SEHK:8076

Stock Analysis Report

Sing Lee Software (Group)

Executive Summary

Sing Lee Software (Group) Limited, an investment holding company, develops and sells information and network technologies and services to the financial industry in the People’s Republic of China.


Snowflake Analysis

Adequate balance sheet with proven track record.

Share Price & News

How has Sing Lee Software (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8076's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.5%

8076

-2.4%

HK Software

0.2%

HK Market


1 Year Return

11.5%

8076

-2.5%

HK Software

-22.0%

HK Market

Return vs Industry: 8076 exceeded the Hong Kong Software industry which returned 3.7% over the past year.

Return vs Market: 8076 exceeded the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

8076IndustryMarket
7 Day-3.5%-2.4%0.2%
30 Day-19.0%-7.8%-10.8%
90 Day-20.0%16.5%-16.5%
1 Year37.4%11.5%-2.2%-2.5%-19.1%-22.0%
3 Year-7.9%-25.3%29.1%27.7%-3.7%-13.4%
5 Year-44.1%-54.7%-12.8%-16.8%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Sing Lee Software (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sing Lee Software (Group) undervalued compared to its fair value and its price relative to the market?

5.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8076's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8076's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8076 is good value based on its PE Ratio (6.1x) compared to the Software industry average (16.6x).

PE vs Market: 8076 is good value based on its PE Ratio (6.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8076's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8076 is overvalued based on its PB Ratio (1.7x) compared to the HK Software industry average (1x).


Next Steps

Future Growth

How is Sing Lee Software (Group) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

47.1%

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 Sing Lee Software (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 Sing Lee Software (Group) performed over the past 5 years?

59.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8076 has high quality earnings.

Growing Profit Margin: 8076's current net profit margins (19.3%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: 8076's earnings have grown significantly by 59.3% per year over the past 5 years.

Accelerating Growth: 8076's earnings growth over the past year (12.6%) is below its 5-year average (59.3% per year).

Earnings vs Industry: 8076 earnings growth over the past year (12.6%) exceeded the Software industry 10.8%.


Return on Equity

High ROE: 8076's Return on Equity (25.8%) is considered high.


Next Steps

Financial Health

How is Sing Lee Software (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 8076's short term assets (CN¥158.4M) exceed its short term liabilities (CN¥34.4M).

Long Term Liabilities: 8076's short term assets (CN¥158.4M) exceed its long term liabilities (CN¥61.2M).


Debt to Equity History and Analysis

Debt Level: 8076's debt to equity ratio (66.8%) is considered high.

Reducing Debt: 8076 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 8076's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: 8076's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet

Inventory Level: 8076 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8076's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Sing Lee Software (Group)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8076's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8076'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 8076's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8076's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8076'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?

15.6yrs

Average board tenure


CEO

Xue Lin (43yo)

2.83s

Tenure

CN¥703,000

Compensation

Mr. Xue Xin Lin has been Executive Director and Chief Executive Officer of Sing Lee Software (Group) Limited since June 1, 2017. Mr. Lin has 17 years of experience in the field of computer technology. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Xue's total compensation ($USD99.27K) is below average for companies of similar size in the Hong Kong market ($USD228.41K).

Compensation vs Earnings: Xue's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Yung Hung
Co-Founderno dataCN¥102.00k5.53% CN¥9.9m
Xue Lin
CEO & Executive Director2.83yrsCN¥703.00k0.72% CN¥1.3m
Jian Cui
Executive Director19.42yrsCN¥436.00kno data
Ping-Wing Pao
Independent Non Executive Director16.33yrsCN¥99.00kno data
Kwok Tam
Independent Non Executive Director15.58yrsCN¥99.00kno data
King Lo
Independent Non Executive Director15.08yrsCN¥99.00kno data

15.6yrs

Average Tenure

71.5yo

Average Age

Experienced Board: 8076's board of directors are seasoned and experienced ( 15.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8076 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 36.3%.


Top Shareholders

Company Information

Sing Lee Software (Group) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sing Lee Software (Group) Limited
  • Ticker: 8076
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$179.145m
  • Shares outstanding: 1.32b
  • Website: https://www.singlee.com.cn

Number of Employees


Location

  • Sing Lee Software (Group) Limited
  • Morrison Plaza
  • 32nd Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8076SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2001

Biography

Sing Lee Software (Group) Limited, an investment holding company, develops and sells information and network technologies and services to the financial industry in the People’s Republic of China. It is involved in the development and sale of software products; sale of related hardware products; and provision of technical support services. The company was founded in 1993 and is headquartered in Wan Chai, Hong Kong. Sing Lee Software (Group) Limited is a subsidiary of Goldcorp Industrial Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:01
End of Day Share Price2020/04/02 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.