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.

Rewards

PE ratio (4.3x) is below the Hong Kong market (10.5x)

Earnings grew by 28491.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


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

7.0%

8076

-3.6%

HK Software

-3.7%

HK Market


1 Year Return

35.3%

8076

20.1%

HK Software

1.0%

HK Market

Return vs Industry: 8076 exceeded the Hong Kong Software industry which returned 15.4% over the past year.

Return vs Market: 8076 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8076IndustryMarket
7 Day7.0%-3.6%-3.7%
30 Day8.2%17.6%-0.2%
90 Day10.2%15.0%4.1%
1 Year66.7%35.3%20.5%20.1%4.7%1.0%
3 Year19.3%-3.2%39.1%37.5%20.1%7.9%
5 Year-1.4%-20.0%25.8%18.9%18.4%-1.3%

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?

4.66x

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 (4.3x) compared to the Software industry average (12.3x).

PE vs Market: 8076 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (10.5x).


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 (2.9x) compared to the HK Software industry average (1.2x).


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?

57.0%

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 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?

65.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8076 has a high level of non-cash earnings.

Growing Profit Margin: 8076's current net profit margins (29.9%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: 8076 has become profitable over the past 5 years, growing earnings by 65.3% per year.

Accelerating Growth: 8076's earnings growth over the past year (28491.9%) exceeds its 5-year average (65.3% per year).

Earnings vs Industry: 8076 earnings growth over the past year (28491.9%) exceeded the Software industry 5%.


Return on Equity

High ROE: Whilst 8076's Return on Equity (56.04%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


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¥124.2M) exceed its short term liabilities (CN¥37.7M).

Long Term Liabilities: 8076's short term assets (CN¥124.2M) exceed its long term liabilities (CN¥53.2M).


Debt to Equity History and Analysis

Debt Level: 8076's debt to equity ratio (103.2%) 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 (12.9%).

Interest Coverage: 8076's interest payments on its debt are well covered by EBIT (25.5x 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 1.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

What is the CEO of Sing Lee Software (Group)'s salary, the management and board of directors tenure and is there insider trading?

15.3yrs

Average board tenure


CEO

Xue Lin (43yo)

2.6yrs

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 ($USD102.04K) is below average for companies of similar size in the Hong Kong market ($USD228.16K).

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


Board Age and Tenure

15.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: 8076's board of directors are seasoned and experienced ( 15.3 years average tenure).


Insider Trading

Insider Buying: 8076 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$443,82316 Jan 20
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares2,600,000
Max PriceHK$0.17
BuyHK$329,80014 Jan 20
Ying Hung
EntityIndividual
Shares1,940,000
Max PriceHK$0.17
BuyHK$85,99914 Jan 20
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares500,000
Max PriceHK$0.17
BuyHK$84,80210 Jan 20
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares500,000
Max PriceHK$0.17
BuyHK$297,04207 Jan 20
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,725,000
Max PriceHK$0.17
BuyHK$85,49803 Jan 20
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares500,000
Max PriceHK$0.17
BuyHK$51,30031 Dec 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares300,000
Max PriceHK$0.17
BuyHK$115,87330 Dec 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares680,000
Max PriceHK$0.17
BuyHK$103,43817 Dec 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares600,000
Max PriceHK$0.17
BuyHK$230,62613 Dec 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,330,000
Max PriceHK$0.17
BuyHK$407,15812 Dec 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares2,370,000
Max PriceHK$0.17
BuyHK$111,99620 Nov 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares650,000
Max PriceHK$0.17
BuyHK$198,36214 Nov 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,180,000
Max PriceHK$0.17
BuyHK$138,30425 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,000,000
Max PriceHK$0.14
BuyHK$79,49919 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares600,000
Max PriceHK$0.13
BuyHK$40,55919 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares300,000
Max PriceHK$0.14
BuyHK$72,75916 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares555,000
Max PriceHK$0.13
BuyHK$101,34213 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares830,000
Max PriceHK$0.12
BuyHK$119,69711 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,000,000
Max PriceHK$0.12
BuyHK$122,53310 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,095,000
Max PriceHK$0.11
BuyHK$269,33009 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares2,510,000
Max PriceHK$0.11
BuyHK$37,54906 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares360,000
Max PriceHK$0.10
BuyHK$153,97205 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,520,000
Max PriceHK$0.10
BuyHK$146,69404 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,500,000
Max PriceHK$0.098
BuyHK$34,12803 Sep 19
Yung Hung
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares360,000
Max PriceHK$0.095
BuyHK$18,40022 Aug 19
Ying Hung
EntityIndividual
Shares200,000
Max PriceHK$0.092
BuyHK$8,636,06423 May 19
Goldcorp Industrial Limited
EntityCompany
Shares143,927,500
Max PriceHK$0.06

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.7%.


Management Team

  • Yung Hung (75yo)

    Co-Founder

    • Compensation: CN¥102.00k
  • Kehan Xu (46yo)

    Chairman Adviser of Singlee Software

    • Jian Cui (65yo)

      Executive Director

      • Tenure: 19.2yrs
      • Compensation: CN¥436.00k
    • Tsz Tong (39yo)

      CFO, Financial Controller & Company Secretary

      • Xue Lin (43yo)

        CEO & Executive Director

        • Tenure: 2.6yrs
        • Compensation: CN¥703.00k

      Board Members

      • Ping-Wing Pao (72yo)

        Independent Non Executive Director

        • Tenure: 16.1yrs
        • Compensation: CN¥99.00k
      • Yung Hung (75yo)

        Co-Founder

        • Compensation: CN¥102.00k
      • Jian Cui (65yo)

        Executive Director

        • Tenure: 19.2yrs
        • Compensation: CN¥436.00k
      • Thomas Tam (71yo)

        Independent Non Executive Director

        • Tenure: 15.3yrs
        • Compensation: CN¥99.00k
      • King Lo (81yo)

        Independent Non Executive Director

        • Tenure: 14.8yrs
        • Compensation: CN¥99.00k
      • Xue Lin (43yo)

        CEO & Executive Director

        • Tenure: 2.6yrs
        • Compensation: CN¥703.00k

      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$242.372m
      • 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 Analysis2020/01/24 12:42
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      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.