SEHK:1075

Stock Analysis Report

Executive Summary

Capinfo Company Limited provides information technology (IT) services in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1075 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

1075

-4.9%

HK IT

-3.3%

HK Market


1 Year Return

-12.6%

1075

-19.3%

HK IT

-9.6%

HK Market

Return vs Industry: 1075 exceeded the Hong Kong IT industry which returned -19.5% over the past year.

Return vs Market: 1075 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1075IndustryMarket
7 Day-1.3%-4.9%-3.3%
30 Day5.6%-5.5%-3.8%
90 Day18.8%-5.2%-0.2%
1 Year-10.0%-12.6%-17.8%-19.3%-6.3%-9.6%
3 Year-36.3%-41.5%-14.4%-18.3%11.2%-0.05%
5 Year-32.4%-40.6%36.7%19.9%12.7%-6.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Capinfo 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: 1075 (HK$0.38) is trading below our estimate of fair value (HK$1.57)

Significantly Below Fair Value: 1075 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1075 is poor value based on its PE Ratio (14.1x) compared to the IT industry average (11.9x).

PE vs Market: 1075 is poor value based on its PE Ratio (14.1x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1075's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1075 is good value based on its PB Ratio (1x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

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

15.3%

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 Capinfo 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 Capinfo performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1075 has a large one-off loss of CN¥38.9M impacting its June 30 2019 financial results.

Growing Profit Margin: 1075's current net profit margins (6%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 1075's earnings have declined by -2.3% per year over the past 5 years.

Accelerating Growth: 1075's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1075 had negative earnings growth (-18.7%) over the past year, making it difficult to compare to the IT industry average (-8.6%).


Return on Equity

High ROE: 1075's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capinfo's financial position?


Financial Position Analysis

Short Term Liabilities: 1075's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 1075's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥63.8M).


Debt to Equity History and Analysis

Debt Level: 1075's debt to equity ratio (16.8%) is considered satisfactory.

Reducing Debt: 1075's debt to equity ratio has increased from 0.5% to 16.8% over the past 5 years.

Debt Coverage: 1075's debt is well covered by operating cash flow (116.2%).

Interest Coverage: 1075 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1075 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1075's debt is covered by short term assets (assets are 9.7x debt).


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.3%markettop25%6.4%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1075's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.32%).

High Dividend: 1075's dividend (2.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.41%).


Stability and Growth of Payments

Stable Dividend: 1075's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1075's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), 1075'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?

4.5yrs

Average management tenure


CEO

Donghui Yu (46yo)

3.3yrs

Tenure

CN¥1,149,400

Compensation

Mr. Donghui Yu has been Chief Executive Officer of Capinfo Company Limited since November 25, 2016 and served as its President. Mr. Yu has been Executive Director of Capinfo Company Limited since January 2 ...


CEO Compensation Analysis

Compensation vs Market: Donghui's total compensation ($USD163.85K) is about average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Donghui Yu
CEO & Executive Director3.3yrsCN¥1.15mno data
Lei Lu
VP, General Counsel & Joint Company Secretary5.7yrsCN¥992.00kno data
Zhaoxing Zong
Executive Director1.7yrsCN¥886.00kno data
Xia Xiaoqing
Vice President1.8yrsCN¥754.70kno data
Ching Koo
Joint Secretary8.1yrsno datano data

4.5yrs

Average Tenure

49yo

Average Age

Experienced Management: 1075's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donghui Yu
CEO & Executive Director3.3yrsCN¥1.15mno data
Zhaoxing Zong
Executive Director1.7yrsCN¥886.00kno data
Zhiqiang Gong
Independent Non-Executive Director10.7yrsCN¥70.00kno data
Weihua Zhou
Non-Executive Director4.7yrsno datano data
Yuhu Shan
Non-Executive Director4.7yrsno datano data
Wai Cheung
Independent Non-Executive Director4.7yrsCN¥60.00kno data
He Li
Independent Non-Executive Director3.8yrsCN¥60.00kno data
Xiaohui Yang
Independent Non-Executive Director3.3yrsCN¥65.00kno data
Yankun Lin
Chairman2.3yrsCN¥1.15mno data
Jie Zhu
Chairman to the Board of Supervisors0yrsno datano data

3.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 1075's board of directors are considered experienced (3.8 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

Capinfo Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capinfo Company Limited
  • Ticker: 1075
  • Exchange: SEHK
  • Founded: 1998
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$1.101b
  • Shares outstanding: 2.90b
  • Website: https://www.capinfo.com.cn

Number of Employees


Location

  • Capinfo Company Limited
  • No. 11 Xi San Huan Zhong Road
  • Haidian District
  • Beijing
  • 100036
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1075SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2001

Biography

Capinfo Company Limited provides information technology (IT) services in the People’s Republic of China. It offers online application, system integration, software development, IT planning and consultancy, IT operation and maintenance, and other services. The company also provides various industry solutions, including e-government, health care, community service, urban transportation, housing fund, public security, and cloud service solutions. Capinfo Company Limited was founded in 1998 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:41
End of Day Share Price2020/02/25 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.