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.

Rewards

Trading at 72.5% below its fair value

Risk Analysis

Earnings have declined by -70.24% per year over past 5 years

Highly volatile share price over past 3 months



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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.2%

1679

9.7%

HK Semiconductor

0.9%

HK Market


1 Year Return

-22.2%

1679

38.8%

HK Semiconductor

-1.5%

HK Market

Return vs Industry: 1679 underperformed the Hong Kong Semiconductor industry which returned 38.8% over the past year.

Return vs Market: 1679 underperformed the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1679IndustryMarket
7 Day-4.2%9.7%0.9%
30 Day61.2%8.9%-3.7%
90 Day321.5%6.9%-0.1%
1 Year-22.2%-22.2%40.8%38.8%2.0%-1.5%
3 Yearn/a31.8%25.3%17.3%5.4%
5 Yearn/a2.0%-6.6%17.1%-2.2%

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$1.37) is trading below our estimate of fair value (HK$4.99)

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 (2.8x) compared to the HK Semiconductor industry average (1.3x).


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?

27.6%

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 (5.3%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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.

Debt Coverage: 1679's debt is well covered by operating cash flow (64.8%).

Interest Coverage: Insufficient data to determine if 1679's interest payments on its debt are well covered by EBIT.


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).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

7.0yrs

Average management tenure


CEO

Jingxing Yue (61yo)

2.6yrs

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 ($USD222.98K) is about average for companies of similar size in the Hong Kong market ($USD282.41K).

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


Management Age and Tenure

7.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 1679's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

0.6yrs

Average Tenure

47yo

Average Age

Experienced Board: 1679's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 1679 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥189,36506 Dec 19
Sailen International Iot Limited
EntityCompany
Shares137,500
Max PriceCN¥1.38
BuyCN¥726,94806 Dec 19
Sailen International Iot Limited
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Shares530,000
Max PriceCN¥1.37
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Sailen International Iot Limited
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Shares1,267,500
Max PriceCN¥1.40
BuyCN¥957,46203 Dec 19
Sailen International Iot Limited
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Shares667,500
Max PriceCN¥1.43
BuyCN¥4,212,17629 Nov 19
Sailen International Iot Limited
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Shares2,862,500
Max PriceCN¥1.47
BuyCN¥5,534,38828 Nov 19
Sailen International Iot Limited
EntityCompany
Shares3,792,500
Max PriceCN¥1.46
BuyCN¥2,187,58128 Nov 19
Sailen International Iot Limited
EntityCompany
Shares1,520,000
Max PriceCN¥1.44
BuyCN¥4,788,29228 Nov 19
Sailen International Iot Limited
EntityCompany
Shares3,627,500
Max PriceCN¥1.32
BuyCN¥5,433,75028 Nov 19
Sailen International Iot Limited
EntityCompany
Shares4,025,000
Max PriceCN¥1.35
BuyCN¥4,798,80826 Nov 19
Sailen International Iot Limited
EntityCompany
Shares3,332,500
Max PriceCN¥1.44
BuyCN¥1,184,00405 Nov 19
Jingxing Yue
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,600,000
Max PriceCN¥0.74
SellCN¥819,99808 May 19
Spitzer Fund Vi L.P.
EntityCompany
Shares1,000,000
Max PriceCN¥0.82
SellCN¥1,157,54007 May 19
Spitzer Fund Vi L.P.
EntityCompany
Shares1,332,500
Max PriceCN¥0.87
BuyCN¥36,30407 May 19
Spitzer Fund Vi L.P.
EntityCompany
Shares37,500
Max PriceCN¥0.97
BuyCN¥66,660,16424 Apr 19
Spitzer Fund Vi L.P.
EntityCompany
Shares60,755,000
Max PriceCN¥1.10
BuyCN¥2,498,41228 Dec 18
Spitzer Fund Vi L.P.
EntityCompany
Shares1,427,500
Max PriceCN¥1.75

Ownership Breakdown

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


Management Team

  • Ka Lok Leung (48yo)

    CFO & Company Secretary

    • Tenure: 3.6yrs
  • Andong Tang (54yo)

    Executive Director

    • Tenure: 0.4yrs
  • Alfred Lau (39yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥60.00k
  • Jingxing Yue (61yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.57m
  • Jian Gu (61yo)

    CTO & VP - Old Cayman & Risecomm WFOE and GM of Risecomm Wuxi & Risecomm HK Technology

    • Tenure: 9.3yrs
  • Baojun Zhang (51yo)

    VP & Chief Engineer of Risecomm WFOE

    • Tenure: 7.3yrs
  • Ming Liu (48yo)

    VP - Risecomm WFOE

    • Tenure: 10.8yrs
  • Shuiying Chen (44yo)

    Financial Controller of Risecomm WFOE

    • Tenure: 6.8yrs
  • Chen Zhilong

    Deputy Chief Engineer

    • Tenure: 0yrs
  • Xiao Hongdong

    Deputy Chief Engineer

    • Tenure: 0yrs

Board Members

  • King Keung Ong (43yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥207.00k
  • Francis Zhou (34yo)

    Non-Executive Director

    • Tenure: 0.08yrs
    • Compensation: CN¥484.00k
  • Andong Tang (54yo)

    Executive Director

    • Tenure: 0.4yrs
  • Alfred Lau (39yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥60.00k
  • Jingxing Yue (61yo)

    CEO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: CN¥1.57m
  • Shiguang Wang (47yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥1.44m
  • Lynda Ki

    Director of Risecomm WFOE

    • Tenure: 0yrs
  • Fan Cheung (47yo)

    Chairman of the Board

    • Tenure: 0.5yrs
    • Compensation: CN¥34.00k
  • Wan Man Lo (44yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Heqiang Zou (50yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs

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$1.381b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 13:01
End of Day Share Price2019/12/06 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.