Gemilang International (SEHK:6163) - Share price, News & Analysis

Q: What is the Fair Price of 6163 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6163 (HK$0.6) is trading above our estimate of [[fair value]] (HK$0.5)

6163 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	5/6
Financial Health	4/6
Dividends	2/6

6163 Stock Overview

Gemilang International Limited designs, manufactures, and assembles buses and bus bodies in Malaysia and Singapore.

Rewards

Earnings grew by 4152% over the past year

Risk Analysis

Volatile share price over the past 3 months

Does not have a meaningful market cap (HK$151M)

Gemilang International Competitors

D&G Technology Holding

SEHK:1301

HK$652.2m

CRCC High-Tech Equipment

SEHK:1786

HK$1.0b

KFM Kingdom Holdings

SEHK:3816

HK$133.8m

Hebei Yichen Industrial Group

SEHK:1596

HK$3.7b

Price History & Performance

Summary of all time highs, changes and price drops for Gemilang International
Historical stock prices
Current Share Price	HK$0.60
52 Week High	HK$0.75
52 Week Low	HK$0.28
Beta	0.047
1 Month Change	3.45%
3 Month Change	-7.69%
1 Year Change	0%
3 Year Change	-61.29%
5 Year Change	-66.29%
Change since IPO	-56.20%

Recent News & Updates

Jun 28

Gemilang International (HKG:6163) Has A Pretty Healthy Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	6163	HK Machinery	HK Market
7D	15.4%	1.5%	0.3%
1Y	0%	-35.7%	-21.6%

Return vs Industry: 6163 exceeded the Hong Kong Machinery industry which returned -34.8% over the past year.

Return vs Market: 6163 exceeded the Hong Kong Market which returned -22% over the past year.

Price Volatility

Is 6163's price volatile compared to industry and market?
6163 volatility
6163 Average Weekly Movement	11.5%
Machinery Industry Average Movement	6.7%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.6%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6163 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 6163's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

Founded	Employees	CEO	Website
1989	273	Chong Yong Pang	https://www.gml.com.my

Gemilang International Limited designs, manufactures, and assembles buses and bus bodies in Malaysia and Singapore. Its products include single deck, double deck, and articulated city buses, as well as single deck, double deck, and high deck coaches. The company is also involved in the fabrication of body works for buses; and trading of body kits and spare parts for buses, as well as provides after-sales and maintenance services for buses.

Gemilang International Fundamentals Summary

How do Gemilang International's earnings and revenue compare to its market cap?
6163 fundamental statistics
Market Cap	US$19.23m
Earnings (TTM)	US$1.06m
Revenue (TTM)	US$29.08m

18.1x

P/E Ratio

0.7x

P/S Ratio

Is 6163 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6163 income statement (TTM)
Revenue	US$29.08m
Cost of Revenue	US$23.44m
Gross Profit	US$5.64m
Other Expenses	US$4.58m
Earnings	US$1.06m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.0042
Gross Margin	19.41%
Net Profit Margin	3.65%
Debt/Equity Ratio	65.5%

How did 6163 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

46%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6163 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6163?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6163. This is calculated by dividing 6163's market cap by their current preferred multiple.
What is 6163's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$19.23m

6163 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	9.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6163's PE Ratio compare to its peers?

6163 PE Ratio vs Peers

The above table shows the PE ratio for 6163 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	23.3x
1301 D&G Technology Holding	52.6x	n/a	HK$652.2m
1786 CRCC High-Tech Equipment	17.6x	24.6%	HK$1.0b
3816 KFM Kingdom Holdings	10.2x	n/a	HK$133.8m
1596 Hebei Yichen Industrial Group	12.8x	n/a	HK$3.7b
6163 Gemilang International	18.1x	n/a	HK$150.8m

Price-To-Earnings vs Peers: 6163 is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (23.3x).

Price to Earnings Ratio vs Industry

How does 6163's PE Ratio compare vs other companies in the HK Machinery Industry?

Price-To-Earnings vs Industry: 6163 is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the Hong Kong Machinery industry average (11.1x)

Price to Earnings Ratio vs Fair Ratio

What is 6163's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6163 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6163's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6163 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6163 (HK$0.6) is trading above our estimate of fair value (HK$0.5)

Significantly Below Fair Value: 6163 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.5%

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 Gemilang International 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.

Discover growth companies

Check out Gemilang International's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Gemilang International competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Gemilang International performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6163 has high quality earnings.

Growing Profit Margin: 6163's current net profit margins (3.7%) are higher than last year (0.08%).

Past Earnings Growth Analysis

Earnings Trend: 6163's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: 6163's earnings growth over the past year (4152%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: 6163 earnings growth over the past year (4152%) exceeded the Machinery industry 33.1%.

Return on Equity

High ROE: 6163's Return on Equity (5.6%) is considered low.

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Financial Health

How is Gemilang International's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6163's short term assets ($36.4M) exceed its short term liabilities ($22.1M).

Long Term Liabilities: 6163's short term assets ($36.4M) exceed its long term liabilities ($3.0M).

Debt to Equity History and Analysis

Debt Level: 6163's net debt to equity ratio (22.9%) is considered satisfactory.

Reducing Debt: 6163's debt to equity ratio has increased from 48.7% to 65.5% over the past 5 years.

Debt Coverage: 6163's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: 6163's interest payments on its debt are well covered by EBIT (5.1x coverage).

Balance Sheet

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Dividend

What is Gemilang International current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6163's dividend (2.5%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 6163's dividend (2.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.25%).

Stability and Growth of Payments

Stable Dividend: 6163 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6163 has only been paying a dividend for 5 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.6%), 6163's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.1%), 6163's dividend payments are well covered by cash flows.

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Management

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

1.3yrs

Average management tenure

CEO

Chong Yong Pang (63 yo)

6.17yrs

Tenure

US$527,000

Compensation

Mr. Chong Yong Pang has been Non Independent and Non-Executive Director at Advanced Packaging Technology (M) Bhd since June 16, 2020. He serves as Chairman of the Board at Gemilang International Limited si...

CEO Compensation Analysis

Compensation vs Market: Chong Yong's total compensation ($USD527.00K) is above average for companies of similar size in the Hong Kong market ($USD246.27K).

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

Leadership Team

Experienced Management: 6163's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: 6163's board of directors are considered experienced (5.8 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/04/30
Annual Earnings	2021/10/31