SEHK:1721

Stock Analysis Report

Executive Summary

FSM Holdings Limited, an investment holding company, a sheet metal fabricator, produces and supplies sheet metal products to contract manufacturers and brand owners in Singapore and Malaysia.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

1721

-0.2%

HK Machinery

0.3%

HK Market


1 Year Return

-25.5%

1721

17.7%

HK Machinery

1.3%

HK Market

Return vs Industry: 1721 underperformed the Hong Kong Machinery industry which returned 17.7% over the past year.

Return vs Market: 1721 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1721IndustryMarket
7 Day-2.4%-0.2%0.3%
30 Day-4.7%2.3%0.5%
90 Day-2.4%-3.3%-4.6%
1 Year-25.5%-25.5%21.1%17.7%4.9%1.3%
3 Yearn/a52.3%42.8%15.3%3.7%
5 Yearn/a73.2%55.0%20.0%-0.006%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is FSM Holdings undervalued compared to its fair value and its price relative to the market?

31.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1721's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1721's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1721 is poor value based on its PE Ratio (31.8x) compared to the Machinery industry average (9.1x).

PE vs Market: 1721 is poor value based on its PE Ratio (31.8x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1721's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1721 is overvalued based on its PB Ratio (1.8x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1721's forecast earnings growth (13.6% per year) is above the savings rate (2%).

Earnings vs Market: 1721's earnings (13.6% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 1721's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1721's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1721'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 1721's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FSM Holdings performed over the past 5 years?

-22.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1721's earnings have declined by -22.1% per year over the past 5 years.

Accelerating Growth: 1721's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1721 had negative earnings growth (-43.1%) over the past year, making it difficult to compare to the Machinery industry average (8.4%).


Return on Equity

High ROE: 1721's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: 1721's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 1721's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is FSM Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1721's short term assets (SGD28.1M) exceeds its short term liabilities (SGD2.7M)

Long Term Liabilities: 1721's short term assets (28.1M) exceeds its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: 1721's debt to equity ratio (0.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1721's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1721's debt is well covered by operating cash flow (577.9%).

Interest Coverage: 1721 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1721 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1721's debt is covered by short term assets (assets are 94.281870x debt).


Next Steps

Dividend

What is FSM Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1721's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1721'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 1721's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1721'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 1721'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 FSM Holdings's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Tiong-Hock Toe (62yo)

1.6yrs

Tenure

0

Mr. Tiong Hock Toe has been Chairman of the Board, Executive Director and Chief Executive Officer of FSM Holdings Limited since March 9, 2018. Mr. Toe is responsible for overall management, formulation of  ...


Management Age and Tenure

1.6yrs

Average Tenure

49yo

Average Age

Experienced Management: 1721's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

57yo

Average Age

Experienced Board: 1721's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

  • Tiong-Hock Toe (62yo)

    Chairman of the Board & CEO

    • Tenure: 1.6yrs
  • Yet-Lian Wong (60yo)

    COO & Executive Director

    • Tenure: 1.7yrs
  • Siew Choo Lim (43yo)

    Executive Director

    • Tenure: 1.7yrs
  • Teow Huat Kwa (56yo)

    CFO & Chief Information Officer

    • Tenure: 1.8yrs
  • Soo Hwa Loh (49yo)

    Sales & Business Development Head

    • Tenure: 0yrs
  • Rui Rong Ho (30yo)

    Financial Controller

    • Tenure: 1.9yrs
  • Hoi Yan Leung (39yo)

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Kam Keung Pong (57yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Tiong-Hock Toe (62yo)

    Chairman of the Board & CEO

    • Tenure: 1.6yrs
  • Yet-Lian Wong (60yo)

    COO & Executive Director

    • Tenure: 1.7yrs
  • Siew Choo Lim (43yo)

    Executive Director

    • Tenure: 1.7yrs
  • Myron Ng (48yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs

Company Information

FSM Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FSM Holdings Limited
  • Ticker: 1721
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$410.000m
  • Shares outstanding: 1.00b
  • Website: https://www.fsmtech.com

Number of Employees


Location

  • FSM Holdings Limited
  • 12 Tuas Link 1
  • Singapore
  • 638595
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1721SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

FSM Holdings Limited, an investment holding company, a sheet metal fabricator, produces and supplies sheet metal products to contract manufacturers and brand owners in Singapore and Malaysia. Its products  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 13:03
End of Day Share Price2019/10/22 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.