SEHK:8092

Stock Analysis Report

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Executive Summary

ITE (Holdings) Limited, an investment holding company, provides smartcard systems, radio frequency identification (RFID) products, and information technology (IT) and related services to the public and private sectors in Hong Kong and Macao. More Details


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has ITE (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8092 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 8092's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0%

8092

7.5%

HK IT

5.7%

HK Market


1 Year Return

-22.9%

8092

23.0%

HK IT

14.3%

HK Market

Return vs Industry: 8092 underperformed the Hong Kong IT industry which returned 23% over the past year.

Return vs Market: 8092 underperformed the Hong Kong Market which returned 14.3% over the past year.


Shareholder returns

8092IndustryMarket
7 Day0%7.5%5.7%
30 Day-10.0%9.2%13.6%
90 Day-3.6%17.7%19.6%
1 Year-22.9%-22.9%25.4%23.0%18.9%14.3%
3 Year-70.0%-70.0%-8.0%-12.7%-2.9%-13.1%
5 Year-81.8%-81.8%48.9%32.8%70.9%42.2%

Long-Term Price Volatility Vs. Market

How volatile is ITE (Holdings)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ITE (Holdings) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8092 (HK$0.03) is trading below our estimate of fair value (HK$0.95)

Significantly Below Fair Value: 8092 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8092 is good value based on its PE Ratio (5.8x) compared to the HK IT industry average (13.3x).

PE vs Market: 8092 is good value based on its PE Ratio (5.8x) compared to the Hong Kong market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8092's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8092 is overvalued based on its PB Ratio (1.5x) compared to the HK IT industry average (1.1x).


Next Steps

Future Growth

How is ITE (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.1%

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 ITE (Holdings) 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 ITE (Holdings) performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8092 has high quality earnings.

Growing Profit Margin: 8092 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8092's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: 8092 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8092 has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (-7.6%).


Return on Equity

High ROE: 8092's Return on Equity (26.1%) is considered high.


Next Steps

Financial Health

How is ITE (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 8092's short term assets (HK$30.0M) exceed its short term liabilities (HK$15.8M).

Long Term Liabilities: 8092's short term assets (HK$30.0M) exceed its long term liabilities (HK$2.7M).


Debt to Equity History and Analysis

Debt Level: 8092's debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8092's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8092's debt is well covered by operating cash flow (297.5%).

Interest Coverage: 8092's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

What is ITE (Holdings) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8092's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8092's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8092's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8092's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8092 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 8092'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?

8.3yrs

Average board tenure


CEO

Vincent Lau (56 yo)

no data

Tenure

HK$1,937,453

Compensation

Mr. Hon Kwong Lau, also known as Vincent, co-founded ITE (Holdings) Limited and serves as its Chairman, Chief Executive Officer and Compliance Officer. Mr. Lau is responsible for overall strategic planning...


CEO Compensation Analysis

Compensation vs Market: Vincent's total compensation ($USD249.94K) is about average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Board Members

NamePositionTenureCompensationOwnership
Hon Lau
Co-Founderno dataHK$1.94m0.77%
HK$ 191.9k
Kwok Cheng
Co-Founderno dataHK$735.79k12.32%
HK$ 3.1m
Hoi Liu
Group CFO & Executive Directorno dataHK$61.50kno data
Wang Wong
Independent Non-Executive Director8.25yrsHK$61.50kno data
Hau Kam
Independent Non-Executive Director16.33yrsHK$61.50kno data
Hing Cheung Wai
Independent Non-Executive Director0.17yrno datano data

8.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 8092's board of directors are considered experienced (8.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ITE (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ITE (Holdings) Limited
  • Ticker: 8092
  • Exchange: SEHK
  • Founded: 1997
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$24.989m
  • Shares outstanding: 925.51m
  • Website: https://www.hkite.com

Number of Employees


Location

  • ITE (Holdings) Limited
  • Por Yen Building
  • 1st Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8092SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2001

Biography

ITE (Holdings) Limited, an investment holding company, provides smartcard systems, radio frequency identification (RFID) products, and information technology (IT) and related services to the public and pri...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 10:12
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.