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Risecomm Group Holdings

SEHK:1679
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1679
SEHK
HK$485M
Market Cap
  1. Home
  2. HK
  3. Semiconductors
Company description

Risecomm Group Holdings Limited, an investment holding company, operates as a fabless integrated circuits (ICs) design company in the People's Republic of China. The last earnings update was 34 days ago. More info.


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  • Risecomm Group Holdings has significant price volatility in the past 3 months.
1679 Share Price and Events
7 Day Returns
-24.6%
SEHK:1679
-4.5%
HK Semiconductor
-3.5%
HK Market
1 Year Returns
-75.8%
SEHK:1679
-11.8%
HK Semiconductor
-16.8%
HK Market
1679 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Risecomm Group Holdings (1679) -24.6% -45.8% -67.3% -75.8% - -
HK Semiconductor -4.5% -10.2% 5.1% -11.8% 20.4% -38.2%
HK Market -3.5% -9.6% -4.2% -16.8% 24.6% 7.2%
1 Year Return vs Industry and Market
  • 1679 underperformed the Semiconductor industry which returned -11.8% over the past year.
  • 1679 underperformed the Market in Hong Kong which returned -16.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Risecomm Group Holdings's competitors could be found in our database.

Value

 Is Risecomm Group Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Risecomm Group Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Risecomm Group Holdings.

SEHK:1679 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1679
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.149 (1 + (1- 25%) (28.19%))
1.263
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.263 * 5.96%)
9.53%

Discounted Cash Flow Calculation for SEHK:1679 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Risecomm Group Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1679 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.53%)
2019 63.39 Est @ 31.19% 57.88
2020 77.61 Est @ 22.43% 64.69
2021 90.26 Est @ 16.3% 68.70
2022 101.11 Est @ 12.01% 70.26
2023 110.22 Est @ 9.01% 69.92
2024 117.83 Est @ 6.91% 68.25
2025 124.24 Est @ 5.44% 65.70
2026 129.71 Est @ 4.41% 62.63
2027 134.49 Est @ 3.69% 59.29
2028 138.77 Est @ 3.18% 55.85
Present value of next 10 years cash flows CN¥643.16
SEHK:1679 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥138.77 × (1 + 2%) ÷ (9.53% – 2%)
CN¥1,880.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥1,880.97 ÷ (1 + 9.53%)10
CN¥757.02
SEHK:1679 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥643.16 + CN¥757.02
CN¥1,400.18
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,400.18 / 822.68
CN¥1.7
SEHK:1679 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1679)
1.136
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥1.7 x 1.136
HK$1.93
Value per share (HKD) From above. HK$1.93
Current discount Discount to share price of HK$0.52
= -1 x (HK$0.52 - HK$1.93) / HK$1.93
73.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Risecomm Group Holdings is available for.
Intrinsic value
>50%
Share price is HK$0.52 vs Future cash flow value of HK$1.93
Current Discount Checks
For Risecomm Group Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Risecomm Group Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Risecomm Group Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Risecomm Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Risecomm Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1679 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.01
SEHK:1679 Share Price ** SEHK (2019-05-21) in HKD HK$0.52
SEHK:1679 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥0.46
Hong Kong Semiconductor Industry PE Ratio Median Figure of 17 Publicly-Listed Semiconductor Companies 16.05x
Hong Kong Market PE Ratio Median Figure of 1,477 Publicly-Listed Companies 11.08x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Risecomm Group Holdings.

SEHK:1679 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1679 Share Price ÷ EPS (both in CNY)

= 0.46 ÷ 0.01

89.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Risecomm Group Holdings is overvalued based on earnings compared to the HK Semiconductor industry average.
  • Risecomm Group Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Risecomm Group Holdings's expected growth come at a high price?
Raw Data
SEHK:1679 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 89.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
22.8%per year
Hong Kong Semiconductor Industry PEG Ratio Median Figure of 5 Publicly-Listed Semiconductor Companies 0.83x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Risecomm Group Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Risecomm Group Holdings's assets?
Raw Data
SEHK:1679 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥0.49
SEHK:1679 Share Price * SEHK (2019-05-21) in HKD HK$0.52
SEHK:1679 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥0.46
Hong Kong Semiconductor Industry PB Ratio Median Figure of 29 Publicly-Listed Semiconductor Companies 1.62x
Hong Kong Market PB Ratio Median Figure of 2,156 Publicly-Listed Companies 0.97x
SEHK:1679 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1679 Share Price ÷ Book Value per Share (both in CNY)

= 0.46 ÷ 0.49

0.93x

* Primary Listing of Risecomm Group Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Risecomm Group Holdings is good value based on assets compared to the HK Semiconductor industry average.
X
Value checks
We assess Risecomm Group Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Risecomm Group Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Risecomm Group Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Risecomm Group Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Risecomm Group Holdings expected to grow at an attractive rate?
  • Risecomm Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Risecomm Group Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Risecomm Group Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1679 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1679 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 22.8%
Hong Kong Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 22.9%
Hong Kong Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 12.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1679 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1679 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:1679 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 476 64 4
2018-09-30 415 14 3
2018-06-30 354 -37 2
2018-03-31 336 -63 7
2017-12-31 317 -89 13
2017-09-30 339 -72 22
2017-06-30 361 -55 32
2017-03-31 376 -19 45
2016-12-31 390 17 58

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Risecomm Group Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Risecomm Group Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1679 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Risecomm Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1679 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:1679 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.01
2018-09-30 0.00
2018-06-30 0.00
2018-03-31 0.01
2017-12-31 0.02
2017-09-30 0.03
2017-06-30 0.05
2017-03-31 0.07
2016-12-31 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Risecomm Group Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Risecomm Group Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Risecomm Group Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Risecomm Group Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Risecomm Group Holdings's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Risecomm Group Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Risecomm Group Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Risecomm Group Holdings's 1-year earnings growth is negative, it can't be compared to the HK Semiconductor industry average.
Earnings and Revenue History
Risecomm Group Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Risecomm Group Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1679 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 475.79 4.20 139.58 33.88
2018-09-30 415.12 3.08 124.96 34.37
2018-06-30 354.45 1.96 97.48 34.86
2018-03-31 335.89 7.32 99.19 39.88
2017-12-31 317.33 12.67 113.77 44.90
2017-09-30 339.15 22.23 110.53 46.48
2017-06-30 360.97 31.79 107.28 48.06
2017-03-31 375.59 44.77 98.42 41.75
2016-12-31 390.21 57.74 89.55 35.43
2015-12-31 340.72 55.30 75.76 25.13
2014-12-31 232.63 40.56 48.92 20.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Risecomm Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Risecomm Group Holdings used its assets less efficiently than the HK Semiconductor industry average last year based on Return on Assets.
  • It is difficult to establish if Risecomm Group Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Risecomm Group Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Risecomm Group Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Risecomm Group Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Risecomm Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Risecomm Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Risecomm Group Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Risecomm Group Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Risecomm Group Holdings Company Filings, last reported 4 months ago.

SEHK:1679 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 400.79 120.50 277.04
2018-09-30 400.79 120.50 277.04
2018-06-30 380.10 8.69 184.51
2018-03-31 380.10 8.69 184.51
2017-12-31 391.38 0.00 184.64
2017-09-30 391.38 0.00 184.64
2017-06-30 386.33 13.00 250.67
2017-03-31 386.33 13.00 250.67
2016-12-31 220.71 0.00 154.84
2015-12-31 242.67 0.00 153.86
2014-12-31 181.15 0.01 149.85
  • Risecomm Group Holdings's level of debt (30.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Risecomm Group Holdings's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (53.1%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Risecomm Group Holdings's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Risecomm Group Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Risecomm Group Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Risecomm Group Holdings dividends.
If you bought HK$2,000 of Risecomm Group Holdings shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Risecomm Group Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Risecomm Group Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1679 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.6%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1679 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Risecomm Group Holdings has not reported any payouts.
  • Unable to verify if Risecomm Group Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Risecomm Group Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Risecomm Group Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Risecomm Group Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Risecomm Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Risecomm Group Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jingxing Yue
COMPENSATION CN¥1,559,000
AGE 60
TENURE AS CEO 2 years
CEO Bio

Mr. Yue Jingxing has been Chief Executive Officer at Risecomm Group Holdings Limited since May 2017 and Executive Director since February 2016. Mr. Yue is responsible for overall strategic planning, research and development directions and business development of Risecomm Group. He has also been the President of Risecomm WFOE since May 2006. He is one of the co-founders of Risecomm Group. He has over 20 years of experience in IC design. Prior to founding Risecomm Group in May 2006, Mr. Yue worked in Hughes Network Systems (currently known as Hughes), a company in the United States engaged in delivering innovative network technologies, managed services and solutions, as a Senior Technical Manager responsible for hardware and ASIC design for telecommunication equipment from 1994 to 2005. Mr. Yue has been a Director of Risecomm HK, Risecomm WFOE, Risecomm Beijing Comm, Risecomm Shenzhen, Risecomm Wuxi, Risecomm HK Technology and Old Cayman since December 2015, January 2007, March 2014, April 2014, October 2010, December 2015 and September 2006, respectively. Mr. Yue obtained a bachelor's degree in Engineering from Beijing University of Technology in the PRC in July 1982. He then obtained a Master's degree in Science from the Institute of Semiconductors, Chinese Academy of Science in the PRC in August 1986. Mr. Yue further obtained a Master's degree in Electrical Engineering from Bradley University in the United States in May 1991.

CEO Compensation
  • Jingxing's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jingxing's remuneration is about average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Risecomm Group Holdings management team in years:

6.4
Average Tenure
48.5
Average Age
  • The average tenure for the Risecomm Group Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jingxing Yue

TITLE
CEO & Executive Director
COMPENSATION
CN¥2M
AGE
60
TENURE
2 yrs

Youyun Zhang

TITLE
Executive Director
COMPENSATION
CN¥706K
AGE
58

Alfred Lau

TITLE
Executive Director
AGE
38

Ka Lok Leung

TITLE
CFO & Company Secretary
AGE
47
TENURE
3 yrs

Jian Gu

TITLE
CTO & VP - Old Cayman & Risecomm WFOE and GM of Risecomm Wuxi & Risecomm HK Technology
AGE
60
TENURE
8.7 yrs

Baojun Zhang

TITLE
VP & Chief Engineer of Risecomm WFOE
AGE
50
TENURE
6.7 yrs

Ming Liu

TITLE
VP - Risecomm WFOE
AGE
47
TENURE
10.3 yrs

Shuiying Chen

TITLE
Financial Controller of Risecomm WFOE
AGE
43
TENURE
6.2 yrs

Chen Zhilong

TITLE
Deputy Chief Engineer

Xiao Hongdong

TITLE
Deputy Chief Engineer
Board of Directors Tenure

Average tenure and age of the Risecomm Group Holdings board of directors in years:

2
Average Tenure
46
Average Age
  • The average tenure for the Risecomm Group Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Shiguang Wang

TITLE
Chairman
COMPENSATION
CN¥1M
AGE
46
TENURE
2 yrs

Jingxing Yue

TITLE
CEO & Executive Director
COMPENSATION
CN¥2M
AGE
60
TENURE
3.3 yrs

Youyun Zhang

TITLE
Executive Director
COMPENSATION
CN¥706K
AGE
58
TENURE
3.3 yrs

Alfred Lau

TITLE
Executive Director
AGE
38
TENURE
1.5 yrs

King Keung Ong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥118K
AGE
42
TENURE
2 yrs

Yong Chen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥118K
AGE
62
TENURE
2 yrs

Song Pan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥118K
AGE
46
TENURE
2 yrs

Francis Zhou

TITLE
Non-Executive Director
AGE
33
TENURE
0.8 yrs

Fan Cheung

TITLE
Non-Executive Director
AGE
46
TENURE
0.7 yrs

Lynda Ki

TITLE
Director of Risecomm WFOE
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. May 19 Sell Spitzer Fund Vi L.P. Company 07. May 19 07. May 19 -1,000,000 HK$0.82 HK$-819,998
07. May 19 Buy Spitzer Fund Vi L.P. Company 03. May 19 03. May 19 37,500 HK$0.97 HK$36,304
07. May 19 Sell Spitzer Fund Vi L.P. Company 02. May 19 02. May 19 -1,332,500 HK$0.87 HK$-1,157,540
24. Apr 19 Buy Spitzer Fund Vi L.P. Company 23. Apr 19 23. Apr 19 60,755,000 HK$1.10 HK$66,660,164
28. Dec 18 Buy Spitzer Fund Vi L.P. Company 12. Nov 18 12. Nov 18 237,500 HK$1.90 HK$450,348
28. Dec 18 Buy Spitzer Fund Vi L.P. Company 24. Dec 18 24. Dec 18 1,427,500 HK$1.75 HK$2,498,412
19. Nov 18 Sell ICBC International Asset Management Limited Company 19. Nov 18 19. Nov 18 -280,000 HK$1.82 HK$-509,909
18. Oct 18 Sell Junling Chen Individual 15. Oct 18 15. Oct 18 -72,000,000 HK$1.10 HK$-79,199,733
15. Aug 18 Buy ICBC International Asset Management Limited Company 14. Aug 18 14. Aug 18 515,000 HK$1.99 HK$1,026,189
X
Management checks
We assess Risecomm Group Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Risecomm Group Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Closer Look At Risecomm Group Holdings Limited's (HKG:1679) Uninspiring ROE

View our latest analysis for Risecomm Group Holdings How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Risecomm Group Holdings: 1.0% = CN¥4.2m ÷ CN¥401m (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Risecomm Group Holdings's Debt And Its 1.0% Return On Equity While Risecomm Group Holdings does have some debt, with debt to equity of just 0.30, we wouldn't say debt is excessive.

Simply Wall St -

What Type Of Shareholder Owns Risecomm Group Holdings Limited's (HKG:1679)?

Every investor in Risecomm Group Holdings Limited (HKG:1679) should be aware of the most powerful shareholder groups. … Risecomm Group Holdings is a smaller company with a market capitalization of HK$1.1b, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Risecomm Group Holdings

Simply Wall St -

Some Risecomm Group Holdings Shareholders Have Copped A Big 56% Share Price Drop

And unfortunately for Risecomm Group Holdings Limited (HKG:1679) shareholders, the stock is a lot lower today than it was a year ago. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Unfortunately Risecomm Group Holdings reported an EPS drop of 95% for the last year.

Simply Wall St -

Should You Be Worried About Risecomm Group Holdings Limited's (HKG:1679) 0.6% Return On Equity?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.0057 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholder Appears On The Risecomm Group Holdings Limited's (HKG:1679) Shareholder Register?

The big shareholder groups in Risecomm Group Holdings Limited (HKG:1679) have power over the company. … Risecomm Group Holdings is a smaller company with a market capitalization of HK$1.5b, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Risecomm Group Holdings

Simply Wall St -

Read This Before Judging Risecomm Group Holdings Limited's (HKG:1679) ROE

Our data shows Risecomm Group Holdings has a return on equity of 0.6% for the last year. … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.0057 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Has Risecomm Group Holdings Limited (HKG:1679) Improved Earnings In Recent Times?

Measuring Risecomm Group Holdings Limited's (HKG:1679) track record of past performance is a useful exercise for investors. … Today I will assess 1679's recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. … Commentary On 1679's Past Performance

Simply Wall St -

Why Risecomm Group Holdings Limited's (HKG:1679) ROE Of 3.28% Does Not Tell The Whole Story

and want a simplistic look at the return on Risecomm Group Holdings Limited (HKG:1679) stock. … Risecomm Group Holdings Limited’s (HKG:1679) most recent return on equity was a substandard 3.28% relative to its industry performance of 7.96% over the past year. … Today I will look at how components such as financial leverage can influence ROE which may impact the sustainability of 1679's returns.

Simply Wall St -

Company Info

Description

Risecomm Group Holdings Limited, an investment holding company, operates as a fabless integrated circuits (ICs) design company in the People's Republic of China. It operates in two segments, Automated Meter Reading (AMR) Business and Smart Energy Management Business. The AMR Business segment designs, develops, and sells power-line communication ICs, modules, and devices, such as connectors and concentrators; and provides related maintenance services. This segment serves meter manufacturers and power grid companies. The Smart Energy Management Business segment offers energy saving and environmental protection products and solutions that are used in streetlight control, building energy management, photovoltaic power management, etc. applications. The company also provides testing tools; and collectors, as well as motion and light sensors. Risecomm Group Holdings Limited was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China.

Details
Name: Risecomm Group Holdings Limited
1679
Exchange: SEHK
Founded: 2006
HK$485,383,704
822,684,245
Website: http://www.risecomm.com.cn
Address: Risecomm Group Holdings Limited
Skyworth Building C501,
Hi-tech Industrial Park,
Shenzhen,
Guangdong Province, 518057,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1679 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 09. Jun 2017
Number of employees
Current staff
Staff numbers
355
Risecomm Group Holdings employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 13:05
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2018/03/28
Last earnings filing: 2019/04/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.