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.

Snowflake

Fundamentals

Proven track record and fair value.

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


Market Performance


7 Day Return

2.0%

8016

0.9%

HK Electronic

2.4%

HK Market


1 Year Return

-20.3%

8016

-2.3%

HK Electronic

0.4%

HK Market

Return vs Industry: 8016 underperformed the Hong Kong Electronic industry which returned -2.3% over the past year.

Return vs Market: 8016 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

8016IndustryMarket
7 Day2.0%0.9%2.4%
30 Day2.0%-1.8%-2.6%
90 Day-8.9%3.1%-5.6%
1 Year-14.9%-20.3%1.0%-2.3%4.0%0.4%
3 Year-37.3%-45.2%-2.2%-9.9%15.1%3.5%
5 Year-47.6%-55.7%53.0%32.9%20.3%0.3%

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?

4.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 8016 (HK$0.51) is trading above our estimate of fair value (HK$0.35)

Significantly Undervalued: 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 (4.4x) compared to the Electronic industry average (8.8x).

PE vs Market: 8016 is good value based on its PE Ratio (4.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 good value based on its PB Ratio (0.7x) compared to the HK Electronic industry average (0.9x).


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?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8016's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: 8016's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: 8016's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 8016's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 8016's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 8016's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Changhong Jiahua Holdings performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 8016's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 8016's earnings growth over the past year (14.1%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: 8016 earnings growth over the past year (14.1%) exceeded the Electronic industry -12.9%.


Return on Equity

High ROE: 8016's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: 8016 has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 8016's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (HK$4.4B)

Long Term Liabilities: 8016's short term assets (6.1B) exceeds its long term liabilities (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 43.5% 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 (5.9x 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 4.585970x debt).


Next Steps

Dividend

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

5.88%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 8016's dividend (5.88%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 8016's dividend (5.88%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

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%), 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?

1.9yrs

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 ($USD1.56M) is about average for companies of similar size in the Hong Kong market ($USD281.84K).

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


Management Age and Tenure

1.9yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 8016's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

49yo

Average Age

Experienced Board: 8016'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.


Ownership Breakdown


Management Team

  • Jianqiu Zhu (57yo)

    President

    • Tenure: 0yrs
    • Compensation: HK$12.24m
  • Yong Zhao (57yo)

    Chairman of the Board

    • Tenure: 6.5yrs
  • Qilin Zhao (44yo)

    Joint Company Secretary

    • Tenure: 1.9yrs
    • Compensation: HK$494.00k
  • Jun Yang (49yo)

    Executive Director

    • Tenure: 2.4yrs
  • Yongping Luo (44yo)

    Executive Director

    • Tenure: 0.8yrs
  • Na Yang (38yo)

    Financial Controller

    • Tenure: 1.9yrs
  • Ching Kit Cheng

    Joint Company Secretary

    • Tenure: 1.4yrs

Board Members

  • Jianqiu Zhu (57yo)

    President

    • Tenure: 0yrs
    • Compensation: HK$12.24m
  • Jonathan Chan (45yo)

    Independent Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: HK$200.00k
  • Yong Zhao (57yo)

    Chairman of the Board

    • Tenure: 6.5yrs
  • Jun Yang (49yo)

    Executive Director

    • Tenure: 2.4yrs
  • Xudong Gao (53yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Yongping Luo (44yo)

    Executive Director

    • Tenure: 0.8yrs
  • Qingbin Meng (39yo)

    Independent Non Executive Director

    • Tenure: 0.4yrs

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$1.311b
  • 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. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:50
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.