SEHK:8118

Stock Analysis Report

Executive Summary

Bortex Global Limited, an investment holding company, develops, manufactures, and exports light-emitting diode (LED) lighting products to customers in Canada, Taiwan, the United States, Hong Kong, the People’s Republic of China, Brazil, France, Japan, the Philippines, Thailand, South Africa, and Italy.

Rewards

PE ratio (8x) is below the Hong Kong market (10.2x)

Earnings grew by 283.9% over the past year

Risk Analysis

High level of non-cash earnings

Does not have a meaningful market cap (HK$200M)



Snowflake Analysis

Adequate balance sheet with proven track record.

Share Price & News

How has Bortex Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8118 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

8118

2.1%

HK Electrical

0.3%

HK Market


1 Year Return

109.4%

8118

-31.7%

HK Electrical

-5.1%

HK Market

Return vs Industry: 8118 exceeded the Hong Kong Electrical industry which returned -31.7% over the past year.

Return vs Market: 8118 exceeded the Hong Kong Market which returned -5.1% over the past year.


Shareholder returns

8118IndustryMarket
7 Day-2.4%2.1%0.3%
30 Day0%-4.1%-3.9%
90 Day3.9%3.8%4.4%
1 Year109.4%109.4%-30.5%-31.7%-1.6%-5.1%
3 Yearn/a-47.8%-49.9%13.4%1.9%
5 Yearn/a-50.6%-53.5%15.6%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Bortex Global undervalued compared to its fair value and its price relative to the market?

8.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8118's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8118's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8118 is good value based on its PE Ratio (8x) compared to the Electrical industry average (9.2x).

PE vs Market: 8118 is good value based on its PE Ratio (8x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8118's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8118 is overvalued based on its PB Ratio (1.5x) compared to the HK Electrical industry average (0.6x).


Next Steps

Future Growth

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

11.4%

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 Bortex Global 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 Bortex Global performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8118 has a high level of non-cash earnings.

Growing Profit Margin: 8118's current net profit margins (13.9%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: 8118's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: 8118's earnings growth over the past year (283.9%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: 8118 earnings growth over the past year (283.9%) exceeded the Electrical industry 6%.


Return on Equity

High ROE: 8118's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bortex Global's financial position?


Financial Position Analysis

Short Term Liabilities: 8118's short term assets (HK$124.4M) exceed its short term liabilities (HK$25.2M).

Long Term Liabilities: 8118's short term assets (HK$124.4M) exceed its long term liabilities (HK$14.9M).


Debt to Equity History and Analysis

Debt Level: 8118's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8118's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8118's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 8118's interest payments on its debt are well covered by EBIT (70.7x coverage).


Balance Sheet

Inventory Level: 8118 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8118's debt is covered by short term assets (assets are 31.1x debt).


Next Steps

Dividend

What is Bortex Global's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8118's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8118's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8118's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8118's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8118's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Xu Hua Shao (39yo)

1.4yrs

Tenure

HK$675,000

Compensation

Mr. Xu Hua Shao has been Chief Executive Officer of Bortex Global Limited since September 2018 and serves as its Executive Director since September 18, 2015. Mr. Shao is a Co-founder of Bortex Global Limit ...


CEO Compensation Analysis

Compensation vs Market: Xu Hua's total compensation ($USD86.86K) is below average for companies of similar size in the Hong Kong market ($USD226.20K).

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


Board Members

NamePositionTenureCompensationOwnership
Kwok Leung Shiu
Chairman & Compliance Officer0yrsHK$996.00k46.8% HK$93.6m
Xu Hua Shao
CEO & Executive Director1.4yrsHK$675.00kno data
Lai Him Yuen
Executive Director4.4yrsHK$675.00k6% HK$12.0m
Hok Ming Cheng
Independent Non-Executive Director2.3yrsHK$120.00kno data
Ting Kon Wong
Independent Non-Executive Director2.3yrsHK$120.00kno data
Ching Yee Lo
Independent Non-Executive Director2.3yrsHK$120.00kno data

2.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 8118's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Bortex Global Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bortex Global Limited
  • Ticker: 8118
  • Exchange: SEHK
  • Founded: 2014
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: HK$200.000m
  • Shares outstanding: 500.00m
  • Website: https://www.bortex.com.cn

Number of Employees


Location

  • Bortex Global Limited
  • Flat A, King Palace Plaza
  • 11th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8118SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017

Biography

Bortex Global Limited, an investment holding company, develops, manufactures, and exports light-emitting diode (LED) lighting products to customers in Canada, Taiwan, the United States, Hong Kong, the People’s Republic of China, Brazil, France, Japan, the Philippines, Thailand, South Africa, and Italy. The company offers LED decorative and string lights products, including straight line, icicle, beard garland, crab, wreath, flower, meteor shower, sphere, net, and smart string lights, as well as toy and tree lights; LED commercial lighting products, such as tube lights, ceiling lamps, and light bulbs; and LED solar system series products. It serves retailers, wholesalers, real estate developers, and other fields, as well as agricultural technology production companies. Bortex Global Limited was founded in 2014 and is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:15
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.