SEHK:802

Stock Analysis Report

China e-Wallet Payment Group

Executive Summary

China e-Wallet Payment Group Limited, an investment holding company, primarily engages in Internet and mobile’s application and related accessories business in Hong Kong and other Asian countries.

Rewards

Earnings have grown 3.5% per year over the past 5 years

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$327M)



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has China e-Wallet Payment Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 802's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

802

15.5%

HK Software

1.5%

HK Market


1 Year Return

-43.7%

802

25.1%

HK Software

5.9%

HK Market

Return vs Industry: 802 underperformed the Hong Kong Software industry which returned 15.4% over the past year.

Return vs Market: 802 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

802IndustryMarket
7 Day0%15.5%1.5%
30 Day8.4%24.6%4.2%
90 Day-7.9%17.7%8.7%
1 Year-43.7%-43.7%25.5%25.1%9.8%5.9%
3 Year-81.6%-81.6%47.6%46.0%27.7%14.7%
5 Year-71.7%-87.9%36.8%29.2%21.4%1.2%

Price Volatility Vs. Market

How volatile is China e-Wallet Payment Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China e-Wallet Payment Group undervalued compared to its fair value and its price relative to the market?

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 802's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 802's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 802 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 802 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 802's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 802 is good value based on its PB Ratio (0.6x) compared to the HK Software industry average (1.2x).


Next Steps

Future Growth

How is China e-Wallet Payment Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

57.2%

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 China e-Wallet Payment Group 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 China e-Wallet Payment Group performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 802 is currently unprofitable.

Growing Profit Margin: 802 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 802 is unprofitable, but has reduced losses over the past 5 years at a rate of 3.5% per year.

Accelerating Growth: Unable to compare 802's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 802 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (5%).


Return on Equity

High ROE: 802 has a negative Return on Equity (-13.59%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China e-Wallet Payment Group's financial position?


Financial Position Analysis

Short Term Liabilities: 802's short term assets (HK$552.4M) exceed its short term liabilities (HK$55.1M).

Long Term Liabilities: 802's short term assets (HK$552.4M) exceed its long term liabilities (HK$11.0M).


Debt to Equity History and Analysis

Debt Level: 802's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: 802's debt to equity ratio has reduced from 11.9% to 2.9% over the past 5 years.


Balance Sheet

Inventory Level: 802 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 802's debt is covered by short term assets (assets are 36.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 802 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 802 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 12.8% each year


Next Steps

Dividend

What is China e-Wallet Payment Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.0%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 802's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 802'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 802's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 802's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 802 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 802'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 China e-Wallet Payment Group's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Zhongling Wang (36yo)

6.1yrs

Tenure

HK$240,000

Compensation

Mr. Zhongling Wang has been Chief Executive Officer of RCG Holdings Limited from December 2, 2013. Mr. Wang served as the Deputy General Manager of Shenzhen Giinwin Technology Co. Ltd. since 2008. He has m ...


Management Age and Tenure

4.6yrs

Average Tenure

42yo

Average Age

Experienced Management: 802's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 802's board of directors are considered experienced (7.3 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

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


Management Team

  • Kenny Sim (42yo)

    Chief Financial Officer

    • Tenure: 5.8yrs
  • Jinglong Li (59yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$180.00k
  • Ligong Zhang (52yo)

    Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$180.00k
  • Mandy Tai

    Assistant Company Secretary

    • Zhongling Wang (36yo)

      CEO & Executive Director

      • Tenure: 6.1yrs
      • Compensation: HK$240.00k
    • Haoyang Wang (31yo)

      Chief Operating Officer

      • Tenure: 3.4yrs
    • Chi Lok Cheung

      Company Secretary

      • Tenure: 2.8yrs

    Board Members

    • Jinglong Li (59yo)

      Executive Director

      • Tenure: 8.3yrs
      • Compensation: HK$180.00k
    • Ligong Zhang (52yo)

      Executive Director

      • Tenure: 8.3yrs
      • Compensation: HK$180.00k
    • King Kwan (56yo)

      Independent Non-Executive Director

      • Tenure: 7.4yrs
      • Compensation: HK$180.00k
    • Zhongling Wang (36yo)

      CEO & Executive Director

      • Tenure: 6.1yrs
      • Compensation: HK$240.00k
    • Suet Lo (30yo)

      Independent Non-Executive Director

      • Tenure: 3.3yrs
      • Compensation: HK$120.00k
    • Ruixiong Cheng (51yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: HK$120.00k

    Company Information

    China e-Wallet Payment Group Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: China e-Wallet Payment Group Limited
    • Ticker: 802
    • Exchange: SEHK
    • Founded: 1999
    • Industry: Application Software
    • Sector: Software
    • Market Cap: HK$315.529m
    • Shares outstanding: 2.74b
    • Website: https://rcg.todayir.com

    Number of Employees


    Location

    • China e-Wallet Payment Group Limited
    • No. 16-3, Jalan PJU 5/4
    • Dataran Sunway
    • Petaling Jaya
    • Selangor
    • 47810
    • Malaysia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    802SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.04HKHKDNo data
    RGHL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2004
    802SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2004

    Biography

    China e-Wallet Payment Group Limited, an investment holding company, primarily engages in Internet and mobile’s application and related accessories business in Hong Kong and other Asian countries. The company operates in two segments, Internet and Mobile’s Application and Related Accessories; and Trading of Security & Biometric Products. The Internet and Mobile’s Application and Related Accessories segment operates in the mobile payment platform and gaming industry. It provides application development for merchants; online gaming and utilities applications for mobile platform; and mass advertising services. The Trading of Security and Biometric Products segment offers biometrics and RFID products for consumer applications. It sells its products to distributors, system integrators, and security system providers. The company also invests in financial assets; develops hardware and software products; provides consultancy services; and develops Internet and Web software products, and computer systems. The company was formerly known as RCG Holdings Limited and changed its name to China e-Wallet Payment Group Limited in February 2017. China e-Wallet Payment Group Limited was founded in 1999 and is headquartered in Petaling Jaya, Malaysia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 12:42
    End of Day Share Price2020/01/17 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.