company background image
709

Giordano InternationalSEHK:709 Stock Report

Market Cap

HK$2.5b

7D

2.6%

1Y

16.3%

Updated

18 Oct, 2021

Data

Company Financials +
709 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends2/6

709 Overview

Giordano International Limited, an investment holding company, engages in the retail and distribution of men’s, women’s, and children’s fashion apparel and accessories worldwide.

Giordano International Competitors

Padini Holdings Berhad

KLSE:PADINI

RM2.1b

G3 Global Berhad

KLSE:G3

RM162.3m

Asia Brands Berhad

KLSE:ASIABRN

RM128.0m

Cheetah Holdings Berhad

KLSE:CHEETAH

RM118.9m

Price History & Performance

Summary of all time highs, changes and price drops for Giordano International
Historical stock prices
Current Share PriceHK$1.57
52 Week HighHK$1.12
52 Week LowHK$1.91
Beta0.54
1 Month Change0.64%
3 Month Change-0.63%
1 Year Change16.30%
3 Year Change-57.45%
5 Year Change-61.89%
Change since IPO-18.44%

Recent News & Updates

Aug 12
Analyst Forecasts Just Became More Bearish On Giordano International Limited (HKG:709)

Analyst Forecasts Just Became More Bearish On Giordano International Limited (HKG:709)

The analysts covering Giordano International Limited ( HKG:709 ) delivered a dose of negativity to shareholders today...

Shareholder Returns

709HK Specialty RetailHK Market
7D2.6%9.8%1.1%
1Y16.3%30.5%5.3%

Return vs Industry: 709 underperformed the Hong Kong Specialty Retail industry which returned 30.5% over the past year.

Return vs Market: 709 exceeded the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 709's price volatile compared to industry and market?
709 volatility
709 Beta0.54
Industry Beta0.90
Market Beta1

Stable Share Price: 709 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 709's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19815,900Peter Lauhttps://www.giordano.com

Giordano International Limited, an investment holding company, engages in the retail and distribution of men’s, women’s, and children’s fashion apparel and accessories worldwide. It operates through two segments, Retail and Distribution; and Wholesales to Overseas Franchisees. The company sells its products under the Giordano, Giordano Junior, Giordano Ladies, BSX, and other owned and licensed brands through its own stores, as well as third party franchisees.

Giordano International Fundamentals Summary

How do Giordano International's earnings and revenue compare to its market cap?
709 fundamental statistics
Market CapHK$2.48b
Earnings (TTM)HK$123.00m
Revenue (TTM)HK$3.39b

20.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
709 income statement (TTM)
RevenueHK$3.39b
Cost of RevenueHK$1.47b
Gross ProfitHK$1.92b
ExpensesHK$1.80b
EarningsHK$123.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.078
Gross Margin56.73%
Net Profit Margin3.63%
Debt/Equity Ratio6.0%

How did 709 perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

172%

Payout Ratio

Valuation

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

3.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 709 (HK$1.57) is trading below our estimate of fair value (HK$1.63)

Significantly Below Fair Value: 709 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 709 is poor value based on its PE Ratio (20.2x) compared to the Hong Kong Specialty Retail industry average (10.7x).

PE vs Market: 709 is poor value based on its PE Ratio (20.2x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 709 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 709's PB Ratio (1x) is in line with the HK Specialty Retail industry average.


Future Growth

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

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 709's forecast earnings growth (29.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 709's earnings (29.8% per year) are forecast to grow faster than the Hong Kong market (17.4% per year).

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

Revenue vs Market: 709's revenue (11.7% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 709's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 709's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Giordano International performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 709 has high quality earnings.

Growing Profit Margin: 709 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 709's earnings have declined by 35% per year over the past 5 years.

Accelerating Growth: 709 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 709 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (54.7%).


Return on Equity

High ROE: 709's Return on Equity (5.9%) is considered low.


Financial Health

How is Giordano International's financial position?


Financial Position Analysis

Short Term Liabilities: 709's short term assets (HK$1.9B) exceed its short term liabilities (HK$1.1B).

Long Term Liabilities: 709's short term assets (HK$1.9B) exceed its long term liabilities (HK$527.0M).


Debt to Equity History and Analysis

Debt Level: 709's debt to equity ratio (6%) is considered satisfactory.

Reducing Debt: 709's debt to equity ratio has increased from 0.1% to 6% over the past 5 years.

Debt Coverage: 709's debt is well covered by operating cash flow (365.1%).

Interest Coverage: 709's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

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

8.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 709's dividend (8.54%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 709's dividend (8.54%) is in the top 25% of dividend payers in the Hong Kong market (6.78%)


Stability and Growth of Payments

Stable Dividend: 709's dividend payments have been volatile in the past 10 years.

Growing Dividend: 709's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (171.9%), 709's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 709's dividends in 3 years are not forecast to be well covered by earnings (100.2% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Peter Lau (68 yo)

27.67yrs

Tenure

HK$5,075,000

Compensation

Dr. Kwok Kuen Lau, also known as Peter, CA, CMA, MBA, DBA, serves as Managing Director of Giordano International Limited and has been its Chief Executive Officer and Chairman since February 8, 1994 and Aug...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD652.44K) is above average for companies of similar size in the Hong Kong market ($USD342.08K).

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


Leadership Team

Experienced Management: 709's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: 709's board of directors are considered experienced (9.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 709 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

Giordano International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Giordano International Limited
  • Ticker: 709
  • Exchange: SEHK
  • Founded: 1981
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: HK$2.479b
  • Shares outstanding: 1.58b
  • Website: https://www.giordano.com

Number of Employees


Location

  • Giordano International Limited
  • Tin On Industrial Building
  • 5th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 15:08
End of Day Share Price2021/10/18 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.