OTCPK:HCIN.F

Stock Analysis Report

Executive Summary

HC Group Inc., an investment holding company, provides business information services through online and offline channels in the People’s Republic of China.


Snowflake Analysis

Imperfect balance sheet with limited growth.

Share Price & News

How has HC Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HCIN.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HCIN.F

3.2%

US Trade Distributors

5.3%

US Market


1 Year Return

n/a

HCIN.F

-24.5%

US Trade Distributors

-10.7%

US Market

Return vs Industry: Insufficient data to determine how HCIN.F performed against the US Trade Distributors industry.

Return vs Market: Insufficient data to determine how HCIN.F performed against the US Market.


Shareholder returns

HCIN.FIndustryMarket
7 Day0%3.2%5.3%
30 Day0%-23.4%-13.6%
90 Dayn/a-34.3%-19.8%
1 Yearn/a-23.0%-24.5%-8.9%-10.7%
3 Year-63.2%-63.2%-16.1%-20.1%15.5%8.0%
5 Year-86.3%-86.3%0.4%-7.1%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HC Group undervalued compared to its fair value and its price relative to the market?

0.85x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HCIN.F ($0.25) is trading above our estimate of fair value ($0.02)

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


Price To Earnings Ratio

PE vs Industry: HCIN.F is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: HCIN.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HCIN.F is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is HC Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCIN.F is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HCIN.F is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HCIN.F is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HCIN.F's revenue (36.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: HCIN.F's revenue (36.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has HC Group performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCIN.F is currently unprofitable.

Growing Profit Margin: HCIN.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HCIN.F is unprofitable, but has reduced losses over the past 5 years at a rate of 6.8% per year.

Accelerating Growth: Unable to compare HCIN.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HCIN.F is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-7.3%).


Return on Equity

High ROE: HCIN.F has a negative Return on Equity (-1.8%), as it is currently unprofitable.


Next Steps

Financial Health

How is HC Group's financial position?


Financial Position Analysis

Short Term Liabilities: HCIN.F's short term assets (CN¥3.7B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: HCIN.F's short term assets (CN¥3.7B) exceed its long term liabilities (CN¥1.5B).


Debt to Equity History and Analysis

Debt Level: HCIN.F's debt to equity ratio (49.7%) is considered high.

Reducing Debt: HCIN.F's debt to equity ratio has increased from 12.7% to 49.7% over the past 5 years.


Balance Sheet

Inventory Level: HCIN.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: HCIN.F's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HCIN.F has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: HCIN.F has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is HC Group's current dividend yield, its reliability and sustainability?

0.52%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HCIN.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HCIN.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HCIN.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HCIN.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Yonghong Zhang (51yo)

0.75

Tenure

Mr. Yonghong Zhang has been Executive Director and Chief Executive Officer of the HC Group Inc since January 04, 2019 and served as its Co-President since August 26, 2018 until January 04, 2019. Mr. Zhang  ...


Leadership Team

NamePositionTenureCompensationOwnership
Jun Liu
Chairman & Compliance Officer1.58yrsCN¥42.02m4.48% CN¥22.3m
Xiaodong Liu
President & Executive Director1.33yrsCN¥2.99m5.56% CN¥27.7m
Wee Lee
Chief Financial Officer0.75yrCN¥1.99m2.26% CN¥11.3m
Lei Wu
Executive Vice Presidentno datano datano data
Bingchen Song
Executive Vice Presidentno datano datano data
Yonghong Zhang
CEO & Executive Director0.75yrno data0.0089% CN¥44.5k
Gang Guo
Chief Technology Officer and Vice Presidentno datano datano data
Qingguo Lu
General Counsel & Secretaryno datano datano data
Tao Li
Chief Marketing Officer and Vice Presidentno datano datano data
Yi Geng
Chief Human Resources Officer and Senior Vice-Presidentno datano data0.012% CN¥61.4k

0.8yrs

Average Tenure

43.5yo

Average Age

Experienced Management: HCIN.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jun Liu
Chairman & Compliance Officer1.58yrsCN¥42.02m4.48% CN¥22.3m
Xiaodong Liu
President & Executive Director1.33yrsCN¥2.99m5.56% CN¥27.7m
Yonghong Zhang
CEO & Executive Director0.75yrno data0.0089% CN¥44.5k
Fansheng Guo
Non-Executive Director19.58yrsno data5.15% CN¥25.7m
Ke Zhang
Independent Non Executive Director16.58yrsCN¥250.00kno data
Jianguang Li
Non-Executive Director13.17yrsno data2.86% CN¥14.2m
Tim Tianwei Zhang
Independent Non Executive Director7.92yrsCN¥220.00kno data
Yan Qi
Independent Non-Executive Director1.92yrsCN¥220.00kno data
Yang Sun
Non Executive Director0.42yrno datano data

1.9yrs

Average Tenure

54yo

Average Age

Experienced Board: HCIN.F's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HCIN.F insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

HC Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HC Group Inc.
  • Ticker: HCIN.F
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$3.911b
  • Listing Market Cap: HK$498.586m
  • Shares outstanding: 1.12b
  • Website: https://www.hcgroup.com

Number of Employees


Location

  • HC Group Inc.
  • Tower A1
  • 7th Floor, Junhao Central Park Plaza
  • Beijing
  • 100026
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HCIN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2003
2280SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2003
HCIBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2003
2280SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2003

Biography

HC Group Inc., an investment holding company, provides business information services through online and offline channels in the People’s Republic of China. It operates through Technology-Driven New Retail, Smart Industries, Platform and Corporate Services, and O2O business exhibition centre segments. The Technology-Driven New Retail segment is involved in the integrated offline and online retail of electronics products; and provision of IT-related product information services through zol.com.cn. Its Smart Industries segment primarily include ibuychem.com, a B2B trading platform for chemical rubber and plastics industry; Union Cotton, a spot transaction platform for cotton; www.efu.com.cn for apparel retail; and Z-SCM, a proprietary supply chain management system for enterprises, as well as offers anti-counterfeiting products and services; B2B e-business service for household appliances; and design, installation, maintenance, refurbishment, supply chain finance, and sub-leasing and leasing services for construction formwork industry under the China Formwork name. The Platform and Corporate Services segment provides industrial search result prioritizing services through its B2B Website hc360.com, cross-industrial integrated marketing and advertising services, and financing services, including micro-credit and lease financing, and factoring services. Its O2O business exhibition centre segment constructs, rents, manages, and sells properties; and hosts exhibitions and seminars. The company also provides loans, trading and agency, and construction equipment rental services. In addition, it offers Software as a Service in 3C industrial Internet and new technology retail solutions. The company was formerly known as HC International, Inc. and changed its name to HC Group Inc. in July 2018. HC Group Inc. was founded in 1992 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/05 00:01
End of Day Share Price2019/07/08 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.