SEHK:751

Stock Analysis Report

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Executive Summary

Skyworth Group Limited, an investment holding company, researches and develops, manufactures, and sells consumer electronic products in People’s Republic of China, rest of Asia, Europe, the Middle East, the United States, and Oceania. More Details


Snowflake Analysis

Undervalued with acceptable track record.


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

Stable Share Price: 751's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

751

0.4%

HK Consumer Durables

-0.6%

HK Market


1 Year Return

5.9%

751

19.5%

HK Consumer Durables

0.9%

HK Market

Return vs Industry: 751 underperformed the Hong Kong Consumer Durables industry which returned 19.5% over the past year.

Return vs Market: 751 exceeded the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

751IndustryMarket
7 Day-3.1%0.4%-0.6%
30 Day-5.7%-3.3%0.02%
90 Day-11.1%18.9%-1.7%
1 Year5.9%5.9%22.0%19.5%5.1%0.9%
3 Year-42.2%-45.7%-4.9%-10.6%-6.1%-16.3%
5 Year-56.9%-62.5%46.9%29.6%14.1%-5.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 751 (HK$2.16) is trading below our estimate of fair value (HK$4.65)

Significantly Below Fair Value: 751 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 751 is good value based on its PE Ratio (5.9x) compared to the HK Consumer Durables industry average (10.2x).

PE vs Market: 751 is good value based on its PE Ratio (5.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 751 is poor value based on its PEG Ratio (2.2x)


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 (1x).


Next Steps

Future Growth

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

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 751's forecast earnings growth (2.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 751's earnings (2.7% per year) are forecast to grow slower than the Hong Kong market (22.3% per year).

High Growth Earnings: 751's earnings are forecast to grow, but not significantly.

Revenue vs Market: 751's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 751's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 751's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Skyworth Group performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 751 has a large one-off gain of CN¥455.0M impacting its June 30 2020 financial results.

Growing Profit Margin: 751's current net profit margins (2.7%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 751's earnings have declined by 30.4% per year over the past 5 years.

Accelerating Growth: 751's earnings growth over the past year (46.5%) exceeds its 5-year average (-30.4% per year).

Earnings vs Industry: 751 earnings growth over the past year (46.5%) exceeded the Consumer Durables industry 5.4%.


Return on Equity

High ROE: 751's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Skyworth Group's financial position?


Financial Position Analysis

Short Term Liabilities: 751's short term assets (CN¥33.9B) exceed its short term liabilities (CN¥23.7B).

Long Term Liabilities: 751's short term assets (CN¥33.9B) exceed its long term liabilities (CN¥5.4B).


Debt to Equity History and Analysis

Debt Level: 751's debt to equity ratio (64.5%) is considered high.

Reducing Debt: 751's debt to equity ratio has increased from 41.1% to 64.5% over the past 5 years.

Debt Coverage: 751's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: 751's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.07%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 751's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 751's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 751's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 751's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 751 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 751'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?

3.5yrs

Average management tenure


CEO

Tangzhi Liu (57 yo)

3.5yrs

Tenure

CN¥13,205,000

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 ($USD1.98M) is above average for companies of similar size in the Hong Kong market ($USD505.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Weide Lai
Executive Chairman4.25yrsCN¥16.30m0.19%
CN¥ 10.6m
Tangzhi Liu
CEO & Executive Director3.5yrsCN¥13.21m0.26%
CN¥ 14.6m
Wei Ping Lin
VP of Administration & Executive Director14.67yrsCN¥4.55m0.35%
CN¥ 19.4m
Chi Shi
Executive Director9.25yrsCN¥4.63m0.40%
CN¥ 22.5m
Jin Lin
Executive Director2.5yrsCN¥3.57m0.15%
CN¥ 8.3m
Wang Wong
Founder and Consultantno dataCN¥1.89m46.78%
CN¥ 2.6b
Yiming Ying
Financial Controller1.58yrsno datano data
Wang Zhiguo
Chief technology officer of Skyworth Groupno datano datano data
Hongan Li
Chief Scientistno datano datano data
Limin Guo
Head of the Legal Affairs Department and Assistant to the Chairmanno datano datano data
Ruikun Sun
Head of Human Resource Department & VP of Skyworth Groupno datano datano data
Wu Wei
Chief Engineer of Skyworth Group3.75yrsno datano data

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 751's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weide Lai
Executive Chairman4.25yrsCN¥16.30m0.19%
CN¥ 10.6m
Tangzhi Liu
CEO & Executive Director3.5yrsCN¥13.21m0.26%
CN¥ 14.6m
Wei Ping Lin
VP of Administration & Executive Director14.67yrsCN¥4.55m0.35%
CN¥ 19.4m
Chi Shi
Executive Director9.25yrsCN¥4.63m0.40%
CN¥ 22.5m
Jin Lin
Executive Director2.5yrsCN¥3.57m0.15%
CN¥ 8.3m
Shing Choi Lam
Company Secretary & Executive Director0.67yrno data0.070%
CN¥ 3.9m
Weibin Li
Independent Non-Executive Director20.58yrsCN¥474.00k0.038%
CN¥ 2.1m
Ying-Chew Cheong
Independent Non-Executive Director5.75yrsCN¥474.00kno data
Ka Hai Hung
Independent Non-Executive Director0.58yrno datano data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: 751's board of directors are considered experienced (4.8 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.


Ownership Breakdown

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


Top Shareholders

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$5.612b
  • Shares outstanding: 2.65b
  • 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, researches and develops, manufactures, and sells consumer electronic products in People’s Republic of China, rest of Asia, Europe, the Middle East, th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:50
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.