SEHK:751

Stock Analysis Report

Executive Summary

Skyworth Group Limited, an investment holding company, engages in the manufacture and sale of consumer electronic products and upstream accessories in Asia, the United States, Australia, Europe, the Middle East, and Africa.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

751

0.6%

HK Consumer Durables

2.9%

HK Market


1 Year Return

2.5%

751

9.1%

HK Consumer Durables

0.7%

HK Market

Return vs Industry: 751 underperformed the Hong Kong Consumer Durables industry which returned 9.1% over the past year.

Return vs Market: 751 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

751IndustryMarket
7 Day1.5%0.6%2.9%
30 Day-6.9%-1.4%-2.5%
90 Day-5.6%3.6%-5.4%
1 Year5.6%2.5%11.0%9.1%4.4%0.7%
3 Year-58.3%-62.1%12.0%4.6%17.0%5.2%
5 Year-40.9%-51.3%7.7%-5.1%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Skyworth Group undervalued compared to its fair value and its price relative to the market?

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 751 (HK$2.03) is trading below our estimate of fair value (HK$2.07)

Significantly Undervalued: 751 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 751 is good value based on its PE Ratio (9.9x) compared to the Consumer Durables industry average (12.8x).

PE vs Market: 751 is good value based on its PE Ratio (9.9x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 751 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 751 is good value based on its PB Ratio (0.4x) compared to the HK Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Skyworth Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 751's forecast earnings growth (23.5% per year) is above the savings rate (2%).

Earnings vs Market: 751's earnings (23.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 751's revenue (7.2% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 751's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 751's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Skyworth Group performed over the past 5 years?

-18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 751's earnings have declined by -18.8% per year over the past 5 years.

Accelerating Growth: 751's earnings growth over the past year (61.4%) exceeds its 5-year average (-18.8% per year).

Earnings vs Industry: 751 earnings growth over the past year (61.4%) exceeded the Consumer Durables industry -8.4%.


Return on Equity

High ROE: 751's Return on Equity (4.2%) is considered low.


Return on Assets

ROA vs Industry: 751's Return on Assets is below or equal to the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: 751's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Skyworth Group's financial position?


Financial Position Analysis

Short Term Liabilities: 751's short term assets (CN¥32.8B) exceeds its short term liabilities (CN¥24.1B)

Long Term Liabilities: 751's short term assets (32.8B) exceeds its long term liabilities (3.7B)


Debt to Equity History and Analysis

Debt Level: 751's debt to equity ratio (48%) is considered high

Reducing Debt: 751's debt to equity ratio has reduced from 50.3% to 48% over the past 5 years.

Debt Coverage: 751's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 751's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet

Inventory Level: 751 has a high level of physical assets or inventory.

Debt Coverage by Assets: 751's debt is covered by short term assets (assets are 3.929000x debt).


Next Steps

Dividend

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

3.73%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.2%markettop25%6.3%industryaverage2.7%forecastin3Years7.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 751's dividend (3.73%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 751's dividend (3.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 751's dividend payments have been volatile in the past 10 years.

Growing Dividend: 751's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38%), 751's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 751's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Tangzhi Liu (56yo)

2.5yrs

Tenure

CN¥9,586,000

Compensation

Mr. Tangzhi Liu has been Chief Executive Officer at Skyworth Digital Holdings Limited since April 06, 2017. Mr. Liu served as Vice President and Group President of China TV Business Unit at Skyworth Digita ...


CEO Compensation Analysis

Compensation vs. Market: Tangzhi's total compensation ($USD0.00) is too low to compare against companies of similar size in the Hong Kong market ($USD420.49K).

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


Board Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 751's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: 751 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥4,600,00311 Oct 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares2,300,000
Max PriceCN¥2.00
BuyCN¥3,576,78008 Oct 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,800,000
Max PriceCN¥1.99
BuyCN¥1,200,00104 Oct 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares600,000
Max PriceCN¥2.00
BuyCN¥1,200,00102 Oct 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares600,000
Max PriceCN¥2.00
BuyCN¥2,680,00127 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,340,000
Max PriceCN¥2.00
BuyCN¥1,064,00226 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares532,000
Max PriceCN¥2.00
BuyCN¥2,979,99425 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,490,000
Max PriceCN¥2.00
BuyCN¥3,216,00625 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,608,000
Max PriceCN¥2.00
BuyCN¥2,602,99125 Sep 19
Chi Shi
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,300,000
Max PriceCN¥2.00
BuyCN¥10,937,24523 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares5,470,000
Max PriceCN¥2.00
BuyCN¥3,355,49923 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,678,000
Max PriceCN¥2.00
BuyCN¥3,250,95223 Sep 19
Wang Sang Wong
EntityIndividual
Role
Top Key Executive
Founder and Consultant
Shares1,628,000
Max PriceCN¥2.00
BuyCN¥1,988,96723 Sep 19
Weide Lai
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,002,000
Max PriceCN¥1.98
BuyCN¥1,039,99816 Sep 19
Weide Lai
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares500,000
Max PriceCN¥2.08
BuyCN¥1,916,99715 May 19
Weide Lai
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares900,000
Max PriceCN¥2.13
BuyCN¥205,00015 May 19
Weide Lai
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares100,000
Max PriceCN¥2.05
SellCN¥29,725,88627 Mar 19
FIL Limited
EntityCompany
Shares10,582,000
Max PriceCN¥2.81

Ownership Breakdown


Management Team

  • Stephen Wong (60yo)

    Founder and Consultant

    • Tenure: 0yrs
    • Compensation: CN¥1.89m
  • Chi Shi (48yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: CN¥5.90m
  • Tangzhi Liu (56yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥9.59m
  • Wei Lin (61yo)

    VP of Administration & Executive Director

    • Tenure: 13.7yrs
    • Compensation: CN¥4.70m
  • Hongan Li (83yo)

    Chief Scientist

    • Tenure: 0yrs
  • Limin Guo (62yo)

    Head of the Legal Affairs Department and Assistant to the Chairman

    • Tenure: 0yrs
  • Weide Lai (61yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: CN¥17.58m
  • Yiming Ying (44yo)

    Financial Controller

    • Tenure: 0.6yrs
  • Jin Lin (34yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥2.66m
  • Wang Zhiguo (39yo)

    Chief technology officer of Skyworth Group

    • Tenure: 0yrs

Board Members

  • Weibin Li (58yo)

    Independent Non-Executive Director

    • Tenure: 19.6yrs
    • Compensation: CN¥338.00k
  • Henry Cheong (72yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥338.00k
  • Ming Li (56yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥338.00k
  • Chi Shi (48yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: CN¥5.90m
  • Tangzhi Liu (56yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥9.59m
  • Wei Lin (61yo)

    VP of Administration & Executive Director

    • Tenure: 13.7yrs
    • Compensation: CN¥4.70m
  • Weide Lai (61yo)

    Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: CN¥17.58m
  • Jin Lin (34yo)

    Executive Director

    • Tenure: 1.5yrs
    • Compensation: CN¥2.66m

Company Information

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


Key Information

  • Name: Skyworth Group Limited
  • Ticker: 751
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: HK$6.195b
  • Shares outstanding: 3.04b
  • Website: https://www.skyworth.com

Number of Employees


Location

  • Skyworth Group Limited
  • Westlands Centre
  • Rooms 1601-04
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
751SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2000
KYWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2000
SWDH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2000
751SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2000
751SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2000
SWDH.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDOct 2011

Biography

Skyworth Group Limited, an investment holding company, engages in the manufacture and sale of consumer electronic products and upstream accessories in Asia, the United States, Australia, Europe, the Middle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:37
End of Day Share Price2019/10/14 00:00
Earnings2018/12/31
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.