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.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Sun.King Power Electronics Group is covered by less than 3 analysts.

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


Market Performance


7 Day Return

1.1%

580

-2.9%

HK Electrical

-2.7%

HK Market


1 Year Return

-28.4%

580

-34.9%

HK Electrical

-9.4%

HK Market

580 outperformed the Electrical industry which returned -35.3% over the past year.

580 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

580IndustryMarket
7 Day1.1%-2.9%-2.7%
30 Day-5.9%2.4%2.4%
90 Day-12.7%-15.2%-5.6%
1 Year-25.2%-28.4%-34.0%-34.9%-6.2%-9.4%
3 Year-10.1%-17.2%-46.4%-48.4%14.3%2.7%
5 Year41.4%28.0%-45.9%-49.0%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

6.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sun.King Power Electronics Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sun.King Power Electronics Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sun.King Power Electronics Group is good value based on earnings compared to the HK Electrical industry average.

Sun.King Power Electronics Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Sun.King Power Electronics Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Sun.King Power Electronics Group is overvalued based on assets compared to the HK Electrical industry average.


Next Steps

Future Growth

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

-5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sun.King Power Electronics Group's revenue is expected to grow significantly at over 20% yearly.

Sun.King Power Electronics Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Sun.King Power Electronics Group's revenue growth is expected to exceed the Hong Kong market average.

Sun.King Power Electronics Group's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Sun.King Power Electronics Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sun.King Power Electronics Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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


Past Earnings Growth Analysis

Sun.King Power Electronics Group has delivered over 20% year on year earnings growth in the past 5 years.

Sun.King Power Electronics Group's 1-year earnings growth is less than its 5-year average (23.7% vs 43.8%)

Sun.King Power Electronics Group's earnings growth has exceeded the HK Electrical industry average in the past year (23.7% vs 13.8%).


Return on Equity

Sun.King Power Electronics Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sun.King Power Electronics Group used its assets more efficiently than the HK Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Sun.King Power Electronics Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Sun.King Power Electronics Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sun.King Power Electronics Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sun.King Power Electronics Group's level of debt (19.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (33.2% vs 19.8% today).

Debt is well covered by operating cash flow (31.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 20.1x coverage).


Balance Sheet

Low level of unsold assets.

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?

5.20%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sun.King Power Electronics Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Sun.King Power Electronics Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Sun.King Power Electronics Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Sun.King Power Electronics Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Sun.King Power Electronics Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

5.4yrs

Average management tenure


CEO

Renyuan Gong (48yo)

7.4yrs

Tenure

CN¥1,746,000

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

Renyuan's remuneration is about average for companies of similar size in Hong Kong.

Renyuan's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.4yrs

Average Tenure

43yo

Average Age

The average tenure for the Sun.King Power Electronics Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

The average tenure for the Sun.King Power Electronics Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥487,00207 Nov 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares426,000
Max PriceCN¥1.14
BuyCN¥542,54906 Nov 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.09
BuyCN¥532,54802 Nov 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.07
BuyCN¥513,30201 Nov 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.03
BuyCN¥508,70026 Oct 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.02
BuyCN¥533,99825 Oct 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.07
BuyCN¥575,19920 Oct 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.15
BuyCN¥593,05117 Oct 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.19
BuyCN¥636,95011 Oct 18
Jie Xiang
EntityIndividual
Role
Chairman of the Board
Founder & Chairman of the Board
Shares500,000
Max PriceCN¥1.27

Ownership Breakdown


Management Team

  • Jie Xiang (45yo)

    Founder & Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: CN¥2.38m
  • Renyuan Gong (48yo)

    CEO, President & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥1.75m
  • Zhoumin Yue (48yo)

    VP & Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥1.10m
  • Jie Ren (41yo)

    Vice President of the Human Resources & Administration Department

    • Tenure: 0yrs
  • Xiangpeng Bo (34yo)

    Chief Financial Officer

    • Tenure: 3.4yrs
  • Lina He (40yo)

    Company Secretary

    • Tenure: 3.4yrs

Board Members

  • Fuquan Yan (55yo)

    Deputy Chairman

    • Tenure: 1.9yrs
  • Vincent Leung (43yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥154.00k
  • Shimin Chen (61yo)

    Independent Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: CN¥154.00k
  • Jie Xiang (45yo)

    Founder & Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: CN¥2.38m
  • Renyuan Gong (48yo)

    CEO, President & Executive Director

    • Tenure: 7.4yrs
    • Compensation: CN¥1.75m
  • Zhoumin Yue (48yo)

    VP & Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥1.10m
  • Xuejun Zhang (54yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥154.00k
  • Ming Zhu (41yo)

    Non-Executive Director

    • Tenure: 1.9yrs
  • Ling Zhang (50yo)

    Non-Executive Director

    • Tenure: 1.8yrs

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$1.543b
  • Shares outstanding: 1.61b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:46
End of Day Share Price2019/09/20 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.