SEHK:3882

Stock Analysis Report

Executive Summary

Sky Light Holdings Limited, an investment holding company, develops, manufactures, and sells home surveillance cameras, 360-degree cameras, action cameras and related accessories, and other digital imaging products for the home surveillance camera industry.

Rewards

Trading at 73.1% below its fair value

Revenue is forecast to grow 50.14% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -17.3% per year for the next 3 years

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$286M)



Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Sky Light Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3882 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

3882

2.6%

HK Consumer Durables

1.6%

HK Market


1 Year Return

-34.8%

3882

19.7%

HK Consumer Durables

6.0%

HK Market

Return vs Industry: 3882 underperformed the Hong Kong Consumer Durables industry which returned 21.3% over the past year.

Return vs Market: 3882 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

3882IndustryMarket
7 Day-3.2%2.6%1.6%
30 Day-9.1%5.5%4.4%
90 Day-1.6%14.3%8.6%
1 Year-34.8%-34.8%22.1%19.7%9.9%6.0%
3 Year-82.4%-82.7%26.3%18.4%27.7%14.7%
5 Yearn/a31.3%17.0%21.7%1.4%

Price Volatility Vs. Market

How volatile is Sky Light Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sky Light Holdings 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: 3882 (HK$0.31) is trading below our estimate of fair value (HK$1.15)

Significantly Below Fair Value: 3882 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3882 is good value based on its PE Ratio (2.1x) compared to the Consumer Durables industry average (13x).

PE vs Market: 3882 is good value based on its PE Ratio (2.1x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 3882's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3882 is overvalued based on its PB Ratio (0.9x) compared to the HK Consumer Durables industry average (0.7x).


Next Steps

Future Growth

How is Sky Light Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3882's earnings are forecast to decline over the next 3 years (-17.3% per year).

Earnings vs Market: 3882's earnings are forecast to decline over the next 3 years (-17.3% per year).

High Growth Earnings: 3882's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3882's revenue (50.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 3882's revenue (50.1% per year) 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 3882's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sky Light Holdings performed over the past 5 years?

-53.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3882 has a high level of non-cash earnings.

Growing Profit Margin: 3882 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 3882's earnings have declined by -53.3% per year over the past 5 years.

Accelerating Growth: 3882 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 3882 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (-4.3%).


Return on Equity

High ROE: 3882's Return on Equity (40.2%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sky Light Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3882's short term assets (HK$381.4M) exceed its short term liabilities (HK$184.2M).

Long Term Liabilities: 3882's short term assets (HK$381.4M) exceed its long term liabilities (HK$44.0M).


Debt to Equity History and Analysis

Debt Level: 3882's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: 3882's debt to equity ratio has reduced from 73.2% to 7.4% over the past 5 years.

Debt Coverage: 3882's debt is well covered by operating cash flow (78.4%).

Interest Coverage: 3882's interest payments on its debt are well covered by EBIT (4498.4x coverage).


Balance Sheet

Inventory Level: 3882 has a high level of physical assets or inventory.

Debt Coverage by Assets: 3882's debt is covered by short term assets (assets are 15.7x debt).


Next Steps

Dividend

What is Sky Light Holdings's current dividend yield, its reliability and sustainability?

20.00%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.0%industryaverage2.3%forecastin3Years20.0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3882's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3882'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 3882's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3882's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3882 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 3882'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 Sky Light Holdings's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Terry Tang (60yo)

0yrs

Tenure

HK$902,000

Compensation

Mr. Wing Fong Tang, also known as Terry, is the Founder, General Manager and Chief Executive Officer at Sky Light Holdings Limited and has been its Chairman since December 18, 2013 and Executive Director s ...


CEO Compensation Analysis

Compensation vs Market: Terry's total compensation ($USD116.01K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 3882's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: 3882 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$289,98124 Dec 19
Wing Fong Tang
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares920,000
Max PriceHK$0.32
BuyHK$199,02008 Oct 19
Wing Fong Tang
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares600,000
Max PriceHK$0.33
BuyHK$122,12024 Sep 19
Wing Fong Tang
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares400,000
Max PriceHK$0.31
BuyHK$52,582,89520 Mar 19
Wing Fong Tang
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares95,605,455
Max PriceHK$0.55

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Giovanni Tomaselli (54yo)

    Chief Executive of iON Group

    • Terry Tang (60yo)

      Chairman

      • Compensation: HK$902.00k
    • Yongbin Lu (46yo)

      CFO, Head of Finance Department

      • Tenure: 4.8yrs
      • Compensation: HK$658.00k
    • Weijun Gan (51yo)

      Head of Research & Development

      • Tsui Chiu (40yo)

        Head of Product Planning

        • Wong Man

          Chief Operation Consultant

          • Liu Jianchao

            Division Head

            • Luo Laihua

              Division Head

              • Tsz Yin Yum (39yo)

                Director of Marketing & Strategic Sales

                • Tenure: 3.8yrs

              Board Members

              • Yat Hong Tse (49yo)

                Independent Non-Executive Director

                • Tenure: 2.1yrs
                • Compensation: HK$341.00k
              • Wah Keung Cheung (58yo)

                Independent Non-Executive Director

                • Tenure: 4.6yrs
                • Compensation: HK$356.00k
              • Terry Tang (60yo)

                Chairman

                • Compensation: HK$902.00k
              • Yongmou Wu (41yo)

                Non-Executive Director

                • Tenure: 4.8yrs
              • Yongbin Lu (46yo)

                CFO, Head of Finance Department

                • Tenure: 4.8yrs
                • Compensation: HK$658.00k
              • Kam Sau Tang (56yo)

                Non-Executive Director

                • Tenure: 4.8yrs
              • Louis Chan (60yo)

                Independent Non-Executive Director

                • Tenure: 4.6yrs
                • Compensation: HK$356.00k

              Company Information

              Sky Light Holdings Limited's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: Sky Light Holdings Limited
              • Ticker: 3882
              • Exchange: SEHK
              • Founded: 2000
              • Industry: Consumer Electronics
              • Sector: Consumer Durables
              • Market Cap: HK$285.822m
              • Shares outstanding: 952.74m
              • Website: https://www.sky-light.com.hk

              Number of Employees


              Location

              • Sky Light Holdings Limited
              • No. 8 and 9 Building
              • Antuoshan High-tech Industrial Park
              • Shenzhen
              • China

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              3882SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2015
              27LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2015

              Biography

              Sky Light Holdings Limited, an investment holding company, develops, manufactures, and sells home surveillance cameras, 360-degree cameras, action cameras and related accessories, and other digital imaging products for the home surveillance camera industry. The company operates in two segments, ODM/JDM and ION360. It offers digital imaging products, such as 360 VR, dash, body worn, and action cameras; and home imaging products, including smart IP cameras, video doorbells, and smart baby monitors, as well as facial recognition, baby sleep care, baby smile detection, and people detection and route tracking solutions. The company also provides joint design manufacturing (JDM) and original design manufacturing (ODM) solutions. It offers its products and services under the iON360 brand in the United States, Mainland China, European Union, Hong Kong, and internationally. Sky Light Holdings Limited was founded in 2000 and is headquartered in Shenzhen, the People’s Republic of China. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/19 12:58
              End of Day Share Price2020/01/17 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.