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6909

BetterLife Holding SEHK:6909 Stock Report

Last Price

HK$4.74

Market Cap

HK$3.0b

7D

5.8%

1Y

n/a

Updated

26 Jun, 2022

Data

Company Financials +
6909 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance3/6
Financial Health5/6
Dividends3/6

6909 Stock Overview

BetterLife Holding Limited provides automobile dealership services with a focus on luxury and ultra-luxury brands in China.

BetterLife Holding Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for BetterLife Holding
Historical stock prices
Current Share PriceHK$4.74
52 Week HighHK$9.70
52 Week LowHK$4.30
Beta0
1 Month Change5.80%
3 Month Change-0.21%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO-13.82%

Recent News & Updates

Shareholder Returns

6909HK Specialty RetailHK Market
7D5.8%2.6%2.1%
1Yn/a-27.6%-23.3%

Return vs Industry: Insufficient data to determine how 6909 performed against the Hong Kong Specialty Retail industry.

Return vs Market: Insufficient data to determine how 6909 performed against the Hong Kong Market.

Price Volatility

Is 6909's price volatile compared to industry and market?
6909 volatility
6909 Average Weekly Movement6.9%
Specialty Retail Industry Average Movement7.2%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 6909 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 6909's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19981,320Patrick Chouhttps://www.blchina.com

BetterLife Holding Limited provides automobile dealership services with a focus on luxury and ultra-luxury brands in China. It also sells various new automobiles, as well as after-sales products and services, including repair and maintenance services; and accessories and other automobile-related products. In addition, the company provides insurance agency and automobile license plate registration services; and automobile-related value-added services, such as automobile financing and pre-owned automobile brokerage services.

BetterLife Holding Fundamentals Summary

How do BetterLife Holding's earnings and revenue compare to its market cap?
6909 fundamental statistics
Market CapCN¥2.51b
Earnings (TTM)CN¥456.03m
Revenue (TTM)CN¥9.96b

5.5x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6909 income statement (TTM)
RevenueCN¥9.96b
Cost of RevenueCN¥8.80b
Gross ProfitCN¥1.17b
Other ExpensesCN¥709.81m
EarningsCN¥456.03m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.73
Gross Margin11.70%
Net Profit Margin4.58%
Debt/Equity Ratio8.0%

How did 6909 perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

26%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6909 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6909?

Other financial metrics that can be useful for relative valuation.

6909 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA2.7x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does 6909's PE Ratio compare to its peers?

6909 PE Ratio vs Peers
The above table shows the PE ratio for 6909 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.5x

Price-To-Earnings vs Peers: 6909 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (7.5x).


Price to Earnings Ratio vs Industry

How does 6909's PE Ratio compare vs other companies in the Hong Kong Specialty Retail Industry?

Price-To-Earnings vs Industry: 6909 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Hong Kong Specialty Retail industry average (10.3x)


Price to Earnings Ratio vs Fair Ratio

What is 6909's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6909 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio12.2x

Price-To-Earnings vs Fair Ratio: 6909 is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).


Share Price vs Fair Value

What is the Fair Price of 6909 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6909 (HK$4.74) is trading below our estimate of fair value (HK$5.79)

Significantly Below Fair Value: 6909 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: 6909 is good value based on its PEG Ratio (0.2x)


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Future Growth

How is BetterLife Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6909's forecast earnings growth (23.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 6909's earnings (23.4% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 6909's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6909's revenue (22% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 6909's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6909's Return on Equity is forecast to be high in 3 years time (20.5%)


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Past Performance

How has BetterLife Holding performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


94.1%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: 6909 has high quality earnings.

Growing Profit Margin: 6909's current net profit margins (4.6%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6909's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6909's past year earnings growth to its 5-year average.

Earnings vs Industry: 6909 earnings growth over the past year (94.1%) exceeded the Specialty Retail industry 46.2%.


Return on Equity

High ROE: 6909's Return on Equity (20%) is considered low.


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Financial Health

How is BetterLife Holding's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6909's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥966.1M).

Long Term Liabilities: 6909's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥385.4M).


Debt to Equity History and Analysis

Debt Level: 6909 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 6909's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6909's debt is well covered by operating cash flow (181.3%).

Interest Coverage: 6909's interest payments on its debt are well covered by EBIT (107.1x coverage).


Balance Sheet


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Dividend

What is BetterLife Holding current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6909's dividend (5.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 6909's dividend (5.45%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6909's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6909's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.5%), 6909's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.4%), 6909's dividend payments are covered by cash flows.


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Management

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

1.5yrs

Average management tenure


CEO

Patrick Chou (52 yo)

1.5yrs

Tenure

CN¥2,126,000

Compensation

Mr. Hsiao-Po Chou, is also known as Patrick is Executive Chairman of the Board and Chief Executive Officer at Betterlife Holding Ltd. since December 2020. He joined the group in September 1998.He has been...


CEO Compensation Analysis

Compensation vs Market: Patrick's total compensation ($USD317.82K) is about average for companies of similar size in the Hong Kong market ($USD393.76K).

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


Leadership Team

Experienced Management: 6909's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6909's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: 6909 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 6909 only recently listed within the past 12 months.


Top Shareholders

Company Information

BetterLife Holding Limited's employee growth, exchange listings and data sources


Key Information

  • Name: BetterLife Holding Limited
  • Ticker: 6909
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: HK$2.951b
  • Shares outstanding: 622.50m
  • Website: https://www.blchina.com

Number of Employees


Location

  • BetterLife Holding Limited
  • Beijing Eco. and Techno Development Area
  • No. 1, Donghuan North Road
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.