SEHK:6908

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HongGuang Lighting Holdings

Executive Summary

HongGuang Lighting Holdings Company Limited, an investment holding company, designs, develops, manufactures, and sells light-emitting diode (LED) beads and LED lighting products in the People’s Republic of China. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6908 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6908's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

5.7%

6908

3.1%

HK Semiconductor

1.1%

HK Market


1 Year Return

-28.2%

6908

124.3%

HK Semiconductor

8.2%

HK Market

Return vs Industry: 6908 underperformed the Hong Kong Semiconductor industry which returned 126.4% over the past year.

Return vs Market: 6908 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

6908IndustryMarket
7 Day5.7%3.1%1.1%
30 Day0%8.6%7.2%
90 Day-11.1%14.6%5.2%
1 Year-28.2%-28.2%126.4%124.3%12.6%8.2%
3 Year-36.4%-36.4%116.8%109.8%0.4%-10.0%
5 Yearn/a182.3%160.0%30.6%8.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is HongGuang Lighting Holdings undervalued compared to its fair value and its price relative to the market?

13.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6908's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6908's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6908 is good value based on its PE Ratio (13.5x) compared to the HK Semiconductor industry average (24x).

PE vs Market: 6908 is poor value based on its PE Ratio (13.5x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6908's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6908 is good value based on its PB Ratio (1.1x) compared to the HK Semiconductor industry average (1.3x).


Next Steps

Future Growth

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

19.7%

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 HongGuang Lighting 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 HongGuang Lighting Holdings performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6908 has a high level of non-cash earnings.

Growing Profit Margin: 6908's current net profit margins (7.2%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: 6908's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: 6908's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6908 had negative earnings growth (-36.3%) over the past year, making it difficult to compare to the Semiconductor industry average (36.4%).


Return on Equity

High ROE: 6908's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is HongGuang Lighting Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6908's short term assets (CN¥169.9M) exceed its short term liabilities (CN¥33.7M).

Long Term Liabilities: 6908's short term assets (CN¥169.9M) exceed its long term liabilities (CN¥1.5M).


Debt to Equity History and Analysis

Debt Level: 6908's debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: 6908's debt to equity ratio has reduced from 27.5% to 4.2% over the past 5 years.

Debt Coverage: 6908's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6908's interest payments on its debt are well covered by EBIT (66.5x coverage).


Balance Sheet


Next Steps

Dividend

What is HongGuang Lighting Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6908's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6908'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 6908's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6908'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 6908'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?

7.1yrs

Average management tenure


CEO

Yi Wen Zhao (50 yo)

no data

Tenure

CN¥418,000

Compensation

Mr. Yi Wen Zhao is a Founder and serves as Chairman and Chief Executive Officer at HongGuang Lighting Holdings Company Limited. Mr. Zhao is responsible for formulating overall corporate strategies and hand...


CEO Compensation Analysis

Compensation vs Market: Yi Wen's total compensation ($USD63.57K) is below average for companies of similar size in the Hong Kong market ($USD230.00K).

Compensation vs Earnings: Yi Wen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yi Wen Zhao
Chairman & CEOno dataCN¥418.00k25.13%
CN¥ 56.3m
Wing Kin Chan
Compliance Officer5.5yrsCN¥650.00kno data
Qi Jian Lin
Executive Director4.5yrsCN¥312.00k25.13%
CN¥ 56.3m
Xiang Ling Qi
Financial Controller of Zhuhai HongGuang Lighting Fixture Company Limited10.25yrsno datano data
Jian Hui Xu
GM & Director of Zhuhai HongGuang Lighting Fixture Co. Ltd6yrsno datano data

7.1yrs

Average Tenure

49yo

Average Age

Experienced Management: 6908's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yi Wen Zhao
Chairman & CEOno dataCN¥418.00k25.13%
CN¥ 56.3m
Wing Kin Chan
Compliance Officer5.5yrsCN¥650.00kno data
Qi Jian Lin
Executive Director4.5yrsCN¥312.00k25.13%
CN¥ 56.3m
Jian Hui Xu
GM & Director of Zhuhai HongGuang Lighting Fixture Co. Ltd6yrsno datano data
Chung Kik Chan
Independent Non-Executive Director3.92yrsCN¥106.00kno data
Wing Kuen Wu
Independent Non-Executive Director3.92yrsCN¥106.00kno data
Kwai San Chiu
Non-Executive Director4.5yrsCN¥106.00k24.75%
CN¥ 55.4m
Wai Shing Chow
Independent Non-Executive Director3.92yrsCN¥106.00kno data

4.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 6908's board of directors are considered experienced (4.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

HongGuang Lighting Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HongGuang Lighting Holdings Company Limited
  • Ticker: 6908
  • Exchange: SEHK
  • Founded: 2010
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$224.000m
  • Shares outstanding: 400.00m
  • Website: https://www.lighting-hg.com

Number of Employees


Location

  • HongGuang Lighting Holdings Company Limited
  • The North Side
  • 2nd and 3rd Floors
  • Zhuhai
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6908SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDDec 2016

Biography

HongGuang Lighting Holdings Company Limited, an investment holding company, designs, develops, manufactures, and sells light-emitting diode (LED) beads and LED lighting products in the People’s Republic of...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:14
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
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.