SEHK:422

Stock Analysis Report

Vietnam Manufacturing and Export Processing (Holdings)

Executive Summary

Vietnam Manufacturing and Export Processing (Holdings) Limited, an investment holding company, manufactures and sells scooters and cub motorbikes, and related spare parts and engines in Vietnam, Malaysia, the Philippines, Singapore, Indonesia, Taiwan, Thailand, and other countries.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Vietnam Manufacturing and Export Processing (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 422's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

422

8.8%

HK Auto

5.3%

HK Market


1 Year Return

-41.0%

422

-22.6%

HK Auto

-20.4%

HK Market

Return vs Industry: 422 underperformed the Hong Kong Auto industry which returned -24.5% over the past year.

Return vs Market: 422 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

422IndustryMarket
7 Day2.4%8.8%5.3%
30 Day-21.3%-13.8%-8.5%
90 Day-25.3%-16.2%-14.7%
1 Year-41.0%-41.0%-19.5%-22.6%-17.6%-20.4%
3 Year-64.5%-64.5%-22.1%-28.9%-2.5%-12.3%
5 Year-61.8%-61.8%-26.0%-36.0%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Vietnam Manufacturing and Export Processing (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vietnam Manufacturing and Export Processing (Holdings) undervalued compared to its fair value and its price relative to the market?

0.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 422's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 422's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 422 is unprofitable, so we can't compare its PE Ratio to the Auto industry average.

PE vs Market: 422 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 422's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 422 is good value based on its PB Ratio (0.3x) compared to the HK Auto industry average (0.4x).


Next Steps

Future Growth

How is Vietnam Manufacturing and Export Processing (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.5%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vietnam Manufacturing and Export Processing (Holdings) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Vietnam Manufacturing and Export Processing (Holdings) performed over the past 5 years?

-43.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 422 is currently unprofitable.

Growing Profit Margin: 422 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 422 is unprofitable, and losses have increased over the past 5 years at a rate of -43.5% per year.

Accelerating Growth: Unable to compare 422's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 422 is unprofitable, making it difficult to compare its past year earnings growth to the Auto industry (-8%).


Return on Equity

High ROE: 422 has a negative Return on Equity (-27.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vietnam Manufacturing and Export Processing (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 422's short term assets ($101.2M) exceed its short term liabilities ($43.7M).

Long Term Liabilities: 422's short term assets ($101.2M) exceed its long term liabilities ($925.6K).


Debt to Equity History and Analysis

Debt Level: 422's debt to equity ratio (43.3%) is considered high.

Reducing Debt: 422's debt to equity ratio has increased from 25% to 43.3% over the past 5 years.


Balance Sheet

Inventory Level: 422 has a high level of physical assets or inventory.

Debt Coverage by Assets: 422's debt is covered by short term assets (assets are 3.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 422 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 422 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 11.1% each year


Next Steps

Dividend

What is Vietnam Manufacturing and Export Processing (Holdings)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 422's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 422's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 422's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 422's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 422 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 422's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Chih Ming Lin (59yo)

1.67s

Tenure

US$182,219

Compensation

Mr. Lin Chih Ming, has been chief executive officer of Vietnam Manufacturing and Export Processing (Holdings) Ltd since June 1, 2018 and the general manager of the Company’s subsidiaries, Vietnam Manufactu ...


CEO Compensation Analysis

Compensation vs Market: Chih Ming's total compensation ($USD182.22K) is about average for companies of similar size in the Hong Kong market ($USD232.34K).

Compensation vs Earnings: Insufficient data to compare Chih Ming's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Wu Liu
Executive Chairman4.83yrsUS$45.50kno data
Chih Ming Lin
CEO & Executive Director1.67yrsUS$182.22kno data
Chun Lin
CFO & Executive Director3.83yrsUS$73.23kno data
Chin Chiang
Executive Director1.58yrsUS$63.54kno data
Wing Shan Ng
Company Secretary3.67yrsno datano data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: 422's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wu Liu
Executive Chairman4.83yrsUS$45.50kno data
Chih Ming Lin
CEO & Executive Director1.67yrsUS$182.22kno data
Chun Lin
CFO & Executive Director3.83yrsUS$73.23kno data
Chin Chiang
Executive Director1.58yrsUS$63.54kno data
Ching Lin
Independent Non Executive Director12.25yrsUS$25.00kno data
Hwa Shen
Independent Non-Executive Director8.58yrsUS$25.00kno data
Ying Chiu
Non-Executive Director8.17yrsUS$3.00kno data
Kwei Wu
Independent Non-Executive Director6.58yrsUS$25.00kno data
Li Wu
Non Executive Director4.58yrsUS$3.00kno data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 422's board of directors are considered experienced (4.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vietnam Manufacturing and Export Processing (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vietnam Manufacturing and Export Processing (Holdings) Limited
  • Ticker: 422
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$157.936m
  • Shares outstanding: 907.68m
  • Website: https://www.vmeph.com

Number of Employees


Location

  • Vietnam Manufacturing and Export Processing (Holdings) Limited
  • Tam Hiep Ward
  • Section 5
  • Bien Hoa
  • Vietnam

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
422SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2007
4V2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
9110TSEC (Taiwan Stock Exchange)TDR EACH REPR 2 ORD SHSTWTWDDec 2009

Biography

Vietnam Manufacturing and Export Processing (Holdings) Limited, an investment holding company, manufactures and sells scooters and cub motorbikes, and related spare parts and engines in Vietnam, Malaysia, the Philippines, Singapore, Indonesia, Taiwan, Thailand, and other countries. The company offers motorbikes under the SYM and SANDA brands. It also manufactures molds for making die-cast and forged metal parts; and provides motorbike maintenance services. As of December 31, 2018, its distribution network comprised approximately 213 SYM authorized stores owned by dealers in Vietnam. The company was founded in 1992 and is headquartered in Bien Hoa, Vietnam. Vietnam Manufacturing and Export Processing (Holdings) Limited is a subsidiary of SY International Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:59
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.