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.
Rewards
Risk Analysis
No risks detected for 818 from our risk checks.
Snowflake Analysis
Very undervalued with flawless balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-4.1%
818
-0.08%
HK IT
1.7%
HK Market
1 Year Return
-3.3%
818
-12.1%
HK IT
-2.9%
HK Market
Return vs Industry: 818 exceeded the Hong Kong IT industry which returned -12.1% over the past year.
Return vs Market: 818 matched the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 818 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.1% | -0.08% | 1.7% |
| 30 Day | -10.7% | -7.9% | -4.8% |
| 90 Day | -12.0% | 2.5% | 3.4% |
| 1 Year | -3.3%-3.3% | -10.5%-12.1% | 0.7%-2.9% |
| 3 Year | -7.1%-7.1% | -9.7%-14.1% | 15.3%3.6% |
| 5 Year | -44.8%-44.8% | 39.5%31.7% | 15.9%-3.5% |
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
1 week ago | Simply Wall St
Imagine Owning Hi Sun Technology (China) (HKG:818) And Wondering If The 47% Share Price Slide Is Justified1 month ago | Simply Wall St
Do You Know About Hi Sun Technology (China) Limited’s (HKG:818) ROCE?1 month ago | Simply Wall St
Hi Sun Technology (China)'s (HKG:818) Earnings Are Growing But Is There More To The Story?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$1.17) is trading below our estimate of fair value (HK$14.43)
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 (6x) compared to the IT industry average (12.5x).
PE vs Market: 818 is good value based on its PE Ratio (6x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 818 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 818 is good value based on its PB Ratio (0.7x) compared to the HK IT industry average (1x).
Next Steps
Future Growth
How is Hi Sun Technology (China) forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
17.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 818's forecast earnings growth (17.2% per year) is above the savings rate (1.6%).
Earnings vs Market: 818's earnings (17.2% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).
High Growth Earnings: 818's earnings are forecast to grow, but not significantly.
Revenue vs Market: 818's revenue (14.6% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).
High Growth Revenue: 818's revenue (14.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 818's Return on Equity is forecast to be low in 3 years time (12%).
Next Steps
Past Performance
How has Hi Sun Technology (China) performed over the past 5 years?
6.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 818 has high quality earnings.
Growing Profit Margin: 818's current net profit margins (9.4%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: 818's earnings have grown by 6.2% per year over the past 5 years.
Accelerating Growth: 818's earnings growth over the past year (144.9%) exceeds its 5-year average (6.2% per year).
Earnings vs Industry: 818 earnings growth over the past year (144.9%) exceeded the IT industry -8.6%.
Return on Equity
High ROE: 818's Return on Equity (13.4%) is considered low.
Return on Assets
Return on Capital Employed
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$4.3B) exceed its short term liabilities (HK$2.3B).
Long Term Liabilities: 818's short term assets (HK$4.3B) exceed its long term liabilities (HK$34.3M).
Debt to Equity History and Analysis
Debt Level: 818 is debt free.
Reducing Debt: 818 had no debt 5 years ago.
Debt Coverage: 818 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 818 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 818 has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 818's debt is covered by short term assets.
Next Steps
Dividend
What is Hi Sun Technology (China)'s current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
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?
17.6yrs
Average board tenure
CEO
Man Kui (53yo)
HK$8,498,000
Compensation
Mr. Man Chun Kui serves as the Chairman and Chief Executive Officer of Hi Sun Limited (“HSL”), a controlling shareholder of Hi Sun Technology (China) Ltd. (also called as Hi Sun Group Limited.) Mr. Kui has ...
CEO Compensation Analysis
Compensation vs Market: Man's total compensation ($USD1.09M) is above average for companies of similar size in the Hong Kong market ($USD338.66K).
Compensation vs Earnings: Man's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 18.3yrs | HK$2.26m | no data | |
| CEO & Executive Director | 0yrs | HK$8.50m | 23.25% HK$762.0m | |
| Executive Director | 17yrs | HK$8.56m | 0.16% HK$5.4m | |
| Executive Director | 18.7yrs | HK$7.82m | 0.23% HK$7.6m | |
| Executive Director and Director of Hi Sun Limited | 18.6yrs | HK$7.59m | 0.60% HK$19.5m | |
| Independent Non-Executive Director | 14.8yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 16.1yrs | HK$380.00k | no data | |
| Independent Non-Executive Director | 10.3yrs | HK$380.00k | no data |
17.6yrs
Average Tenure
56yo
Average Age
Experienced Board: 818's board of directors are seasoned and experienced ( 17.6 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$3.277b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 818 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 12:45 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.