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10-04-2021, 11:54 PM
(This post was last modified: 12-04-2021, 07:25 PM by Supervalue.)
Firstly I'd like to express my excitement about being the first person to submit too the Hong Kong companies beginning with Q Forum. I just now need to find an HK company beginning with U in order to be the first in that forum too!
Valuation Ratios
I’ve worked out these as the valuation measures for Q P Group as of today at a price of $1.17 HK:
Dividend Yield 10%
P/B 0.78
P/C 3.14
P/E 4.67
P/S 0.49
And according to Yahoo
EV/EBITDA 2.09
These are some of the best stats I’ve found for a Hong Kong company at this time with decent share price momentum for the last 6 months (possibly some of the best I’ve seen in the world right now). And a 10% dividend - that's crazy! Especially in Hong Kong.
Overview
Most of my investments are in property at the moment. With this in mind I am really excited about this company – it’s really cool and different.
They manufacture paper products and offer printing services. They are headquartered in Hong Kong but have 2 key production plants in China. They’ve got 30 years track record and have customers in the US and Europe.
Principle products: table top games, greeting cards, educational items and premium packaging.
Business Segments
They have:
1) Large business customers. (Original Equipment Manufacturers - OEM) who buy in bulk then sell products themselves through their own distribution and sales networks, and
2) Smaller business customers. Two large customers include an international greetings cards company and an international educational toys company.
Despite Covid, profit increased 53% this financial year (ending 31 December 2020). The company have introduced various cost cutting measures to mitigate effects of Covid to some extent.
Revenue was only up 3.3% - but there’s good reason for this. OEM (large business customers) sales reduced 1.4% - it actually looked a lot worse in the 1st half of the year as US and European customers were postponing orders due to Covid. But various solutions were proffered and this is actually an impressive result in light of the problems that were originally encountered.
However, as a result of lockdowns in several territories, customers have shifted to online and digital solutions as well as reduced contact channels, for purchasing goods. As a result, web sales have increased from $103m to $158m HKD – a 53% increase. The Group saw a sales increase of nearly 400% on jigsaw puzzles at www.createjigsawpuzzles.com mainly from the US (obviously from people being stuck at home so purchasing jigsaws). Importantly, active registered user accounts on all their product sites increased 37% - which in my book represents potential for returning customers. Web sales have a higher profit margin the OEM - hence greater profits this year despite overall revenue growth of only 3.3%.
A long-term strategy for the business has been to grow web sales – so in fact the events of the past year may have helped this. The group has also seen more customers in Europe this year, and will seek to diversify sales in different territories.
The group will continue to employ more staff in the web services division in order to improve their competitive advantage and concentrate on further expansion.
US - China Trade Wars
Another really positive thing is that the company has had trouble due to it’s China based production plants and continued US/China trade conflict. As a result, the company intends to set up a production site in Vietnam, which will produce products for the US. This will also diversify the operational risks.
Worst Case Scenario
In my mind, the worst case scenario will be that as Covid recedes, people will reduce their purchase of products like jigsaws. But my thoughts about this are
1) As workplaces get up and running again, so the OEM sales will start picking up which will offset some of the potential reduced jigsaw and web sales.
2) As mentioned above, registered accounts are up 37% which offers potential for further direct marketing and return sales.
3) The company has had an injection of extra profit. In my experience, strong management typically make good use of the cash injection. If extra cash is invested well this could generate further growth - e.g. the company is employing more staff in web sales and seeking to diversify sales in different territories.
Web based products
Check out their cool web based product websites - love these - much more interesting the my property companies.
www.makeplayingcards.com
www.boardgamesmaker.com
www.printerstudio.com
www.createjigsawpuzzles.com
Reviews
Here are some reviews by Simply Wall Street
https://simplywall.st/stocks/hk/consumer...areholders
https://simplywall.st/stocks/hk/consumer...-that-good
https://simplywall.st/stocks/hk/consumer...us-with-si
Valuation Ratios
I’ve worked out these as the valuation measures for Q P Group as of today at a price of $1.17 HK:
Dividend Yield 10%
P/B 0.78
P/C 3.14
P/E 4.67
P/S 0.49
And according to Yahoo
EV/EBITDA 2.09
These are some of the best stats I’ve found for a Hong Kong company at this time with decent share price momentum for the last 6 months (possibly some of the best I’ve seen in the world right now). And a 10% dividend - that's crazy! Especially in Hong Kong.
Overview
Most of my investments are in property at the moment. With this in mind I am really excited about this company – it’s really cool and different.
They manufacture paper products and offer printing services. They are headquartered in Hong Kong but have 2 key production plants in China. They’ve got 30 years track record and have customers in the US and Europe.
Principle products: table top games, greeting cards, educational items and premium packaging.
Business Segments
They have:
1) Large business customers. (Original Equipment Manufacturers - OEM) who buy in bulk then sell products themselves through their own distribution and sales networks, and
2) Smaller business customers. Two large customers include an international greetings cards company and an international educational toys company.
Despite Covid, profit increased 53% this financial year (ending 31 December 2020). The company have introduced various cost cutting measures to mitigate effects of Covid to some extent.
Revenue was only up 3.3% - but there’s good reason for this. OEM (large business customers) sales reduced 1.4% - it actually looked a lot worse in the 1st half of the year as US and European customers were postponing orders due to Covid. But various solutions were proffered and this is actually an impressive result in light of the problems that were originally encountered.
However, as a result of lockdowns in several territories, customers have shifted to online and digital solutions as well as reduced contact channels, for purchasing goods. As a result, web sales have increased from $103m to $158m HKD – a 53% increase. The Group saw a sales increase of nearly 400% on jigsaw puzzles at www.createjigsawpuzzles.com mainly from the US (obviously from people being stuck at home so purchasing jigsaws). Importantly, active registered user accounts on all their product sites increased 37% - which in my book represents potential for returning customers. Web sales have a higher profit margin the OEM - hence greater profits this year despite overall revenue growth of only 3.3%.
A long-term strategy for the business has been to grow web sales – so in fact the events of the past year may have helped this. The group has also seen more customers in Europe this year, and will seek to diversify sales in different territories.
The group will continue to employ more staff in the web services division in order to improve their competitive advantage and concentrate on further expansion.
US - China Trade Wars
Another really positive thing is that the company has had trouble due to it’s China based production plants and continued US/China trade conflict. As a result, the company intends to set up a production site in Vietnam, which will produce products for the US. This will also diversify the operational risks.
Worst Case Scenario
In my mind, the worst case scenario will be that as Covid recedes, people will reduce their purchase of products like jigsaws. But my thoughts about this are
1) As workplaces get up and running again, so the OEM sales will start picking up which will offset some of the potential reduced jigsaw and web sales.
2) As mentioned above, registered accounts are up 37% which offers potential for further direct marketing and return sales.
3) The company has had an injection of extra profit. In my experience, strong management typically make good use of the cash injection. If extra cash is invested well this could generate further growth - e.g. the company is employing more staff in web sales and seeking to diversify sales in different territories.
Web based products
Check out their cool web based product websites - love these - much more interesting the my property companies.
www.makeplayingcards.com
www.boardgamesmaker.com
www.printerstudio.com
www.createjigsawpuzzles.com
Reviews
Here are some reviews by Simply Wall Street
https://simplywall.st/stocks/hk/consumer...areholders
https://simplywall.st/stocks/hk/consumer...-that-good
https://simplywall.st/stocks/hk/consumer...us-with-si