SEHK:1399

Stock Analysis Report

Executive Summary

SCUD Group Limited, an investment holding company, engages in the research, development, manufacture, and sale of lithium-ion battery modules and related accessories for mobile phones and digital electronic appliances in the People's Republic of China.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

How has SCUD Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

1399

-2.2%

HK Electrical

0.3%

HK Market


1 Year Return

12.9%

1399

-33.5%

HK Electrical

-1.5%

HK Market

Return vs Industry: 1399 exceeded the Hong Kong Electrical industry which returned -33.5% over the past year.

Return vs Market: 1399 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1399IndustryMarket
7 Day0%-2.2%0.3%
30 Day-10.3%-5.2%0.5%
90 Day-10.3%-12.6%-4.4%
1 Year12.9%12.9%-32.6%-33.5%2.1%-1.5%
3 Yearn/a-48.6%-50.5%14.7%3.2%
5 Year-69.6%-69.6%-43.5%-46.7%21.5%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SCUD Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1399 (HK$0.35) is trading below our estimate of fair value (HK$2.44)

Significantly Below Fair Value: 1399 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1399 is good value based on its PE Ratio (4.1x) compared to the Electrical industry average (8.8x).

PE vs Market: 1399 is good value based on its PE Ratio (4.1x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1399's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1399 is good value based on its PB Ratio (0.3x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is SCUD Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1399's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: 1399's earnings (8.4% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

High Growth Earnings: 1399's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1399's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1399's revenue 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 1399's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SCUD Group performed over the past 5 years?

61.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1399 has become profitable over the past 5 years, growing earnings by 61.5% per year.

Accelerating Growth: 1399 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1399 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (8%).


Return on Equity

High ROE: 1399's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: 1399's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: 1399 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SCUD Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1399's short term assets (CN¥3.9B) exceeds its short term liabilities (CN¥3.4B)

Long Term Liabilities: 1399's short term assets (3.9B) exceeds its long term liabilities (11.5M)


Debt to Equity History and Analysis

Debt Level: 1399's debt to equity ratio (34.8%) is considered satisfactory

Reducing Debt: 1399's debt to equity ratio has increased from 20% to 34.8% over the past 5 years.

Debt Coverage: 1399's debt is well covered by operating cash flow (99.9%).

Interest Coverage: 1399's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: 1399 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1399's debt is covered by short term assets (assets are 10.911330x debt).


Next Steps

Dividend

What is SCUD Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1399's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1399's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1399's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1399's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1399 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 1399's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Xiu Lian (47yo)

0yrs

Tenure

CN¥1,327,560

Compensation

Ms. Xiu Qin Lian is an Executive Director and the Chief Executive Officer of SCUD Group Limited (Group) since September 27, 2018. She is primarily responsible for the management of the Group’s daily operat ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Xiu's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Board Age and Tenure

1.1yrs

Average Tenure

55yo

Average Age

Experienced Board: 1399's board of directors are not considered experienced ( 1.1 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.


Ownership Breakdown


Management Team

  • Mun Tai Yeung (42yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Ming Zhu Feng (55yo)

    VP & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥816.00k
  • Yao Shu Chen (40yo)

    Information Management Director

    • Tenure: 11.8yrs
  • Xiu Lian (47yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.33m

Board Members

  • Raymond Ho (80yo)

    Chairman

    • Tenure: 1.1yrs
    • Compensation: CN¥212.00k
  • Laurence Lam (55yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥80.00k
  • Victor Heng (42yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: CN¥226.00k
  • Ming Zhu Feng (55yo)

    VP & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥816.00k
  • Li Hou (60yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥160.00k
  • Xiu Lian (47yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.33m
  • Lawrence Wong (55yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: CN¥80.00k

Company Information

SCUD Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SCUD Group Limited
  • Ticker: 1399
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$381.500m
  • Shares outstanding: 1.09b
  • Website: https://www.scudgroup.com

Number of Employees


Location

  • SCUD Group Limited
  • Leighton Centre
  • 10th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1399SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2006
SC9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006

Biography

SCUD Group Limited, an investment holding company, engages in the research, development, manufacture, and sale of lithium-ion battery modules and related accessories for mobile phones and digital electroni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:43
End of Day Share Price2019/10/22 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.