Friday, 25 May 2018

Comparison between Tat Seng Packaging (Sgx: T12) and Hop Fung Group (Hkex: 2320)



Decided to do a comparison review between 2 companies that i feel are very similar in terms of businesses.

Both companies operate in the corrugated packaging business.



From the table we can see that Hop Fung Group seems to have better operating metrics than Tat Seng.

The only 5 metrics Tat Seng stood out were lower payout ratio, lower PE and lower Staff cost per dollar generated, return on assets(Roa) and return on equity(Roe)

From this we can see that Tat Seng has been able to extract more profits from their machines while Hop Fung has been more capable in cost management.

In addition, there has been purchase of shares by the owners of Hop Fung Group
The addition entries are plenty and can be seen from here
Whereas, this is not seen in Tat Seng Packaging

Conclusion:
Both Companies has its pros and cons.
Tat Seng would be attractive to people who like higher Roa and Roe, being listed in Sgx means Singapore Investors would be able to attend its Agm.
I like Hop Fung Group more with regards to the operational context. However the full year results seems to not be well liked by Investors trading its stock in the Hong Kong Exchange. Following the results release after trading hours on 28 March, the stock is now $1.24, which is trading 12.67% below the price($1.42) on 28 March while it is still Cum-Dividend. Whereas this is not seen in Tat Seng which is trading at the same price($0.81) before results released if dividends($0.02) has been accounted as the company has went Ex-Dividend(Current Price $0.79).




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