SEHK:929

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-1.3%

929

-0.2%

HK Machinery

0.3%

HK Market


1 Year Return

-25.5%

929

17.7%

HK Machinery

1.3%

HK Market

Return vs Industry: 929 underperformed the Hong Kong Machinery industry which returned 17.7% over the past year.

Return vs Market: 929 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

929IndustryMarket
7 Day-1.3%-0.2%0.3%
30 Day-1.3%2.3%0.5%
90 Day-8.1%-3.3%-4.6%
1 Year-25.5%-25.5%21.1%17.7%4.9%1.3%
3 Year-50.0%-52.1%52.3%42.8%15.3%3.7%
5 Year23.8%11.3%73.2%55.0%20.0%-0.006%

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$0.79) is trading below our estimate of fair value (HK$1.75)

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 (15x) compared to the Machinery industry average (9.1x).

PE vs Market: 929 is poor value based on its PE Ratio (15x) compared to the Hong Kong market (10.3x).


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 (0.5x) 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?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 929's forecast earnings growth (18.5% per year) is above the savings rate (2%).

Earnings vs Market: 929's earnings (18.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 929's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 929's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 929's revenue 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 929's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has IPE Group performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 929's earnings have grown by 1.6% 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 (-39.9%) over the past year, making it difficult to compare to the Machinery industry average (8.4%).


Return on Equity

High ROE: 929's Return on Equity (3.2%) is considered low.


Return on Assets

ROA vs Industry: 929's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 929's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is IPE Group's financial position?


Financial Position Analysis

Short Term Liabilities: 929's short term assets (HK$1.3B) exceeds its short term liabilities (HK$232.4M)

Long Term Liabilities: 929's short term assets (1.3B) exceeds its long term liabilities (159.7M)


Debt to Equity History and Analysis

Debt Level: 929's debt to equity ratio (16.4%) is considered satisfactory

Reducing Debt: 929's debt to equity ratio has reduced from 46.9% to 16.4% over the past 5 years.

Debt Coverage: 929's debt is well covered by operating cash flow (78.8%).

Interest Coverage: 929's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: 929 has a high level of physical assets or inventory.

Debt Coverage by Assets: 929's debt is covered by short term assets (assets are 4.705670x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.2%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 929's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 929's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 929's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 929's dividend payments have been 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

What is the CEO of IPE Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average board tenure


CEO

Guang Zeng (52yo)

1yrs

Tenure

HK$8,985,000

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Board Age and Tenure

2.3yrs

Average Tenure

46.5yo

Average Age

Experienced Board: 929's board of directors are not considered experienced ( 2.3 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

BuyHK$89,25023 Jul 19
China Baoan Group Co., Ltd.
EntityCompany
Shares105,000
Max PriceHK$0.85

Ownership Breakdown


Management Team

  • Jiang Fei (47yo)

    Group Deputy General Manager

    • Tenure: 0yrs
  • Mark Ho (56yo)

    Group Vice President

    • Tenure: 0yrs
    • Compensation: HK$554.00k
  • Siu On Chui (59yo)

    Consultant

    • Tenure: 1yrs
    • Compensation: HK$4.01m
  • Siu Chung Lau (54yo)

    Group Vice President

    • Tenure: 0yrs
    • Compensation: HK$3.07m
  • Yiu Tam (49yo)

    CFO & Company Secretary

    • Tenure: 0yrs
  • Ting Lei (44yo)

    Group Deputy General Manager

    • Tenure: 0yrs
  • Hoi Ping Ng (50yo)

    Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$4.93m
  • Guang Zeng (52yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: HK$8.99m

Board Members

  • Rusheng Yang (51yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$150.00k
  • Hoi Ping Ng (50yo)

    Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$4.93m
  • Guang Zeng (52yo)

    Chairman & CEO

    • Tenure: 1yrs
    • Compensation: HK$8.99m
  • Jing Zeng (45yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$2.87m
  • Anthony Cheung (36yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$150.00k
  • Weiyi Mei (46yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: HK$26.00k
  • Kuanguo Chen (34yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Bing Xu (47yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

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$831.281m
  • 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
  • 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 hard disk drives (HDD), hydraulic equipment, automotive parts, and electronic and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:44
End of Day Share Price2019/10/22 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.