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 Analysis

Flawless balance sheet with reasonable growth potential.


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

Stable Share Price: 1782's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.8%

1782

-0.6%

HK IT

0.2%

HK Market


1 Year Return

-49.1%

1782

-31.4%

HK IT

-22.0%

HK Market

Return vs Industry: 1782 underperformed the Hong Kong IT industry which returned -31.1% over the past year.

Return vs Market: 1782 underperformed the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

1782IndustryMarket
7 Day15.8%-0.6%0.2%
30 Day1.9%-13.6%-10.8%
90 Day-23.6%-20.9%-16.5%
1 Year-48.4%-49.1%-30.1%-31.4%-19.1%-22.0%
3 Year-24.2%-26.7%-33.1%-36.2%-3.7%-13.4%
5 Yearn/a-20.2%-28.4%-15.2%-28.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1782 (HK$0.55) is trading below our estimate of fair value (HK$1.53)

Significantly Below Fair Value: 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 (19.9x) compared to the IT industry average (12.7x).

PE vs Market: 1782 is poor value based on its PE Ratio (19.9x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1782 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1782 is overvalued based on its PB Ratio (1.4x) compared to the HK IT industry average (0.9x).


Next Steps

Future Growth

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

39.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1782's forecast earnings growth (39.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 1782's earnings (39.3% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1782's revenue (15.7% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1782's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1782's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

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

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1782 has high quality earnings.

Growing Profit Margin: 1782's current net profit margins (13.8%) are lower than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: 1782's earnings have grown by 13.2% 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 (-54.1%) over the past year, making it difficult to compare to the IT industry average (-6.5%).


Return on Equity

High ROE: 1782's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Vixtel Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1782's short term assets (CN¥196.3M) exceed its short term liabilities (CN¥28.3M).

Long Term Liabilities: 1782's short term assets (CN¥196.3M) exceed its long term liabilities (CN¥3.8M).


Debt to Equity History and Analysis

Debt Level: 1782 is debt free.

Reducing Debt: 1782 has no debt compared to 5 years ago when its debt to equity ratio was 36.7%.

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?

2.98%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Tak Sie (43yo)

3.75s

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: Tak's total compensation ($USD170.19K) is about average for companies of similar size in the Hong Kong market ($USD227.09K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yong Yue
Chairman & CTO3.75yrsCN¥1.21m10.84% CN¥30.3m
Tak Sie
CEO, Compliance Officer & Executive Director3.75yrsCN¥1.21m20.34% CN¥56.8m
Haiqing Guan
Chief Sales Officer & Executive Director4.42yrsCN¥1.21m14.25% CN¥39.8m
Chun Sie
Financial Controller3.75yrsno datano data
Zewei Liu
Head of Research & Developmentno datano datano data
Dong Ren
Financial Controller of Vixtel Technologies Limited2.83yrsno datano data
Kai Cheong Cheung
Company Secretary2.17yrsno datano data

3.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 1782's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yong Yue
Chairman & CTO3.75yrsCN¥1.21m10.84% CN¥30.3m
Tak Sie
CEO, Compliance Officer & Executive Director3.75yrsCN¥1.21m20.34% CN¥56.8m
Haiqing Guan
Chief Sales Officer & Executive Director4.42yrsCN¥1.21m14.25% CN¥39.8m
Hon Cheung
Independent Non-Executive Director3.42yrsCN¥157.00kno data
Judong Liang
Non-Executive Director4.42yrsCN¥110.00k6.1% CN¥17.1m
Kin Lam
Independent Non-Executive Director3.42yrsCN¥110.00kno data
Qi Shen
Independent Non-Executive Director3.42yrsCN¥110.00kno data

3.8yrs

Average Tenure

45yo

Average Age

Experienced Board: 1782'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

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$279.400m
  • 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 solutions and software development services, and technical services; and sells embedded hardware and APM software. Its product portfolio includes APM Vista SaaS Platform, which provides network performance monitoring, CDN performance monitoring and diagnosis and evaluation, and mobility performance management services; NetVista, an intelligent IP network-oriented performance management and quality monitoring platform; and Trade QoS Monitoring, a precise analysis tool for transaction speed, delay, and algorithm for securities, futures, and other financial transaction systems. The company’s technical services provide operational support, system maintenance, network analysis and optimization of a chain of Internet applications, and research study of specific topics on application and network performance. Vixtel Technologies Holdings Limited was founded in 2006 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 Analysis2020/04/03 14:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.