DB:7IP

Stock Analysis Report

Impro Precision Industries

Executive Summary

Impro Precision Industries Limited manufactures and sells high-precision casting and machined components in the United States, Europe, China, and internationally.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Impro Precision Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.5%

7IP

1.9%

DE Machinery

2.4%

DE Market


1 Year Return

n/a

7IP

-14.9%

DE Machinery

4.9%

DE Market

Return vs Industry: Insufficient data to determine how 7IP performed against the German Machinery industry.

Return vs Market: Insufficient data to determine how 7IP performed against the German Market.


Shareholder returns

7IPIndustryMarket
7 Day-6.5%1.9%2.4%
30 Day-5.4%-3.5%2.3%
90 Day0.6%-4.1%2.7%
1 Yearn/a-12.2%-14.9%8.2%4.9%
3 Yearn/a-15.7%-21.7%18.3%8.0%
5 Yearn/a21.6%7.3%44.2%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Impro Precision Industries undervalued compared to its fair value and its price relative to the market?

11.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 7IP (€0.35) is trading above our estimate of fair value (€0.26)

Significantly Below Fair Value: 7IP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 7IP is good value based on its PE Ratio (11.3x) compared to the Machinery industry average (14.1x).

PE vs Market: 7IP is good value based on its PE Ratio (11.3x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7IP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 7IP is good value based on its PB Ratio (1.3x) compared to the DE Machinery industry average (1.4x).


Next Steps

Future Growth

How is Impro Precision Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 7IP's forecast earnings growth (6.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 7IP's earnings (6.3% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: 7IP's earnings are forecast to grow, but not significantly.

Revenue vs Market: 7IP's revenue (7.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 7IP's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 7IP's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Impro Precision Industries performed over the past 5 years?

8.4%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 7IP's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 7IP's past year earnings growth to its 5-year average.

Earnings vs Industry: 7IP earnings growth over the past year (8.4%) exceeded the Machinery industry -11.2%.


Return on Equity

High ROE: 7IP's Return on Equity (11.6%) is considered low.


Return on Assets

ROA vs Industry: 7IP has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 7IP's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Impro Precision Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 7IP's short term assets (HK$3.1B) exceeds its short term liabilities (HK$2.1B)

Long Term Liabilities: 7IP's short term assets (3.1B) exceeds its long term liabilities (916.8M)


Debt to Equity History and Analysis

Debt Level: 7IP's debt to equity ratio (49.8%) is considered high

Reducing Debt: Insufficient data to determine if 7IP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 7IP's debt is well covered by operating cash flow (44.3%).

Interest Coverage: 7IP's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: 7IP has a high level of physical assets or inventory.

Debt Coverage by Assets: 7IP's debt is covered by short term assets (assets are 1.623470x debt).


Next Steps

Dividend

What is Impro Precision Industries's current dividend yield, its reliability and sustainability?

2.42%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 7IP's dividend (2.42%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 7IP's dividend (2.42%) is low compared to the top 25% of dividend payers in the German market (3.79%).

Stable Dividend: Too early to tell whether 7IP's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 7IP's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37%), 7IP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 7IP's dividends in 3 years are forecast to be well covered by earnings (25.6% payout ratio).


Next Steps

Management

What is the CEO of Impro Precision Industries's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Ruibo Lu (55yo)

0yrs

Tenure

0

Mr. Ruibo Lu is an Chairman of our Board and Chief Executive Officer at Impro Precision Industries Limited and has been its Executive Director since January 08, 2008. 


Board Age and Tenure

1.8yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 7IP's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 7IP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$186,19314 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares453,000
Max PriceHK$0.41
BuyHK$338,82414 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares827,000
Max PriceHK$0.41
BuyHK$514,72511 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,258,000
Max PriceHK$0.41
BuyHK$187,52310 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares462,000
Max PriceHK$0.41
BuyHK$382,32209 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares944,000
Max PriceHK$0.41
BuyHK$105,87108 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares265,000
Max PriceHK$0.40
BuyHK$28,42808 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares72,000
Max PriceHK$0.39
BuyHK$215,65308 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares555,000
Max PriceHK$0.39
BuyHK$48,56708 Oct 19
Ruibo Lu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares123,000
Max PriceHK$0.39

Ownership Breakdown


Management Team

  • Hui Wang (48yo)

    Group VP & Executive Director

    • Tenure: 11.6yrs
  • Ruibo Lu (55yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Yuepeng Yu (48yo)

    Group VP & Executive Director

    • Tenure: 4.1yrs
  • Liwei Zhu (50yo)

    Group VP & Executive Director

    • Tenure: 11.6yrs
  • Dong Wang (43yo)

    Executive Director

    • Tenure: 1.8yrs
  • Dennis Ip (43yo)

    CFO & Company Secretary

    • Tenure: 2.8yrs
  • Rangli Zhang (43yo)

    Managing Director of Plant 1

    • Tenure: 0yrs

Board Members

  • Gordon Yen (49yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Hui Wang (48yo)

    Group VP & Executive Director

    • Tenure: 11.6yrs
  • Harry Yu (50yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Siu Ming Lee (43yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Ruibo Lu (55yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Yuepeng Yu (48yo)

    Group VP & Executive Director

    • Tenure: 4.1yrs
  • Liwei Zhu (50yo)

    Group VP & Executive Director

    • Tenure: 11.6yrs
  • Dong Wang (43yo)

    Executive Director

    • Tenure: 1.8yrs

Company Information

Impro Precision Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Impro Precision Industries Limited
  • Ticker: 7IP
  • Exchange: DB
  • Founded: 1998
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$6.234b
  • Listing Market Cap: HK$713.464m
  • Shares outstanding: 1.88b
  • Website: https://www.improprecision.com

Number of Employees


Location

  • Impro Precision Industries Limited
  • Unit 1008
  • Shui On Centre
  • Wan Chai
  • 214000
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1286SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2019
7IPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2019

Biography

Impro Precision Industries Limited manufactures and sells high-precision casting and machined components in the United States, Europe, China, and internationally. It operates in four segments: Investment C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 22:06
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.