Hop Fung Group Holdings Limited: Company Profile and SWOT Analysis by ICDResearch

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									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 ...................................................................................
								
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