SEHK:8395

Stock Analysis Report

Executive Summary

Tree Holdings Limited sells and distributes furniture and home accessories in the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-13.6%

8395

0.2%

HK Retail Distributors

2.9%

HK Market


1 Year Return

-25.5%

8395

-8.6%

HK Retail Distributors

0.7%

HK Market

Return vs Industry: 8395 underperformed the Hong Kong Retail Distributors industry which returned -8.6% over the past year.

Return vs Market: 8395 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

8395IndustryMarket
7 Day-13.6%0.2%2.9%
30 Day22.8%-2.7%-2.5%
90 Day16.7%2.8%-5.4%
1 Year-25.5%-25.5%-5.9%-8.6%4.4%0.7%
3 Yearn/a-25.5%-31.9%17.0%5.2%
5 Yearn/a-42.6%-51.8%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tree Holdings undervalued compared to its fair value and its price relative to the market?

61.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 8395's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 8395's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8395 is poor value based on its PE Ratio (61x) compared to the Retail Distributors industry average (12.6x).

PE vs Market: 8395 is poor value based on its PE Ratio (61x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 8395's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8395 is overvalued based on its PB Ratio (2.2x) compared to the HK Retail Distributors industry average (0.8x).


Next Steps

Future Growth

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

-0.6%

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 Tree 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 Tree Holdings performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8395's earnings have declined by -35.2% per year over the past 5 years.

Accelerating Growth: 8395 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8395 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-13.3%).


Return on Equity

High ROE: 8395's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: 8395's Return on Assets is below or equal to the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 8395's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tree Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8395's short term assets (HK$72.5M) exceeds its short term liabilities (HK$23.4M)

Long Term Liabilities: 8395's short term assets (72.5M) exceeds its long term liabilities (27.9M)


Debt to Equity History and Analysis

Debt Level: 8395's debt to equity ratio (0.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 8395's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8395's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8395's interest payments on its debt are well covered by EBIT (25x coverage).


Balance Sheet

Inventory Level: 8395 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8395's debt is covered by short term assets (assets are 154.515990x debt).


Next Steps

Dividend

What is Tree Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.3%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 8395's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8395'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 8395's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8395's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8395 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8395'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 Tree Holdings's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average management tenure


CEO

Joseph Tong (59yo)

0.2yrs

Tenure

HK$120,000

Compensation

Mr. Tong Tang, also known as Joseph, MBA, ACCA has been Chief Executive Officer of Tree Holdings Limited since August 1, 2019. Mr. Tong has been Chairman and Non-Executive Director at Tree Holdings Limited ...


Management Age and Tenure

0.2yrs

Average Tenure

42.5yo

Average Age

Experienced Management: 8395's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 8395's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$332,80411 Apr 19
Nicole Haslock
EntityIndividual
Shares5,120,000
Max PriceHK$0.065
SellHK$908,83815 Feb 19
Nicole Haslock
EntityIndividual
Shares12,800,000
Max PriceHK$0.071

Ownership Breakdown


Management Team

  • Joseph Tong (59yo)

    Chairman & CEO

    • Tenure: 0.2yrs
    • Compensation: HK$120.00k
  • Wing Tak Tsui (37yo)

    Compliance Officer & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$120.00k
  • Mary Kathleen Babington (48yo)

    Executive Director & MD of Tree Limited

    • Tenure: 3.6yrs
    • Compensation: HK$2.08m
  • Yiu Lim (37yo)

    Company Secretary

    • Tenure: 3.6yrs

Board Members

  • Joseph Tong (59yo)

    Chairman & CEO

    • Tenure: 0.2yrs
    • Compensation: HK$120.00k
  • Wing Tak Tsui (37yo)

    Compliance Officer & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$120.00k
  • Kenneth Sit (61yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$144.00k
  • Charles Yeung (51yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$144.00k
  • Mary Kathleen Babington (48yo)

    Executive Director & MD of Tree Limited

    • Tenure: 3.6yrs
    • Compensation: HK$2.08m
  • Wai Yin Tsang (58yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$144.00k

Company Information

Tree Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tree Holdings Limited
  • Ticker: 8395
  • Exchange: SEHK
  • Founded:
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: HK$110.880m
  • Shares outstanding: 1.58b
  • Website: https://www.treeholdings.com

Number of Employees


Location

  • Tree Holdings Limited
  • Horizon Plaza
  • 28th Floor
  • Ap Lei Chau
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8395SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2018

Biography

Tree Holdings Limited sells and distributes furniture and home accessories in the People’s Republic of China. It operates through Furniture Sale and Consultancy Services, and Furniture Agency Service segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:54
End of Day Share Price2019/10/11 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.