SEHK:1782

Stock Analysis Report

Vixtel Technologies Holdings

Executive Summary

Vixtel Technologies Holdings Limited, an investment holding company, provides application performance management (APM) solutions in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

1782

1.5%

HK IT

3.3%

HK Market


1 Year Return

-31.5%

1782

1.7%

HK IT

1.6%

HK Market

Return vs Industry: 1782 underperformed the Hong Kong IT industry which returned 1.7% over the past year.

Return vs Market: 1782 underperformed the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

1782IndustryMarket
7 Day3.4%1.5%3.3%
30 Day-12.9%1.6%-0.009%
90 Day-29.9%-4.4%-5.1%
1 Year-30.5%-31.5%3.5%1.7%5.3%1.6%
3 Yearn/a-11.9%-16.1%16.1%4.4%
5 Yearn/a38.2%22.8%20.4%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vixtel Technologies Holdings undervalued compared to its fair value and its price relative to the market?

42.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1782 (HK$0.61) is trading below our estimate of fair value (HK$1.07)

Significantly Undervalued: 1782 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1782 is poor value based on its PE Ratio (11.7x) compared to the IT industry average (11.2x).

PE vs Market: 1782 is poor value based on its PE Ratio (11.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1782 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1782 is overvalued based on its PB Ratio (1.6x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

How is Vixtel Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1782's forecast earnings growth (18.3% per year) is above the savings rate (2%).

Earnings vs Market: 1782's earnings (18.3% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 1782's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1782's revenue (12.7% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1782's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1782's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Vixtel Technologies Holdings performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1782's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: 1782's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1782 had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the IT industry average (-3.7%).


Return on Equity

High ROE: 1782's Return on Equity (13.9%) is considered low.


Return on Assets

ROA vs Industry: 1782 has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: 1782's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Vixtel Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1782's short term assets (CN¥191.8M) exceeds its short term liabilities (CN¥25.0M)

Long Term Liabilities: 1782's short term assets (191.8M) exceeds its long term liabilities (2.5M)


Debt to Equity History and Analysis

Debt Level: 1782 is debt free.

Reducing Debt: 1782 had no debt 5 years ago.

Debt Coverage: 1782 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1782 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1782 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1782's debt is covered by short term assets.


Next Steps

Dividend

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

3.06%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage2.0%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1782's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1782's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1782's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1782's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1782 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 1782's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Vixtel Technologies Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Tak Sie (43yo)

3.3yrs

Tenure

CN¥1,206,000

Compensation

Mr. Sie Tak Kwan has been Chief Executive Officer, Compliance Officer and Executive Director at Vixtel Technologies Holdings Ltd. since July 28, 2016 and November 10, 2015 respectively. Mr. Sie is primaril ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Tak's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

3.3yrs

Average Tenure

44yo

Average Age

Experienced Management: 1782's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

45yo

Average Age

Experienced Board: 1782's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Willie Cheung (44yo)

    Company Secretary

    • Tenure: 1.7yrs
  • Yong Yue (47yo)

    Chairman & CTO

    • Tenure: 3.3yrs
    • Compensation: CN¥1.21m
  • Tak Sie (43yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.21m
  • Haiqing Guan (45yo)

    Chief Sales Officer & Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥1.21m
  • Chun Sie (47yo)

    Financial Controller

    • Tenure: 3.3yrs
  • Zewei Liu (37yo)

    Head of Research & Development

    • Tenure: 0yrs
  • Dong Ren (43yo)

    Financial Controller of Vixtel Technologies Limited

    • Tenure: 2.3yrs

Board Members

  • Maurice Cheung (45yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥157.00k
  • Yong Yue (47yo)

    Chairman & CTO

    • Tenure: 3.3yrs
    • Compensation: CN¥1.21m
  • Tak Sie (43yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.21m
  • Haiqing Guan (45yo)

    Chief Sales Officer & Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥1.21m
  • Judong Liang (50yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: CN¥110.00k
  • Kin Lam (57yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥110.00k
  • Qi Shen (44yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥110.00k

Company Information

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


Key Information

  • Name: Vixtel Technologies Holdings Limited
  • Ticker: 1782
  • Exchange: SEHK
  • Founded: 2006
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$309.880m
  • Shares outstanding: 508.00m
  • Website: https://www.vixtel.com

Number of Employees


Location

  • Vixtel Technologies Holdings Limited
  • Founder Building
  • Block 2, 4th Floor
  • Beijing
  • 100085
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1782SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016

Biography

Vixtel Technologies Holdings Limited, an investment holding company, provides application performance management (APM) solutions in the People’s Republic of China. The company offers integrated APM system  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 13:00
End of Day Share Price2019/10/18 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.