SEHK:1679

Stock Analysis Report

Risecomm Group Holdings

Executive Summary

Risecomm Group Holdings Limited, an investment holding company, designs and develops application-specific integrated circuits in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has Risecomm Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1679 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

1679

-3.8%

HK Semiconductor

-3.2%

HK Market


1 Year Return

-23.6%

1679

37.3%

HK Semiconductor

-10.2%

HK Market

Return vs Industry: 1679 underperformed the Hong Kong Semiconductor industry which returned 39.7% over the past year.

Return vs Market: 1679 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1679IndustryMarket
7 Day-4.0%-3.8%-3.2%
30 Day14.3%-1.1%-3.3%
90 Day-18.4%33.1%0.2%
1 Year-23.6%-23.6%39.3%37.3%-6.9%-10.2%
3 Yearn/a43.7%36.7%11.7%0.4%
5 Yearn/a24.2%13.6%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Risecomm Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Risecomm Group 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: 1679 (HK$1.21) is trading below our estimate of fair value (HK$4.8)

Significantly Below Fair Value: 1679 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1679 is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: 1679 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1679's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1679 is overvalued based on its PB Ratio (2.5x) compared to the HK Semiconductor industry average (1.5x).


Next Steps

Future Growth

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

26.8%

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 Risecomm Group 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.


Next Steps

Past Performance

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

-70.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1679 is currently unprofitable.

Growing Profit Margin: 1679 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1679 is unprofitable, and losses have increased over the past 5 years at a rate of -70.2% per year.

Accelerating Growth: Unable to compare 1679's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1679 is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (4.2%).


Return on Equity

High ROE: 1679 has a negative Return on Equity (-7.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Risecomm Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1679's short term assets (CN¥369.3M) exceed its short term liabilities (CN¥88.8M).

Long Term Liabilities: 1679's short term assets (CN¥369.3M) do not cover its long term liabilities (CN¥378.3M).


Debt to Equity History and Analysis

Debt Level: 1679's debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1679's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 1679 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1679's debt is covered by short term assets (assets are 3.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1679 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 1679 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1679's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1679's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1679's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1679's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1679'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?

7.2yrs

Average management tenure


CEO

Jingxing Yue (61yo)

2.8yrs

Tenure

CN¥1,572,000

Compensation

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, resear ...


CEO Compensation Analysis

Compensation vs Market: Jingxing's total compensation ($USD223.65K) is about average for companies of similar size in the Hong Kong market ($USD290.18K).

Compensation vs Earnings: Jingxing's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jingxing Yue
CEO & Executive Director2.8yrsCN¥1.57m9.48% CN¥113.2m
Wai Leung Lau
Executive Director2.3yrsCN¥60.00kno data
Ka Lok Leung
CFO & Company Secretary3.8yrsno datano data
Andong Tang
Executive Director0.6yrsno datano data
Jian Gu
CTO & VP - Old Cayman & Risecomm WFOE and GM of Risecomm Wuxi & Risecomm HK Technology9.4yrsno datano data
Baojun Zhang
VP & Chief Engineer of Risecomm WFOE7.4yrsno datano data
Ming Liu
VP - Risecomm WFOE11yrsno datano data
Shuiying Chen
Financial Controller of Risecomm WFOE6.9yrsno datano data
Chen Zhilong
Deputy Chief Engineer0yrsno datano data
Xiao Hongdong
Deputy Chief Engineer0yrsno datano data

7.2yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 1679's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jingxing Yue
CEO & Executive Director2.8yrsCN¥1.57m9.48% CN¥113.2m
Wai Leung Lau
Executive Director2.3yrsCN¥60.00kno data
Andong Tang
Executive Director0.6yrsno datano data
King Keung Ong
Independent Non-Executive Director2.8yrsCN¥207.00kno data
Bingrong Zhou
Non-Executive Director0.3yrsCN¥484.00kno data
Shiguang Wang
Non-Executive Director4yrsCN¥1.44mno data
Lau Ki
Director of Risecomm WFOE0yrsno datano data
Fan Cheung
Chairman of the Board0.7yrsCN¥34.00kno data
Wan Man Lo
Independent Non-Executive Director0.8yrsno datano data
Heqiang Zou
Independent Non-Executive Director0.8yrsno datano data

0.8yrs

Average Tenure

47yo

Average Age

Experienced Board: 1679's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

Risecomm Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Risecomm Group Holdings Limited
  • Ticker: 1679
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$1.194b
  • Shares outstanding: 986.62m
  • Website: https://www.risecomm.com.cn

Number of Employees


Location

  • Risecomm Group Holdings Limited
  • Skyworth Building C501
  • Hi-tech Industrial Park
  • Shenzhen
  • Guangdong Province
  • 518057
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1679SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2017

Biography

Risecomm Group Holdings Limited, an investment holding company, designs and develops application-specific integrated circuits in the People’s Republic of China. It operates in two segments, Automated Meter Reading (AMR) and Other Business; and Smart Manufacturing & Industrial Automation System (SMIA) Business. The AMR Business segment designs, develops, and sells power-line communication, energy saving, and environmental protection products that are used in streetlight control, and building energy and photovoltaic power management, as well as provides maintenance services in connection with the deployment and upgrading of AMR systems by power grid companies. The SMIA Business segment sells software license and production safety products, as well as provides software post-contract customer support services, including smart manufacturing and industrial automation system. The company also provides power line communication ICs, modules, concentrators, collectors, routers, controllers, management systems, and testing tools. Risecomm Group Holdings Limited was founded in 2006 and is headquartered in Shenzhen, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:25
End of Day Share Price2020/02/25 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.