SEHK:1651

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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. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


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

Stable Share Price: 1651 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1651

-3.5%

HK Machinery

-3.9%

HK Market


1 Year Return

-6.7%

1651

41.2%

HK Machinery

-1.5%

HK Market

Return vs Industry: 1651 underperformed the Hong Kong Machinery industry which returned 42.8% over the past year.

Return vs Market: 1651 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1651IndustryMarket
7 Day0%-3.5%-3.9%
30 Day-0.2%-5.6%-7.1%
90 Day2.6%16.6%-0.7%
1 Year-2.3%-6.7%44.7%41.2%2.4%-1.5%
3 Year-14.1%-23.6%46.9%36.0%-7.2%-17.2%
5 Yearn/a116.5%98.6%20.1%-0.1%

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?

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1651 (HK$6.3) is trading below our estimate of fair value (HK$7.72)

Significantly Below Fair Value: 1651 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1651 is poor value based on its PE Ratio (13.6x) compared to the HK Machinery industry average (12.8x).

PE vs Market: 1651 is poor value based on its PE Ratio (13.6x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1651 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1651 is overvalued based on its PB Ratio (1.4x) 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 4 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1651's forecast earnings growth (18.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1651's earnings (18.6% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

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

Revenue vs Market: 1651's revenue (13% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 1651's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1651's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

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

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1651 has high quality earnings.

Growing Profit Margin: 1651's current net profit margins (8%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: 1651's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: 1651's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1651 had negative earnings growth (-57.5%) over the past year, making it difficult to compare to the Machinery industry average (1%).


Return on Equity

High ROE: 1651's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 1651's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥439.2M).

Long Term Liabilities: 1651's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥21.4M).


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 69.2%.

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


Next Steps

Dividend

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

4.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1651's dividend (4.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1651's dividend (4.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1651 has been paying a dividend for less than 10 years.

Growing Dividend: 1651's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.1%), 1651's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1651's dividends in 3 years are forecast to be well covered by earnings (25.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

Donglei Tang (58 yo)

no data

Tenure

CN¥2,042,000

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: Donglei's total compensation ($USD299.04K) is about average for companies of similar size in the Hong Kong market ($USD347.35K).

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


Board Members

NamePositionTenureCompensationOwnership
Donglei Tang
CEO & Executive Directorno dataCN¥2.04m0.039%
CN¥ 945.0k
Zequn Li
VP & Executive Director2.08yrsCN¥1.17mno data
Takao Nishijima
Chairmanno datano datano data
Kin Bor Tam
Independent Non-Executive Director & Member of Supervisory Committee3.75yrsCN¥493.00kno data
Seiji Tsuishu
Non-Executive Director0.25yrno datano data
Mami Matsushita
Non-Executive Director5.33yrsCN¥240.00kno data
Ping Huang
Independent Non-Executive Director & Member of Supervisory Committee5.33yrsCN¥493.00kno data
Eiichi Koda
Independent Non-Executive Director & Member of Supervisory Committee5.33yrsCN¥493.00kno data

5.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 1651's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$2.399b
  • Shares outstanding: 380.81m
  • Website: https://www.tsugami.com.cn

Number of Employees


Location

  • Precision Tsugami (China) Corporation Limited
  • No. 2001 Pingcheng Road
  • Pinghu Eco & Tech Dev Dist.
  • 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 Analysis2020/09/24 19:21
End of Day Share Price2020/09/24 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.