Hop Fung Group Holdings Limited
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Hop Fung Group Holdings Limited Financial Snapshot
Operating Performance
Fast Facts
22nd Floor, Workshops E, F & H, Tsuen The company reported revenue of US$183.90 million
Headquarters Address
Wan, ,Hong Kong during the fiscal year 2010 (2010). The company's
revenue grew at a CAGR of 15.61% during 2006–
Telephone + 852 2416 8100
2010, with an annual growth of 54.35% over 2009. In
2010, the company recorded an operating margin of
Fax + 852 2414 5508 7.30%, as against 11.48% in 2009.
Website www.hopfunggroup.com
Revenue and Margins
Ticker Symbol, Stock Exchange 2320, Hong Kong Stock Exchange
Number of Employees 1,800
Fiscal Year End December
Revenue (in US$ million) 183.90
Revenue (in HKD million) 1,428.89
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
7.56% for 2010, as compared to its peers, China
Dependence on Imported Recovered Paper Holdings Limited (Ticker: C71), Henan Yinge
Integrated Business Operations
Paper Industrial Investment Co Ltd (Ticker: 600069) and
Shandong Huatai Paper Company Limited (Ticker:
Strong Customer Base 600308), which recorded ROEs of 9.45%, 1.66% and
1.52% respectively. The company reported an
Strong Manufacturing Capabilities operating margin of 7.30% in 2010.
Opportunities Threats Return on Equity
Fluctuations in Recovered Paper
Business Expansion Initiatives
Prices
Growing Industry Consolidation in
Growth of Substitutes
China
Strong Growth in Packaging Industry
Liquidity Position
The company reported a current ratio of 1.03 in 2010,
as compared to its peers, China Paper Holdings
Limited, Henan Yinge Industrial Investment Co Ltd
and Shandong Huatai Paper Company Limited, which
recorded current ratios of 9.75, 1.24 and 0.71
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$26.14 million, against US$56.54 million current
debt. The company reported a debt to equity ratio of
0.82 in 2010 as compared to its peers, China Paper
Holdings Limited, Henan Yinge Industrial Investment
Co Ltd and Shandong Huatai Paper Company
Limited, which recorded debt to equity ratios of 0.00,
1.38 and 1.16 respectively.
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Hop Fung Group Holdings Limited - SWOT Profile Page 1
Hop Fung Group Holdings Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Operational Efficiency ......................................................................................................................................13
2.2.5 Solvency ..........................................................................................................................................................14
2.2.6 Valuation ..........................................................................................................................................................15
2.3 Competitive Benchmarking ..................................................................................................................................16
2.3.1 Market Capitalization .......................................................................................................................................16
2.3.2 Efficiency ..........................................................................................................................................................17
2.3.3 Capital Expenditure ..........................................................................................................................................18
2.3.4 Turnover – Inventory and Asset ...................................................................................