SEHK:85

Stock Analysis Report

China Electronics Huada Technology

Executive Summary

China Electronics Huada Technology Company Limited, an investment holding company, researches, designs, develops, and sells integrated circuit chips in the People’s Republic of China.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has China Electronics Huada Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

85

-0.1%

HK Semiconductor

0.3%

HK Market


1 Year Return

-1.5%

85

37.5%

HK Semiconductor

1.3%

HK Market

Return vs Industry: 85 underperformed the Hong Kong Semiconductor industry which returned 37.5% over the past year.

Return vs Market: 85 matched the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

85IndustryMarket
7 Day0%-0.1%0.3%
30 Day-5.7%-8.0%0.5%
90 Day-5.7%4.0%-4.6%
1 Year1.4%-1.5%39.4%37.5%4.9%1.3%
3 Year-62.4%-65.4%16.5%10.5%15.3%3.7%
5 Year-70.0%-73.1%-18.2%-25.0%20.0%-0.006%

Price Volatility Vs. Market

How volatile is China Electronics Huada Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Electronics Huada Technology undervalued compared to its fair value and its price relative to the market?

12.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 85 (HK$0.66) is trading above our estimate of fair value (HK$0.22)

Significantly Below Fair Value: 85 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 85 is good value based on its PE Ratio (12.5x) compared to the Semiconductor industry average (14.8x).

PE vs Market: 85 is poor value based on its PE Ratio (12.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 85's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 85 is good value based on its PB Ratio (0.7x) compared to the HK Semiconductor industry average (1.4x).


Next Steps

Future Growth

How is China Electronics Huada Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 85's forecast earnings growth (2.7% per year) is above the savings rate (2%).

Earnings vs Market: 85's earnings (2.7% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 85's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 85's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 85's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 85's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Electronics Huada Technology performed over the past 5 years?

-9.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 85's earnings have declined by -9.6% per year over the past 5 years.

Accelerating Growth: 85's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 85 had negative earnings growth (-30.8%) over the past year, making it difficult to compare to the Semiconductor industry average (5.7%).


Return on Equity

High ROE: 85's Return on Equity (5.5%) is considered low.


Return on Assets

ROA vs Industry: 85's Return on Assets is below or equal to the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: 85 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Electronics Huada Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 85's short term assets (HK$2.1B) do not cover its short term liabilities (HK$3.0B)

Long Term Liabilities: 85's short term assets (2.1B) exceeds its long term liabilities (77.6M)


Debt to Equity History and Analysis

Debt Level: 85's debt to equity ratio (114.2%) is considered high

Reducing Debt: 85's debt to equity ratio has reduced from 786.9% to 114.2% over the past 5 years.

Debt Coverage: 85's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 85's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet

Inventory Level: 85 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 85's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is China Electronics Huada Technology's current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%6.2%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 85's dividend (3.03%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 85's dividend (3.03%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 85 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 85 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), 85's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of China Electronics Huada Technology's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Hongzhou Liu (56yo)

3.8yrs

Tenure

HK$1,581,000

Compensation

Mr. Hongzhou Liu has been a Managing Director of China Electronics Corporation Holdings Company Limited since October 11, 2013 until January 19, 2016 and has been its Executive Director since October 11, 2 ...


CEO Compensation Analysis

Compensation vs. Market: Hongzhou's total compensation ($USD201.57K) is about average for companies of similar size in the Hong Kong market ($USD287.57K).

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


Board Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 85's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Hongzhou Liu (56yo)

    MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.58m
  • Kui Ng (57yo)

    Company Secretary

    • Tenure: 0yrs
  • Qiuju Wang (52yo)

    Financial Controller

    • Tenure: 0yrs
  • Jian Yu (43yo)

    Deputy Chairman

    • Tenure: 0.6yrs

Board Members

  • Charles Chow (68yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$200.00k
  • Kay-Cheung Chan (73yo)

    Independent Non Executive Director

    • Tenure: 22.4yrs
    • Compensation: HK$200.00k
  • Hongzhou Liu (56yo)

    MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$1.58m
  • Hongsheng Qiu (54yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$200.00k
  • Haoran Dong (54yo)

    Chairman of the Board

    • Tenure: 3.8yrs
  • Jinmei Liu (49yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Jian Yu (43yo)

    Deputy Chairman

    • Tenure: 0.6yrs

Company Information

China Electronics Huada Technology Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Electronics Huada Technology Company Limited
  • Ticker: 85
  • Exchange: SEHK
  • Founded:
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$1.340b
  • Shares outstanding: 2.03b
  • Website: https://www.cecht.com.cn

Number of Employees


Location

  • China Electronics Huada Technology Company Limited
  • China Resources Building
  • Room 3403
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
85SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2004

Biography

China Electronics Huada Technology Company Limited, an investment holding company, researches, designs, develops, and sells integrated circuit chips in the People’s Republic of China. Its products are prim ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:36
End of Day Share Price2019/10/22 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.