SEHK:1286

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Impro Precision Industries

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good 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

Stable Share Price: 1286 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

1286

3.8%

HK Machinery

1.4%

HK Market


1 Year Return

-25.8%

1286

10.9%

HK Machinery

-6.6%

HK Market

Return vs Industry: 1286 underperformed the Hong Kong Machinery industry which returned 5.7% over the past year.

Return vs Market: 1286 underperformed the Hong Kong Market which returned -9.4% over the past year.


Shareholder returns

1286IndustryMarket
7 Day-1.8%3.8%1.4%
30 Day6.3%6.8%4.6%
90 Day3.1%29.6%11.3%
1 Year-23.9%-25.8%13.8%10.9%-3.7%-6.6%
3 Yearn/a46.3%36.5%4.7%-5.7%
5 Yearn/a69.6%55.2%8.4%-8.8%

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

Valuation

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

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1286 (HK$2.68) is trading below our estimate of fair value (HK$5.04)

Significantly Below Fair Value: 1286 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1286 is good value based on its PE Ratio (8.4x) compared to the Machinery industry average (11.2x).

PE vs Market: 1286 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1286's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1286 is overvalued based on its PB Ratio (1.3x) compared to the HK Machinery industry average (0.8x).


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?

-4.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1286's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1286's earnings are forecast to grow faster than the Hong Kong market

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

Revenue vs Market: 1286's revenue is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: 1286's revenue is forecast to decline over the next 3 years (-4.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1286's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

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

31.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1286 has high quality earnings.

Growing Profit Margin: 1286's current net profit margins (14.8%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1286's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1286's past year earnings growth to its 5-year average.

Earnings vs Industry: 1286 earnings growth over the past year (31.6%) exceeded the Machinery industry -8.7%.


Return on Equity

High ROE: 1286's Return on Equity (13.4%) is considered low.


Next Steps

Financial Health

How is Impro Precision Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 1286's short term assets (HK$2.3B) exceed its short term liabilities (HK$1.3B).

Long Term Liabilities: 1286's short term assets (HK$2.3B) exceed its long term liabilities (HK$635.7M).


Debt to Equity History and Analysis

Debt Level: 1286's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1286's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1286's debt is well covered by operating cash flow (99.7%).

Interest Coverage: 1286's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1286's dividend (2.39%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.42%).

High Dividend: 1286's dividend (2.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.05%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1286's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1286's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.6%), 1286's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1286's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

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

2.6yrs

Average board tenure


CEO

Ruibo Lu (55yo)

no data

Tenure

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 Members

NamePositionTenureCompensationOwnership
Ruibo Lu
Chairman & CEOno datano data60.91% HK$3.1b
Hui Wang
Group VP & Executive Director12.33yrsno datano data
Yuepeng Yu
Group VP & Executive Director4.83yrsno datano data
Liwei Zhu
Group VP & Executive Director12.33yrsno datano data
Dong Wang
Executive Director2.58yrsno datano data
Gordon Yen
Independent Non-Executive Director1.25yrsno datano data
Kwok Kuen Yu
Independent Non-Executive Director1.25yrsno datano data
Siu Ming Lee
Independent Non-Executive Director1.25yrsno datano data

2.6yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1286's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Impro Precision Industries Limited
  • Ticker: 1286
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$5.028b
  • 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, the People’s Republic of China, and internationally. It operates through four segments: Investment Casting, Precision Machining, Sand Casting, and Surface Treatment. The company provides initial research and development, tooling design and manufacturing, casting, heat treatment, and secondary machining services. Its products include engine, automotive, marine, aerospace, hydraulic equipment, fuel injection, and construction equipment parts. The company also offers surface treatment services, such as plating, anodizing, painting, and coating. In addition, it manages logistic centers and warehouses, as well as provides customer maintenance services. The company serves automotive, aerospace, medical, high horsepower engine, and energy, as well as construction, agricultural, and hydraulic equipment industries; and other industries comprising fire and security, telecommunication, forestry equipment, and food processing. Impro Precision Industries Limited was founded in 1998 and is headquartered in Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 12:42
End of Day Share Price2020/07/02 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.