SEHK:8222

Stock Analysis Report

E Lighting Group Holdings

Executive Summary

E Lighting Group Holdings Limited, an investment holding company, engages in the retail sale of lighting, designer label furniture, and household products in the People’s Republic of China, North America, Vietnam, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-19.5%

8222

1.8%

HK Specialty Retail

2.4%

HK Market


1 Year Return

-59.2%

8222

2.2%

HK Specialty Retail

0.4%

HK Market

Return vs Industry: 8222 underperformed the Hong Kong Specialty Retail industry which returned 2.2% over the past year.

Return vs Market: 8222 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

8222IndustryMarket
7 Day-19.5%1.8%2.4%
30 Day26.5%-4.2%-2.6%
90 Day-4.6%-8.0%-5.6%
1 Year-59.2%-59.2%7.6%2.2%4.0%0.4%
3 Year-82.8%-82.8%21.0%7.2%15.1%3.5%
5 Year-94.9%-94.9%-8.2%-26.1%20.3%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is E Lighting Group Holdings undervalued compared to its fair value and its price relative to the market?

28.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 8222 (HK$0.06) is trading below our estimate of fair value (HK$0.09)

Significantly Undervalued: 8222 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 8222 is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: 8222 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8222's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8222 is overvalued based on its PB Ratio (1.3x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

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

8.7%

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 E Lighting Group Holdings 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 E Lighting Group Holdings performed over the past 5 years?

-47.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8222 is unprofitable, and losses have increased over the past 5 years at a rate of -47.6% per year.

Accelerating Growth: Unable to compare 8222's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8222 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (1.4%).


Return on Equity

High ROE: 8222 has a negative Return on Equity (-113.63%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 8222 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 8222 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is E Lighting Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8222's short term assets (HK$24.9M) exceeds its short term liabilities (HK$7.6M)

Long Term Liabilities: 8222's short term assets (24.9M) exceeds its long term liabilities (2.0K)


Debt to Equity History and Analysis

Debt Level: 8222 is debt free.

Reducing Debt: 8222 has no debt compared to 5 years ago when its debt to equity ratio was 14.4%.


Balance Sheet

Inventory Level: 8222 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8222's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8222 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8222 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 59.1% per year.


Next Steps

Dividend

What is E Lighting Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage5.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8222's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8222's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 8222's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8222's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8222's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of E Lighting Group Holdings's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average board tenure


CEO

Raymond Hui (56yo)

0yrs

Tenure

HK$2,283,000

Compensation

Mr. Kwok Keung Hui, also known as Raymond, is Founder of E Lighting Group Holdings Limited. Mr. Hui serves as Chief Executive Officer of E Lighting Group Holdings Limited and has been its Executive Directo ...


CEO Compensation Analysis

Compensation vs. Market: Raymond's total compensation ($USD291.04K) is above average for companies of similar size in the Hong Kong market ($USD211.40K).

Compensation vs Earnings: Raymond's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

5.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 8222's board of directors are considered experienced (5.1 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

  • Boris Hue (53yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$672.00k
  • Raymond Hui (56yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$2.28m
  • Stephen Chou (56yo)

    Senior Business Manager

    • Tenure: 0yrs
    • Compensation: HK$461.00k
  • Peng Lin Wong (46yo)

    Operation Manager

    • Tenure: 0yrs
  • Chi Yan Lam (36yo)

    Deputy Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Kwok Wing Hui (57yo)

    Chief Creative Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$522.00k

Board Members

  • Matthew Leung (53yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$180.00k
  • Edwin Chung (55yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$180.00k
  • Ann Yeung (54yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$180.00k
  • Boris Hue (53yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$672.00k
  • Raymond Hui (56yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$2.28m
  • Kwok Wing Hui (57yo)

    Chief Creative Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$522.00k

Company Information

E Lighting Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: E Lighting Group Holdings Limited
  • Ticker: 8222
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: HK$28.866m
  • Shares outstanding: 451.04m
  • Website: https://www.elighting.asia

Number of Employees


Location

  • E Lighting Group Holdings Limited
  • Tiffan Tower
  • 10th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8222SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2014

Biography

E Lighting Group Holdings Limited, an investment holding company, engages in the retail sale of lighting, designer label furniture, and household products in the People’s Republic of China, North America,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:55
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.