company background image
289

Wing On Company InternationalSEHK:289 Stock Report

Market Cap

HK$5.3b

7D

1.1%

1Y

7.5%

Updated

16 Oct, 2021

Data

Company Financials
289 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends2/6

289 Overview

Wing On Company International Limited operates department stores in the Hong Kong, People’s Republic of China, Australia, and the United States.

Price History & Performance

Summary of all time highs, changes and price drops for Wing On Company International
Historical stock prices
Current Share PriceHK$18.30
52 Week HighHK$16.10
52 Week LowHK$18.76
Beta0.32
1 Month Change2.69%
3 Month Change3.98%
1 Year Change7.52%
3 Year Change-31.46%
5 Year Change-23.59%
Change since IPO163.31%

Recent News & Updates

Apr 26
We Think Wing On Company International (HKG:289) Can Stay On Top Of Its Debt

We Think Wing On Company International (HKG:289) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

289HK Multiline RetailHK Market
7D1.1%1.3%1.1%
1Y7.5%-11.4%5.3%

Return vs Industry: 289 exceeded the Hong Kong Multiline Retail industry which returned -11.4% over the past year.

Return vs Market: 289 exceeded the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 289's price volatile compared to industry and market?
289 volatility
289 Beta0.32
Industry Beta0.63
Market Beta1

Stable Share Price: 289 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 289's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1907621Lester Kwokhttps://www.wingon.hk

Wing On Company International Limited operates department stores in the Hong Kong, People’s Republic of China, Australia, and the United States. The company operates in two segments, Department Stores and Property Investment. Its department stores offer electrical appliances, kitchen and dining, bedding and bath, grocery, toys, children and infants, men's wear, women’s' wear, active, shoes and handbags, personal care, and cosmetics products.

Wing On Company International Fundamentals Summary

How do Wing On Company International's earnings and revenue compare to its market cap?
289 fundamental statistics
Market CapHK$5.33b
Earnings (TTM)HK$281.24m
Revenue (TTM)HK$1.32b

19.0x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
289 income statement (TTM)
RevenueHK$1.32b
Cost of RevenueHK$403.40m
Gross ProfitHK$914.31m
ExpensesHK$633.07m
EarningsHK$281.24m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.97
Gross Margin69.39%
Net Profit Margin21.34%
Debt/Equity Ratio0.3%

How did 289 perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

110%

Payout Ratio

Valuation

Is Wing On Company International undervalued compared to its fair value and its price relative to the market?

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 289 (HK$18.3) is trading below our estimate of fair value (HK$22.23)

Significantly Below Fair Value: 289 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 289 is poor value based on its PE Ratio (19x) compared to the Hong Kong Multiline Retail industry average (10.1x).

PE vs Market: 289 is poor value based on its PE Ratio (19x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 289's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 289's PB Ratio (0.3x) is in line with the HK Multiline Retail industry average.


Future Growth

How is Wing On Company International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.4%

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 Wing On Company International 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.


Past Performance

How has Wing On Company International performed over the past 5 years?

-31.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 289 has a large one-off loss of HK$262.2M impacting its June 30 2021 financial results.

Growing Profit Margin: 289 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 289's earnings have declined by 31.6% per year over the past 5 years.

Accelerating Growth: 289 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 289 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Multiline Retail industry (14.6%).


Return on Equity

High ROE: 289's Return on Equity (1.4%) is considered low.


Financial Health

How is Wing On Company International's financial position?


Financial Position Analysis

Short Term Liabilities: 289's short term assets (HK$4.2B) exceed its short term liabilities (HK$415.1M).

Long Term Liabilities: 289's short term assets (HK$4.2B) exceed its long term liabilities (HK$997.9M).


Debt to Equity History and Analysis

Debt Level: 289's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: 289's debt to equity ratio has reduced from 1.6% to 0.3% over the past 5 years.

Debt Coverage: 289's debt is well covered by operating cash flow (240.7%).

Interest Coverage: 289 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Wing On Company International current dividend yield, its reliability and sustainability?

5.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 289's dividend (5.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 289's dividend (5.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


Stability and Growth of Payments

Stable Dividend: 289's dividend payments have been volatile in the past 10 years.

Growing Dividend: 289's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (110%), 289's dividend payments are not 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

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

23.4yrs

Average board tenure


CEO

Lester Kwok (71 yo)

no data

Tenure

HK$9,835,000

Compensation

Mr. Chi Hang Kwok, also known as Lester, J.P. serves as Deputy Chairman and Chief Executive Officer at Wing On Company International Ltd. Mr. Kwok serves as Deputy Chairman and Managing Director of Wing On...


CEO Compensation Analysis

Compensation vs Market: Lester's total compensation ($USD1.26M) is above average for companies of similar size in the Hong Kong market ($USD442.94K).

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


Board Members

Experienced Board: 289's board of directors are seasoned and experienced ( 23.4 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

Wing On Company International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wing On Company International Limited
  • Ticker: 289
  • Exchange: SEHK
  • Founded: 1907
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: HK$5.332b
  • Shares outstanding: 291.35m
  • Website: https://www.wingon.hk

Number of Employees


Location

  • Wing On Company International Limited
  • Wing On Centre
  • 7th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 10:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.