SEHK:1289

Stock Analysis Report

Wuxi Sunlit Science and Technology

Executive Summary

Wuxi Sunlit Science and Technology Company Limited engages in the research and development, design, manufacture, equipment supply, installation, testing, repair, and maintenance of production lines for manufacturing steel wire products in the People’s Republic of China.

Risk Analysis

Earnings have declined by -6.15% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (6.9%) are lower than last year (30.5%)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.

Share Price & News

How has Wuxi Sunlit Science and Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1289 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

1289

4.7%

HK Machinery

2.9%

HK Market


1 Year Return

-38.1%

1289

21.7%

HK Machinery

-3.8%

HK Market

Return vs Industry: 1289 underperformed the Hong Kong Machinery industry which returned 21.7% over the past year.

Return vs Market: 1289 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

1289IndustryMarket
7 Day6.7%4.7%2.9%
30 Day-6.7%-1.5%-4.1%
90 Day2.8%10.9%2.9%
1 Year-36.0%-38.1%25.3%21.7%-0.2%-3.8%
3 Year-69.2%-71.6%63.1%52.7%15.3%3.7%
5 Year-85.8%-87.2%68.1%53.5%16.8%-2.7%

Price Volatility Vs. Market

How volatile is Wuxi Sunlit Science and Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wuxi Sunlit Science and Technology undervalued compared to its fair value and its price relative to the market?

16.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1289 (HK$1.12) is trading above our estimate of fair value (HK$0.65)

Significantly Below Fair Value: 1289 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1289 is poor value based on its PE Ratio (16.3x) compared to the Machinery industry average (10.3x).

PE vs Market: 1289 is poor value based on its PE Ratio (16.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1289's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1289 is good value based on its PB Ratio (0.2x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

How is Wuxi Sunlit Science and Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.9%

Forecasted Capital Goods 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 Wuxi Sunlit Science and Technology 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 Wuxi Sunlit Science and Technology performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1289 has a large one-off gain of CN¥2.6M impacting its June 30 2019 financial results.

Growing Profit Margin: 1289's current net profit margins (6.9%) are lower than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: 1289's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: 1289's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1289 had negative earnings growth (-88.3%) over the past year, making it difficult to compare to the Machinery industry average (7.3%).


Return on Equity

High ROE: 1289's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wuxi Sunlit Science and Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 1289's short term assets (CN¥613.9M) exceed its short term liabilities (CN¥138.4M).

Long Term Liabilities: 1289 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1289 is debt free.

Reducing Debt: 1289 has no debt compared to 5 years ago when its debt to equity ratio was 9.9%.

Debt Coverage: 1289 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1289 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1289 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1289's debt is covered by short term assets.


Next Steps

Dividend

What is Wuxi Sunlit Science and Technology's current dividend yield, its reliability and sustainability?

4.97%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.2%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1289's dividend (4.97%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1289's dividend (4.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 1289 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1289 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.1%), 1289's payments are 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

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

5.5yrs

Average management tenure


CEO

Deqiang Zhang (50yo)

8.9yrs

Tenure

CN¥583,000

Compensation

Mr. Deqiang Zhang has been General Manager and Executive Director of Wuxi Sunlit Science and Technology Company Limited since March 2011 and July 24, 2012 respectively. Mr. Zhang is one of the founders of  ...


CEO Compensation Analysis

Compensation vs Market: Deqiang's total compensation ($USD83.51K) is below average for companies of similar size in the Hong Kong market ($USD225.53K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Degang Zhang
Executive Chairman7.6yrsCN¥586.00k33.77% CN¥48.4m
Deqiang Zhang
GM & Executive Director8.9yrsCN¥583.00k23.42% CN¥33.6m
Zhao Yuanxing
CFO & Financial Controller4.5yrsno datano data
Jinghua Yang
Personnel & General Affairs Manager and Supervisor7.6yrsCN¥154.00kno data
Guojian Ou
Deputy General Manager3.3yrsno datano data
Wing Yan Ho
Company Secretary6.5yrsno datano data

5.5yrs

Average Tenure

48.5yo

Average Age

Experienced Management: 1289's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Degang Zhang
Executive Chairman7.6yrsCN¥586.00k33.77% CN¥48.4m
Deqiang Zhang
GM & Executive Director8.9yrsCN¥583.00k23.42% CN¥33.6m
Jinghua Yang
Personnel & General Affairs Manager and Supervisor7.6yrsCN¥154.00kno data
Yuk Ming Ho
Independent Non-Executive Director6.5yrsCN¥100.00kno data
Jinghua Zhang
Non-Executive Director6.5yrsno data3.15% CN¥4.5m
Feng Gao
Non-Executive Director7.6yrsno datano data
Chaojian Liu
Independent Non-Executive Director7.6yrsCN¥100.00kno data
Fuping Gao
Independent Non-Executive Director6.5yrsCN¥100.00kno data
Jiashan Peng
Chairman of the Board of Supervisors0yrsno datano data
Yi Wei
Supervisor5.5yrsno datano data

7.6yrs

Average Tenure

51yo

Average Age

Experienced Board: 1289's board of directors are considered experienced (7.6 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

Wuxi Sunlit Science and Technology Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wuxi Sunlit Science and Technology Company Limited
  • Ticker: 1289
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$143.360m
  • Shares outstanding: 128.00m
  • Website: https://www.wxsunlit.com

Number of Employees


Location

  • Wuxi Sunlit Science and Technology Company Limited
  • 1 Yanxin Road East
  • Huishan Economic Development Zone
  • Wuxi
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1289SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDNov 2014

Biography

Wuxi Sunlit Science and Technology Company Limited engages in the research and development, design, manufacture, equipment supply, installation, testing, repair, and maintenance of production lines for manufacturing steel wire products in the People’s Republic of China. Its products include brass electroplating wire production lines, intermediate wire heat treatment lines, wire rod pretreatment lines, double-twist stranding machines, and wet drawing machines, as well as other machines, such as grinding mills, angle grinders, grinding machines, chemical corrosion-resistant troughs, steel wire surface induction heating diffusion equipment, and heat-treatment lead pots. The company is also involved in the trading of machinery products; and software development and software patent rights trading activities. Its products are used in various industries, including radial tire cords, bead wires, sawing wires, hose wires, precision steel wires, and others. The company was founded in 2006 and is headquartered in Wuxi, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:27
End of Day Share Price2020/02/17 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.