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
Rewards
Risk Analysis
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
| 1059 | Industry | Market | |
|---|---|---|---|
| 7 Day | -12.9% | 19.6% | 5.7% |
| 30 Day | 13.0% | 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
3 months ago | Simply Wall St
Kantone Holdings Limited's (HKG:1059) Business Is Trailing The Market But Its Shares Aren't8 months ago | Simply Wall St
Did Changing Sentiment Drive Kantone Holdings' (HKG:1059) Share Price Down A Painful 92%?9 months ago | Simply Wall St
How Do Kantone Holdings Limited’s (HKG:1059) Returns On Capital Compare To Peers?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
- Examine whether Kantone Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Kantone Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 3.25yrs | no data | no data | |
| Head of Innovation | no data | no data | no data | |
| Head of Human Resources - International Operations | no data | no data | no data | |
| Chief Operating Officer of e-Lottery Business at Kantone | 15.33yrs | no data | no data | |
| MD of German Operations & Head of International Market | 13yrs | no data | no data | |
| Company Secretary | 4.25yrs | no data | no data | |
| Chief Executive Officer of Multitone UK | 1yr | no data | no data | |
| Technical Director | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 3.25yrs | no data | no data | |
| Independent Non-Executive Director | 3.25yrs | HK$120.00k | no data | |
| Non-Executive Director | 4.25yrs | no data | no data | |
| Independent Non-Executive Director | 3.58yrs | HK$120.00k | no data | |
| Non-Executive Director | 3.5yrs | HK$480.00k | no data | |
| Independent Non-Executive Director | 3.5yrs | HK$120.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KTHG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1997 |
| 1059 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 10:08 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.