SEHK:929

Stock Analysis Report

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Executive Summary

IPE Group Limited, an investment holding company, manufactures and sells precision metal components and assembled parts for automotive parts, hydraulic equipment, hard disk drives (HDD), and electronic and other devices.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has IPE Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 929 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

929

1.5%

HK Machinery

0.5%

HK Market


1 Year Return

-9.7%

929

46.9%

HK Machinery

6.6%

HK Market

Return vs Industry: 929 underperformed the Hong Kong Machinery industry which returned 43.7% over the past year.

Return vs Market: 929 underperformed the Hong Kong Market which returned 7.2% over the past year.


Shareholder returns

929IndustryMarket
7 Day0%1.5%0.5%
30 Day-7.1%3.7%-0.8%
90 Day-15.6%28.1%9.4%
1 Year-9.0%-9.7%50.8%46.9%11.0%6.6%
3 Year-65.3%-66.7%64.5%52.2%3.2%-7.8%
5 Year-36.6%-42.0%97.3%81.2%22.5%1.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is IPE Group 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: 929 (HK$0.65) is trading below our estimate of fair value (HK$2.77)

Significantly Below Fair Value: 929 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 929 is poor value based on its PE Ratio (17x) compared to the HK Machinery industry average (12.3x).

PE vs Market: 929 is poor value based on its PE Ratio (17x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 929's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 929 is good value based on its PB Ratio (0.4x) compared to the HK Machinery industry average (0.9x).


Next Steps

Future Growth

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

6.7%

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 IPE Group 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 IPE Group performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 929 has high quality earnings.

Growing Profit Margin: 929's current net profit margins (5%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 929's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: 929's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 929 had negative earnings growth (-52.7%) over the past year, making it difficult to compare to the Machinery industry average (-8.7%).


Return on Equity

High ROE: 929's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is IPE Group's financial position?


Financial Position Analysis

Short Term Liabilities: 929's short term assets (HK$1.4B) exceed its short term liabilities (HK$171.9M).

Long Term Liabilities: 929's short term assets (HK$1.4B) exceed its long term liabilities (HK$218.6M).


Debt to Equity History and Analysis

Debt Level: 929's debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: 929's debt to equity ratio has reduced from 35.9% to 15.1% over the past 5 years.

Debt Coverage: 929's debt is well covered by operating cash flow (88.5%).

Interest Coverage: 929's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Next Steps

Dividend

What is IPE Group current dividend yield, its reliability and sustainability?

0.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 929's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.38%).

High Dividend: 929's dividend (0.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: 929 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 929 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 929 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 929'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?

3.2yrs

Average board tenure


CEO

Guang Sheng Zeng (53 yo)

1.83yrs

Tenure

HK$2,683,000

Compensation

Mr. Guang Sheng Zeng has been Chairman of the Board of IPE Group Limited since June 2, 2017 and also has been its Executive Director since March 18, 2016. Mr. Zeng has been the Chief Executive Officer at I ...


CEO Compensation Analysis

Compensation vs Market: Guang Sheng's total compensation ($USD346.18K) is above average for companies of similar size in the Hong Kong market ($USD229.15K).

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


Board Members

NamePositionTenureCompensationOwnership
Guang Sheng Zeng
Executive Chairman & CEO1.83yrsHK$2.68mno data
Hoi Ping Ng
Executive Director4.42yrsHK$1.78mno data
Rusheng Yang
Independent Non-Executive Director3.17yrsHK$150.00kno data
Jing Zeng
Non-Executive Director3.17yrsHK$250.00kno data
Chun Yue Cheung
Independent Non-Executive Director3.17yrsHK$150.00kno data
Weiyi Mei
Independent Non-Executive Director1.83yrsHK$150.00kno data
Kuangguo Chen
Non-Executive Director1.17yrsHK$146.00kno data
Bing Xu
Independent Non-Executive Director1.17yrsHK$88.00kno data

3.2yrs

Average Tenure

48yo

Average Age

Experienced Board: 929's board of directors are considered experienced (3.2 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.


Top Shareholders

Company Information

IPE Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IPE Group Limited
  • Ticker: 929
  • Exchange: SEHK
  • Founded: 1990
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$683.965m
  • Shares outstanding: 1.05b
  • Website: https://www.ipegroup.com

Number of Employees


Location

  • IPE Group Limited
  • Unit 5–6, Enterprise Square Three
  • 23rd Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
929SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2005

Biography

IPE Group Limited, an investment holding company, manufactures and sells precision metal components and assembled parts for automotive parts, hydraulic equipment, hard disk drives (HDD), and electronic and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 02:42
End of Day Share Price2020/08/13 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.