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. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: 536's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.2%
536
-3.0%
HK IT
2.2%
HK Market
1 Year Return
-15.7%
536
12.3%
HK IT
7.2%
HK Market
Return vs Industry: 536 underperformed the Hong Kong IT industry which returned 12.5% over the past year.
Return vs Market: 536 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 536 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.2% | -3.0% | 2.2% |
| 30 Day | 4.3% | 5.6% | 8.4% |
| 90 Day | 9.0% | 10.7% | 15.6% |
| 1 Year | -8.5%-15.7% | 14.5%12.3% | 11.4%7.2% |
| 3 Year | -12.9%-30.7% | -10.9%-15.5% | -3.4%-13.5% |
| 5 Year | -14.7%-40.1% | 41.3%26.4% | 65.4%37.4% |
Long-Term 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?
45.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 536 (HK$0.97) is trading below our estimate of fair value (HK$1.76)
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 (11.3x) compared to the HK IT industry average (13.4x).
PE vs Market: 536 is good value based on its PE Ratio (11.3x) compared to the Hong Kong market (11.5x).
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 (2.3x) compared to the HK IT industry average (1.2x).
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?
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 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
- Examine whether Tradelink Electronic Commerce is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Tradelink Electronic Commerce competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
Past Performance
How has Tradelink Electronic Commerce performed over the past 5 years?
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 536 has high quality earnings.
Growing Profit Margin: 536's current net profit margins (20.5%) are lower than last year (31.5%).
Past Earnings Growth Analysis
Earnings Trend: 536's earnings have grown by 0.6% 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 (-20.4%) over the past year, making it difficult to compare to the IT industry average (-7.6%).
Return on Equity
High ROE: 536's Return on Equity (20.1%) 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$387.7M) exceed its short term liabilities (HK$206.0M).
Long Term Liabilities: 536's short term assets (HK$387.7M) exceed its long term liabilities (HK$6.1M).
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?
10.10%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 536's dividend (10.1%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.13%).
High Dividend: 536's dividend (10.1%) is in the top 25% of dividend payers in the Hong Kong market (6.66%)
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 (98.5%), 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?
4.0yrs
Average management tenure
CEO
Kam Keung Tse (60 yo)
5.5yrs
Tenure
HK$8,953,000
Compensation
Mr. Kam Keung Tse has been the Chief Executive Officer and Executive Director of Tradelink Electronic Commerce Limited since July 11 , 2015. Mr. Tse served as an Executive Vice President of State Street Ba...
CEO Compensation Analysis
Compensation vs Market: Kam Keung's total compensation ($USD1.15M) is above average for companies of similar size in the Hong Kong market ($USD230.12K).
Compensation vs Earnings: Kam Keung's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.5yrs | HK$8.95m | 0.51% HK$ 3.9m | |
| COO & Executive Director | 12.33yrs | HK$3.37m | 0.38% HK$ 2.9m | |
| CTO & Executive Director | 9.17yrs | HK$3.52m | 1.04% HK$ 8.0m | |
| Chief Financial Officer | 3yrs | no data | no data | |
| Vice President of Investor Relations & Corporate Communications | no data | no data | no data | |
| Group Senior Vice President of Legal & Compliance and Company Secretary | no data | no data | no data |
4.0yrs
Average Tenure
55yo
Average Age
Experienced Management: 536's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 5.5yrs | HK$8.95m | 0.51% HK$ 3.9m | |
| COO & Executive Director | 12.33yrs | HK$3.37m | 0.38% HK$ 2.9m | |
| CTO & Executive Director | 9.17yrs | HK$3.52m | 1.04% HK$ 8.0m | |
| Independent Non-Executive Director | 11.33yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 18.25yrs | HK$360.00k | no data | |
| Non-Executive Chairman | no data | HK$140.00k | 12.04% HK$ 92.8m | |
| Non-Executive Director | 8.58yrs | HK$130.00k | no data | |
| Independent Non-Executive Director | 15.67yrs | HK$350.00k | no data | |
| Independent Non-Executive Director | 13.67yrs | HK$390.00k | no data | |
| Non-Executive Director | 8.25yrs | HK$100.00k | no data | |
| Independent Non-Executive Director | 5.92yrs | HK$540.00k | no data | |
| Non Executive Director | 2.67yrs | HK$100.00k | no data |
9.2yrs
Average Tenure
59.5yo
Average Age
Experienced Board: 536's board of directors are considered experienced (9.2 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$770.795m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 536 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:06 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.