Hosen Group (Catalist:5EV) - Share price, News & Analysis

Q: What is the Fair Price of 5EV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

5EV (SGD0.05) is trading below our estimate of [[fair value]] (SGD0.06)

5EV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

5EV Stock Overview

Rewards

Trading at 15.2% below our estimate of its fair value

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (SGD16M)

Hosen Group Competitors

Sunmoon Food

SGX:AAJ

S$21.8m

OneApex

Catalist:5SY

S$10.2m

Olam Group

SGX:VC2

S$5.8b

Atlanta Poland

WSE:ATP

zł54.2m

Price History & Performance

Summary of all time highs, changes and price drops for Hosen Group
Historical stock prices
Current Share Price	S$0.05
52 Week High	S$0.088
52 Week Low	S$0.054
Beta	0.88
1 Month Change	-15.25%
3 Month Change	-20.64%
1 Year Change	-42.53%
3 Year Change	25.00%
5 Year Change	6.38%
Change since IPO	-73.68%

Shareholder Returns

	5EV	SG Consumer Retailing	SG Market
7D	-7.4%	-2.3%	-1.4%
1Y	-42.5%	-15.6%	-5.6%

Return vs Industry: 5EV underperformed the SG Consumer Retailing industry which returned -15.6% over the past year.

Return vs Market: 5EV underperformed the SG Market which returned -5.6% over the past year.

Price Volatility

Is 5EV's price volatile compared to industry and market?
5EV volatility
5EV Average Weekly Movement	n/a
Consumer Retailing Industry Average Movement	4.7%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.2%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: Insufficient data to determine 5EV's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine 5EV's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1970	n/a	Hai Cheok Lim	https://www.hosengroup.com

Hosen Group Ltd., an investment holding company, engages in the development, trading, and distribution of canned seafood products, canned fruits and vegetables, canned meat products, and chocolate products in Singapore, Malaysia, China, and internationally. It operates through two segments, House Brands and Non-House Brands. The company offers a range of fruits, vegetables, condiments, and beverages in can, bottle, and pouch packaging under the Hosen brand name; canned seafood, such as braised abalone and various types of shellfish under the Fortune brand name; canned meat and breakfast spreads under the Highway brand; western products under the LaDiva brand; and chocolate products with various contents packed in bottle, pouch, and tin under the Sincero brand.

Hosen Group Fundamentals Summary

How do Hosen Group's earnings and revenue compare to its market cap?
5EV fundamental statistics
Market Cap	S$17.54m
Earnings (TTM)	S$2.41m
Revenue (TTM)	S$68.17m

6.7x

P/E Ratio

0.2x

P/S Ratio

Is 5EV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
5EV income statement (TTM)
Revenue	S$68.17m
Cost of Revenue	S$53.03m
Gross Profit	S$15.13m
Other Expenses	S$12.72m
Earnings	S$2.41m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0074
Gross Margin	22.20%
Net Profit Margin	3.54%
Debt/Equity Ratio	33.4%

How did 5EV perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 5EV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5EV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 5EV. This is calculated by dividing 5EV's market cap by their current preferred multiple.
What is 5EV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$17.54m

5EV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	6.8x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 5EV's PE Ratio compare to its peers?

5EV PE Ratio vs Peers

The above table shows the PE ratio for 5EV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	36.7x
AAJ Sunmoon Food	32.2x	n/a	S$21.8m
5SY OneApex	93.1x	n/a	S$10.2m
VC2 Olam Group	9.3x	n/a	S$5.8b
ATP Atlanta Poland	7.6x	n/a	zł54.2m
5EV Hosen Group	6.7x	n/a	S$16.2m

Forward PE

Price-To-Earnings vs Peers: 5EV is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does 5EV's PE Ratio compare vs other companies in the Asian Consumer Retailing Industry?

Price-To-Earnings vs Industry: 5EV is good value based on its Price-To-Earnings Ratio (6.7x) compared to the SG Consumer Retailing industry average (27x)

Price to Earnings Ratio vs Fair Ratio

What is 5EV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

5EV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 5EV's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 5EV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5EV (SGD0.05) is trading below our estimate of fair value (SGD0.06)

Significantly Below Fair Value: 5EV is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 5EV's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.3%

Forecasted Consumer Retailing 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 Hosen Group 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.

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Examine whether Hosen Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Hosen Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 5EV has high quality earnings.

Growing Profit Margin: 5EV's current net profit margins (3.5%) are lower than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: 5EV's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 5EV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5EV had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Consumer Retailing industry average (4.7%).

Return on Equity

High ROE: 5EV's Return on Equity (7.3%) is considered low.

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Financial Health

How is Hosen Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 5EV's short term assets (SGD38.1M) exceed its short term liabilities (SGD21.5M).

Long Term Liabilities: 5EV's short term assets (SGD38.1M) exceed its long term liabilities (SGD3.4M).

Debt to Equity History and Analysis

Debt Level: 5EV's net debt to equity ratio (9.1%) is considered satisfactory.

Reducing Debt: 5EV's debt to equity ratio has reduced from 43.9% to 33.4% over the past 5 years.

Debt Coverage: 5EV's debt is well covered by operating cash flow (30.6%).

Interest Coverage: 5EV's interest payments on its debt are well covered by EBIT (8.7x coverage).

Balance Sheet

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Dividend

What is Hosen Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 5EV's dividend (4%) is higher than the bottom 25% of dividend payers in the SG market (2.24%).

High Dividend: 5EV's dividend (4%) is low compared to the top 25% of dividend payers in the SG market (6.17%).

Stability and Growth of Payments

Stable Dividend: 5EV's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5EV's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.9%), 5EV's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.8%), 5EV's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

8.3yrs

Average management tenure

CEO

Hai Cheok Lim (73 yo)

40.33yrs

Tenure

S$165,600

Compensation

Mr. Hai Cheok Lim is a co-founder and serves as the Chief Executive Officer of Hosen Group Ltd. Mr. Lim has been the Managing Director of HSF since its incorporation as a private limited company on March 1...

Leadership Team

Experienced Management: 5EV's management team is seasoned and experienced (8.3 years average tenure).

Board Members

Experienced Board: 5EV's board of directors are seasoned and experienced ( 18 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/07/06 00:00
End of Day Share Price	2022/07/06 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31