OTCPK:HENG.Y

Stock Analysis Report

Executive Summary

Hengdeli Holdings Limited, together with its subsidiaries, engages in the retail sale of watches.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

HENG.Y

1.8%

US Specialty Retail

1.0%

US Market


1 Year Return

n/a

HENG.Y

6.7%

US Specialty Retail

8.0%

US Market

Return vs Industry: Insufficient data to determine how HENG.Y performed against the US Specialty Retail industry.

Return vs Market: Insufficient data to determine how HENG.Y performed against the US Market.


Shareholder returns

HENG.YIndustryMarket
7 Day0%1.8%1.0%
30 Day-8.9%4.7%-0.07%
90 Dayn/a3.7%-1.0%
1 Yearn/a8.6%6.7%10.4%8.0%
3 Yearn/a42.0%34.7%46.2%36.7%
5 Year-53.9%-73.7%56.4%43.0%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HENG.Y ($1.02) is trading above our estimate of fair value ($0.62)

Significantly Below Fair Value: HENG.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HENG.Y is poor value based on its PE Ratio (19.8x) compared to the Specialty Retail industry average (15.4x).

PE vs Market: HENG.Y is poor value based on its PE Ratio (19.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HENG.Y is good value based on its PB Ratio (0.3x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

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

11.5%

Forecasted Retail 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 Hengdeli Holdings 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.


Next Steps

Past Performance

How has Hengdeli Holdings performed over the past 5 years?

-48.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HENG.Y's earnings have declined by -48.2% per year over the past 5 years.

Accelerating Growth: HENG.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HENG.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (8.3%).


Return on Equity

High ROE: HENG.Y's Return on Equity (1.8%) is considered low.


Return on Assets

ROA vs Industry: HENG.Y's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Hengdeli Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HENG.Y's short term assets (CN¥3.7B) exceeds its short term liabilities (CN¥412.6M)

Long Term Liabilities: HENG.Y's short term assets (3.7B) exceeds its long term liabilities (140.2M)


Debt to Equity History and Analysis

Debt Level: HENG.Y's debt to equity ratio (3.3%) is considered satisfactory

Reducing Debt: HENG.Y's debt to equity ratio has reduced from 62.7% to 3.3% over the past 5 years.

Debt Coverage: HENG.Y's debt is well covered by operating cash flow (210.7%).

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


Balance Sheet

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

Debt Coverage by Assets: HENG.Y's debt is covered by short term assets (assets are 25.230820x debt).


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HENG.Y's dividend (4.16%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HENG.Y's dividend (4.16%) is in the top 25% of dividend payers in the US market (3.68%)

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.2%), HENG.Y's 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 Hengdeli Holdings's salary, the management and board of directors tenure and is there insider trading?

12.3yrs

Average board tenure


CEO

Yuping Zhang (58yo)

0yrs

Tenure

CN¥3,823,000

Compensation

Mr. Zhang Yuping alias Cheung Yu Ping has been founded Hengdeli Holdings Limited in September 2001 and serves as its Executive Chairman and Chief Executive Officer. Mr. Zhang is in charge of the Xinyu Heng ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Yuping's total compensation is reasonable compared to companies of similar size in the US market.

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


Board Age and Tenure

12.3yrs

Average Tenure

59yo

Average Age

Experienced Board: HENG.Y's board of directors are seasoned and experienced ( 12.3 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.


Ownership Breakdown


Management Team

  • Stan Lee (59yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥1.90m
  • Yuping Zhang (58yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥3.82m
  • Peter Ng (48yo)

    Financial Controller & Secretary

    • Tenure: 0yrs
  • Yonghua Huang (48yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.62m

Board Members

  • Stan Lee (59yo)

    Executive Director

    • Tenure: 6.4yrs
    • Compensation: CN¥1.90m
  • Yuping Zhang (58yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥3.82m
  • William Wong (59yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥85.00k
  • Yonghua Huang (48yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.62m
  • Jianmin Cai (75yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥85.00k
  • Zhongyang Shi (44yo)

    Non-Executive Director

    • Tenure: 13.7yrs
    • Compensation: CN¥85.00k
  • Xueling Liu (61yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: CN¥85.00k

Company Information

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


Key Information

  • Name: Hengdeli Holdings Limited
  • Ticker: HENG.Y
  • Exchange: OTCPK
  • Founded: 1957
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$1.492b
  • Listing Market Cap: HK$190.251m
  • Shares outstanding: 4.66b
  • Website: https://www.hengdeligroup.com

Number of Employees


Location

  • Hengdeli Holdings Limited
  • Lippo Sun Plaza
  • Room 301
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3389SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2005
XYUADB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2005
HENG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2005
HENG.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2012

Biography

Hengdeli Holdings Limited, together with its subsidiaries, engages in the retail sale of watches. The company is also involved in watch accessories manufacturing activities, including furniture and items u ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:21
End of Day Share Price2019/10/08 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.