SEHK:1760

Stock Analysis Report

Intron Technology Holdings

Executive Summary

Intron Technology Holdings Limited, an investment holding company, develops and sells automotive electronic components in Hong Kong, Mainland China, and internationally.

Rewards

Earnings are forecast to grow 27.01% per year

Earnings grew by 4.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1760's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

1760

0.9%

HK Auto Components

2.2%

HK Market


1 Year Return

-8.5%

1760

-21.5%

HK Auto Components

-0.8%

HK Market

Return vs Industry: 1760 exceeded the Hong Kong Auto Components industry which returned -21.5% over the past year.

Return vs Market: 1760 underperformed the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

1760IndustryMarket
7 Day-7.9%0.9%2.2%
30 Day-15.4%-11.0%-0.6%
90 Day-19.9%-8.1%-0.9%
1 Year-7.0%-8.5%-18.8%-21.5%2.8%-0.8%
3 Yearn/a-13.6%-20.0%19.5%7.4%
5 Yearn/a34.7%19.5%20.7%0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1760 (HK$2.58) is trading above our estimate of fair value (HK$0.59)

Significantly Below Fair Value: 1760 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1760 is poor value based on its PE Ratio (15.3x) compared to the Auto Components industry average (9.7x).

PE vs Market: 1760 is poor value based on its PE Ratio (15.3x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1760 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1760 is overvalued based on its PB Ratio (2.1x) compared to the HK Auto Components industry average (0.9x).


Next Steps

Future Growth

How is Intron Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1760's forecast earnings growth (27% per year) is above the savings rate (1.6%).

Earnings vs Market: 1760's earnings (27% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 1760's revenue (22% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1760's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1760's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Intron Technology Holdings performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1760 has a high level of non-cash earnings.

Growing Profit Margin: 1760's current net profit margins (7%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: 1760's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: 1760's earnings growth over the past year (4.7%) is below its 5-year average (18.2% per year).

Earnings vs Industry: 1760 earnings growth over the past year (4.7%) exceeded the Auto Components industry -0.7%.


Return on Equity

High ROE: 1760's Return on Equity (13.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intron Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1760's short term assets (CN¥2.1B) exceed its short term liabilities (CN¥1.0B).

Long Term Liabilities: 1760's short term assets (CN¥2.1B) exceed its long term liabilities (CN¥20.5M).


Debt to Equity History and Analysis

Debt Level: 1760's debt to equity ratio (41.7%) is considered high.

Reducing Debt: Insufficient data to determine if 1760's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1760's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1760's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: 1760 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1760's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

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

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.3%markettop25%6.2%industryaverage4.1%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: 1760's dividend (2.03%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1760's dividend (2.03%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.17%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1760's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1760'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 (31.7%), 1760'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

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

1.7yrs

Average management tenure


CEO

Wing Luk (49yo)

1.8yrs

Tenure

0

Mr. Wing Ming Luk is Co-Founder and Chairman of Intron Technology Holdings Limited and its Executive Director since January 3, 2017 and Co-Chief Executive Officer since February 2, 2018. Mr. Luk serves as  ...


Management Age and Tenure

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: 1760's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

49yo

Average Age

Experienced Board: 1760's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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

BuyCN¥332,45011 Dec 19
Zenith Benefit Investments Limited
EntityCompany
Shares125,000
Max PriceCN¥2.66
BuyCN¥5,665,33601 Aug 19
FIL Limited
EntityCompany
Shares1,709,000
Max PriceCN¥3.32
SellCN¥58,000,06117 Jul 19
Zenith Benefit Investments Limited
EntityCompany
Shares20,000,000
Max PriceCN¥2.90
BuyCN¥5,800,00617 Jul 19
Ming Chan
EntityIndividual
Role
Member of the Board of Directors
GM & Executive Director
Shares2,000,000
Max PriceCN¥2.90
BuyCN¥5,800,00617 Jul 19
Ming Chee Ng
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares2,000,000
Max PriceCN¥2.90

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 36.6%.


Management Team

  • James Ng (53yo)

    CFO & Executive Director

    • Tenure: 1.9yrs
  • Yu Kit Wong (37yo)

    Joint Company Secretary

    • Tenure: 1.5yrs
  • Wing Luk (49yo)

    Co-Founder

    • Tenure: 1.8yrs
  • Cheung Chan (46yo)

    Co-Founder

    • Tenure: 2.8yrs
  • Ming Chan (49yo)

    GM & Executive Director

    • Tenure: 1.9yrs
  • Chi Tsang

    Joint Company Secretary

    • Tenure: 0.8yrs

Board Members

  • Yung Kwok Tsui (51yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • James Ng (53yo)

    CFO & Executive Director

    • Tenure: 1.9yrs
  • Hong Yu (65yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Wing Luk (49yo)

    Co-Founder

    • Tenure: 1.8yrs
  • Cheung Chan (46yo)

    Co-Founder

    • Tenure: 2.8yrs
  • Ming Chan (49yo)

    GM & Executive Director

    • Tenure: 1.9yrs
  • Yongwei Jiang (48yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

Company Information

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


Key Information

  • Name: Intron Technology Holdings Limited
  • Ticker: 1760
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$2.694b
  • Shares outstanding: 1.04b
  • Website: https://www.intron-tech.com

Number of Employees


Location

  • Intron Technology Holdings Limited
  • Delta House
  • Unit 1008-10
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1760SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

Intron Technology Holdings Limited, an investment holding company, develops and sells automotive electronic components in Hong Kong, Mainland China, and internationally. The company offers components for u ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 13:04
End of Day Share Price2019/12/12 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.