SEHK:1651

Stock Analysis Report

Precision Tsugami (China)

Executive Summary

Precision Tsugami (China) Corporation Limited, an investment holding company, manufactures and sells high precision computer numerical control machine tools in Mainland China, Japan, Europe, the United States, Southeast Asia, and internationally.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Precision Tsugami (China)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

1651

6.5%

HK Machinery

3.3%

HK Market


1 Year Return

-1.3%

1651

18.6%

HK Machinery

1.6%

HK Market

Return vs Industry: 1651 underperformed the Hong Kong Machinery industry which returned 18.6% over the past year.

Return vs Market: 1651 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1651IndustryMarket
7 Day3.4%6.5%3.3%
30 Day-4.1%1.1%-0.009%
90 Day-16.9%-3.9%-5.1%
1 Year3.4%-1.3%22.0%18.6%5.3%1.6%
3 Yearn/a54.0%44.6%16.1%4.4%
5 Yearn/a72.8%54.7%20.4%0.3%

Price Volatility Vs. Market

How volatile is Precision Tsugami (China)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Precision Tsugami (China) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1651 (HK$6.71) is trading below our estimate of fair value (HK$29.55)

Significantly Undervalued: 1651 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1651 is good value based on its PE Ratio (6.3x) compared to the Machinery industry average (9.2x).

PE vs Market: 1651 is good value based on its PE Ratio (6.3x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1651 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1651 is overvalued based on its PB Ratio (1.6x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

How is Precision Tsugami (China) forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1651's forecast earnings growth (11.1% per year) is above the savings rate (2%).

Earnings vs Market: 1651's earnings (11.1% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1651's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1651's revenue (10.9% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1651's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1651's Return on Equity is forecast to be high in 3 years time (21.8%)


Next Steps

Past Performance

How has Precision Tsugami (China) performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1651's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: 1651's earnings growth over the past year (89.4%) exceeds its 5-year average (29.5% per year).

Earnings vs Industry: 1651 earnings growth over the past year (89.4%) exceeded the Machinery industry 7.4%.


Return on Equity

High ROE: 1651's Return on Equity (26%) is considered high.


Return on Assets

ROA vs Industry: 1651 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 1651 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Precision Tsugami (China)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1651's short term assets (CN¥1.6B) exceeds its short term liabilities (CN¥545.7M)

Long Term Liabilities: 1651's short term assets (1.6B) exceeds its long term liabilities (15.1M)


Debt to Equity History and Analysis

Debt Level: 1651 is debt free.

Reducing Debt: 1651 has no debt compared to 5 years ago when its debt to equity ratio was 223.4%.

Debt Coverage: 1651 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1651 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1651 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1651's debt is covered by short term assets.


Next Steps

Dividend

What is Precision Tsugami (China)'s current dividend yield, its reliability and sustainability?

4.45%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Years5.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1651's dividend (4.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1651's dividend (4.45%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: Too early to tell whether 1651's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1651's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), 1651's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1651's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).


Next Steps

Management

What is the CEO of Precision Tsugami (China)'s salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average board tenure


CEO

Donglei Tang (57yo)

0yrs

Tenure

CN¥2,043,000

Compensation

Dr. Tang Donglei serves as Chief Executive Officer at Precision Tsugami (China) Corporation Limited and has been its Executive Director since May 13, 2015. Dr. Tang is primarily responsible for overall man ...


CEO Compensation Analysis

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

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


Board Age and Tenure

4.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 1651's board of directors are considered experienced (4.4 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

  • Donglei Tang (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.04m
  • Ella Wong (43yo)

    Company Secretary

    • Tenure: 4.3yrs
  • Zequn Li (58yo)

    VP & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.18m
  • Junying Li (45yo)

    Assistant to President & Financial Manager

    • Tenure: 0yrs

Board Members

  • Takao Nishijima (72yo)

    Chairman

    • Tenure: 0yrs
  • Donglei Tang (57yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥2.04m
  • Kin Bor Tam (50yo)

    Independent Non-Executive Director & Member of Supervisory Committee

    • Tenure: 2.8yrs
    • Compensation: CN¥317.00k
  • Mami Matsushita (55yo)

    Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥240.00k
  • Ping Huang (56yo)

    Independent Non-Executive Director & Member of Supervisory Committee

    • Tenure: 4.4yrs
    • Compensation: CN¥317.00k
  • Eiichi Koda (71yo)

    Independent Non-Executive Director & Member of Supervisory Committee

    • Tenure: 4.4yrs
    • Compensation: CN¥317.00k
  • Zequn Li (58yo)

    VP & Executive Director

    • Tenure: 1.2yrs
    • Compensation: CN¥1.18m
  • Manabu Tanaka (54yo)

    Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Precision Tsugami (China) Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Precision Tsugami (China) Corporation Limited
  • Ticker: 1651
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$2.517b
  • Shares outstanding: 381.37m
  • Website: https://www.tsugami.com.cn

Number of Employees


Location

  • Precision Tsugami (China) Corporation Limited
  • No. 2001 Pingcheng Road
  • Pinghu Economic and Technology Development District
  • Pinghu
  • Zhejiang Province
  • 314200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1651SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDSep 2017

Biography

Precision Tsugami (China) Corporation Limited, an investment holding company, manufactures and sells high precision computer numerical control machine tools in Mainland China, Japan, Europe, the United Sta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:53
End of Day Share Price2019/10/18 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.