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.

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

5.4%

580

-1.6%

HK Electrical

0.9%

HK Market


1 Year Return

-13.3%

580

-32.1%

HK Electrical

0.6%

HK Market

Return vs Industry: 580 exceeded the Hong Kong Electrical industry which returned -32.1% over the past year.

Return vs Market: 580 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

580IndustryMarket
7 Day5.4%-1.6%0.9%
30 Day2.1%-4.8%0.5%
90 Day-8.4%-12.6%-4.3%
1 Year-8.9%-13.3%-31.1%-32.1%4.2%0.6%
3 Year-5.5%-14.8%-47.6%-49.6%15.6%4.0%
5 Year30.1%15.3%-45.0%-48.1%20.0%-0.08%

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?

6.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 580 (HK$0.98) is trading above our estimate of fair value (HK$0.61)

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 (6.7x) compared to the Electrical industry average (8.8x).

PE vs Market: 580 is good value based on its PE Ratio (6.7x) compared to the Hong Kong market (10.3x).


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 (0.9x) 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 1 analyst?

-6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 580's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: 580's earnings are forecast to decline over the next 3 years (-6.4% per year).

High Growth Earnings: 580's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 580's revenue (27.9% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 580's revenue (27.9% per year) 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 580's Return on Equity is forecast to be high in 3 years time


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

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 8%.


Return on Equity

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


Return on Assets

ROA vs Industry: 580 has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: 580 has significantly improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (CN¥737.4M)

Long Term Liabilities: 580's short term assets (1.9B) exceeds its long term liabilities (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 5.666350x debt).


Next Steps

Dividend

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

5.09%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 580's dividend (5.09%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 580's dividend (5.09%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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?

5.5yrs

Average management tenure


CEO

Renyuan Gong (48yo)

7.5yrs

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 ($USD129.35K) is about average for companies of similar size in the Hong Kong market ($USD287.10K).

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


Management Age and Tenure

5.5yrs

Average Tenure

43yo

Average Age

Experienced Management: 580's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 580's board of directors are not considered experienced ( 2.8 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.


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

Ownership Breakdown


Management Team

  • Jie Xiang (45yo)

    Founder & Chairman of the Board

    • Tenure: 9.4yrs
    • Compensation: CN¥1.23m
  • Renyuan Gong (48yo)

    CEO, President & Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥916.00k
  • Zhoumin Yue (48yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥592.00k
  • Jie Ren (41yo)

    Vice President of the Human Resources & Administration Department

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

    Chief Financial Officer

    • Tenure: 3.5yrs
  • Lina He (40yo)

    Company Secretary

    • Tenure: 3.5yrs

Board Members

  • Fuquan Yan (55yo)

    Deputy Chairman

    • Tenure: 2yrs
  • Vincent Leung (43yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥154.00k
  • Shimin Chen (61yo)

    Independent Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: CN¥154.00k
  • Jie Xiang (45yo)

    Founder & Chairman of the Board

    • Tenure: 9.4yrs
    • Compensation: CN¥1.23m
  • Renyuan Gong (48yo)

    CEO, President & Executive Director

    • Tenure: 7.5yrs
    • Compensation: CN¥916.00k
  • Zhoumin Yue (48yo)

    VP & Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥592.00k
  • Xuejun Zhang (54yo)

    Independent Non-Executive Director

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

    Non-Executive Director

    • Tenure: 2yrs
  • 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$1.570b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:46
End of Day Share Price2019/10/18 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.