SEHK:6163

Stock Analysis Report

Gemilang International

Executive Summary

Gemilang International Limited engages in the design and manufacture of buses and bus bodies in Singapore and Malaysia.

Rewards

Trading at 88.4% below its fair value

Became profitable this year

Risk Analysis

Earnings have declined by -54.54% per year over past 5 years

Has a high level of debt

Unstable dividend track record

Does not have a meaningful market cap (HK$339M)



Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Gemilang International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6163 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

6163

-2.5%

HK Machinery

-2.7%

HK Market


1 Year Return

-32.5%

6163

20.7%

HK Machinery

-5.6%

HK Market

Return vs Industry: 6163 underperformed the Hong Kong Machinery industry which returned 20.7% over the past year.

Return vs Market: 6163 underperformed the Hong Kong Market which returned -5.6% over the past year.


Shareholder returns

6163IndustryMarket
7 Day-0.7%-2.5%-2.7%
30 Day-6.9%-2.6%-4.6%
90 Day-15.6%5.6%-1.0%
1 Year-31.3%-32.5%24.1%20.7%-2.2%-5.6%
3 Year-11.5%-14.0%56.9%46.7%15.8%4.1%
5 Yearn/a40.1%28.1%15.4%-4.0%

Price Volatility Vs. Market

How volatile is Gemilang International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gemilang International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6163 (HK$1.35) is trading below our estimate of fair value (HK$11.66)

Significantly Below Fair Value: 6163 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6163 is poor value based on its PE Ratio (20.5x) compared to the Machinery industry average (10x).

PE vs Market: 6163 is poor value based on its PE Ratio (20.5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6163's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6163 is overvalued based on its PB Ratio (2.5x) compared to the HK Machinery industry average (1x).


Next Steps

Future Growth

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

13.8%

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.


Next Steps

Past Performance

How has Gemilang International performed over the past 5 years?

-54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6163 has high quality earnings.

Growing Profit Margin: 6163 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 6163's earnings have declined by -54.5% per year over the past 5 years.

Accelerating Growth: 6163 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6163 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (7.3%).


Return on Equity

High ROE: 6163's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gemilang International's financial position?


Financial Position Analysis

Short Term Liabilities: 6163's short term assets ($34.2M) exceed its short term liabilities ($25.0M).

Long Term Liabilities: 6163's short term assets ($34.2M) exceed its long term liabilities ($90.0K).


Debt to Equity History and Analysis

Debt Level: 6163's debt to equity ratio (45.1%) is considered high.

Reducing Debt: 6163's debt to equity ratio has reduced from 389.5% to 45.1% over the past 5 years.

Debt Coverage: 6163's debt is well covered by operating cash flow (57.2%).

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


Balance Sheet

Inventory Level: 6163 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6163's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

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

4.43%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.3%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 6163's dividend (4.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 6163's dividend (4.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


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's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), 6163'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 Gemilang International's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average board tenure


CEO

Chong Pang (60yo)

0yrs

Tenure

US$462,000

Compensation

Mr. Pang Chong Yong is a Co-Founder and Chief Executive Officer of Gemilang International Limited and also has been its Executive Director since June 21, 2016. Mr. Pang has served as a Managing Director of ...


CEO Compensation Analysis

Compensation vs Market: Chong's total compensation ($USD462.00K) is above average for companies of similar size in the Hong Kong market ($USD212.77K).

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


Board Age and Tenure

3.2yrs

Average Tenure

48yo

Average Age

Experienced Board: 6163's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

BuyUS$32,00020 Aug 19
Sun Phang
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman of the Board
Shares20,000
Max PriceUS$1.60
BuyUS$563,99918 Feb 19
Sun Phang
EntityIndividual
Role
Chairman of the Board
Co-Founder & Chairman of the Board
Shares300,000
Max PriceUS$1.88

Ownership Breakdown

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


Management Team

  • Sun Phang (70yo)

    Co-Founder & Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$441.00k
  • Chong Pang (60yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$462.00k
  • Huey Phang (36yo)

    Chief Corporate Officer & Executive Director

    • Tenure: 3.5yrs
    • Compensation: US$202.00k
  • Yuen Chan

    Company Secretary

    • Tenure: 0.6yrs

Board Members

  • Karen Lee (71yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$38.00k
  • Sun Phang (70yo)

    Co-Founder & Chairman of the Board

    • Tenure: 3.5yrs
    • Compensation: US$441.00k
  • Chong Pang (60yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$462.00k
  • Huey Phang (36yo)

    Chief Corporate Officer & Executive Director

    • Tenure: 3.5yrs
    • Compensation: US$202.00k
  • Hiu Wong (48yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$15.00k
  • Rosetta Kwok (42yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$15.00k
  • Yean Huan (43yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$15.00k

Company Information

Gemilang International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gemilang International Limited
  • Ticker: 6163
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: HK$339.341m
  • Shares outstanding: 251.36m
  • Website: https://www.gml.com.my

Number of Employees


Location

  • Gemilang International Limited
  • Ptd 42326, Jalan Seelong
  • Mukim Senai
  • Senai
  • Johor
  • 81400
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6163SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2016

Biography

Gemilang International Limited engages in the design and manufacture of buses and bus bodies in Singapore and Malaysia. It manufactures a range of buses, including single deck, double deck, and articulated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 13:01
End of Day Share Price2019/12/04 00:00
Earnings2019/04/30
Annual Earnings2018/10/31


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.