SEHK:439

Stock Analysis Report

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Executive Summary

KuangChi Science Limited, an investment holding company, engages in the research and development, manufacture, and sale of future technology products in the People’s Republic of China and Hong Kong. More Details


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

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

-4.6%

439

-4.6%

HK Aerospace & Defense

1.2%

HK Market


1 Year Return

18.6%

439

28.2%

HK Aerospace & Defense

2.3%

HK Market

Return vs Industry: 439 underperformed the Hong Kong Aerospace & Defense industry which returned 28.4% over the past year.

Return vs Market: 439 exceeded the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

439IndustryMarket
7 Day-4.6%-4.6%1.2%
30 Day-16.2%0.1%7.0%
90 Day0%-2.2%3.6%
1 Year18.6%18.6%29.8%28.2%6.6%2.3%
3 Year-86.1%-86.1%4.8%2.0%-4.7%-15.1%
5 Year-87.0%-87.0%-8.2%-11.5%19.1%-1.1%

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?

2.84x

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 XA 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 overvalued based on its PB Ratio (2.8x) compared to the XA Aerospace & Defense industry average (2.6x).


Next Steps

Future Growth

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

15.7%

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?

-39.8%

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 39.8% 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 (2.8%).


Return on Equity

High ROE: 439 has a negative Return on Equity (-24.01%), as it is currently unprofitable.


Next Steps

Financial Health

How is KuangChi Science's financial position?


Financial Position Analysis

Short Term Liabilities: 439's short term assets (HK$499.0M) do not cover its short term liabilities (HK$510.8M).

Long Term Liabilities: 439's short term assets (HK$499.0M) exceed its long term liabilities (HK$192.4M).


Debt to Equity History and Analysis

Debt Level: 439's debt to equity ratio (55.1%) is considered high.

Reducing Debt: 439's debt to equity ratio has increased from 14.1% to 55.1% over the past 5 years.

Debt Coverage: 439's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 439's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

1.4yrs

Average management tenure


CEO

Lin Luan (40 yo)

1.42yrs

Tenure

HK$2,135,000

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. ...


CEO Compensation Analysis

Compensation vs Market: Lin's total compensation ($USD275.48K) is about average for companies of similar size in the Hong Kong market ($USD333.29K).

Compensation vs Earnings: Lin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ruopeng Liu
Executive Chairman6.17yrsHK$762.00kno data
Lin Luan
CEO, CTO & Executive Director1.42yrsHK$2.14mno data
Yang Yang Zhang
Executive Director6.17yrsHK$714.00kno data
Yu He
Chief Financial Officerno datano datano data
Weizi Huang
Chief Operation Officerno datano datano data
Chunlin Ji
Executive Director0.67yrno datano data
Chi Chung Cheng
Company Secretary2.58yrsno datano data

1.4yrs

Average Tenure

39yo

Average Age

Experienced Management: 439's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ruopeng Liu
Executive Chairman6.17yrsHK$762.00kno data
Lin Luan
CEO, CTO & Executive Director1.42yrsHK$2.14mno data
Yang Yang Zhang
Executive Director6.17yrsHK$714.00kno data
Chunlin Ji
Executive Director0.67yrno datano data
Wing Koon Choi
Independent Non-Executive Director1yrHK$49.00kno data
Kai Kit Wong
Independent Non-Executive Director6.17yrsHK$250.00kno data
Chiu Ho Li
Non-Executive Director0.58yrno datano data
Ke Deng
Independent Non-executive Director0.25yrno datano data

3.6yrs

Average Tenure

39yo

Average Age

Experienced Board: 439's board of directors are considered experienced (3.6 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: 1992
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: HK$2.555b
  • 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 products in the People’s Republic of China and Hong Kong. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:32
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.