SEHK:335

Stock Analysis Report

Executive Summary

Upbest Group Limited, an investment holding company, provides a range of financial services primarily in the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

335

1.0%

HK Retail Distributors

0.8%

HK Market


1 Year Return

-2.9%

335

-7.9%

HK Retail Distributors

0.5%

HK Market

Return vs Industry: 335 exceeded the Hong Kong Retail Distributors industry which returned -7.9% over the past year.

Return vs Market: 335 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

335IndustryMarket
7 Day0%1.0%0.8%
30 Day0%-2.4%-0.5%
90 Day-1.0%0.2%-5.6%
1 Year-0.9%-2.9%-5.2%-7.9%4.1%0.5%
3 Year-24.1%-29.3%-26.2%-32.6%15.5%3.9%
5 Year71.1%54.7%-41.0%-50.6%19.9%-0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Upbest Group undervalued compared to its fair value and its price relative to the market?

10.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 335 (HK$0.99) is trading above our estimate of fair value (HK$0.29)

Significantly Undervalued: 335 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 335 is good value based on its PE Ratio (10.4x) compared to the Retail Distributors industry average (12.4x).

PE vs Market: 335 is poor value based on its PE Ratio (10.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 335's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 335 is overvalued based on its PB Ratio (1x) compared to the HK Retail Distributors industry average (0.8x).


Next Steps

Future Growth

How is Upbest Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 335's earnings are forecast to decline over the next 3 years (-7.3% per year).

Earnings vs Market: 335's earnings are forecast to decline over the next 3 years (-7.3% per year).

High Growth Earnings: 335's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 335's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 335's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 335's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Upbest Group performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 335's earnings have declined by -10.8% per year over the past 5 years.

Accelerating Growth: 335's earnings growth over the past year (55.6%) exceeds its 5-year average (-10.8% per year).

Earnings vs Industry: 335 earnings growth over the past year (55.6%) exceeded the Retail Distributors industry -13.3%.


Return on Equity

High ROE: 335's Return on Equity (9.9%) is considered low.


Return on Assets

ROA vs Industry: 335 has a higher Return on Assets than the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 335's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Upbest Group's financial position?


Financial Position Analysis

Short Term Liabilities: 335's short term assets (HK$1.1B) exceeds its short term liabilities (HK$260.8M)

Long Term Liabilities: 335 has no long term liabilities


Debt to Equity History and Analysis

Debt Level: 335's debt to equity ratio (0.1%) is considered satisfactory

Reducing Debt: 335's debt to equity ratio has reduced from 5% to 0.1% over the past 5 years.

Debt Coverage: 335's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 335's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 335 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 335's debt is covered by short term assets (assets are 386.640660x debt).


Next Steps

Dividend

What is Upbest Group's current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.3%markettop25%6.3%industryaverage5.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 335's dividend (2.02%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 335's dividend (2.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 335's dividend payments have been volatile in the past 10 years.

Growing Dividend: 335's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.1%), 335'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 Upbest Group's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average board tenure


CEO

Annie Cheng (40yo)

0yrs

Tenure

HK$560,000

Compensation

Ms. Cheng Wai Ling, also known as Annie, ACA, CPA has been the Chief Executive Officer of Upbest Group Limited since June 2014. Ms. Cheng served as Company Secretary of Upbest Group Limited from November 3 ...


CEO Compensation Analysis

Compensation vs. Market: Annie's total compensation ($USD71.41K) is about average for companies of similar size in the Hong Kong market ($USD299.33K).

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


Board Age and Tenure

11.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 335's board of directors are seasoned and experienced ( 11.8 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

  • Andrew Cheng (46yo)

    Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$303.00k
  • Annie Cheng (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$560.00k
  • Kwai Hang Mok (55yo)

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$1.56m
  • Shing Him Yuen (33yo)

    Company Secretary

    • Tenure: 1.6yrs

Board Members

  • Alan Chan (52yo)

    Independent Non-Executive Director

    • Tenure: 12.1yrs
    • Compensation: HK$50.00k
  • David Ip (73yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: HK$50.00k
  • Andrew Cheng (46yo)

    Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$303.00k
  • Annie Cheng (40yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$560.00k
  • Ping Fat Sze (61yo)

    Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: HK$50.00k
  • Kai Tik Poon (66yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$50.00k
  • Kwai Hang Mok (55yo)

    Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$1.56m
  • Ivan Hui (40yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$50.00k

Company Information

Upbest Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Upbest Group Limited
  • Ticker: 335
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$2.655b
  • Shares outstanding: 2.68b
  • Website: https://www.upbest.com

Number of Employees


Location

  • Upbest Group Limited
  • Wah Kit Commercial Centre
  • 2nd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
335SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2000

Biography

Upbest Group Limited, an investment holding company, provides a range of financial services primarily in the People’s Republic of China. The company operates through seven segments: Broking, Financing, Cor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:35
End of Day Share Price2019/10/18 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.