SEHK:580

Stock Analysis Report

Sun.King Power Electronics Group

Executive Summary

Sun.King Power Electronics Group Limited, an investment holding company, manufactures and trades in power electronic components for use in power transmission, rail transportation, and industrial sectors in the People’s Republic of China.

Rewards

PE ratio (7.5x) is below the Hong Kong market (10.5x)

Earnings grew by 23.7% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has Sun.King Power Electronics Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 580 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

580

0.1%

HK Electrical

1.6%

HK Market


1 Year Return

4.5%

580

-24.7%

HK Electrical

6.0%

HK Market

Return vs Industry: 580 exceeded the Hong Kong Electrical industry which returned -23.1% over the past year.

Return vs Market: 580 underperformed the Hong Kong Market which returned 6.5% over the past year.


Shareholder returns

580IndustryMarket
7 Day5.5%0.1%1.6%
30 Day14.9%2.6%4.5%
90 Day18.4%5.3%8.8%
1 Year9.8%4.5%-23.4%-24.7%9.9%6.0%
3 Year-17.5%-25.6%-43.5%-45.7%27.7%14.7%
5 Year95.4%73.1%-49.4%-52.3%21.7%1.4%

Price Volatility Vs. Market

How volatile is Sun.King Power Electronics Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sun.King Power Electronics Group undervalued compared to its fair value and its price relative to the market?

7.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 580 (HK$1.13) is trading above our estimate of fair value (HK$0.57)

Significantly Below Fair Value: 580 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 580 is good value based on its PE Ratio (7.5x) compared to the Electrical industry average (9.2x).

PE vs Market: 580 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 580's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 580 is overvalued based on its PB Ratio (1x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

How is Sun.King Power Electronics Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

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 Sun.King Power Electronics Group 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 Sun.King Power Electronics Group performed over the past 5 years?

43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 580 has a large one-off gain of CN¥98.8M impacting its June 30 2019 financial results.

Growing Profit Margin: 580's current net profit margins (16.1%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: 580 has become profitable over the past 5 years, growing earnings by 43.8% per year.

Accelerating Growth: 580's earnings growth over the past year (23.7%) is below its 5-year average (43.8% per year).

Earnings vs Industry: 580 earnings growth over the past year (23.7%) exceeded the Electrical industry 4.8%.


Return on Equity

High ROE: 580's Return on Equity (14.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sun.King Power Electronics Group's financial position?


Financial Position Analysis

Short Term Liabilities: 580's short term assets (CN¥1.9B) exceed its short term liabilities (CN¥737.4M).

Long Term Liabilities: 580's short term assets (CN¥1.9B) exceed its long term liabilities (CN¥24.6M).


Debt to Equity History and Analysis

Debt Level: 580's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: 580's debt to equity ratio has reduced from 33.2% to 19.8% over the past 5 years.

Debt Coverage: 580's debt is well covered by operating cash flow (31.1%).

Interest Coverage: 580's interest payments on its debt are well covered by EBIT (20.1x coverage).


Balance Sheet

Inventory Level: 580 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 580's debt is covered by short term assets (assets are 5.7x debt).


Next Steps

Dividend

What is Sun.King Power Electronics Group's current dividend yield, its reliability and sustainability?

4.31%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.2%markettop25%6.0%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 580's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 580's dividend (4.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 580 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 580's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), 580's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Sun.King Power Electronics Group's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Renyuan Gong (48yo)

7.8yrs

Tenure

CN¥916,000

Compensation

Mr. Gong Renyuan has been the President of Sun King Power Electronics Group Limited since May 2010 and has been Chief Executive Officer since april 10, 2012. Mr. Renyuan joined Sun King Group in 2002 and b ...


CEO Compensation Analysis

Compensation vs Market: Renyuan's total compensation ($USD132.95K) is below average for companies of similar size in the Hong Kong market ($USD296.12K).

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


Management Age and Tenure

5.8yrs

Average Tenure

43yo

Average Age

Experienced Management: 580's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

48yo

Average Age

Experienced Board: 580's board of directors are considered experienced (3.1 years average tenure).


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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6%.


Management Team

  • Jie Xiang (45yo)

    Founder & Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: CN¥1.23m
  • Renyuan Gong (48yo)

    CEO, President & Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥916.00k
  • Zhoumin Yue (48yo)

    VP & Executive Director

    • Tenure: 9.7yrs
    • Compensation: CN¥592.00k
  • Jie Ren (41yo)

    Vice President of the Human Resources & Administration Department

    • Xiangpeng Bo (34yo)

      Chief Financial Officer

      • Tenure: 3.8yrs
    • Lina He (40yo)

      Company Secretary

      • Tenure: 3.8yrs

    Board Members

    • Fuquan Yan (55yo)

      Deputy Chairman

      • Tenure: 2.3yrs
    • Vincent Leung (43yo)

      Independent Non-Executive Director

      • Tenure: 2.8yrs
      • Compensation: CN¥154.00k
    • Shimin Chen (61yo)

      Independent Non-Executive Director

      • Tenure: 9.4yrs
      • Compensation: CN¥154.00k
    • Jie Xiang (45yo)

      Founder & Chairman of the Board

      • Tenure: 9.7yrs
      • Compensation: CN¥1.23m
    • Renyuan Gong (48yo)

      CEO, President & Executive Director

      • Tenure: 7.8yrs
      • Compensation: CN¥916.00k
    • Zhoumin Yue (48yo)

      VP & Executive Director

      • Tenure: 9.7yrs
      • Compensation: CN¥592.00k
    • Xuejun Zhang (54yo)

      Independent Non-Executive Director

      • Tenure: 3.1yrs
      • Compensation: CN¥154.00k
    • Ming Zhu (41yo)

      Non-Executive Director

      • Tenure: 2.3yrs
    • Ling Zhang (50yo)

      Non-Executive Director

      • Tenure: 2.1yrs

    Company Information

    Sun.King Power Electronics Group Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Sun.King Power Electronics Group Limited
    • Ticker: 580
    • Exchange: SEHK
    • Founded: 2002
    • Industry: Electrical Components and Equipment
    • Sector: Capital Goods
    • Market Cap: HK$1.852b
    • Shares outstanding: 1.60b
    • Website: https://www.sunking-tech.com

    Number of Employees


    Location

    • Sun.King Power Electronics Group Limited
    • Building 9-A
    • KongGangRongHuiYuan
    • Beijing
    • 101318
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    580SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2010
    9S9DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2010

    Biography

    Sun.King Power Electronics Group Limited, an investment holding company, manufactures and trades in power electronic components for use in power transmission, rail transportation, and industrial sectors in the People’s Republic of China. It also engages in the research, development, production, sale, installation, and after sale service of electrical/electronic components, including integrated gate bipolar transistors; and production of electrical capacitors and its devices, amorphous alloy transformers, DC current anode saturable dry-type reactors, FM voltage AC traction devices, and rectifiers. In addition, the company manufactures and sells pulsed power equipment, insulated gate bipolar transistor gate units, and other electronic parts. Further, it engages in the technology research of electronic power device railway equipment; and distribution and sale of power electronic components. Additionally, the company is involved in the trading of various products and technologies. Sun.King Power Electronics Group Limited was founded in 2002 and is headquartered in Beijing, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 12:49
    End of Day Share Price2020/01/17 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.