SEHK:1608

Stock Analysis Report

VPower Group International Holdings

Executive Summary

VPower Group International Holdings Limited designs, integrates, and sells gas-fired and diesel-fired engine-based gen-sets and power generation systems.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

15.8%

1608

1.5%

HK Electrical

2.9%

HK Market


1 Year Return

-16.1%

1608

-31.2%

HK Electrical

0.7%

HK Market

Return vs Industry: 1608 exceeded the Hong Kong Electrical industry which returned -31.2% over the past year.

Return vs Market: 1608 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1608IndustryMarket
7 Day15.8%1.5%2.9%
30 Day7.6%-5.9%-2.5%
90 Day-3.4%-13.1%-5.4%
1 Year-15.7%-16.1%-30.2%-31.2%4.4%0.7%
3 Yearn/a-46.4%-48.4%17.0%5.2%
5 Yearn/a-45.8%-48.9%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1608 (HK$2.56) is trading below our estimate of fair value (HK$3.64)

Significantly Undervalued: 1608 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1608 is poor value based on its PE Ratio (32.5x) compared to the Electrical industry average (8.6x).

PE vs Market: 1608 is poor value based on its PE Ratio (32.5x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1608 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1608 is overvalued based on its PB Ratio (2.4x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is VPower Group International Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

48.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1608's forecast earnings growth (48.3% per year) is above the savings rate (2%).

Earnings vs Market: 1608's earnings (48.3% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 1608's revenue (15.4% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1608's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1608's Return on Equity is forecast to be low in 3 years time (13.4%).


Next Steps

Past Performance

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

9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1608's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: 1608's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1608 had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Electrical industry average (7.8%).


Return on Equity

High ROE: 1608's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: 1608 has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: 1608's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is VPower Group International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1608's short term assets (HK$4.7B) exceeds its short term liabilities (HK$3.0B)

Long Term Liabilities: 1608's short term assets (4.7B) exceeds its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: 1608's debt to equity ratio (154%) is considered high

Reducing Debt: 1608's debt to equity ratio has reduced from 279.8% to 154% over the past 5 years.

Debt Coverage: 1608's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1608's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

Inventory Level: 1608 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1608's debt is covered by short term assets (assets are 1.103130x debt).


Next Steps

Dividend

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

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.2%markettop25%6.3%industryaverage2.5%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1608's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1608's dividend (0.76%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 1608 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1608 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1608 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1608'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 VPower Group International Holdings's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average board tenure


CEO

Jason Lee (49yo)

3.5yrs

Tenure

HK$3,081,000

Compensation

Mr. Chong Man Lee, also known as Jason, is a Co-Founder of VPower Group International Holdings Limited and serves as its Co-Chief Executive Officer. Mr. Lee has been an Executive Director of VPower Group I ...


CEO Compensation Analysis

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

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


Board Age and Tenure

3.0yrs

Average Tenure

48yo

Average Age

Experienced Board: 1608's board of directors are considered experienced (3 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.


Ownership Breakdown


Management Team

  • Rorce Au-Yeung (61yo)

    Co-CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$4.57m
  • Samson Lam (47yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.89m
  • Jason Lee (49yo)

    Co-CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$3.08m
  • Siu Yuen Lo (48yo)

    COO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$2.70m
  • Boyang Liu (48yo)

    Chief Investment Officer

    • Tenure: 0yrs
  • Kam Shing Chan (47yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Yeung Earnest Cheung (45yo)

    Chief Commercial Officer

    • Tenure: 0yrs
  • Siu Ming Lee (43yo)

    Chief Strategy Officer & Head of Capital Markets/Corporate Finance

    • Tenure: 0yrs

Board Members

  • David Tsoi (72yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: HK$216.00k
  • Steve Kwok (50yo)

    Non-Executive Director

    • Tenure: 2.5yrs
  • Wai Yu Suen (41yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: HK$216.00k
  • Rorce Au-Yeung (61yo)

    Co-CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$4.57m
  • Andrew Yeung (46yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: HK$216.00k
  • Samson Lam (47yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.89m
  • Jason Lee (49yo)

    Co-CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$3.08m
  • Siu Yuen Lo (48yo)

    COO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$2.70m
  • Mei Wan Chan (46yo)

    Vice Chairmwoman

    • Tenure: 0yrs
    • Compensation: HK$1.90m

Company Information

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


Key Information

  • Name: VPower Group International Holdings Limited
  • Ticker: 1608
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: HK$6.303b
  • Shares outstanding: 2.56b
  • Website: https://vpower.com

Number of Employees


Location

  • VPower Group International Holdings Limited
  • Office Tower 1
  • Units 2701-05, 27th Floor
  • Hung Hom
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1608SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2016
2V3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2016
1608SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2016
1608SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2016

Biography

VPower Group International Holdings Limited designs, integrates, and sells gas-fired and diesel-fired engine-based gen-sets and power generation systems. The company operates through two segments, System I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 13:00
End of Day Share Price2019/10/15 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.