SEHK:1460

Stock Analysis Report

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Executive Summary

ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1460 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1460's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.7%

1460

-3.0%

HK IT

2.2%

HK Market


1 Year Return

-34.1%

1460

12.3%

HK IT

7.2%

HK Market

Return vs Industry: 1460 underperformed the Hong Kong IT industry which returned 12.5% over the past year.

Return vs Market: 1460 underperformed the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

1460IndustryMarket
7 Day-1.7%-3.0%2.2%
30 Day3.6%5.6%8.4%
90 Day-12.1%10.7%15.6%
1 Year-34.1%-34.1%14.5%12.3%11.4%7.2%
3 Year-83.5%-83.5%-10.9%-15.5%-3.4%-13.5%
5 Year-95.6%-95.6%41.3%26.4%65.4%37.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is ICO Group 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: 1460 (HK$0.29) is trading below our estimate of fair value (HK$1.85)

Significantly Below Fair Value: 1460 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1460 is good value based on its PE Ratio (2.9x) compared to the HK IT industry average (13.4x).

PE vs Market: 1460 is good value based on its PE Ratio (2.9x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1460's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1460 is good value based on its PB Ratio (0.4x) compared to the HK IT industry average (1.2x).


Next Steps

Future Growth

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

36.3%

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 ICO Group 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 ICO Group performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1460 has a large one-off gain of HK$35.3M impacting its September 30 2020 financial results.

Growing Profit Margin: 1460's current net profit margins (10.8%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 1460's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: 1460's earnings growth over the past year (148.1%) exceeds its 5-year average (21.6% per year).

Earnings vs Industry: 1460 earnings growth over the past year (148.1%) exceeded the IT industry -7.6%.


Return on Equity

High ROE: 1460's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

How is ICO Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1460's short term assets (HK$302.9M) exceed its short term liabilities (HK$113.8M).

Long Term Liabilities: 1460's short term assets (HK$302.9M) exceed its long term liabilities (HK$58.9M).


Debt to Equity History and Analysis

Debt Level: 1460's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1460's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1460's debt is well covered by operating cash flow (227.4%).

Interest Coverage: 1460's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet


Next Steps

Dividend

What is ICO Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1460's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1460'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 1460's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1460's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1460'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?

0.8yrs

Average management tenure


CEO

ICO Group has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Cheong Yeun Lee
Executive Director0.17yrHK$6.23m16.59%
HK$ 34.0m
Yeng Kit Leong
Executive Chairman0.75yrno data14.03%
HK$ 28.7m
Shing Pun
Company Secretary & Financial Controllerno datano datano data
Pei Ling Lee
Executive Director0.75yrno datano data
Man Leung
Managing Director of ICO Technology Limited14.5yrsno datano data

0.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 1460's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Cheong Yeun Lee
Executive Director0.17yrHK$6.23m16.59%
HK$ 34.0m
Yeng Kit Leong
Executive Chairman0.75yrno data14.03%
HK$ 28.7m
Pei Ling Lee
Executive Director0.75yrno datano data
King Yan Chiu
Independent Non-Executive Director0.75yrno datano data
Win Kum Low
Independent Non-Executive Director0.75yrno datano data
Cheng Khuan Gan
Independent Non-Executive Director0.75yrno datano data

0.8yrs

Average Tenure

44yo

Average Age

Experienced Board: 1460's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 35%.


Top Shareholders

Company Information

ICO Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ICO Group Limited
  • Ticker: 1460
  • Exchange: SEHK
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$204.867m
  • Shares outstanding: 706.44m
  • Website: https://www.1460.hk

Number of Employees


Location

  • ICO Group Limited
  • Unit A, TG Place
  • 25th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1460SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2015

Biography

ICO Group Limited, an investment holding company, provides IT application services to institutions and enterprises in Hong Kong and internationally. It operates through four segments: IT Application and So...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:03
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.