XSEC:002745

Stock Analysis Report

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Executive Summary

MLS Co., Ltd, a photoelectric company, engages in the research and development, production, and sale of LED package and application products. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has MLS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002745 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 002745's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.5%

2745

4.8%

CN Semiconductor

2.9%

CN Market


1 Year Return

16.0%

2745

47.0%

CN Semiconductor

31.8%

CN Market

Return vs Industry: 002745 underperformed the CN Semiconductor industry which returned 47% over the past year.

Return vs Market: 002745 underperformed the CN Market which returned 31.8% over the past year.


Shareholder returns

2745IndustryMarket
7 Day7.5%4.8%2.9%
30 Day16.9%10.6%7.2%
90 Day26.3%29.2%11.5%
1 Year17.4%16.0%47.4%47.0%34.0%31.8%
3 Year-34.7%-36.9%145.7%135.6%23.1%17.0%
5 Yearn/a201.7%191.0%51.6%41.1%

Long-Term Price Volatility Vs. Market

How volatile is MLS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MLS undervalued compared to its fair value and its price relative to the market?

43.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 002745 (CN¥16.15) is trading above our estimate of fair value (CN¥4.39)

Significantly Below Fair Value: 002745 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002745 is good value based on its PE Ratio (43.1x) compared to the CN Semiconductor industry average (78.6x).

PE vs Market: 002745 is poor value based on its PE Ratio (43.1x) compared to the CN market (35.1x).


Price to Earnings Growth Ratio

PEG Ratio: 002745 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 002745 is good value based on its PB Ratio (1.9x) compared to the CN Semiconductor industry average (6.8x).


Next Steps

Future Growth

How is MLS forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

43.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002745's forecast earnings growth (43.8% per year) is above the savings rate (3.3%).

Earnings vs Market: 002745's earnings (43.8% per year) are forecast to grow faster than the CN market (24.4% per year).

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

Revenue vs Market: 002745's revenue (15.8% per year) is forecast to grow slower than the CN market (18.3% per year).

High Growth Revenue: 002745's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 002745's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has MLS performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002745 has a large one-off gain of CN¥1.3B impacting its September 30 2020 financial results.

Growing Profit Margin: 002745's current net profit margins (3%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: 002745's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: 002745's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 002745 had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Semiconductor industry average (27.4%).


Return on Equity

High ROE: 002745's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is MLS's financial position?


Financial Position Analysis

Short Term Liabilities: 002745's short term assets (CN¥18.0B) exceed its short term liabilities (CN¥16.0B).

Long Term Liabilities: 002745's short term assets (CN¥18.0B) exceed its long term liabilities (CN¥3.3B).


Debt to Equity History and Analysis

Debt Level: 002745's debt to equity ratio (70.9%) is considered high.

Reducing Debt: 002745's debt to equity ratio has increased from 33.1% to 70.9% over the past 5 years.

Debt Coverage: 002745's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: 002745's interest payments on its debt are not well covered by EBIT (0.3x coverage).


Balance Sheet


Next Steps

Dividend

What is MLS current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 002745's dividend (0.93%) is higher than the bottom 25% of dividend payers in the CN market (0.39%).

High Dividend: 002745's dividend (0.93%) is low compared to the top 25% of dividend payers in the CN market (1.81%).


Stability and Growth of Payments

Stable Dividend: 002745 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 002745's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), 002745's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Qing Huan Sun (47 yo)

7.5yrs

Tenure

Mr. Qing Huan Sun has been Chairman of the Board & General Manager at MLS CO.,LTD. since July 2010. Mr. Sun has been an Executive Director of Zhongshan Gelinman Optoelectronics Technology Co., Ltd. since M...


Leadership Team

NamePositionTenureCompensationOwnership
Qing Huan Sun
Chairman & GM7.5yrsno data45.99%
CN¥ 11.0b
Ya Nan Yi
CFO, Deputy GM & Director7.5yrsno data0.11%
CN¥ 26.6m
Ming Bo Zheng
Deputy GM & Director7.5yrsno data0.15%
CN¥ 35.5m
Aimei Lai
Deputy General Manager and Secretary to the Board of Directors7.5yrsno data0.15%
CN¥ 35.5m

7.5yrs

Average Tenure

47yo

Average Age

Experienced Management: 002745's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qing Huan Sun
Chairman & GM7.5yrsno data45.99%
CN¥ 11.0b
Ya Nan Yi
CFO, Deputy GM & Director7.5yrsno data0.11%
CN¥ 26.6m
Ming Bo Zheng
Deputy GM & Director7.5yrsno data0.15%
CN¥ 35.5m
Li Hong Zhou
Non-Independent Director1.33yrsno data0.15%
CN¥ 35.5m
Guan Qun Li
Chairman of the Supervisory Board7.5yrsno data0.089%
CN¥ 21.3m
Tian Ming Liu
Member of the Supervisory Board7.5yrsno data0.089%
CN¥ 21.3m
Yu Shan Lin
Member of the Supervisory Board7.5yrsno datano data
Nian Zu Guo
Non-Independent Director1.33yrsno datano data
Zhang Hong
Independent Directorno datano datano data
Guo Qing Tang
Independent Directorno datano datano data
Xiao Wang
Non-Independent Director1.33yrsno datano data
Guo Yao Chen
Independent Director1.33yrsno datano data

7.5yrs

Average Tenure

48yo

Average Age

Experienced Board: 002745's board of directors are considered experienced (7.5 years average tenure).


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: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.2%.


Top Shareholders

Company Information

MLS Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MLS Co., Ltd
  • Ticker: 2745
  • Exchange: XSEC
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: CN¥23.969b
  • Shares outstanding: 1.48b
  • Website: https://www.zsmls.com

Number of Employees


Location

  • MLS Co., Ltd
  • No.1 Mu Lin Sen Avenue
  • Xiaolan Town
  • Zhongshan
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2745SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYFeb 2015
2745XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYFeb 2015

Biography

MLS Co., Ltd, a photoelectric company, engages in the research and development, production, and sale of LED package and application products. The company’s principal products include SMD LED, lamp LED, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 10:24
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.