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

1.5%

SEHK:1651

-1.5%

HK Machinery

-0.6%

HK Market


1 Year Return

1.9%

SEHK:1651

1.5%

HK Machinery

-6.7%

HK Market

1651 matched the Machinery industry (1.5%) over the past year.

1651 outperformed the Market in Hong Kong which returned -6.7% over the past year.


Share holder returns

1651IndustryMarket
7 Day1.5%-1.5%-0.6%
30 Day-5.7%2.9%3.0%
90 Day-14.8%-4.7%-4.9%
1 Year6.8%1.9%4.2%1.5%-3.3%-6.7%
3 Yearn/a52.7%43.8%15.5%3.7%
5 Yearn/a61.1%44.7%16.8%-2.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Precision Tsugami (China)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

Precision Tsugami (China)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Precision Tsugami (China) is good value based on earnings compared to the HK Machinery industry average.

Precision Tsugami (China) is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Precision Tsugami (China) is good value based on expected growth next year.


Price Based on Value of Assets

Precision Tsugami (China) is overvalued based on assets compared to the HK Machinery industry average.


Next Steps

Future Growth

How is Precision Tsugami (China) expected 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 Estimates


Future Annual Growth Analysis

Precision Tsugami (China)'s revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).

Precision Tsugami (China)'s earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

Precision Tsugami (China)'s revenue growth is expected to exceed the Hong Kong market average.

Precision Tsugami (China)'s earnings growth is positive but not above the Hong Kong market average.

Precision Tsugami (China)'s earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Precision Tsugami (China) is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Precision Tsugami (China) has delivered over 20% year on year earnings growth in the past 5 years.

Precision Tsugami (China)'s 1-year earnings growth exceeds its 5-year average (89.4% vs 29.5%)

Precision Tsugami (China)'s earnings growth has exceeded the HK Machinery industry average in the past year (89.4% vs 7.4%).


Return on Equity

Precision Tsugami (China) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Precision Tsugami (China) used its assets more efficiently than the HK Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Precision Tsugami (China) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Precision Tsugami (China) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Precision Tsugami (China)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Precision Tsugami (China) has no debt.

Precision Tsugami (China) has no debt compared to 5 years ago when it was 223.4%.

Precision Tsugami (China) has no debt, it does not need to be covered by operating cash flow.

Precision Tsugami (China) has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Precision Tsugami (China) has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

5.47%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Precision Tsugami (China)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.2%).

Precision Tsugami (China)'s dividend is below the markets top 25% of dividend payers in Hong Kong (6.15%).

It is too early to tell whether Precision Tsugami (China) has stable dividend payments.

Precision Tsugami (China) only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


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?

4.3yrs

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

Donglei's remuneration is about average for companies of similar size in Hong Kong.

Donglei's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

4.3yrs

Average Tenure

56.5yo

Average Age

The tenure for the Precision Tsugami (China) board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 1.1yrs
    • 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: 4.3yrs
    • Compensation: CN¥240.00k
  • Ping Huang (56yo)

    Independent Non-Executive Director & Member of Supervisory Committee

    • Tenure: 4.3yrs
    • Compensation: CN¥317.00k
  • Eiichi Koda (71yo)

    Independent Non-Executive Director & Member of Supervisory Committee

    • Tenure: 4.3yrs
    • Compensation: CN¥317.00k
  • Zequn Li (58yo)

    VP & Executive Director

    • Tenure: 1.1yrs
    • 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$2.670b
  • 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 Analysis2019/09/19 12:55
End of Day Share Price2019/09/19 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.