HK$6.58) is trading below our estimate of fair value (HK$8.9)

Significantly Undervalued: 1929 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1929 is poor value based on its PE Ratio (14.4x) compared to the Specialty Retail industry average (11.2x).

PE vs Market: 1929 is poor value based on its PE Ratio (14.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1929 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 1929 is overvalued based on its PB Ratio (2.1x) compared to the HK Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is Chow Tai Fook Jewellery Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1929's forecast earnings growth (9.4% per year) is above the savings rate (2%).

Earnings vs Market: 1929's earnings (9.4% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1929's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1929's revenue (7% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1929's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1929's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has Chow Tai Fook Jewellery Group performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1929's earnings have declined by -11.5% per year over the past 5 years.

Accelerating Growth: 1929's earnings growth over the past year (11.8%) exceeds its 5-year average (-11.5% per year).

Earnings vs Industry: 1929 earnings growth over the past year (11.8%) exceeded the Specialty Retail industry 1.4%.


Return on Equity

High ROE: 1929's Return on Equity (14.9%) is considered low.


Return on Assets

ROA vs Industry: 1929 has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: 1929 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Chow Tai Fook Jewellery Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1929's short term assets (HK$53.8B) exceeds its short term liabilities (HK$27.5B)

Long Term Liabilities: 1929's short term assets (53.8B) exceeds its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: 1929's debt to equity ratio (57.5%) is considered high

Reducing Debt: 1929's debt to equity ratio has increased from 44.4% to 57.5% over the past 5 years.

Debt Coverage: 1929's debt is well covered by operating cash flow (46.7%).

Interest Coverage: 1929's interest payments on its debt are well covered by EBIT (27.3x coverage).


Balance Sheet

Inventory Level: 1929 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1929's debt is covered by short term assets (assets are 2.976370x debt).


Next Steps

Dividend

What is Chow Tai Fook Jewellery Group's current dividend yield, its reliability and sustainability?

10.64%

Current Dividend Yield


Dividend Yield vs Market

company10.6%marketbottom25%2.3%markettop25%6.3%industryaverage6.0%forecastin3Years6.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1929's dividend (10.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1929's dividend (10.64%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: 1929 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1929's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.5%), 1929's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1929's dividends in 3 years are forecast to be covered by earnings (85.3% payout ratio).


Next Steps

Management

What is the CEO of Chow Tai Fook Jewellery Group's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average board tenure


CEO

Kent Wong (63yo)

8.3yrs

Tenure

HK$15,100,000

Compensation

Mr. Siu-Kee Wong, also known as Kent has been Managing Director at Chow Tai Fook Jewellery Group Ltd. since July 26, 2011 and serves as its Executive Director. 


CEO Compensation Analysis

Compensation vs. Market: Kent's total compensation ($USD1.92M) is about average for companies of similar size in the Hong Kong market ($USD607.90K).

Compensation vs Earnings: Kent's compensation has increased by more than 20% in the past year.


Board Age and Tenure

8.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1929's board of directors are considered experienced (8.3 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.


Ownership Breakdown


Management Team

  • Henry Cheng (72yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: HK$14.10m
  • Adrian Cheng (39yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$6.70m
  • Kent Wong (63yo)

    MD & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$15.10m
  • Sai-Cheong Chan (57yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$10.10m
  • Albert Chan (69yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.20m
  • Hamilton Cheng (45yo)

    Finance Director

    • Tenure: 8.3yrs
    • Compensation: HK$9.00m
  • Peter Suen (54yo)

    GM & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.60m
  • Wilson Cheng (61yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$4.40m
  • Bobby Liu (45yo)

    GM of the Mainland China Management Centre & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$7.60m
  • Conroy Cheng (41yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.70m

Board Members

  • Henry Cheng (72yo)

    Chairman

    • Tenure: 8.3yrs
    • Compensation: HK$14.10m
  • Adrian Cheng (39yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$6.70m
  • Kent Wong (63yo)

    MD & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$15.10m
  • Sai-Cheong Chan (57yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$10.10m
  • Albert Chan (69yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.20m
  • Hamilton Cheng (45yo)

    Finance Director

    • Tenure: 8.3yrs
    • Compensation: HK$9.00m
  • Peter Suen (54yo)

    GM & Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.60m
  • Wilson Cheng (61yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$4.40m
  • Bobby Liu (45yo)

    GM of the Mainland China Management Centre & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$7.60m
  • Conroy Cheng (41yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$7.70m

Company Information

Chow Tai Fook Jewellery Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chow Tai Fook Jewellery Group Limited
  • Ticker: 1929
  • Exchange: SEHK
  • Founded: 1929
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$63.300b
  • Shares outstanding: 10.00b
  • Website: https://www.ctfjewellerygroup.com

Number of Employees


Location

  • Chow Tai Fook Jewellery Group Limited
  • New World Tower
  • 33rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1929SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011
CJEW.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2011
1CTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011
1929SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2011
1929SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2011
CJEW.YOTCPK (Pink Sheets LLC)ADR REP 10 SHSUSUSDAug 2012

Biography

Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products. The company offers high-end luxury, mass luxury, and youth line jewelry products, including ge ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:52
End of Day Share Price2019/10/17 00:00
Earnings2019/03/31
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.