SEHK:818

Stock Analysis Report

Hi Sun Technology (China)

Executive Summary

Hi Sun Technology (China) Limited, an investment holding company, primarily provides payment processing, financial, and platform operation solutions in Mainland China, Hong Kong, Japan, and Macau.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

How has Hi Sun Technology (China)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 818's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

818

7.1%

HK IT

2.7%

HK Market


1 Year Return

-39.0%

818

-26.7%

HK IT

-19.8%

HK Market

Return vs Industry: 818 underperformed the Hong Kong IT industry which returned -29.2% over the past year.

Return vs Market: 818 underperformed the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

818IndustryMarket
7 Day-4.4%7.1%2.7%
30 Day-23.2%-8.7%-7.2%
90 Day-30.6%-13.8%-12.1%
1 Year-39.0%-39.0%-25.3%-26.7%-16.9%-19.8%
3 Year-35.8%-35.8%-26.9%-30.3%0.9%-9.3%
5 Year-72.0%-72.0%-16.1%-24.9%-12.6%-26.7%

Price Volatility Vs. Market

How volatile is Hi Sun Technology (China)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hi Sun Technology (China) 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: 818 (HK$0.86) is trading below our estimate of fair value (HK$20.07)

Significantly Below Fair Value: 818 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 818 is good value based on its PE Ratio (4.2x) compared to the IT industry average (13.3x).

PE vs Market: 818 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 818's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 818 is good value based on its PB Ratio (0.5x) compared to the HK IT industry average (0.9x).


Next Steps

Future Growth

How is Hi Sun Technology (China) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

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 Hi Sun Technology (China) 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 Hi Sun Technology (China) performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 818 has high quality earnings.

Growing Profit Margin: 818's current net profit margins (10.2%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: 818's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: 818's earnings growth over the past year (104.6%) exceeds its 5-year average (6% per year).

Earnings vs Industry: 818 earnings growth over the past year (104.6%) exceeded the IT industry 3.4%.


Return on Equity

High ROE: 818's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Hi Sun Technology (China)'s financial position?


Financial Position Analysis

Short Term Liabilities: 818's short term assets (HK$5.3B) exceed its short term liabilities (HK$2.2B).

Long Term Liabilities: 818's short term assets (HK$5.3B) exceed its long term liabilities (HK$715.9M).


Debt to Equity History and Analysis

Debt Level: 818's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 818's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 818's debt is well covered by operating cash flow (22493.5%).

Interest Coverage: 818 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Hi Sun Technology (China)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 818's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 818'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 818's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 818'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 818'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?

17.8yrs

Average board tenure


CEO

Man Kui (53yo)

no data

Tenure

HK$8,498,000

Compensation

Mr. Man Chun Kui serves as the Chairman and Chief Executive Officer of Hi Sun Limited (“HSL”), a controlling shareholder of Hi Sun Technology (China) Ltd. (also called as Hi Sun Group Limited.) Mr. Kui has ...


CEO Compensation Analysis

Compensation vs Market: Man's total compensation ($USD1.10M) is above average for companies of similar size in the Hong Kong market ($USD351.61K).

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


Board Members

NamePositionTenureCompensationOwnership
Yuk Fung Cheung
Executive Chairman18.42yrsHK$2.26mno data
Man Kui
CEO & Executive Directorno dataHK$8.50m23.25% HK$542.4m
Wensheng Xu
Executive Director17.17yrsHK$8.56m0.16% HK$3.8m
Wenjin Li
Executive Director18.83yrsHK$7.82m0.23% HK$5.4m
Changjun Xu
Executive Director and Director of Hi Sun Limited18.75yrsHK$7.59m0.60% HK$13.9m
Wai Man Leung
Independent Non-Executive Director14.92yrsHK$380.00kno data
Chun Fai Tam
Independent Non-Executive Director16.25yrsHK$380.00kno data
Kai-Tzung Chang
Independent Non-Executive Director10.42yrsHK$380.00kno data

17.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 818's board of directors are seasoned and experienced ( 17.8 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

Hi Sun Technology (China) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hi Sun Technology (China) Limited
  • Ticker: 818
  • Exchange: SEHK
  • Founded:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: HK$2.333b
  • Shares outstanding: 2.78b
  • Website: https://www.hisun.com.hk

Number of Employees


Location

  • Hi Sun Technology (China) Limited
  • Sun Hung Kai Centre
  • 25th Floor, Room 2515
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
818SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2001

Biography

Hi Sun Technology (China) Limited, an investment holding company, primarily provides payment processing, financial, and platform operation solutions in Mainland China, Hong Kong, Japan, and Macau. It operates through five segments: Payment Processing Solutions; Information Security Chips and Solutions; Platform Operation Solutions; Financial Solutions; and Electronic Power Meters and Solutions. The Payment Processing Solutions segment offers payment processing services, and merchants recruiting and related products and solutions. The Information Security Chips and Solutions segment provides information system consultancy services; and sells mag-stripe card security decoder chips, and related products and solutions. The Platform Operation Solutions segment offers telecommunication and mobile payment platform operation services, as well as operation value-added services. The Financial Solutions segment provides information system consultancy, integration, and operation services, as well as sells information technology products to financial institutions and banks. The Electronic Power Meters and Solutions segment is involved in the manufacture and sale of electronic power meters and data collection terminals, and related products and solutions. Hi Sun Technology (China) Limited is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 12:58
End of Day Share Price2020/04/07 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.