SEHK:536

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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 Analysis

Flawless balance sheet and good value.

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

Stable Share Price: 536's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

536

2.6%

HK IT

2.3%

HK Market


1 Year Return

-26.4%

536

11.9%

HK IT

6.9%

HK Market

Return vs Industry: 536 underperformed the Hong Kong IT industry which returned 11.9% over the past year.

Return vs Market: 536 underperformed the Hong Kong Market which returned 6.9% over the past year.


Shareholder returns

536IndustryMarket
7 Day0%2.6%2.3%
30 Day-1.1%6.5%-2.2%
90 Day-20.5%16.1%10.6%
1 Year-19.9%-26.4%14.3%11.9%11.3%6.9%
3 Year-22.4%-38.2%-15.7%-20.3%1.8%-9.1%
5 Year-23.3%-46.1%14.6%0.7%14.3%-4.8%

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 compared to its fair value and its price relative to the market?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 536 (HK$0.89) is trading below our estimate of fair value (HK$1.58)

Significantly Below Fair Value: 536 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 536 is good value based on its PE Ratio (8.6x) compared to the HK IT industry average (16.7x).

PE vs Market: 536 is good value based on its PE Ratio (8.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 536's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 536 is overvalued based on its PB Ratio (1.9x) compared to the HK IT industry average (1.1x).


Next Steps

Future Growth

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

10.0%

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

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 536 has high quality earnings.

Growing Profit Margin: 536's current net profit margins (24.4%) are lower than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: 536's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: 536's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 536 had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the IT industry average (5.5%).


Return on Equity

High ROE: 536's Return on Equity (22.2%) is considered high.


Next Steps

Financial Health

How is Tradelink Electronic Commerce's financial position?


Financial Position Analysis

Short Term Liabilities: 536's short term assets (HK$264.3M) exceed its short term liabilities (HK$216.8M).

Long Term Liabilities: 536's short term assets (HK$264.3M) exceed its long term liabilities (HK$4.6M).


Debt to Equity History and Analysis

Debt Level: 536 is debt free.

Reducing Debt: 536 has not had any debt for past 5 years.

Debt Coverage: 536 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 536 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

11.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 536's dividend (11.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 536's dividend (11.01%) is in the top 25% of dividend payers in the Hong Kong market (6.88%)


Stability and Growth of Payments

Stable Dividend: 536's dividend payments have been volatile in the past 10 years.

Growing Dividend: 536's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.7%), 536's dividend payments are not 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?

3.6yrs

Average management tenure


CEO

Kam Keung Tse (60 yo)

5.08yrs

Tenure

HK$8,953,000

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

Compensation vs Market: Kam Keung's total compensation ($USD1.16M) is above average for companies of similar size in the Hong Kong market ($USD232.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kam Keung Tse
CEO & Executive Director5.08yrsHK$8.95m0.51%
HK$ 3.6m
Shun Kwan Chung
COO & Executive Director11.92yrsHK$3.37m0.38%
HK$ 2.7m
Chun Chung Cheng
CTO & Executive Director8.75yrsHK$3.52m1.04%
HK$ 7.3m
Pik Kwan Chu
Chief Financial Officer2.58yrsno datano data
Siu Yee Wong
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Chi Kin Ho
Group Senior Vice President of Legal & Compliance and Company Secretaryno datano datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: 536's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kam Keung Tse
CEO & Executive Director5.08yrsHK$8.95m0.51%
HK$ 3.6m
Shun Kwan Chung
COO & Executive Director11.92yrsHK$3.37m0.38%
HK$ 2.7m
Chun Chung Cheng
CTO & Executive Director8.75yrsHK$3.52m1.04%
HK$ 7.3m
Tak Hay Chau
Independent Non-Executive Director10.92yrsHK$380.00kno data
Hubert Chak
Independent Non-Executive Director17.83yrsHK$360.00kno data
Nai Shee Lee
Non-Executive Chairmanno dataHK$140.00k12.04%
HK$ 85.1m
Tze Man Ying
Non-Executive Director8.17yrsHK$130.00kno data
Lap Kee Ho
Independent Non-Executive Director15.25yrsHK$350.00kno data
Wai Kwok Chung
Independent Non-Executive Director13.25yrsHK$390.00kno data
Delman Lee
Non-Executive Director7.83yrsHK$100.00kno data
Chi Yan Chan
Independent Non-Executive Director5.5yrsHK$540.00kno data
Wing Sang Yuen
Non Executive Director2.25yrsHK$100.00kno data

8.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 536's board of directors are considered experienced (8.8 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

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$707.224m
  • 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 Analysis2020/08/06 12:34
End of Day Share Price2020/08/06 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.