SEHK:1347

Stock Analysis Report

Executive Summary

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Risks

  • Hua Hong Semiconductor has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Hua Hong Semiconductor's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.5%

1347

4.2%

HK Semiconductor

-2.7%

HK Market


1 Year Return

5.9%

1347

32.8%

HK Semiconductor

-9.4%

HK Market

1347 underperformed the Semiconductor industry which returned 32.8% over the past year.

1347 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1347IndustryMarket
7 Day8.5%4.2%-2.7%
30 Day28.7%10.4%1.8%
90 Day15.6%22.0%-5.6%
1 Year7.8%5.9%34.5%32.8%-6.2%-9.4%
3 Year104.4%92.2%30.5%23.6%14.3%2.7%
5 Yearn/a-20.5%-26.9%16.7%-2.8%

Price Volatility Vs. Market

How volatile is Hua Hong Semiconductor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

6 months ago | Simply Wall St

When Should You Buy Hua Hong Semiconductor Limited (HKG:1347)?

Valuation

Is Hua Hong Semiconductor undervalued based on future cash flows and its price relative to the stock market?

14.31x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hua Hong Semiconductor's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hua Hong Semiconductor's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hua Hong Semiconductor is good value based on earnings compared to the HK Semiconductor industry average.

Hua Hong Semiconductor is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Hua Hong Semiconductor is poor value based on expected growth next year.


Price Based on Value of Assets

Hua Hong Semiconductor is good value based on assets compared to the HK Semiconductor industry average.


Next Steps

Future Growth

How is Hua Hong Semiconductor expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hua Hong Semiconductor's revenue is expected to grow by 19% yearly, however this is not considered high growth (20% yearly).

Hua Hong Semiconductor's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Hua Hong Semiconductor's revenue growth is expected to exceed the Hong Kong market average.

Hua Hong Semiconductor's earnings growth is positive but not above the Hong Kong market average.

Hua Hong Semiconductor's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Hua Hong Semiconductor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Hua Hong Semiconductor performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hua Hong Semiconductor's year on year earnings growth rate has been positive over the past 5 years.

Hua Hong Semiconductor's 1-year earnings growth is less than its 5-year average (15.6% vs 16.3%)

Hua Hong Semiconductor's earnings growth has exceeded the HK Semiconductor industry average in the past year (15.6% vs 9.5%).


Return on Equity

Hua Hong Semiconductor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hua Hong Semiconductor used its assets more efficiently than the HK Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Hua Hong Semiconductor has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hua Hong Semiconductor's financial position?


Financial Position Analysis

Hua Hong Semiconductor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hua Hong Semiconductor's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hua Hong Semiconductor's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (31.7% vs 0.9% today).

Debt is well covered by operating cash flow (932.2%, greater than 20% of total debt).

Hua Hong Semiconductor earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 66x debt.


Next Steps

Dividend

What is Hua Hong Semiconductor's current dividend yield, its reliability and sustainability?

1.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hua Hong Semiconductor's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Hua Hong Semiconductor's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Whilst dividend payments have been stable, Hua Hong Semiconductor has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hua Hong Semiconductor only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

What is the CEO of Hua Hong Semiconductor's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Junjun Tang (54yo)

0.3yrs

Tenure

0

Mr. Junjun Tang served as Vice President, Executive Vice President and secretary of the party committee of Shanghai Huali Microelectronics Corporation from 2010 until April 2019. He has extensive experienc ...


Management Age and Tenure

6.4yrs

Average Tenure

56yo

Average Age

The average tenure for the Hua Hong Semiconductor management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.3yrs

Average Tenure

55yo

Average Age

The tenure for the Hua Hong Semiconductor board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$3,126,946,92723 Nov 18
Huaxin Investment Management Co., Ltd.
EntityCompany
Shares242,398,925
Max PriceUS$12.90

Ownership Breakdown


Management Team

  • Xiaojun Wang (65yo)

    Company Secretary

    • Tenure: 5.3yrs
  • Suxin Zhang (55yo)

    Chairman

    • Tenure: 3.5yrs
  • Junjun Tang (54yo)

    President

    • Tenure: 0.3yrs
  • Heng Fan (57yo)

    Executive Vice President

    • Tenure: 0yrs
  • Weiran Kong (56yo)

    Executive Vice President

    • Tenure: 7.6yrs
  • Wei Xu (62yo)

    Executive Vice President

    • Tenure: 7.6yrs
  • Daniel Wang (56yo)

    Executive VP & Secretary of the Board

    • Tenure: 7.6yrs
  • Weiping Zhou (52yo)

    Executive Vice President

    • Tenure: 1.7yrs

Board Members

  • Long Ye (77yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$77.00k
  • Stephen Chang (71yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$77.00k
  • Suxin Zhang (55yo)

    Chairman

    • Tenure: 3.5yrs
  • Takayuki Morita (59yo)

    Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$7.00k
  • Junjun Tang (54yo)

    President

    • Tenure: 0.3yrs
  • Albert Wong (68yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$77.00k
  • Jun Ye (46yo)

    Non-Executive Director

    • Tenure: 7.6yrs
  • Yang Du (41yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • Wang Jing (49yo)

    Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Hua Hong Semiconductor Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hua Hong Semiconductor Limited
  • Ticker: 1347
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$22.725b
  • Shares outstanding: 1.29b
  • Website: https://www.huahonggrace.com

Number of Employees


Location

  • Hua Hong Semiconductor Limited
  • 288 Halei Road
  • Zhangjiang Hi-Tech Park
  • Shanghai
  • 201203
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1347SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2014
1HHDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2014
1347SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2014
1347SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2014

Biography

Hua Hong Semiconductor Limited, an investment holding company, manufactures and sells semiconductor products. It primarily focuses on the research and manufacturing of semiconductors on 200mm wafers for sp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:51
End of Day Share Price2019/09/20 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.