SEHK:8395

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8395's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.3%

8395

-0.06%

HK Retail Distributors

0.04%

HK Market


1 Year Return

120.6%

8395

-15.8%

HK Retail Distributors

0.3%

HK Market

Return vs Industry: 8395 exceeded the Hong Kong Retail Distributors industry which returned -15.8% over the past year.

Return vs Market: 8395 exceeded the Hong Kong Market which returned 0.3% over the past year.


Shareholder returns

8395IndustryMarket
7 Day-6.3%-0.06%0.04%
30 Day11.1%1.6%6.1%
90 Day59.6%-7.7%1.0%
1 Year120.6%120.6%-13.6%-15.8%4.5%0.3%
3 Yearn/a-49.5%-52.4%-5.8%-16.1%
5 Yearn/a-41.8%-47.7%18.1%-1.9%

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?

46.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8395 (HK$0.15) is trading above our estimate of fair value (HK$0.01)

Significantly Below Fair Value: 8395 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8395 is poor value based on its PE Ratio (46.4x) compared to the HK Retail Distributors industry average (15.4x).

PE vs Market: 8395 is poor value based on its PE Ratio (46.4x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

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 (4.3x) compared to the HK Retail Distributors industry average (0.6x).


Next Steps

Future Growth

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

7.8%

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?

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8395 has a large one-off loss of HK$3.4M impacting its June 30 2020 financial results.

Growing Profit Margin: 8395's current net profit margins (5.8%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 8395 has become profitable over the past 5 years, growing earnings by 39.2% per year.

Accelerating Growth: 8395's earnings growth over the past year (177.8%) exceeds its 5-year average (39.2% per year).

Earnings vs Industry: 8395 earnings growth over the past year (177.8%) exceeded the Retail Distributors industry 7.2%.


Return on Equity

High ROE: 8395's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Tree Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8395's short term assets (HK$80.8M) exceed its short term liabilities (HK$46.1M).

Long Term Liabilities: 8395's short term assets (HK$80.8M) exceed its long term liabilities (HK$27.5M).


Debt to Equity History and Analysis

Debt Level: 8395's debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: 8395's debt to equity ratio has reduced from 17.3% to 10.3% over the past 5 years.

Debt Coverage: 8395's debt is well covered by operating cash flow (43.5%).

Interest Coverage: 8395's interest payments on its debt are well covered by EBIT (13.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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 the Hong Kong market.


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

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

1.2yrs

Average management tenure


CEO

Joseph Tong (60 yo)

1.17yrs

Tenure

HK$120,000

Compensation

Mr. Tang Tong, 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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Tang Tong
Chairman & CEO1.17yrsHK$120.00k70%
HK$ 166.3m
Wing Tak Tsui
Compliance Officer & Executive Director4.58yrsHK$120.00kno data
Mary Kathleen Babington
Executive Director & MD of Tree Limited4.58yrsHK$2.20m3.75%
HK$ 8.9m
Yiu Cho Lam
Company Secretary4.58yrsno datano data

1.2yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 8395's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tang Tong
Chairman & CEO1.17yrsHK$120.00k70%
HK$ 166.3m
Wing Tak Tsui
Compliance Officer & Executive Director4.58yrsHK$120.00kno data
Mary Kathleen Babington
Executive Director & MD of Tree Limited4.58yrsHK$2.20m3.75%
HK$ 8.9m
Hoi Wah Sit
Independent Non-Executive Director2.75yrsHK$144.00kno data
Man Chung Yeung
Independent Non-Executive Director2.75yrsHK$144.00kno data
Wai Yin Tsang
Independent Non-Executive Director2.75yrsHK$144.00kno data
Dahai Bian
Non-Executive Directorno datano datano data

3.4yrs

Average Tenure

52yo

Average Age

Experienced Board: 8395's board of directors are considered experienced (3.4 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

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$237.600m
  • 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 Analysis2020/10/28 12:44
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.