SEHK:439

Stock Analysis Report

Executive Summary

KuangChi Science Limited, an investment holding company, engages in the research and development, manufacture, and sale of future technology businesses in the People’s Republic of China, Hong Kong, New Zealand, and Canada.


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has KuangChi Science's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 439's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

439

3.4%

HK Aerospace & Defense

2.9%

HK Market


1 Year Return

-59.7%

439

5.6%

HK Aerospace & Defense

-3.8%

HK Market

Return vs Industry: 439 underperformed the Hong Kong Aerospace & Defense industry which returned 5.6% over the past year.

Return vs Market: 439 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

439IndustryMarket
7 Day-7.2%3.4%2.9%
30 Day-12.1%0.2%-4.1%
90 Day-28.7%5.7%2.9%
1 Year-59.7%-59.7%6.7%5.6%-0.2%-3.8%
3 Year-91.8%-91.8%-17.9%-19.8%15.3%3.7%
5 Year-95.3%-95.3%-4.0%-7.5%16.8%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is KuangChi Science undervalued compared to its fair value and its price relative to the market?

1.2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 439's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 439's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 439 is unprofitable, so we can't compare its PE Ratio to the Aerospace & Defense industry average.

PE vs Market: 439 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 439's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 439 is good value based on its PB Ratio (1.2x) compared to the XA Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

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

16.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as KuangChi Science has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has KuangChi Science performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 439 is currently unprofitable.

Growing Profit Margin: 439 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 439 is unprofitable, and losses have increased over the past 5 years at a rate of -5.5% per year.

Accelerating Growth: Unable to compare 439's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 439 is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (14.5%).


Return on Equity

High ROE: 439 has a negative Return on Equity (-26.05%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KuangChi Science's financial position?


Financial Position Analysis

Short Term Liabilities: 439's short term assets (HK$724.6M) exceed its short term liabilities (HK$509.6M).

Long Term Liabilities: 439's short term assets (HK$724.6M) exceed its long term liabilities (HK$226.1M).


Debt to Equity History and Analysis

Debt Level: 439's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: 439's debt to equity ratio has increased from 0.3% to 37.9% over the past 5 years.


Balance Sheet

Inventory Level: 439 has a high level of physical assets or inventory.

Debt Coverage by Assets: 439's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 439 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 439 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is KuangChi Science's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 439's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 439's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 439's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 439'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 439's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.5yrs

Average board tenure


CEO

Lin Luan (39yo)

0.8yrs

Tenure

HK$1,836,000

Compensation

Dr. Lin Luan has been Vice President of Kuang-Chi Institute of Advanced Technology since 2010. Dr. Luan served as Co-Chief Executive Officer of KuangChi Science Limited from May 23, 2016 to May 23, 2019.  ...


Board Members

NamePositionTenureCompensationOwnership
Ruopeng Liu
Executive Chairman5.5yrsno datano data
Lin Luan
CEO, CTO & Executive Director0.8yrsHK$1.84mno data
Yang Yang Zhang
Executive Director5.5yrsHK$1.90mno data
Chunlin Ji
Executive Director0yrsno datano data
Wing Koon Choi
Independent Non-Executive Director0.3yrsno datano data
Jun Liu
Independent Non-Executive Director5.5yrsHK$250.00k0.0013% HK$19.8k
Kai Wong
Independent Non-Executive Director5.5yrsHK$250.00kno data

5.5yrs

Average Tenure

39yo

Average Age

Experienced Board: 439's board of directors are considered experienced (5.5 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

KuangChi Science Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KuangChi Science Limited
  • Ticker: 439
  • Exchange: SEHK
  • Founded:
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: HK$1.521b
  • Shares outstanding: 6.16b
  • Website: https://www.kuangchiscience.com

Number of Employees


Location

  • KuangChi Science Limited
  • Leighton Centre
  • Unit 1220, 12th Floor
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
439SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 1992
439SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1992
439SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 1992

Biography

KuangChi Science Limited, an investment holding company, engages in the research and development, manufacture, and sale of future technology businesses in the People’s Republic of China, Hong Kong, New Zealand, and Canada. It offers provision for in-depth space services and other innovative technology business, and administrative services, as well as trades chips. The company was formerly known as Climax International Company Limited and changed its name to KuangChi Science Limited in September 2014. KuangChi Science Limited is headquartered in Causeway Bay, Hong Kong. KuangChi Science Limited is a subsidiary of New Horizon Wireless Technology Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:52
End of Day Share Price2020/02/18 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.