SGX:DM0

Stock Analysis Report

Executive Summary

Hanwell Holdings Limited, together with its subsidiaries, supplies provisions and household consumer products in Singapore, Malaysia, China, and Japan.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.7%

DM0

1.3%

SG Packaging

0.9%

SG Market


1 Year Return

-6.8%

DM0

7.3%

SG Packaging

0.4%

SG Market

Return vs Industry: DM0 underperformed the SG Packaging industry which returned 7.3% over the past year.

Return vs Market: DM0 underperformed the SG Market which returned 0.4% over the past year.


Share holder returns

DM0IndustryMarket
7 Day5.7%1.3%0.9%
30 Day7.3%-2.6%-2.6%
90 Day2.5%-3.0%-6.8%
1 Year15.1%-6.8%10.1%7.3%4.4%0.4%
3 Year10.8%-12.8%-21.0%-25.7%15.5%3.1%
5 Year-8.7%-28.1%4.3%-6.4%11.6%-6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hanwell Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: DM0 (SGD0.21) is trading below our estimate of fair value (SGD1.3)

Significantly Undervalued: DM0 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: DM0 is good value based on its PE Ratio (10.8x) compared to the Packaging industry average (12.7x).

PE vs Market: DM0 is good value based on its PE Ratio (10.8x) compared to the SG market (13.3x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate DM0's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: DM0 is good value based on its PB Ratio (0.4x) compared to the XA Packaging industry average (0.9x).


Next Steps

Future Growth

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

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: DM0's forecast earnings growth (17.5% per year) is above the savings rate (2.3%).

Earnings vs Market: DM0's earnings (17.5% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: DM0's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if DM0's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if DM0's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if DM0's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hanwell Holdings performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DM0's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: DM0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DM0 had negative earnings growth (-32.3%) over the past year, making it difficult to compare to the Packaging industry average (5.9%).


Return on Equity

High ROE: DM0's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: DM0's Return on Assets is below or equal to the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: DM0 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hanwell Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DM0's short term assets (SGD378.7M) exceeds its short term liabilities (SGD176.4M)

Long Term Liabilities: DM0's short term assets (378.7M) exceeds its long term liabilities (40.1M)


Debt to Equity History and Analysis

Debt Level: DM0's debt to equity ratio (21.8%) is considered satisfactory

Reducing Debt: DM0's debt to equity ratio has increased from 13.1% to 21.8% over the past 5 years.

Debt Coverage: DM0's debt is well covered by operating cash flow (64%).

Interest Coverage: DM0 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DM0 has a high level of physical assets or inventory.

Debt Coverage by Assets: DM0's debt is covered by short term assets (assets are 5.017840x debt).


Next Steps

Dividend

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

4.88%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%2.5%markettop25%5.6%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: DM0's dividend (4.88%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: DM0's dividend (4.88%) is low compared to the top 25% of dividend payers in the SG market (5.57%).

Stable Dividend: DM0's dividend payments have been volatile in the past 10 years.

Growing Dividend: DM0's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.7%), DM0's dividend payments are 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 Hanwell Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Hanwell Holdings has no CEO, or we have no data on them.


Board Age and Tenure

4.3yrs

Average Tenure

47yo

Average Age

Experienced Board: DM0's board of directors are considered experienced (4.3 years average tenure).


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

BuyS$18,90017 Dec 18
Seng Hui Sam Goi
EntityIndividual
Shares100,000
Max PriceS$0.19

Ownership Breakdown


Management Team

  • Allan Yap (63yo)

    Executive Chairman

    • Tenure: 16.7yrs
    • Compensation: S$1.63m
  • See Loh (67yo)

    MD & CEO of Tat Seng Packaging Group Ltd

    • Tenure: 0yrs
  • Kok Liang Chew

    Company Secretary

    • Tenure: 7yrs
  • Cheuk Tang (47yo)

    Executive Director

    • Tenure: 8.2yrs
    • Compensation: S$767.83k
  • Eugene Yeo (64yo)

    Chief Operating Officer

    • Tenure: 3.2yrs
  • Sandy Wong

    Group Financial Controller

    • Tenure: 0yrs

Board Members

  • John Chen (65yo)

    Deputy Chairman

    • Tenure: 0yrs
    • Compensation: S$161.50k
  • Allan Yap (63yo)

    Executive Chairman

    • Tenure: 16.7yrs
    • Compensation: S$1.63m
  • Cheuk Tang (47yo)

    Executive Director

    • Tenure: 8.2yrs
    • Compensation: S$767.83k
  • Kenneth Goi (46yo)

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: S$40.00k
  • WeiLi Kong (52yo)

    Non-Executive & Independent Director

    • Tenure: 1.3yrs
    • Compensation: S$8.67k
  • Wai Siu (47yo)

    Non-Executive & Independent Director

    • Tenure: 1.3yrs
    • Compensation: S$8.67k
  • Jasper Goh (37yo)

    Non-Executive & Independent Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Hanwell Holdings Limited
  • Ticker: DM0
  • Exchange: SGX
  • Founded: 1974
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: S$106.809m
  • Shares outstanding: 553.42m
  • Website: https://www.hanwell.com.sg

Location

  • Hanwell Holdings Limited
  • 348 Jalan Boon Lay
  • Singapore
  • 619529
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DM0SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

Hanwell Holdings Limited, together with its subsidiaries, supplies provisions and household consumer products in Singapore, Malaysia, China, and Japan. The company operates through two segments, Consumer E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:39
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.

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