SEHK:536

Stock Analysis Report

Tradelink Electronic Commerce

Executive Summary

Tradelink Electronic Commerce Limited, together with its subsidiaries, provides government electronic trading services (GETS) for processing official trade-related documents in Hong Kong.

Snowflake

Fundamentals

Outstanding track record with excellent balance sheet.

Risks

  • Tradelink Electronic Commerce is not covered by any analysts.

Share Price & News

How has Tradelink Electronic Commerce's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:536

-0.7%

HK IT

-0.6%

HK Market


1 Year Return

3.4%

SEHK:536

-21.1%

HK IT

-9.8%

HK Market

536 outperformed the IT industry which returned -21.1% over the past year.

536 outperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

536IndustryMarket
7 Day0%-0.7%-0.6%
30 Day-9.0%-11.8%-9.6%
90 Day-5.5%-11.3%-7.5%
1 Year11.2%3.4%-19.7%-21.1%-6.5%-9.8%
3 Year-11.8%-27.5%-13.8%-17.8%12.8%1.6%
5 Year-12.6%-37.3%16.8%13.1%7.2%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tradelink Electronic Commerce undervalued based on future cash flows and its price relative to the stock market?

11%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tradelink Electronic Commerce's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Tradelink Electronic Commerce's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Tradelink Electronic Commerce is good value based on earnings compared to the HK IT industry average.

Tradelink Electronic Commerce is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Tradelink Electronic Commerce, we can't assess if its growth is good value.


Price Based on Value of Assets

Tradelink Electronic Commerce is overvalued based on assets compared to the HK IT industry average.


Next Steps

Future Growth

How is Tradelink Electronic Commerce expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Tradelink Electronic Commerce is high growth as no revenue estimate data is available.

Tradelink Electronic Commerce's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Tradelink Electronic Commerce's revenue growth to the Hong Kong market average as no estimate data is available.

Tradelink Electronic Commerce's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Tradelink Electronic Commerce's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Tradelink Electronic Commerce will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Tradelink Electronic Commerce performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tradelink Electronic Commerce's year on year earnings growth rate has been positive over the past 5 years.

Tradelink Electronic Commerce's 1-year earnings growth exceeds its 5-year average (21.1% vs 1.2%)

Tradelink Electronic Commerce's earnings growth has exceeded the HK IT industry average in the past year (21.1% vs 14.5%).


Return on Equity

Tradelink Electronic Commerce has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Tradelink Electronic Commerce used its assets more efficiently than the HK IT industry average last year based on Return on Assets.


Return on Capital Employed

Tradelink Electronic Commerce has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tradelink Electronic Commerce's financial position?


Financial Position Analysis

Tradelink Electronic Commerce's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Tradelink Electronic Commerce's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tradelink Electronic Commerce has no debt.

Tradelink Electronic Commerce has not taken on any debt in the past 5 years.

Tradelink Electronic Commerce has no debt, it does not need to be covered by operating cash flow.

Tradelink Electronic Commerce has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Tradelink Electronic Commerce has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Tradelink Electronic Commerce's current dividend yield, its reliability and sustainability?

7.85%

Current Dividend Yield


Dividend Yield and Payments Analysis

Tradelink Electronic Commerce's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

Tradelink Electronic Commerce's dividend is above the markets top 25% of dividend payers in Hong Kong (6.25%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Tradelink Electronic Commerce's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Kam Keung Tse (59yo)

4.1yrs

Tenure

HK$8,130,000

Compensation

Mr. Kam Keung Tse has been the Chief Executive Officer and Executive Director of Tradelink Electronic Commerce Limited since July 11 , 2015. Mr. Tse served as an Executive Vice President of State Street Ba ...


CEO Compensation Analysis

Kam Keung's remuneration is higher than average for companies of similar size in Hong Kong.

Kam Keung's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

54yo

Average Age

The tenure for the Tradelink Electronic Commerce management team is about average.


Board Age and Tenure

9.9yrs

Average Tenure

61yo

Average Age

The tenure for the Tradelink Electronic Commerce board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Emily Chung (63yo)

    COO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$3.40m
  • Andrew Cheng (49yo)

    CTO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: HK$3.34m
  • Kam Keung Tse (59yo)

    CEO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$8.13m
  • Joseph Ho

    Group Senior Vice President of Legal & Compliance and Company Secretary

    • Tenure: 0.0yrs
  • Peggie Chu (43yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Grace Wong

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0.0yrs

Board Members

  • Tak Hay Chau (76yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$350.00k
  • Hubert Chak (58yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: HK$330.00k
  • Harry Lee (76yo)

    Non-Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: HK$110.00k
  • Emily Chung (63yo)

    COO & Executive Director

    • Tenure: 10.9yrs
    • Compensation: HK$3.40m
  • Kenneth Ying (64yo)

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: HK$85.00k
  • Sunny Ho (58yo)

    Independent Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: HK$330.00k
  • Andrew Cheng (49yo)

    CTO & Executive Director

    • Tenure: 7.8yrs
    • Compensation: HK$3.34m
  • Jimmy Chung (69yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: HK$370.00k
  • Delman Lee (52yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: HK$75.00k
  • Kam Keung Tse (59yo)

    CEO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: HK$8.13m

Company Information

Tradelink Electronic Commerce Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tradelink Electronic Commerce Limited
  • Ticker: 536
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: HK$945.614m
  • Shares outstanding: 794.63m
  • Website: https://www.tradelink.com.hk

Number of Employees


Location

  • Tradelink Electronic Commerce Limited
  • Regent Centre
  • Tower B
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
536SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2005

Biography

Tradelink Electronic Commerce Limited, together with its subsidiaries, provides government electronic trading services (GETS) for processing official trade-related documents in Hong Kong. It operates throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 12:42
End of Day Share Price2019/08/19 00:00
Earnings2018/12/31
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.