SEHK:8016

Stock Analysis Report

Changhong Jiahua Holdings

Executive Summary

Changhong Jiahua Holdings Limited, an investment holding company, distributes information technology (IT) consumer products, IT corporate products, and other products in Mainland China and other regions.

Rewards

PE ratio (6.5x) is below the Hong Kong market (10.5x)

Earnings grew by 4.2% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Mediocre balance sheet with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8016's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

8016

0.8%

HK Electronic

1.6%

HK Market


1 Year Return

12.5%

8016

18.3%

HK Electronic

6.0%

HK Market

Return vs Industry: 8016 underperformed the Hong Kong Electronic industry which returned 19.1% over the past year.

Return vs Market: 8016 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8016IndustryMarket
7 Day0%0.8%1.6%
30 Day9.1%4.3%4.4%
90 Day35.8%16.7%8.6%
1 Year20.2%12.5%21.9%18.3%9.9%6.0%
3 Year-14.2%-25.0%19.0%9.4%27.7%14.7%
5 Year-14.9%-28.0%105.2%78.2%21.7%1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8016 (HK$0.73) is trading above our estimate of fair value (HK$0.38)

Significantly Below Fair Value: 8016 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8016 is good value based on its PE Ratio (6.5x) compared to the Electronic industry average (9.5x).

PE vs Market: 8016 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8016's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8016 is overvalued based on its PB Ratio (1.1x) compared to the HK Electronic industry average (1x).


Next Steps

Future Growth

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

25.4%

Forecasted Tech 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 Changhong Jiahua 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 Changhong Jiahua Holdings performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8016 has high quality earnings.

Growing Profit Margin: 8016's current net profit margins (1.1%) are lower than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 8016's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: 8016's earnings growth over the past year (4.2%) is below its 5-year average (10.3% per year).

Earnings vs Industry: 8016 earnings growth over the past year (4.2%) exceeded the Electronic industry -10.3%.


Return on Equity

High ROE: 8016's Return on Equity (15.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Changhong Jiahua Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8016's short term assets (HK$6.1B) exceed its short term liabilities (HK$4.4B).

Long Term Liabilities: 8016's short term assets (HK$6.1B) exceed its long term liabilities (HK$2.8M).


Debt to Equity History and Analysis

Debt Level: 8016's debt to equity ratio (74%) is considered high.

Reducing Debt: 8016's debt to equity ratio has increased from 56.6% to 74% over the past 5 years.

Debt Coverage: 8016's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8016's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: 8016 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8016's debt is covered by short term assets (assets are 4.6x debt).


Next Steps

Dividend

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

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.2%markettop25%6.0%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 8016's dividend (4.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 8016's dividend (4.11%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 8016 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8016 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), 8016's dividend payments are 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

What is the CEO of Changhong Jiahua Holdings's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Jianqiu Zhu (57yo)

0yrs

Tenure

HK$12,235,000

Compensation

Mr. Zhu Jianqiu has been the President and Executive Director of Changhong Jiahua Holdings Limited since April 15, 2013 and serves as its Compliance officer and Managing Director. Mr. Zhu is primarily resp ...


CEO Compensation Analysis

Compensation vs Market: Jianqiu's total compensation ($USD1.57M) is above average for companies of similar size in the Hong Kong market ($USD296.12K).

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


Management Age and Tenure

2.2yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 8016's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

49yo

Average Age

Experienced Board: 8016's board of directors are not considered experienced ( 2.7 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$43,200,14416 Jan 20
Sichuan Changhong Electric Co.,Ltd.
EntityCompany
Shares60,000,000
Max PriceHK$0.72

Ownership Breakdown

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


Management Team

  • Jianqiu Zhu (57yo)

    President

    • Compensation: HK$12.24m
  • Yong Zhao (57yo)

    Chairman of the Board

    • Tenure: 6.8yrs
  • Qilin Zhao (44yo)

    Joint Company Secretary

    • Tenure: 2.2yrs
    • Compensation: HK$494.00k
  • Jun Yang (49yo)

    Executive Director

    • Tenure: 2.7yrs
  • Yongping Luo (44yo)

    Executive Director

    • Tenure: 1yrs
  • Na Yang (38yo)

    Financial Controller

    • Tenure: 2.2yrs
  • Ching Kit Cheng

    Joint Company Secretary

    • Tenure: 1.7yrs

Board Members

  • Jianqiu Zhu (57yo)

    President

    • Compensation: HK$12.24m
  • Jonathan Chan (45yo)

    Independent Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: HK$200.00k
  • Yong Zhao (57yo)

    Chairman of the Board

    • Tenure: 6.8yrs
  • Jun Yang (49yo)

    Executive Director

    • Tenure: 2.7yrs
  • Xudong Gao (53yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Yongping Luo (44yo)

    Executive Director

    • Tenure: 1yrs
  • Qingbin Meng (39yo)

    Independent Non Executive Director

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: Changhong Jiahua Holdings Limited
  • Ticker: 8016
  • Exchange: SEHK
  • Founded:
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$1.876b
  • Shares outstanding: 2.57b
  • Website: https://www.changhongit.com.hk

Number of Employees


Location

  • Changhong Jiahua Holdings Limited
  • West Tower
  • 14th Floor, Unit 1412
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8016SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2000

Biography

Changhong Jiahua Holdings Limited, an investment holding company, distributes information technology (IT) consumer products, IT corporate products, and other products in Mainland China and other regions. The company's IT Consumer Products segment distributes personal computers, digital products, and IT accessories. Its IT Corporate Products segment distributes storage products, minicomputers, networking products, personal computer servers, intelligent building management system products, and unified communication and contact center products. The company's Others segment distributes smartphones; develops own brand products, such as mobile location-based service products; sells warranty packages; and provides professional integrated IT solutions and services. The company was formerly known as China Data Broadcasting Holdings Limited and changed its name to Changhong Jiahua Holdings Limited in January 2013. Changhong Jiahua Holdings Limited is headquartered in Central, Hong Kong. Changhong Jiahua Holdings Limited is a subsidiary of Sichuan Changhong Electronic Co., Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 13:08
End of Day Share Price2020/01/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.