Hoymiles Power Electronics (SHSE:688032) - Share price, News & Analysis

Q: What is the Fair Price of 688032 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

688032 (CN¥949.9) is trading above our estimate of [[fair value]] (CN¥485.34)

688032 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

688032 Stock Overview

Hoymiles Power Electronics Inc., a microinverter company, offers MLPE (module level power electronics) solutions for global solar investors and end users.

Rewards

Earnings are forecast to grow 48.08% per year

Earnings grew by 111.5% over the past year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Hoymiles Power Electronics Competitors

Ningbo Orient Wires & CablesLtd

SHSE:603606

CN¥52.7b

Sunwoda ElectronicLtd

SZSE:300207

CN¥49.3b

Ningbo Ronbay New Energy Technology

SHSE:688005

CN¥57.3b

Beijing Easpring Material TechnologyLTD

SZSE:300073

CN¥48.4b

Price History & Performance

Summary of all time highs, changes and price drops for Hoymiles Power Electronics
Historical stock prices
Current Share Price	CN¥949.90
52 Week High	CN¥1,065.00
52 Week Low	CN¥363.54
Beta	0
1 Month Change	1.48%
3 Month Change	78.37%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	83.43%

Shareholder Returns

	688032	CN Electrical	CN Market
7D	-4.6%	-2.3%	-0.5%
1Y	n/a	-2.6%	-10.4%

Return vs Industry: Insufficient data to determine how 688032 performed against the CN Electrical industry.

Return vs Market: Insufficient data to determine how 688032 performed against the CN Market.

Price Volatility

Is 688032's price volatile compared to industry and market?
688032 volatility
688032 Average Weekly Movement	8.8%
Electrical Industry Average Movement	7.5%
Market Average Movement	6.1%
10% most volatile stocks in CN Market	9.2%
10% least volatile stocks in CN Market	3.9%

Stable Share Price: 688032 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 688032's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

Founded	Employees	CEO	Website
2008	652	n/a	https://www.hoymiles.com

Hoymiles Power Electronics Inc., a microinverter company, offers MLPE (module level power electronics) solutions for global solar investors and end users. The company offers microinverter, AC module, DTU, storage, and MLPE PV kit products. It offers service network, warranty, training, and system design services.

Hoymiles Power Electronics Fundamentals Summary

How do Hoymiles Power Electronics's earnings and revenue compare to its market cap?
688032 fundamental statistics
Market Cap	CN¥53.19b
Earnings (TTM)	CN¥257.29m
Revenue (TTM)	CN¥907.04m

206.8x

P/E Ratio

58.6x

P/S Ratio

Is 688032 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
688032 income statement (TTM)
Revenue	CN¥907.04m
Cost of Revenue	CN¥512.68m
Gross Profit	CN¥394.36m
Other Expenses	CN¥137.07m
Earnings	CN¥257.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.59
Gross Margin	43.48%
Net Profit Margin	28.37%
Debt/Equity Ratio	0%

How did 688032 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 688032 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688032?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 688032. This is calculated by dividing 688032's market cap by their current preferred multiple.
What is 688032's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥53.19b

688032 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	52.4x
Enterprise Value/EBITDA	174.3x
PEG Ratio	4.3x

Price to Sales Ratio vs Peers

How does 688032's PS Ratio compare to its peers?

688032 PS Ratio vs Peers

The above table shows the PS ratio for 688032 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4x
603606 Ningbo Orient Wires & CablesLtd	6.3x	24.3%	CN¥52.7b
300207 Sunwoda ElectronicLtd	1.2x	25.9%	CN¥49.3b
688005 Ningbo Ronbay New Energy Technology	4.1x	32.5%	CN¥57.3b
300073 Beijing Easpring Material TechnologyLTD	4.5x	30.7%	CN¥48.4b
688032 Hoymiles Power Electronics	58.6x	47.9%	CN¥53.2b

Price-To-Sales vs Peers: 688032 is expensive based on its Price-To-Sales Ratio (58.6x) compared to the peer average (4x).

Price to Earnings Ratio vs Industry

How does 688032's PE Ratio compare vs other companies in the CN Electrical Industry?

Price-To-Sales vs Industry: 688032 is expensive based on its Price-To-Sales Ratio (58.6x) compared to the CN Electrical industry average (3.3x)

Price to Sales Ratio vs Fair Ratio

What is 688032's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

688032 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	58.6x
Fair PS Ratio	21.5x

Price-To-Sales vs Fair Ratio: 688032 is expensive based on its Price-To-Sales Ratio (58.6x) compared to the estimated Fair Price-To-Sales Ratio (21.5x).

Share Price vs Fair Value

What is the Fair Price of 688032 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 688032 (CN¥949.9) is trading above our estimate of fair value (CN¥485.34)

Significantly Below Fair Value: 688032 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Hoymiles Power Electronics forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

48.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 688032's forecast earnings growth (48.1% per year) is above the savings rate (3.2%).

Earnings vs Market: 688032's earnings (48.1% per year) are forecast to grow faster than the CN market (24.5% per year).

High Growth Earnings: 688032's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 688032's revenue (47.9% per year) is forecast to grow faster than the CN market (17.8% per year).

High Growth Revenue: 688032's revenue (47.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 688032's Return on Equity is forecast to be low in 3 years time (13.2%).

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Past Performance

How has Hoymiles Power Electronics performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

46.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 688032 has a high level of non-cash earnings.

Growing Profit Margin: 688032's current net profit margins (28.4%) are higher than last year (22.7%).

Past Earnings Growth Analysis

Earnings Trend: 688032's earnings have grown significantly by 46.4% per year over the past 5 years.

Accelerating Growth: 688032's earnings growth over the past year (111.5%) exceeds its 5-year average (46.4% per year).

Earnings vs Industry: 688032 earnings growth over the past year (111.5%) exceeded the Electrical industry -1.2%.

Return on Equity

High ROE: 688032's Return on Equity (4.2%) is considered low.

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Financial Health

How is Hoymiles Power Electronics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 688032's short term assets (CN¥6.3B) exceed its short term liabilities (CN¥355.6M).

Long Term Liabilities: 688032's short term assets (CN¥6.3B) exceed its long term liabilities (CN¥45.3M).

Debt to Equity History and Analysis

Debt Level: 688032 is debt free.

Reducing Debt: 688032 had no debt 5 years ago.

Debt Coverage: 688032 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 688032 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Hoymiles Power Electronics's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 688032's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.47%).

High Dividend: 688032's dividend (0.23%) is low compared to the top 25% of dividend payers in the CN market (1.93%).

Stability and Growth of Payments

Stable Dividend: 688032 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 688032 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 688032 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: 688032 is not paying a notable dividend for the CN market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Hoymiles Power Electronics has no CEO, or we have no data on them.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: 688032 only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31