SEHK:8242

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

New Western Group Limited, an investment holding company, provides integrated circuits (ICs) solutions in the People's Republic of China, Korea, Russia, the United States, Canada, and internationally. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8242 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: 8242's weekly volatility (18%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

0%

8242

2.2%

HK Semiconductor

-0.5%

HK Market


1 Year Return

-79.5%

8242

126.4%

HK Semiconductor

7.6%

HK Market

Return vs Industry: 8242 underperformed the Hong Kong Semiconductor industry which returned 126.4% over the past year.

Return vs Market: 8242 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

8242IndustryMarket
7 Day0%2.2%-0.5%
30 Day-19.0%10.4%5.3%
90 Day-32.0%14.7%4.2%
1 Year-79.5%-79.5%128.6%126.4%11.9%7.6%
3 Year-87.6%-87.6%116.5%109.6%-1.2%-11.4%
5 Year-93.2%-93.2%183.9%161.8%29.7%7.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is New Western Group undervalued compared to its fair value and its price relative to the market?

0.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8242's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8242's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8242 is unprofitable, so we can't compare its PE Ratio to the HK Semiconductor industry average.

PE vs Market: 8242 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 8242's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8242 is good value based on its PB Ratio (0.1x) compared to the HK Semiconductor industry average (1.3x).


Next Steps

Future Growth

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

19.6%

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 New Western Group 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 New Western Group performed over the past 5 years?

-45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8242 is currently unprofitable.

Growing Profit Margin: 8242 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8242 is unprofitable, and losses have increased over the past 5 years at a rate of 45.9% per year.

Accelerating Growth: Unable to compare 8242's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8242 is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (36.4%).


Return on Equity

High ROE: 8242 has a negative Return on Equity (-36.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is New Western Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8242's short term assets (HK$143.8M) exceed its short term liabilities (HK$11.0M).

Long Term Liabilities: 8242's short term assets (HK$143.8M) exceed its long term liabilities (HK$2.0M).


Debt to Equity History and Analysis

Debt Level: 8242 is debt free.

Reducing Debt: 8242 had no debt 5 years ago.


Balance Sheet


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: Insufficient data to determine if 8242 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 8242 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is New Western Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8242's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8242'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 8242's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8242'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 8242'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?

4.0yrs

Average management tenure


CEO

Lin Gan (40 yo)

0.83

Tenure

Mr. Lin Gan serves as chief executive officer and executive director of New Western Group Limited since January 22, 2020. He served as the Chief Executive Officer of Forebase International Holdings Limite...


Leadership Team

NamePositionTenureCompensationOwnership
Qing Zhang
Chairman & Investor Relations Officer6.33yrsHK$2.46m0.24%
HK$ 68.0k
Lin Gan
CEO & Executive Director0.83yrno datano data
Nian Li
Compliance Officer & Executive Director0.67yrno datano data
Lok Yin Chan
Company Secretary1.25yrsno datano data
Kwei Chung Li
Director of Minilogic Device Corporation Limited16.17yrsHK$303.00kno data
Loi Ying Liu
Engineering Director and Team Leader in R&D Department of Minilogic Device Corporation Limited17.33yrsHK$204.00kno data

4.0yrs

Average Tenure

41yo

Average Age

Experienced Management: 8242's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qing Zhang
Chairman & Investor Relations Officer6.33yrsHK$2.46m0.24%
HK$ 68.0k
Lin Gan
CEO & Executive Director0.83yrno datano data
Nian Li
Compliance Officer & Executive Director0.67yrno datano data
Kwei Chung Li
Director of Minilogic Device Corporation Limited16.17yrsHK$303.00kno data
Yu Wang Chiu
Independent Non-Executive Director6.75yrsHK$152.00kno data
Tak Chee Leung
Independent Non-Executive Director0.42yrno datano data
Jinkang Gao
Independent Non-Executive Director1.5yrsHK$48.00kno data

1.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 8242's board of directors are not considered experienced ( 1.5 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 been diluted in the past year, with total shares outstanding growing by 20%.


Top Shareholders

Company Information

New Western Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: New Western Group Limited
  • Ticker: 8242
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$28.515m
  • Shares outstanding: 1.68b
  • Website: https://www.newwesterngroup.com.hk

Number of Employees


Location

  • New Western Group Limited
  • Chinachem Century Tower
  • Suite 2101
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8242SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary sharesHKHKDJan 2012

Biography

New Western Group Limited, an investment holding company, provides integrated circuits (ICs) solutions in the People's Republic of China, Korea, Russia, the United States, Canada, and internationally. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:05
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.