DB:W1U

Stock Analysis Report

Wasion Holdings

Executive Summary

Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management for energy supply industries in the People’s Republic of China and internationally.

Rewards

PE ratio (10.6x) is below the German market (20.6x)

Earnings are forecast to grow 21.95% per year

Earnings grew by 13.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Good value with reasonable growth potential and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: W1U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

W1U

-0.1%

DE Electronic

0.5%

DE Market


1 Year Return

-7.0%

W1U

7.8%

DE Electronic

15.5%

DE Market

Return vs Industry: W1U underperformed the German Electronic industry which returned 9.5% over the past year.

Return vs Market: W1U underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

W1UIndustryMarket
7 Day-3.7%-0.1%0.5%
30 Day-1.0%-0.3%1.4%
90 Day-4.2%5.7%5.3%
1 Year0.5%-7.0%10.3%7.8%19.2%15.5%
3 Year-2.9%-20.1%49.7%45.0%15.7%5.5%
5 Year-34.3%-50.2%113.4%97.6%27.3%10.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: W1U (€0.42) is trading above our estimate of fair value (€0.36)

Significantly Below Fair Value: W1U is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: W1U is good value based on its PE Ratio (10.6x) compared to the Electronic industry average (27.1x).

PE vs Market: W1U is good value based on its PE Ratio (10.6x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: W1U is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: W1U is good value based on its PB Ratio (0.8x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is Wasion Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W1U's forecast earnings growth (22% per year) is above the savings rate (-0.4%).

Earnings vs Market: W1U's earnings (22% per year) are forecast to grow faster than the German market (13.2% per year).

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

Revenue vs Market: W1U's revenue (15.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: W1U's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: W1U's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Wasion Holdings performed over the past 5 years?

-14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: W1U has high quality earnings.

Growing Profit Margin: W1U's current net profit margins (8.4%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: W1U's earnings have declined by -14.2% per year over the past 5 years.

Accelerating Growth: W1U's earnings growth over the past year (13.2%) exceeds its 5-year average (-14.2% per year).

Earnings vs Industry: W1U earnings growth over the past year (13.2%) exceeded the Electronic industry 3.1%.


Return on Equity

High ROE: W1U's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wasion Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: W1U's short term assets (CN¥6.5B) exceed its short term liabilities (CN¥4.3B).

Long Term Liabilities: W1U's short term assets (CN¥6.5B) exceed its long term liabilities (CN¥399.3M).


Debt to Equity History and Analysis

Debt Level: W1U's debt to equity ratio (39.1%) is considered satisfactory.

Reducing Debt: W1U's debt to equity ratio has increased from 34.7% to 39.1% over the past 5 years.

Debt Coverage: W1U's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: W1U's interest payments on its debt are well covered by EBIT (24.6x coverage).


Balance Sheet

Inventory Level: W1U has a high level of physical assets or inventory.

Debt Coverage by Assets: W1U's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Wasion Holdings's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.5%industryaverage1.4%forecastin3Years7.4%

Current dividend yield vs market & industry

Notable Dividend: W1U's dividend (3.32%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: W1U's dividend (3.32%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: W1U's dividend payments have been volatile in the past 10 years.

Growing Dividend: W1U's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.4%), W1U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: W1U's dividends in 3 years are forecast to be covered by earnings (55.6% payout ratio).


Next Steps

Management

What is the CEO of Wasion Holdings's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average board tenure


CEO

Zhao Hui Cao (51yo)

0yrs

Tenure

CN¥627,000

Compensation

Ms. Zhao Hui Cao serves as the Chief Executive Officer of Wasion Group Holdings Limited. Ms. Cao served as Director of finance and Deputy General Manager of Wasion Group Holdings Limited. She was employed  ...


CEO Compensation Analysis

Compensation vs Market: Zhao Hui's total compensation ($USD90.96K) is below average for companies of similar size in the German market ($USD817.80K).

Compensation vs Earnings: Zhao Hui's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: W1U's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell€85,91619 Nov 19
Edgbaston Investment Partners LLP
EntityCompany
Shares198,000
Max Price€0.43
Sell€124,77701 Nov 19
Edgbaston Investment Partners LLP
EntityCompany
Shares284,000
Max Price€0.44
Buy€325,84621 Jun 19
Wei Ji
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,000,000
Max Price€0.33
Buy€37,08518 Jun 19
Wing Kuen Hui
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares110,000
Max Price€0.34
Buy€1,321,53112 Jun 19
Edgbaston Investment Partners LLP
EntityCompany
Shares3,928,000
Max Price€0.34

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Edward Choi (50yo)

    CFO & Company Secretary

    • Wei Ji (62yo)

      Founder & Chairman

      • Compensation: CN¥529.00k
    • Xiao Ping Zheng (55yo)

      Senior Engineer & Executive Director

      • Tenure: 14.3yrs
      • Compensation: CN¥572.00k
    • Xin Zeng (48yo)

      Executive Director

      • Tenure: 14.3yrs
      • Compensation: CN¥617.00k
    • Zhao Hui Cao (51yo)

      CEO & Executive Director

      • Compensation: CN¥627.00k
    • Zhongping Tian (39yo)

      Executive Director & President

      • Tenure: 3yrs
      • Compensation: CN¥482.00k

    Board Members

    • Wei Ji (62yo)

      Founder & Chairman

      • Compensation: CN¥529.00k
    • Xiao Ping Zheng (55yo)

      Senior Engineer & Executive Director

      • Tenure: 14.3yrs
      • Compensation: CN¥572.00k
    • Xin Zeng (48yo)

      Executive Director

      • Tenure: 14.3yrs
      • Compensation: CN¥617.00k
    • Zhao Hui Cao (51yo)

      CEO & Executive Director

      • Compensation: CN¥627.00k
    • Wing Kuen Hui (71yo)

      Independent Non-Executive Director

      • Tenure: 4.7yrs
      • Compensation: CN¥419.00k
    • Jing Huang (62yo)

      Independent Non-Executive Director

      • Tenure: 3.3yrs
      • Compensation: CN¥205.00k
    • Chit Kat (35yo)

      Non-Executive Director

      • Tenure: 5.4yrs
      • Compensation: CN¥257.00k
    • Shi Jie Cheng (73yo)

      Independent Non-Executive Director

      • Tenure: 5.4yrs
      • Compensation: CN¥156.00k
    • Wenpeng Luan (54yo)

      Independent Non-Executive Director

      • Tenure: 3.7yrs
      • Compensation: CN¥103.00k
    • Zhongping Tian (39yo)

      Executive Director & President

      • Tenure: 3yrs
      • Compensation: CN¥482.00k

    Company Information

    Wasion Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Wasion Holdings Limited
    • Ticker: W1U
    • Exchange: DB
    • Founded: 2000
    • Industry: Electronic Equipment and Instruments
    • Sector: Tech
    • Market Cap: HK$3.610b
    • Listing Market Cap: HK$418.922m
    • Shares outstanding: 999.96m
    • Website: https://www.wasion.com

    Number of Employees


    Location

    • Wasion Holdings Limited
    • West Tower
    • Unit 2605, 26th Floor
    • Sheung Wan
    • 410205
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    3393SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2005
    W1UDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005

    Biography

    Wasion Holdings Limited, an investment holding company, researches, develops, produces, and sells energy metering and energy efficiency management for energy supply industries in the People’s Republic of China and internationally. The company operates through Power Advanced Metering Infrastructure, Communication and Fluid Advanced Metering Infrastructure, and Advanced Distribution Operations segments. It offers smart meters, smart water meters, smart gas meters, and ultrasonic calorimeters; various meters and power quality monitoring devices; energy data collection terminals, load management terminals, and user management devices; and measurement automation systems and various application systems, services, and energy data mining, as well as system solution and communication terminals solution services. The company also offers high voltage switchgears, smart switchgears, circuit breakers, power distribution automation terminals, electrical and electronic devices for power quality control, and smart distribution systems, as well as engineering, energy-saving services, etc. In addition, it provides smart power distribution devices and energy efficiency solution services; and power meters and heat meters, as well as trades in electronic components. Additionally, the company offers energy meters; plastic, iron, and reinforced plastic meter boxes; switching smart socket; calibration devices; heat distribution system solution; and sensor products. The company was formerly known as Wasion Group Holdings Limited and changed its name to Wasion Holdings Limited in June 2018. The company was founded in 2000 and is based in Sheung Wan, Hong Kong. Wasion Holdings Limited is a subsidiary of Star Treasure Investments Holdings Limited. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 21:23
    End of Day Share Price2020/01/22 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.