SEHK:1539

Stock Analysis Report

Synergy Group Holdings International

Executive Summary

Synergy Group Holdings International Limited, an investment holding company, primarily engages in the trade of energy saving products.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.0%

1539

7.5%

HK Trade Distributors

0.9%

HK Market


1 Year Return

-67.2%

1539

12.8%

HK Trade Distributors

0.6%

HK Market

Return vs Industry: 1539 underperformed the Hong Kong Trade Distributors industry which returned 12.8% over the past year.

Return vs Market: 1539 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1539IndustryMarket
7 Day-5.0%7.5%0.9%
30 Day-24.0%-5.7%0.5%
90 Day-40.6%8.1%-4.3%
1 Year-67.2%-67.2%16.3%12.8%4.2%0.6%
3 Year-82.1%-82.1%-5.7%-14.5%15.6%4.0%
5 Yearn/a-37.9%-50.4%20.0%-0.08%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Synergy Group Holdings International undervalued compared to its fair value and its price relative to the market?

4.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1539's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1539's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1539 is good value based on its PE Ratio (4.7x) compared to the Trade Distributors industry average (9.1x).

PE vs Market: 1539 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1539's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1539 is good value based on its PB Ratio (0.5x) compared to the HK Trade Distributors industry average (0.6x).


Next Steps

Future Growth

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

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1539's forecast earnings growth (2.1% per year) is above the savings rate (2%).

Earnings vs Market: 1539's earnings (2.1% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1539's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1539's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1539'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 1539's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Synergy Group Holdings International performed over the past 5 years?

33.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1539's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: 1539's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1539 had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Trade Distributors industry average (1%).


Return on Equity

High ROE: 1539's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: 1539 has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: 1539's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Synergy Group Holdings International's financial position?


Financial Position Analysis

Short Term Liabilities: 1539's short term assets (HK$417.0M) exceeds its short term liabilities (HK$281.0M)

Long Term Liabilities: 1539's short term assets (417.0M) exceeds its long term liabilities (65.7M)


Debt to Equity History and Analysis

Debt Level: 1539's debt to equity ratio (59%) is considered high

Reducing Debt: 1539 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 1539's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1539's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 1539 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1539's debt is covered by short term assets (assets are 1.639360x debt).


Next Steps

Dividend

What is Synergy Group Holdings International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1539's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1539'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 1539's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1539's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1539'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 Synergy Group Holdings International's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average board tenure


CEO

Mansfield Wong (45yo)

0yrs

Tenure

HK$3,117,000

Compensation

Mr. Wong Man Fai, also known as Mansfield, serves as the Chief Executive Officer, Compliance Officer and Chairman at Synergy Group Holdings International Limited. Mr. Wong has been an Executive Director of ...


CEO Compensation Analysis

Compensation vs. Market: Mansfield's total compensation ($USD397.47K) is about average for companies of similar size in the Hong Kong market ($USD214.48K).

Compensation vs Earnings: Mansfield's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

4.6yrs

Average Tenure

51yo

Average Age

Experienced Board: 1539's board of directors are considered experienced (4.6 years average tenure).


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

BuyHK$119,00031 Oct 18
Yick Hung Cheung
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceHK$1.19

Ownership Breakdown


Management Team

  • Mansfield Wong (45yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.12m
  • Arthur Lam (34yo)

    Executive Vice Chairman

    • Tenure: 3.7yrs
    • Compensation: HK$3.12m
  • Chi Kuen Cheng (45yo)

    Chief Operation Officer

    • Tenure: 8.3yrs
  • Chun Man Tong (45yo)

    CFO & Company Secretary

    • Tenure: 7.8yrs

Board Members

  • Anthony Wong (63yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$241.00k
  • Koon Yan Chung (55yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$241.00k
  • Mansfield Wong (45yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.12m
  • Arthur Lam (34yo)

    Executive Vice Chairman

    • Tenure: 3.7yrs
    • Compensation: HK$3.12m
  • Jackie Cheung (51yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: HK$241.00k

Company Information

Synergy Group Holdings International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Synergy Group Holdings International Limited
  • Ticker: 1539
  • Exchange: SEHK
  • Founded: 2008
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$214.500m
  • Shares outstanding: 550.00m
  • Website: https://www.synergy-group.com

Number of Employees


Location

  • Synergy Group Holdings International Limited
  • Seaview Estate
  • Room 404B, 4th Floor
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1539SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDMar 2015

Biography

Synergy Group Holdings International Limited, an investment holding company, primarily engages in the trade of energy saving products. The company operates through Leasing Service of Energy Saving Systems, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:54
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.