【sewage smell from kitchen sink】Does Bank of Chongqing Co., Ltd.'s (HKG:1963) CEO Salary Compare Well With Others?
Hailing Ran is sewage smell from kitchen sinkthe CEO of Bank of Chongqing Co., Ltd. (
HKG:1963
). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Bank of Chongqing
How Does Hailing Ran's Compensation Compare With Similar Sized Companies?
According to our data, Bank of Chongqing Co., Ltd. has a market capitalization of HK$15b, and paid its CEO total annual compensation worth CN¥436k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥168k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥7.0b to CN¥22b. The median total CEO compensation was CN¥3.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Bank of Chongqing, below.
SEHK:1963 CEO Compensation, January 1st 2020
Is Bank of Chongqing Co., Ltd. Growing?
Bank of Chongqing Co., Ltd. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 9.6% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check
this free visual depiction of
what analysts expect
for the future
.
Has Bank of Chongqing Co., Ltd. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Bank of Chongqing Co., Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that Bank of Chongqing Co., Ltd. remunerates its CEO below most similar sized companies.
Hailing Ran is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Shareholders may want to
check for free if Bank of Chongqing insiders are buying or selling shares.
Story continues
If you want to buy a stock that is better than Bank of Chongqing, this
free
list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at
. 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.
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. Thank you for reading.
View comments
(责任编辑:Leisure)
- ·Mortgage Rates Are Lowest Ever; 12.8M Should Refinance
- ·Sony Announces the α77II (Alpha 77 Mark II) Translucent Mirror DSLR Camera
- ·6 Passengers Fall Ill on Frontier Flight to Tampa from Cleveland
- ·Usher Reveals ‘Coming Home’ Album Tracklist, With Features From Latto, Burna Boy, 21 Savage & More
- ·Transformative Mega Trends Reshaping the Indian ICT Landscape
- ·BRIEF-Xinjiang Torch Gas Says Shareholders Plan To Unload A Combined 26.3 Percent Stake
- ·The Top 10 Cryptocurrencies Aren’t The Most Actively Developed
- ·Activision Blizzard names Dennis Durkin as CFO
- ·5%, led by a 17% increase in average ticket and a slight decline in traffic. Growth in the quarter reflected the impact of households stocking up on essentials like paper goods and cleaning supplies as the pandemic became a nationwide concern, along with strength in discretionary categories as the quarter came to a close and stimulus dollars and tax refunds were disbursed.
As shown below, the results in the quarter materially changed the trend in two-year stacked comps for each of the banners, along with a significant acceleration for consolidated comps.
The increase in consolidated comps was the primary driver of an 8% increase in revenues to $6.3 billion. The company ended the quarter with 15,370 locations, up less than 1% year-over-year. This reflects a 7% increase in Dollar Tree units, offset by a 4% decline in Family Dollar units.
The top-line results at each banner flowed through to their respective income statements, with Dollar Tree gross margins and operating margins declining year-over-year while Family Dollar gross margins and operating margins expanded year-over-year. On a consolidated basis, gross margins contracted by 120 basis points in the quarter to 28.5%, reflective of a shift to lower-margin consumables, tariff costs and the impact of markdowns from the Easter headwinds at the Dollar Tree banner. The company saw slight operating leverage on SG&A from higher comps, with the net result being an 80 basis point contraction in operating margins to 5.8%, with operating income declining 5% to $366 million. This is not adjusted for $73 million of pandemic-related costs, such as PPE supplies.
In the first quarter, the company opened 85 stores (net of closures) and completed 220 Family Dollar renovations to the H2 format. Importantly, comps at renovated Family Dollar stores continue to outpace the chain average by more than 10%. On the call, management indicated that they plan on reducing both the number of new store openings (from 550 to 500) and the number of H2 renovations (from 1,250 to 750) in 2020.
Personally, given the fact that Family Dollar is seeing material benefits to its business from the pandemic with new or lapsed customers coming into its stores, I think the company should try to get more aggressive with its renovation plans, not less. On the other hand, you could argue that renovations cause short-term disruptions and limit their ability to fully capitalize on the business momentum they are currently experiencing.
As a result of fewer new stores and remodels, management now expects 2020 capital expenditures to total $1.0 billion compared to previous guidance of $1.2 billion. In addition, the company has temporarily suspended share repurchases. At quarter's end, the company had $1.8 billion in cash on its balance sheet compared to $4.3 billion in total debt.
Conclusion
In recent years, Dollar Tree has been a tale of two cities. While its namesake banner has generally delivered impressive financial results, Family Dollar has been a persistent underperformer. This quarter, those results flipped, and given what we've seen in the weeks since quarter's end, there's a decent possibility that we will see something similar in the coming months. As the CEO noted, the second quarter is off to a very good start at Family Dollar.
Here's the important question: how useful is that information is in terms of making future predictions about the business? Will recent success at Family Dollar translate into long-term success for the banner? The optimistic take is that new or lapsed customers, especially those visiting the renovated stores, could become recurring business for the banner. The pessimistic take is that they have experienced short-term success out of necessity as people went to any store that was open to try and find essentials like toilet paper and hand sanitizer that were largely out of stock throughout the retail landscape. From that view, many of these customers could abandon the retailer when life returns to normal. As Philbin noted on the conference call, early on [during the pandemic], folks needed us. Will people still shop as much at Family Dollar when it's no longer a necessity?
Personally, I do not place too much weight on the recent results. I will need to see incremental data points that indicate that Family Dollar has truly won sustained business from these new customers. While I still believe that the Dollar Tree banner is a well-positioned retailer with attractive unit returns, I'm not yet willing to say the same thing for Family Dollar. For that reason, along with the recent run-up in the stock price, I plan on staying on the sidelines for now.
Disclosure: None
Read more here:
Under Armour: A Tough Start to 2020
Walmart: Continued Omni-Channel Progress
Match: An Impressive Start to 2020
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
This article first appeared on
GuruFocus
.
Warning! GuruFocus has detected 4 Warning Signs with DLTR. Click here to check it out.
DLTR 30-Year Financial Data
The intrinsic value of DLTR
Peter Lynch Chart of DLTR
View comments
- ·Vector Resources Limited (ASX:VEC): What Does Its Beta Value Mean For Your Portfolio?
- ·Genco Shipping & Trading (GNK) Lags Q3 Earnings and Revenue Estimates
- ·Former Brexit minister says May should delay Brexit deal vote -the Telegraph
- ·Shire plc : Rule 2.9 Announcement
- ·Susquehanna Sees Compelling Risk-Reward In Panera, Upgrades
- ·The Global Physiotherapy Equipment Market is expected to grow from USD 14,684.89 Million in 2018 to USD 23,874.40 Million by the end of 2025 at a Compound Annual Growth Rate (CAGR) of 7.18%
- ·Exclusive: IMF agrees to extend Sri Lanka loan programme, disburse delayed tranche - sources
- ·Kellogg Beats on Earnings, Cereals Let Down Sales
- ·Can Triad Group plc (LON:TRD) Maintain Its Strong Returns?
- ·Camber Energy, Inc. and Viking Energy Group, Inc. Amend Definitive Merger Agreement Relating to Their Planned Combination and Provide Update on Status of Merger
- ·A Close Look At Astral Poly Technik Limited’s (NSE:ASTRAL) 22% ROCE