Is Shenguan Holdings (Group) Limited (HKG:829) Potentially Underrated?
Shenguan Holdings (Group) Limited (HKG:829) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 829, it is a financially-robust company with an impressive history high-grade dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Shenguan Holdings (Group) here.
Flawless balance sheet, good value and pays a dividend
829 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 829 appears to have made good use of debt, producing operating cash levels of 3.02x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 829's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 829's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the food, beverage & tobacco industry, 829 is also trading below its peers, relative to earnings generated. This further reaffirms that 829 is potentially undervalued.
829’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 12%.
Next Steps:
For Shenguan Holdings (Group), I've put together three key factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for 829’s future growth? Take a look at our free research report of analyst consensus for 829’s outlook.
Historical Performance: What has 829's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 829? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
