SEHK:693

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Tan Chong International

Executive Summary

Tan Chong International Limited, an investment holding company, distributes and retails motor vehicles in Singapore, Malaysia, the People’s Republic of China, the Philippines, Cambodia, Vietnam, Thailand, Japan, and internationally.


Snowflake Analysis

Excellent balance sheet second-rate dividend payer.

Share Price & News

How has Tan Chong International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 693 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

693

-1.4%

HK Retail Distributors

0.8%

HK Market


1 Year Return

-14.0%

693

-16.3%

HK Retail Distributors

5.5%

HK Market

Return vs Industry: 693 exceeded the Hong Kong Retail Distributors industry which returned -16.3% over the past year.

Return vs Market: 693 underperformed the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

693IndustryMarket
7 Day0.5%-1.4%0.8%
30 Day3.6%-2.5%-2.4%
90 Day9.2%5.3%7.6%
1 Year-8.8%-14.0%-14.2%-16.3%9.8%5.5%
3 Year-2.2%-15.8%-36.2%-40.4%2.1%-8.9%
5 Year-1.2%-21.4%-44.3%-49.6%12.7%-6.2%

Price Volatility Vs. Market

How volatile is Tan Chong International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tan Chong International undervalued compared to its fair value and its price relative to the market?

19.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 693 (HK$2.02) is trading above our estimate of fair value (HK$1.35)

Significantly Below Fair Value: 693 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 693 is poor value based on its PE Ratio (19.1x) compared to the HK Retail Distributors industry average (11.7x).

PE vs Market: 693 is poor value based on its PE Ratio (19.1x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 693's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 693 is good value based on its PB Ratio (0.4x) compared to the HK Retail Distributors industry average (0.6x).


Next Steps

Future Growth

How is Tan Chong International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.1%

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 Tan Chong 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.


Next Steps

Past Performance

How has Tan Chong International performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 693 has a large one-off gain of HK$159.9M impacting its December 31 2019 financial results.

Growing Profit Margin: 693's current net profit margins (1.5%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 693's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: 693's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 693 had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Retail Distributors industry average (5%).


Return on Equity

High ROE: 693's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Tan Chong International's financial position?


Financial Position Analysis

Short Term Liabilities: 693's short term assets (HK$9.3B) exceed its short term liabilities (HK$5.9B).

Long Term Liabilities: 693's short term assets (HK$9.3B) exceed its long term liabilities (HK$1.1B).


Debt to Equity History and Analysis

Debt Level: 693's debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: 693's debt to equity ratio has reduced from 32.8% to 25.7% over the past 5 years.

Debt Coverage: 693's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: 693 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Tan Chong International current dividend yield, its reliability and sustainability?

5.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 693's dividend (5.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 693's dividend (5.45%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.82%).


Stability and Growth of Payments

Stable Dividend: 693's dividends per share have been stable in the past 10 years.

Growing Dividend: 693's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104%), 693'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?

9.0yrs

Average management tenure


CEO

Glenn Tan (42 yo)

3yrs

Tenure

HK$8,857,000

Compensation

Mr. Chun Hong Tan, also known as Glenn, serves as the Chief Executive Officer of Subaru Motor Distribution Businesses at Tan Chong International Ltd. Mr. Tan has been Managing Director of Tan Chong Interna ...


CEO Compensation Analysis

Compensation vs Market: Glenn's total compensation ($USD1.14M) is above average for companies of similar size in the Hong Kong market ($USD305.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eng Soon Tan
Executive Chairman14.75yrsHK$31.56m11.84%
HK$ 481.6m
Chun Hong Tan
MD & Deputy Chairman3yrsHK$8.86m0.0049%
HK$ 200.1k
Chiew Sng
Finance Director & Executive Director22.67yrsHK$7.85m0.045%
HK$ 1.8m
Kheng Tan
Executive Directorno dataHK$4.41m0.12%
HK$ 4.9m
Chow Lee
Head of the Property Development & Seat Manufacturing Divisionno datano datano data
Leng Goh
Head of Corporate Affairsno datano datano data
Siok Teo
Head of Operations - P.R China & Joint Secretary9yrsno datano data
Pingyen Liew
Joint Secretary9yrsno datano data

9.0yrs

Average Tenure

69yo

Average Age

Experienced Management: 693's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eng Soon Tan
Executive Chairman14.75yrsHK$31.56m11.84%
HK$ 481.6m
Chun Hong Tan
MD & Deputy Chairman3yrsHK$8.86m0.0049%
HK$ 200.1k
Chiew Sng
Finance Director & Executive Director22.67yrsHK$7.85m0.045%
HK$ 1.8m
Kheng Tan
Executive Directorno dataHK$4.41m0.12%
HK$ 4.9m
Azman Bin Badrillah
Independent Non-Executive Director5.33yrsHK$344.00kno data
Yong Ong
Deputy Chairman10.75yrsHK$200.00k0.12%
HK$ 4.9m
Kim Ng
Independent Non-Executive Director9.17yrsHK$399.00kno data
Prechaya Ebrahim
Independent Non-Executive Director5.17yrsHK$200.00kno data
Ek Teo
Independent Non-Executive Director4.17yrsHK$374.00k0.015%
HK$ 606.0k

7.3yrs

Average Tenure

71yo

Average Age

Experienced Board: 693'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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Tan Chong International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tan Chong International Limited
  • Ticker: 693
  • Exchange: SEHK
  • Founded: 1957
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$4.067b
  • Shares outstanding: 2.01b
  • Website: https://www.tanchong.com

Number of Employees


Location

  • Tan Chong International Limited
  • Shui On Centre
  • Unit 3001, 30th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
T15SGX (Singapore Exchange)YesOrdinary SharesSGHKDJul 1998
693SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1998

Biography

Tan Chong International Limited, an investment holding company, distributes and retails motor vehicles in Singapore, Malaysia, the People’s Republic of China, the Philippines, Cambodia, Vietnam, Thailand, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 12:31
End of Day Share Price2020/08/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.