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 Analysis

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

Stable Share Price: 85's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

85

-4.4%

HK Semiconductor

-0.6%

HK Market


1 Year Return

-13.8%

85

39.7%

HK Semiconductor

-7.6%

HK Market

Return vs Industry: 85 underperformed the Hong Kong Semiconductor industry which returned 39.7% over the past year.

Return vs Market: 85 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

85IndustryMarket
7 Day-1.3%-4.4%-0.6%
30 Day-11.8%1.3%-1.2%
90 Day29.3%33.3%3.0%
1 Year-11.2%-13.8%41.7%39.7%-4.2%-7.6%
3 Year-49.7%-53.7%43.7%36.7%12.9%1.5%
5 Year-56.5%-60.9%28.5%17.6%13.1%-5.6%

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?

14.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 85 (HK$0.75) is trading above our estimate of fair value (HK$0.23)

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 (14.2x) compared to the Semiconductor industry average (19.3x).

PE vs Market: 85 is poor value based on its PE Ratio (14.2x) compared to the Hong Kong market (10.1x).


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 (0.8x) compared to the HK Semiconductor industry average (1.5x).


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?

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

-9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 85 has high quality earnings.

Growing Profit Margin: 85's current net profit margins (6.7%) are lower than last year (8.9%).


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 (4.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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 (HK$2.1B) exceed its long term liabilities (HK$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?

2.67%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%6.3%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 85's dividend (2.67%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 85's dividend (2.67%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average board tenure


CEO

Hongzhou Liu (56yo)

4.1yrs

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 ($USD203.01K) is below average for companies of similar size in the Hong Kong market ($USD290.67K).

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


Board Members

NamePositionTenureCompensationOwnership
Hongzhou Liu
MD & Executive Director4.1yrsHK$1.58mno data
Jian Yu
Deputy Chairman0.9yrsno datano data
Chan Lum Chow
Independent Non-Executive Director4.7yrsHK$200.00kno data
Kay-Cheung Chan
Independent Non Executive Director22.8yrsHK$200.00kno data
Hongsheng Qiu
Independent Non-Executive Director7.3yrsHK$200.00kno data
Haoran Dong
Chairman of the Board4.1yrsno data0.23% HK$3.5m
Jinmei Liu
Non-Executive Director2.1yrsno data0.0097% HK$148.0k

4.7yrs

Average Tenure

55yo

Average Age

Experienced Board: 85's board of directors are considered experienced (4.7 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

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$1.522b
  • 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 primarily used in RFID, ID cards, social security cards, fuel cards, telecommunication cards, electric cards, transportation cards, wireless networks equipment, etc. The company was formerly known as China Electronics Corporation Holdings Company Limited and changed its name to China Electronics Huada Technology Company Limited in August 2017. The company is based in Wanchai, Hong Kong. China Electronics Huada Technology Company Limited is a subsidiary of Huada Semiconductor Co., Ltd. The company is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:39
End of Day Share Price2020/02/21 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.