company background image
1305

Wai Chi HoldingsSEHK:1305 Stock Report

Market Cap

HK$112.7m

7D

-10.3%

1Y

33.3%

Updated

23 Sep, 2021

Data

Company Financials
1305 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends0/6

1305 Overview

Wai Chi Holdings Company Limited, an investment holding company, manufactures and trades in light-emitting diode (LED) backlight and LED lighting products to business corporations and public utilities in the People’s Republic of China, Hong Kong, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Wai Chi Holdings
Historical stock prices
Current Share PriceHK$0.52
52 Week HighHK$0.31
52 Week LowHK$0.82
Beta0.43
1 Month Change-11.86%
3 Month Change-8.77%
1 Year Change33.33%
3 Year Change-41.57%
5 Year Change-72.49%
Change since IPO-83.95%

Recent News & Updates

Sep 20
These 4 Measures Indicate That Wai Chi Holdings (HKG:1305) Is Using Debt Extensively

These 4 Measures Indicate That Wai Chi Holdings (HKG:1305) Is Using Debt Extensively

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 13
Wai Chi Holdings (HKG:1305) Is Reinvesting At Lower Rates Of Return

Wai Chi Holdings (HKG:1305) Is Reinvesting At Lower Rates Of Return

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

May 03
These 4 Measures Indicate That Wai Chi Holdings (HKG:1305) Is Using Debt Extensively

These 4 Measures Indicate That Wai Chi Holdings (HKG:1305) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Mar 30
Capital Allocation Trends At Wai Chi Holdings (HKG:1305) Aren't Ideal

Capital Allocation Trends At Wai Chi Holdings (HKG:1305) Aren't Ideal

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Shareholder Returns

1305HK SemiconductorHK Market
7D-10.3%0.8%-0.9%
1Y33.3%48.6%10.1%

Return vs Industry: 1305 underperformed the Hong Kong Semiconductor industry which returned 41% over the past year.

Return vs Market: 1305 exceeded the Hong Kong Market which returned 5.6% over the past year.

Price Volatility

Is 1305's price volatile compared to industry and market?
1305 volatility
1305 Beta0.43
Industry Beta0.77
Market Beta1

Stable Share Price: 1305 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1305's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19842,943Chung Po Chenhttps://www.waichiholdings.com

Wai Chi Holdings Company Limited, an investment holding company, manufactures and trades in light-emitting diode (LED) backlight and LED lighting products to business corporations and public utilities in the People’s Republic of China, Hong Kong, and internationally. It provides LED backlight products, such as automobile on-board displays, television displays, and other industrial equipment displays; and LED lighting products, including commercial and public lighting products. The company also offers various services comprising lighting solutions design, installation, maintenance, etc.; and energy management solutions, as well as semiconductor memory chips.

Wai Chi Holdings Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
1305 income statement (TTM)
RevenueHK$1.68b
Cost of RevenueHK$1.44b
Gross ProfitHK$240.93m
ExpensesHK$201.14m
EarningsHK$39.79m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin14.35%
Net Profit Margin2.37%
Debt/Equity Ratio52.7%

How did 1305 perform over the long term?

See historical performance and comparison

Valuation

Is Wai Chi 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: 1305 (HK$0.52) is trading below our estimate of fair value (HK$25.32)

Significantly Below Fair Value: 1305 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1305 is good value based on its PE Ratio (2.8x) compared to the Hong Kong Semiconductor industry average (24.3x).

PE vs Market: 1305 is good value based on its PE Ratio (2.8x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1305's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1305 is good value based on its PB Ratio (0.1x) compared to the HK Semiconductor industry average (2.3x).


Future Growth

How is Wai Chi Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.4%

Forecasted Semiconductors 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 Wai Chi Holdings 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.


Past Performance

How has Wai Chi Holdings performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1305 has high quality earnings.

Growing Profit Margin: 1305's current net profit margins (2.4%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 1305 has become profitable over the past 5 years, growing earnings by 38.2% per year.

Accelerating Growth: 1305's earnings growth over the past year (21.6%) is below its 5-year average (38.2% per year).

Earnings vs Industry: 1305 earnings growth over the past year (21.6%) underperformed the Semiconductor industry 52%.


Return on Equity

High ROE: 1305's Return on Equity (5%) is considered low.


Financial Health

How is Wai Chi Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1305's short term assets (HK$1.7B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: 1305's short term assets (HK$1.7B) exceed its long term liabilities (HK$33.6M).


Debt to Equity History and Analysis

Debt Level: 1305's debt to equity ratio (52.7%) is considered high.

Reducing Debt: 1305's debt to equity ratio has increased from 29.3% to 52.7% over the past 5 years.

Debt Coverage: 1305's debt is well covered by operating cash flow (84%).

Interest Coverage: 1305's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Dividend

What is Wai Chi Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1305's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1305'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 1305's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1305's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1305 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 1305'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?

8.1yrs

Average management tenure


CEO

Chung Po Chen (44 yo)

8.08yrs

Tenure

HK$1,293,000

Compensation

Mr. Chung Po Chen serves as the Chief Executive Officer of Wai Chi Holdings Company Limited and has been its Executive Director since August 16, 2013. Mr. Chen is responsible for the day-to-day management...


CEO Compensation Analysis

Compensation vs Market: Chung Po's total compensation ($USD166.07K) is about average for companies of similar size in the Hong Kong market ($USD228.72K).

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


Leadership Team

Experienced Management: 1305's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: 1305's board of directors are considered experienced (7.5 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

Wai Chi Holdings Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wai Chi Holdings Company Limited
  • Ticker: 1305
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$112.749m
  • Shares outstanding: 216.83m
  • Website: https://www.waichiholdings.com

Number of Employees


Location

  • Wai Chi Holdings Company Limited
  • Liven House
  • 6th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 16:04
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.