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Wealthy Way Group

SEHK:3848
Snowflake Description

Imperfect balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3848
SEHK
HK$978M
Market Cap
  1. Home
  2. HK
  3. Diversified Financials
Company description

Wealthy Way Group Limited, an investment holding company, provides financial leasing, factoring, and advisory services to individual and companies in the People's Republic of China. The last earnings update was 181 days ago. More info.


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3848 Share Price and Events
7 Day Returns
-5.3%
SEHK:3848
4.2%
HK Diversified Financial
4%
HK Market
1 Year Returns
-22.3%
SEHK:3848
-31%
HK Diversified Financial
-20.3%
HK Market
3848 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wealthy Way Group (3848) -5.3% -5% -4.8% -22.3% - -
HK Diversified Financial 4.2% -10.1% -16.5% -31% -47.6% -66.6%
HK Market 4% -11.9% -15.8% -20.3% -13% -22.3%
1 Year Return vs Industry and Market
  • 3848 outperformed the Diversified Financial industry which returned -31% over the past year.
  • 3848 underperformed the Market in Hong Kong which returned -20.3% over the past year.
Price Volatility
3848
Industry
5yr Volatility vs Market

3848 Value

 Is Wealthy Way Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wealthy Way Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wealthy Way Group.

SEHK:3848 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= CN¥3.38 * 5.4%
CN¥0.18
Book Value of Equity per Share Median Book Value from the past 5 years. CN¥3.38
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3848
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.1%
Diversified Financial Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.712 (1 + (1- 25%) (94.92%))
1.146
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.146 * 6.07%)
8.51%

Discounted Cash Flow Calculation for SEHK:3848 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Wealthy Way Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:3848 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5.4% – 8.51%) * CN¥3.38)
CN¥-0.10
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= CN¥-0.10 / (8.51% - 1.55%)
CN¥-1.50
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= CN¥3.38 + CN¥-1.50
CN¥1.88
SEHK:3848 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3848)
1.092
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.88 x 1.092
HK$2.05
Value per share (HKD) From above. HK$2.05
Current discount Discount to share price of HK$6.29
= -1 x (HK$6.29 - HK$2.05) / HK$2.05
-206.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wealthy Way Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wealthy Way Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wealthy Way Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3848 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CNY CN¥0.17
SEHK:3848 Share Price ** SEHK (2020-03-27) in HKD HK$6.29
SEHK:3848 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥5.76
Hong Kong Diversified Financial Industry PE Ratio Median Figure of 15 Publicly-Listed Diversified Financial Companies 6.92x
Hong Kong Market PE Ratio Median Figure of 1,494 Publicly-Listed Companies 8.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wealthy Way Group.

SEHK:3848 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3848 Share Price ÷ EPS (both in CNY)

= 5.76 ÷ 0.17

34.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wealthy Way Group is overvalued based on earnings compared to the HK Diversified Financial industry average.
  • Wealthy Way Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Wealthy Way Group's expected growth come at a high price?
Raw Data
SEHK:3848 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Asia Diversified Financial Industry PEG Ratio Median Figure of 20 Publicly-Listed Diversified Financial Companies 0.63x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.63x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Wealthy Way Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Wealthy Way Group's assets?
Raw Data
SEHK:3848 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CNY CN¥3.74
SEHK:3848 Share Price * SEHK (2020-03-27) in HKD HK$6.29
SEHK:3848 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.915 CN¥5.76
Hong Kong Diversified Financial Industry PB Ratio Median Figure of 28 Publicly-Listed Diversified Financial Companies 0.47x
Hong Kong Market PB Ratio Median Figure of 2,250 Publicly-Listed Companies 0.71x
SEHK:3848 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3848 Share Price ÷ Book Value per Share (both in CNY)

= 5.76 ÷ 3.74

1.54x

* Primary Listing of Wealthy Way Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wealthy Way Group is overvalued based on assets compared to the HK Diversified Financial industry average.
X
Value checks
We assess Wealthy Way Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Diversified Financial industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Diversified Financial industry average (and greater than 0)? (1 check)
  5. Wealthy Way Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3848 Future Performance

 How is Wealthy Way Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Wealthy Way Group 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected Diversified Financial industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wealthy Way Group expected to grow at an attractive rate?
  • Unable to compare Wealthy Way Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Wealthy Way Group's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Wealthy Way Group's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:3848 Future Growth Rates Data Sources
Data Point Source Value (per year)
Asia Diversified Financial Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Diversified Financial Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3848 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3848 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-06-30 69 94 24
2019-03-31 59 162 24
2018-12-31 49 230 24
2018-09-30 53 99 25
2018-06-30 56 -31 26
2018-03-31 60 -258 26
2017-12-31 63 -485 26
2017-09-30 64 -416 29
2017-06-30 64 -347 31
2017-03-31 62 -132 30
2016-12-31 59 83 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Wealthy Way Group is high growth as no earnings estimate data is available.
  • Unable to determine if Wealthy Way Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3848 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (8 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Wealthy Way Group Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3848 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-06-30 0.17
2019-03-31 0.17
2018-12-31 0.16
2018-09-30 0.17
2018-06-30 0.18
2018-03-31 0.20
2017-12-31 0.21
2017-09-30 0.20
2017-06-30 0.29
2017-03-31 0.28
2016-12-31 0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Wealthy Way Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of 3848’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Wealthy Way Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Diversified Financials companies here
  3. Wealthy Way Group's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Wealthy Way Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wealthy Way Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3848 Past Performance

  How has Wealthy Way Group performed over the past 5 years?

  • Wealthy Way Group's last earnings update was 181 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wealthy Way Group's growth in the last year to its industry (Diversified Financial).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wealthy Way Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Wealthy Way Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Wealthy Way Group's 1-year earnings growth is negative, it can't be compared to the HK Diversified Financial industry average.
Earnings and Revenue History
Wealthy Way Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wealthy Way Group Company Filings, last reported 8 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3848 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 69.01 24.32 18.47
2019-03-31 59.22 23.98 15.86
2018-12-31 49.43 23.64 13.25
2018-09-30 52.78 24.95 13.41
2018-06-30 56.12 26.27 12.84
2018-03-31 59.65 26.33 15.07
2017-12-31 63.18 26.39 17.30
2017-09-30 63.83 28.81 12.89
2017-06-30 64.48 31.23 8.49
2017-03-31 61.56 30.40 7.23
2016-12-31 58.65 29.56 5.96
2015-12-31 44.63 24.74 5.61
2014-12-31 35.32 21.75 2.33

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wealthy Way Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wealthy Way Group used its assets less efficiently than the HK Diversified Financial industry average last year based on Return on Assets.
  • Unable to establish if Wealthy Way Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Wealthy Way Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Diversified Financial industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wealthy Way Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3848 Health

 How is Wealthy Way Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wealthy Way Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wealthy Way Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wealthy Way Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wealthy Way Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wealthy Way Group Company Filings, last reported 8 months ago.

SEHK:3848 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 756.15 840.16 39.84
2019-03-31 756.15 840.16 39.84
2018-12-31 676.45 784.06 61.20
2018-09-30 676.45 784.06 61.20
2018-06-30 466.07 617.48 21.50
2018-03-31 466.07 617.48 21.50
2017-12-31 486.50 673.01 55.97
2017-09-30 486.50 673.01 55.97
2017-06-30 307.90 745.08 97.81
2017-03-31 307.90 745.08 97.81
2016-12-31 298.86 359.44 107.37
2015-12-31 264.20 333.14 4.77
2014-12-31 239.63 50.00 52.48
  • Wealthy Way Group's level of debt (111.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Wealthy Way Group's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Wealthy Way Group's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Wealthy Way Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wealthy Way Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3848 Dividends

 What is Wealthy Way Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.46%
Current annual income from Wealthy Way Group dividends.
If you bought HK$2,000 of Wealthy Way Group shares you are expected to receive HK$9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wealthy Way Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.65%).
  • Wealthy Way Group's dividend is below the markets top 25% of dividend payers in Hong Kong (7.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3848 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Diversified Financial Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 6.5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 4.2%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.4%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.6%
Hong Kong Top 25% Dividend Yield 75th Percentile 7.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3848 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-05-31 0.026 0.454

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wealthy Way Group is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • Wealthy Way Group is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Wealthy Way Group's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Wealthy Way Group's dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Wealthy Way Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wealthy Way Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wealthy Way Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3848 Management

 What is the CEO of Wealthy Way Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wai Lo
COMPENSATION CN¥521,000
AGE 49
CEO Bio

Mr. Wai Ho Lo is the Founder of Wealthy Way Group Limited in 2012 and serves as its Chief Executive Officer. Mr. Lo is mainly responsible for the overall strategic planning and management of Wealthy Way Group Limited. He has over 23 years of experience in the areas of corporate management, finance and property development. He serves as Chairman of Wealthy Way Group Limited and has been its Executive Director since December 10, 2015.

CEO Compensation
  • Wai's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Wai's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Wealthy Way Group management team in years:

1.1
Average Tenure
36
Average Age
  • The average tenure for the Wealthy Way Group management team is less than 2 years, this suggests a new team.
Management Team

Wai Lo

TITLE
Founder
COMPENSATION
CN¥521K
AGE
49

Winnie Chan

TITLE
Executive Director
COMPENSATION
CN¥521K
AGE
53

Weiquan Xie

TITLE
Executive Director
COMPENSATION
CN¥611K
AGE
37
TENURE
0.2 yrs

Yumei Shi

TITLE
Head of Accounting & Finance Department - CWW Leasing & CWW Services
AGE
35
TENURE
7.3 yrs

Zhuochou Xie

TITLE
Head of Risk Management Department for CWW Leasing
AGE
35
TENURE
1 yrs

Chau Fok

TITLE
Company Secretary
AGE
31
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Wealthy Way Group board of directors in years:

2.8
Average Tenure
49.5
Average Age
  • The average tenure for the Wealthy Way Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Wai Lo

TITLE
Founder
COMPENSATION
CN¥521K
AGE
49

Winnie Chan

TITLE
Executive Director
COMPENSATION
CN¥521K
AGE
53
TENURE
3.8 yrs

Weiquan Xie

TITLE
Executive Director
COMPENSATION
CN¥611K
AGE
37
TENURE
3.8 yrs

Tak Kong Ha

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥101K
AGE
50
TENURE
2.8 yrs

Chi Wai Ip

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥101K
AGE
51
TENURE
2.8 yrs

Wai Man Kam

TITLE
Independent Non-Executive Director
AGE
43
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
09. Jul 19 Buy Weiquan Xie Individual 04. Jul 19 04. Jul 19 360,000 HK$6.02 HK$2,167,200
19. Jun 19 Sell Wai Lo Individual 03. Jun 19 03. Jun 19 -1,323,000 HK$6.80 HK$-8,996,400
15. May 19 Sell Wai Lo Individual 10. May 19 10. May 19 -4,703,000 HK$6.80 HK$-31,980,386
X
Management checks
We assess Wealthy Way Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wealthy Way Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3848 News

Simply Wall St News

Read This Before Buying Wealthy Way Group Limited (HKG:3848) Shares

So before you buy or sell Wealthy Way Group Limited (HKG:3848), you may well want to know whether insiders have been buying or selling. … SEHK:3848 Recent Insider Trading, August 22nd 2019 Insiders at Wealthy Way Group Have Sold Stock Recently We've seen more insider selling than insider buying at Wealthy Way Group recently. … Unfortunately, there has been more insider selling of Wealthy Way Group stock, than buying, in the last three months.

Simply Wall St -

Do Insiders Own Shares In Wealthy Way Group Limited (HKG:3848)?

Wealthy Way Group is a smaller company with a market capitalization of HK$1.1b, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Wealthy Way Group SEHK:3848 Ownership Summary, June 11th 2019 What Does The Lack Of Institutional Ownership Tell Us About Wealthy Way Group? … Insider Ownership Of Wealthy Way Group The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

If You Had Bought Wealthy Way Group Stock A Year Ago, You Could Pocket A 26% Gain Today

For example, the Wealthy Way Group Limited (HKG:3848) share price is up 26% in the last year, clearly besting than the market return of around -7.3% (not including dividends). … During the last year, Wealthy Way Group actually saw its earnings per share drop 36%. … So the fundamental metrics don't provide an obvious explanation for the share price gain

Simply Wall St -

Should You Be Tempted To Sell Wealthy Way Group Limited (HKG:3848) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Wealthy Way Group has a price to earnings ratio of 31.65, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

3848 Company Info

Description

Wealthy Way Group Limited, an investment holding company, provides financial leasing, factoring, and advisory services to individual and companies in the People's Republic of China. The company offers direct financial leasing and sale-leaseback services. It serves airline companies, health care service providers, and energy saving equipment providers. The company was founded in 2012 and is headquartered in Wanchai, Hong Kong.

Details
Name: Wealthy Way Group Limited
3848
Exchange: SEHK
Founded: 2012
HK$978,239,670
155,523,000
Website: http://www.cwl.com
Address: Wealthy Way Group Limited
China Resources Building,
Room 3402,
Wanchai,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3848 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 21. Jul 2017
Number of employees
Current staff
Staff numbers
95
Wealthy Way Group employees.
Industry
Specialized Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 13:22
End of day share price update: 2020/03/27 00:00
Last earnings filing: 2019/09/30
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.