SEHK:1347

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

Stable Share Price: 1347 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: 1347's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

10.0%

1347

2.2%

HK Semiconductor

-0.5%

HK Market


1 Year Return

155.9%

1347

126.4%

HK Semiconductor

7.6%

HK Market

Return vs Industry: 1347 exceeded the Hong Kong Semiconductor industry which returned 126.4% over the past year.

Return vs Market: 1347 exceeded the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

1347IndustryMarket
7 Day10.0%2.2%-0.5%
30 Day34.9%10.4%5.3%
90 Day29.2%14.7%4.2%
1 Year155.9%155.9%128.6%126.4%11.9%7.6%
3 Year178.6%169.0%116.5%109.6%-1.2%-11.4%
5 Year437.5%386.2%183.9%161.8%29.7%7.9%

Long-Term 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

Valuation

Is Hua Hong Semiconductor undervalued compared to its fair value and its price relative to the market?

74.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1347 (HK$36.9) is trading above our estimate of fair value (HK$19.72)

Significantly Below Fair Value: 1347 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1347 is poor value based on its PE Ratio (74.9x) compared to the HK Semiconductor industry average (24x).

PE vs Market: 1347 is poor value based on its PE Ratio (74.9x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1347 is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: 1347 is overvalued based on its PB Ratio (2.6x) compared to the HK Semiconductor industry average (1.3x).


Next Steps

Future Growth

How is Hua Hong Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1347's forecast earnings growth (26.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 1347's earnings (26.8% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

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

Revenue vs Market: 1347's revenue (18.2% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).

High Growth Revenue: 1347's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1347's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1347 has a high level of non-cash earnings.

Growing Profit Margin: 1347's current net profit margins (8.9%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: 1347's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 1347's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1347 had negative earnings growth (-55.6%) over the past year, making it difficult to compare to the Semiconductor industry average (36.4%).


Return on Equity

High ROE: 1347's Return on Equity (0.6%) is considered low.


Next Steps

Financial Health

How is Hua Hong Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: 1347's short term assets ($1.1B) exceed its short term liabilities ($803.5M).

Long Term Liabilities: 1347's short term assets ($1.1B) exceed its long term liabilities ($44.5M).


Debt to Equity History and Analysis

Debt Level: 1347's debt to equity ratio (7.7%) is considered satisfactory.

Reducing Debt: 1347's debt to equity ratio has reduced from 16.1% to 7.7% over the past 5 years.

Debt Coverage: 1347's debt is well covered by operating cash flow (72.8%).

Interest Coverage: Insufficient data to determine if 1347's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

0.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1347's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1347'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 1347's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1347's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1347 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 1347'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?

2.8yrs

Average management tenure


CEO

Junjun Tang (55 yo)

1.5yrs

Tenure

US$404,000

Compensation

Mr. Junjun Tang has been President and Executive Director at Hua Hong Semiconductor Limited since May 1, 2019. He served as Vice President, Executive Vice President and Secretary of the party committee of ...


CEO Compensation Analysis

Compensation vs Market: Junjun's total compensation ($USD404.00K) is below average for companies of similar size in the Hong Kong market ($USD600.03K).

Compensation vs Earnings: Insufficient data to compare Junjun's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Junjun Tang
President & Executive Director1.5yrsUS$404.00kno data
Suxin Zhang
Executive Chairman4.67yrsno datano data
Yu-Cheng Wang
Executive VP & Secretary of the Board8.75yrsno datano data
Weiran Kong
Executive Vice President8.75yrsno datano data
Heng Fan
Executive Vice Presidentno datano datano data
Weiping Zhou
Executive Vice President2.83yrsno datano data
Sui Har Lee
Company Secretary1yrno datano data
Kathy Chien
Deputy Director of the Investor Relationsno datano datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 1347's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Junjun Tang
President & Executive Director1.5yrsUS$404.00kno data
Suxin Zhang
Executive Chairman4.67yrsno datano data
Long Fei Ye
Independent Non-Executive Director6.5yrsUS$73.00kno data
Tso Tung Chang
Independent Non-Executive Director6.5yrsUS$73.00kno data
Kwai Huen Wong
Independent Non-Executive Director6.5yrsUS$73.00kno data
Jun Ye
Non-Executive Director8.75yrsno datano data
Yang Du
Non-Executive Director2yrsno datano data
Jing Wang
Non-Executive Director1.42yrsno datano data

5.6yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1347's board of directors are considered experienced (5.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$46.504b
  • Shares outstanding: 1.30b
  • Website: https://www.huahonggrace.com

Number of Employees


Location

  • Hua Hong Semiconductor Limited
  • 288 Halei Road
  • Zhangjiang Hi-Tech Park
  • Shanghai
  • Shanghai Province
  • 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 ap...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:09
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
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.