SEHK:1059

Stock Analysis Report

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Executive Summary

Kantone Holdings Limited, an investment holding company, engages in the sale and leasing of systems products and software licensing and customisation businesses in the People’s Republic of China and Europe. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1059 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: 1059's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

-12.9%

1059

19.6%

HK Software

5.7%

HK Market


1 Year Return

-27.4%

1059

181.6%

HK Software

14.3%

HK Market

Return vs Industry: 1059 underperformed the Hong Kong Software industry which returned 181.6% over the past year.

Return vs Market: 1059 underperformed the Hong Kong Market which returned 14.3% over the past year.


Shareholder returns

1059IndustryMarket
7 Day-12.9%19.6%5.7%
30 Day13.0%37.9%13.6%
90 Day-26.5%68.6%19.6%
1 Year-27.4%-27.4%182.7%181.6%18.9%14.3%
3 Year-67.6%-67.6%194.6%191.9%-2.9%-13.1%
5 Year-90.3%-90.3%262.6%256.8%70.9%42.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kantone 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: 1059 (HK$0.31) is trading below our estimate of fair value (HK$2.84)

Significantly Below Fair Value: 1059 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1059 is good value based on its PE Ratio (15.7x) compared to the HK Software industry average (29.9x).

PE vs Market: 1059 is poor value based on its PE Ratio (15.7x) compared to the Hong Kong market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1059's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1059 is overvalued based on its PB Ratio (1.3x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

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

31.9%

Forecasted Software 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 Kantone 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 Kantone Holdings performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1059 has high quality earnings.

Growing Profit Margin: 1059's current net profit margins (2.6%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: 1059 has become profitable over the past 5 years, growing earnings by 0.4% per year.

Accelerating Growth: 1059's earnings growth over the past year (58.2%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: 1059 earnings growth over the past year (58.2%) exceeded the Software industry -7.4%.


Return on Equity

High ROE: 1059's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is Kantone Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1059's short term assets (HK$154.4M) exceed its short term liabilities (HK$80.8M).

Long Term Liabilities: 1059's short term assets (HK$154.4M) exceed its long term liabilities (HK$52.6M).


Debt to Equity History and Analysis

Debt Level: 1059's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: 1059's debt to equity ratio has increased from 0.4% to 16.3% over the past 5 years.

Debt Coverage: 1059's debt is well covered by operating cash flow (331.6%).

Interest Coverage: Insufficient data to determine if 1059's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1059's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1059'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 1059's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1059's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1059 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1059'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?

8.6yrs

Average management tenure


CEO

Ed Paterson (48 yo)

1

Tenure

Mr. Ed Paterso is Chief Executive Officer of Multitone UK since January 01, 2020. Mr. Paterso is prioritizing the development of new technologies and solutions into the Multitone UK product portfolio to al...


Leadership Team

NamePositionTenureCompensationOwnership
Man-Winny Wong
Chairman of the Board3.25yrsno datano data
Kin Leung Fung
Head of Innovationno datano datano data
Helen Brown
Head of Human Resources - International Operationsno datano datano data
Yu Peng Wang
Chief Operating Officer of e-Lottery Business at Kantone15.33yrsno datano data
Frank Rotthoff
MD of German Operations & Head of International Market13yrsno datano data
Wai Chan
Company Secretary4.25yrsno datano data
Ed Paterson
Chief Executive Officer of Multitone UK1yrno datano data
Ron Wray
Technical Directorno datano datano data

8.6yrs

Average Tenure

56yo

Average Age

Experienced Management: 1059's management team is seasoned and experienced (8.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Man-Winny Wong
Chairman of the Board3.25yrsno datano data
Man Fai Leung
Independent Non-Executive Director3.25yrsHK$120.00kno data
Ka Lim Liu
Non-Executive Director4.25yrsno datano data
Clayton Ip
Independent Non-Executive Director3.58yrsHK$120.00kno data
Yin Fong To
Non-Executive Director3.5yrsHK$480.00kno data
Sau Chung
Independent Non-Executive Director3.5yrsHK$120.00kno data

3.5yrs

Average Tenure

47yo

Average Age

Experienced Board: 1059's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

Company Information

Kantone Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kantone Holdings Limited
  • Ticker: 1059
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: HK$77.049m
  • Shares outstanding: 217.04m
  • Website: https://www.tricor.com.hk/webservice/01059

Number of Employees


Location

  • Kantone Holdings Limited
  • Hong Kong Plaza
  • Unit 4215, 42nd Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KTHG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1997
1059SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1997

Biography

Kantone Holdings Limited, an investment holding company, engages in the sale and leasing of systems products and software licensing and customisation businesses in the People’s Republic of China and Europe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 10:08
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.