SEHK:280

Stock Analysis Report

King Fook Holdings

Executive Summary

King Fook Holdings Limited, an investment holding company, engages in the retail of gold ornaments, jewelry, watches, fashion, and diamond products primarily in Hong Kong.


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 280 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.9%

280

5.9%

HK Specialty Retail

0.6%

HK Market


1 Year Return

4.3%

280

11.1%

HK Specialty Retail

-4.5%

HK Market

Return vs Industry: 280 underperformed the Hong Kong Specialty Retail industry which returned 11.3% over the past year.

Return vs Market: 280 exceeded the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

280IndustryMarket
7 Day5.9%5.9%0.6%
30 Day-6.5%-6.4%-5.2%
90 Day20.0%6.7%2.3%
1 Year4.3%4.3%16.6%11.1%-1.0%-4.5%
3 Year-45.5%-45.5%21.4%7.4%14.4%2.9%
5 Year-53.4%-54.4%11.3%-10.8%15.5%-3.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is King Fook Holdings undervalued compared to its fair value and its price relative to the market?

40.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 280 (HK$0.36) is trading above our estimate of fair value (HK$0.27)

Significantly Below Fair Value: 280 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 280 is poor value based on its PE Ratio (40.6x) compared to the Specialty Retail industry average (11.7x).

PE vs Market: 280 is poor value based on its PE Ratio (40.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 280's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 280 is good value based on its PB Ratio (0.5x) compared to the HK Specialty Retail industry average (0.9x).


Next Steps

Future Growth

How is King Fook Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.3%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as King Fook Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has King Fook Holdings performed over the past 5 years?

48.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 280 has high quality earnings.

Growing Profit Margin: 280 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 280 has become profitable over the past 5 years, growing earnings by 48.3% per year.

Accelerating Growth: 280 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 280 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-5.5%).


Return on Equity

High ROE: 280's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is King Fook Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 280's short term assets (HK$686.0M) exceed its short term liabilities (HK$107.2M).

Long Term Liabilities: 280's short term assets (HK$686.0M) exceed its long term liabilities (HK$29.5M).


Debt to Equity History and Analysis

Debt Level: 280's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: 280's debt to equity ratio has reduced from 27.7% to 4.6% over the past 5 years.


Balance Sheet

Inventory Level: 280 has a high level of physical assets or inventory.

Debt Coverage by Assets: 280's debt is covered by short term assets (assets are 23.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 280 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 280 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is King Fook Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.4%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 280's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 280'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 280's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 280's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 280 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 280's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average board tenure


CEO

Mei Sum (55yo)

2.7yrs

Tenure

HK$2,520,000

Compensation

Ms. Sum Mei Lin has been Chief Executive and Group General Manager at King Fook Holdings Limited since June 8, 2017. Ms. Sum has over 28 years' experience in the management of retail businesses. 


CEO Compensation Analysis

Compensation vs Market: Mei's total compensation ($USD324.40K) is above average for companies of similar size in the Hong Kong market ($USD225.53K).

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


Board Members

NamePositionTenureCompensationOwnership
Yat Sun Tang
Chairman2.9yrsHK$1.73m4.28% HK$13.7m
Ka Yeung
Executive Director2.8yrsHK$110.00kno data
Yuk Bun Fung
Executive Director3.8yrsHK$109.00k0.64% HK$2.0m
Hau-Hay Ho
Independent Non-Executive Director7.7yrsHK$70.00kno data
Kar-Shing Cheng
Independent Non-Executive Director22.4yrsHK$72.00kno data
Wei Wong
Non-Executive Director19.3yrsHK$35.00kno data
Nga Sin
Independent Non-Executive Director7.7yrsHK$70.00kno data
Kwok Cheng
Independent Non-Executive Director6.8yrsHK$275.00kno data

7.3yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 280's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

King Fook Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: King Fook Holdings Limited
  • Ticker: 280
  • Exchange: SEHK
  • Founded: 1949
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$319.778m
  • Shares outstanding: 913.65m
  • Website: https://www.kingfook.com

Number of Employees


Location

  • King Fook Holdings Limited
  • King Fook Building
  • 9th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
280SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

King Fook Holdings Limited, an investment holding company, engages in the retail of gold ornaments, jewelry, watches, fashion, and diamond products primarily in Hong Kong. The company is also involved in the gold ornament, jewelry, watch, and diamond wholesale business; and provision of money exchange services, as well as investment and bullion trading services. As of March 31, 2019, it had 6 shops in Hong Kong. The company was founded in 1949 and is based in Central, Hong Kong. King Fook Holdings Limited is a subsidiary of Yeung Chi Shing Estates Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:37
End of Day Share Price2020/02/18 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.