SEHK:3308

Stock Analysis Report

Golden Eagle Retail Group

Executive Summary

Golden Eagle Retail Group Limited, an investment holding company, develops and operates lifestyle center and stylish department store chain in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet average dividend payer.

Share Price & News

How has Golden Eagle Retail Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3308 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

3308

-0.4%

HK Multiline Retail

5.3%

HK Market


1 Year Return

-18.3%

3308

-33.9%

HK Multiline Retail

-20.4%

HK Market

Return vs Industry: 3308 exceeded the Hong Kong Multiline Retail industry which returned -35% over the past year.

Return vs Market: 3308 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

3308IndustryMarket
7 Day-4.0%-0.4%5.3%
30 Day-0.5%-8.2%-8.5%
90 Day-12.4%-19.4%-14.7%
1 Year-15.3%-18.3%-31.2%-33.9%-17.6%-20.4%
3 Year-27.9%-35.6%-24.1%-32.6%-2.5%-12.3%
5 Year-13.3%-27.5%-31.2%-43.6%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Golden Eagle Retail Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Golden Eagle Retail Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3308 (HK$7.6) is trading below our estimate of fair value (HK$25.57)

Significantly Below Fair Value: 3308 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3308 is poor value based on its PE Ratio (10.8x) compared to the Multiline Retail industry average (10.6x).

PE vs Market: 3308 is poor value based on its PE Ratio (10.8x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: 3308 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 3308 is overvalued based on its PB Ratio (1.8x) compared to the HK Multiline Retail industry average (0.6x).


Next Steps

Future Growth

How is Golden Eagle Retail Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3308's forecast earnings growth (6.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 3308's earnings (6.3% per year) are forecast to grow slower than the Hong Kong market (12.7% per year).

High Growth Earnings: 3308's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3308's revenue (0.09% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 3308's revenue (0.09% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3308's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Golden Eagle Retail Group performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3308 has high quality earnings.

Growing Profit Margin: 3308's current net profit margins (14.9%) are lower than last year (20.7%).


Past Earnings Growth Analysis

Earnings Trend: 3308's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: 3308's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3308 had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Multiline Retail industry average (-22.2%).


Return on Equity

High ROE: 3308's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is Golden Eagle Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3308's short term assets (CN¥9.7B) exceed its short term liabilities (CN¥9.2B).

Long Term Liabilities: 3308's short term assets (CN¥9.7B) exceed its long term liabilities (CN¥7.6B).


Debt to Equity History and Analysis

Debt Level: 3308's debt to equity ratio (125.9%) is considered high.

Reducing Debt: 3308's debt to equity ratio has increased from 101.9% to 125.9% over the past 5 years.

Debt Coverage: 3308's debt is well covered by operating cash flow (21.3%).

Interest Coverage: 3308's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet

Inventory Level: 3308 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3308's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Golden Eagle Retail Group's current dividend yield, its reliability and sustainability?

4.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3308's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 3308's dividend (4.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: 3308's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3308's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), 3308's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3308's dividends in 3 years are forecast to be well covered by earnings (20.6% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Roger Wang (70yo)

1.83s

Tenure

Mr. Hung Wang, also known as Roger, has been Chief Executive Officer of Golden Eagle Retail Group Ltd since May 3, 2018. He established Golden Eagle International Group in 1992 and has been its Chairman an ...


Leadership Team

NamePositionTenureCompensationOwnership
Hung Wang
Chairman & CEO1.83yrsno data74.69% CN¥9.4b
Janice S. Wang
Executive Director3yrsCN¥128.00k0.095% CN¥11.9m
Pei Li
Presidentno datano datano data
Sui Hiong Chong
Co-President0.25yrno datano data
Zhuoming Feng
Co-President0.25yrno datano data
Ping Tai
CFO & Company Secretary10.83yrsno datano data
Yumin Huang
Executive Vice President2.67yrsno datano data
Hans Hendrik Diederen
MD & Executive Director1yrno datano data

1.5yrs

Average Tenure

52yo

Average Age

Experienced Management: 3308's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hung Wang
Chairman & CEO1.83yrsno data74.69% CN¥9.4b
Janice S. Wang
Executive Director3yrsCN¥128.00k0.095% CN¥11.9m
Hans Hendrik Diederen
MD & Executive Director1yrno datano data
Chi Keung Wong
Independent Non-Executive Director14yrsCN¥183.00kno data
Danny Lay
Independent Non-Executive Director4.83yrsCN¥122.00kno data
Ching Lo
Independent Non-Executive Director0.83yrno datano data

3.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 3308's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 3308 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Golden Eagle Retail Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Eagle Retail Group Limited
  • Ticker: 3308
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: HK$12.593b
  • Shares outstanding: 1.68b
  • Website: https://www.geretail.com

Number of Employees


Location

  • Golden Eagle Retail Group Limited
  • Block A
  • 17th Floor
  • Nanjing
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3308SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2006
GDNE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2006
G7EDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2006
3308SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2006

Biography

Golden Eagle Retail Group Limited, an investment holding company, develops and operates lifestyle center and stylish department store chain in the People’s Republic of China. It operates through Retail Operations; Property Development and Hotel Operations; and Other Operations segments. The company also operates supermarkets and hotels. As of December 31, 2018, the company operated 32 self-owned stores with a total gross floor area of 2,489,807 square meters and a total operating area of 1,707,555 square meters; and 15 lifestyle centers with a total gross floor area of 1,844,245 square meters in the People’s Republic of China. In addition, it engages in trading activities; property holding; and operation of pizza restaurants and aquariums. Further, Golden Eagle Retail Group Limited is involved in the automobile inspection, sale, distribution, and exhibition; property development; and branded fashion and footwear retail businesses. The company was incorporated in 2005 and is based in Nanjing, the People’s Republic of China. Golden Eagle Retail Group Limited is a subsidiary of Golden Eagle International Retail Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:51
End of Day Share Price2020/03/31 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.