OTCPK:VDAH.F

Stock Analysis Report

Vinda International Holdings

Executive Summary

Vinda International Holdings Limited, an investment holding company, manufactures and sells household paper and personal care products in Mainland China, Hong Kong, Malaysia, Taiwan, and internationally.

Rewards

Trading at 21.9% below its fair value

Earnings are forecast to grow 10.69% per year

Earnings grew by 75.3% over the past year

Risk Analysis

Shares are highly illiquid

Has a high level of debt



Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

VDAH.F

1.1%

US Household Products

0.06%

US Market


1 Year Return

n/a

VDAH.F

23.3%

US Household Products

19.4%

US Market

Return vs Industry: Insufficient data to determine how VDAH.F performed against the US Household Products industry.

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


Shareholder returns

VDAH.FIndustryMarket
7 Day0%1.1%0.06%
30 Day11.4%-0.6%1.1%
90 Day36.1%4.4%8.9%
1 Yearn/a26.4%23.3%21.9%19.4%
3 Yearn/a46.0%33.9%48.9%39.3%
5 Yearn/a71.1%47.4%71.9%53.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Vinda International Holdings undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VDAH.F ($2.45) is trading below our estimate of fair value ($3.14)

Significantly Below Fair Value: VDAH.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VDAH.F is good value based on its PE Ratio (20.9x) compared to the Household Products industry average (28.1x).

PE vs Market: VDAH.F is poor value based on its PE Ratio (20.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: VDAH.F is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: VDAH.F is good value based on its PB Ratio (2.5x) compared to the US Household Products industry average (4x).


Next Steps

Future Growth

How is Vinda International Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VDAH.F's forecast earnings growth (10.7% per year) is above the savings rate (1.7%).

Earnings vs Market: VDAH.F's earnings (10.7% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: VDAH.F's revenue (8.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VDAH.F's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VDAH.F's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Vinda International Holdings performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VDAH.F has high quality earnings.

Growing Profit Margin: VDAH.F's current net profit margins (7.1%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: VDAH.F's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: VDAH.F's earnings growth over the past year (75.3%) exceeds its 5-year average (12.1% per year).

Earnings vs Industry: VDAH.F earnings growth over the past year (75.3%) exceeded the Household Products industry -14%.


Return on Equity

High ROE: VDAH.F's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vinda International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: VDAH.F's short term assets (HK$5.9B) exceed its short term liabilities (HK$5.6B).

Long Term Liabilities: VDAH.F's short term assets (HK$5.9B) exceed its long term liabilities (HK$4.2B).


Debt to Equity History and Analysis

Debt Level: VDAH.F's debt to equity ratio (43.9%) is considered high.

Reducing Debt: VDAH.F's debt to equity ratio has reduced from 87.8% to 43.9% over the past 5 years.

Debt Coverage: VDAH.F's debt is well covered by operating cash flow (60.5%).

Interest Coverage: VDAH.F's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: VDAH.F's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: VDAH.F's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VDAH.F's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

Growing Dividend: VDAH.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.4%), VDAH.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VDAH.F's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

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

5.3yrs

Average board tenure


CEO

Johann Michalski (53yo)

4.3yrs

Tenure

HK$9,376,042

Compensation

Mr. Johann Christoph Michalski has been the Chief Executive Officer and Executive Director of Vinda International Holdings Limited since October 1, 2015. Mr. Michalski serves as the President of Svenska Ce ...


CEO Compensation Analysis

Compensation vs Market: Johann's total compensation ($USD1.21M) is below average for companies of similar size in the US market ($USD4.89M).

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


Board Members

NamePositionTenureCompensationOwnership
Chao Wang Li
Founder & Executive Chairman19.8yrsHK$8.00m0.025% HK$757.2k
Johann Michalski
CEO & Executive Director4.3yrsHK$9.38m0.0098% HK$295.2k
Yi Fang Yu
Co-Founder & Vice Chairman10.1yrsHK$5.20m0.0042% HK$126.1k
Yi Dong
CTO of Mainland China & Executive Director20yrsHK$5.20mno data
Jielin Li
Chief HR Officer4.3yrsHK$5.44mno data
Jan Johansson
Vice Chairman5.1yrsHK$2.72mno data
King Fai Tsui
Independent Non-Executive Director12.7yrsHK$413.78kno data
Yen On Chia
Independent Non-Executive Director4.3yrsHK$321.20kno data
Kwai Huen Wong
Independent Non-Executive Director5.4yrsHK$371.20kno data
Carl Groth
Non-Executive Director4.6yrsno datano data

5.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VDAH.F's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Vinda International Holdings Limited
  • Ticker: VDAH.F
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Household Products
  • Sector: Household
  • Market Cap: HK$23.442b
  • Listing Market Cap: HK$3.018b
  • Shares outstanding: 1.20b
  • Website: https://www.vinda.com

Number of Employees


Location

  • Vinda International Holdings Limited
  • Penthouse
  • East Ocean Centre
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3331SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2007
31VDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2007
VDAH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2007
3331SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2007
VDAH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJul 2012

Biography

Vinda International Holdings Limited, an investment holding company, manufactures and sells household paper and personal care products in Mainland China, Hong Kong, Malaysia, Taiwan, and internationally. It offers tissues under Tempo, Vinda, and TORK brand names; incontinence products under TENA and Dr.P brand names; feminine care products under Libresse and VIA brand names; and baby care products under Libero and Drypers brand names. The company is also involved in the trade of wood pulp and machinery; and provision of home health care and health management consulting services, as well as import and export activities. In addition, it produces and sells steam; and offers property management services. The company was founded in 1985 and is based in Tsim Sha Tsui, Hong Kong. Vinda International Holdings Limited is a subsidiary of Essity Group Holding BV. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:21
End of Day Share Price2020/02/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.