SEHK:8420

Stock Analysis Report

Nexion Technologies

Executive Summary

Nexion Technologies Limited, an investment holding company, provides information and communications technology solutions.

Risk Analysis

Does not have a meaningful market cap (HK$70M)

Highly volatile share price over past 3 months

Profit margins (12.4%) are lower than last year (17.7%)



Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Nexion Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8420's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.2%

8420

0.3%

HK IT

0.6%

HK Market


1 Year Return

-34.0%

8420

-14.5%

HK IT

-4.5%

HK Market

Return vs Industry: 8420 underperformed the Hong Kong IT industry which returned -14.5% over the past year.

Return vs Market: 8420 underperformed the Hong Kong Market which returned -4.5% over the past year.


Shareholder returns

8420IndustryMarket
7 Day-10.2%0.3%0.6%
30 Day-19.2%-8.6%-5.2%
90 Day-4.0%1.3%2.3%
1 Year-34.0%-34.0%-12.9%-14.5%-1.0%-4.5%
3 Yearn/a-11.5%-15.7%14.4%2.9%
5 Yearn/a40.0%31.9%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Nexion Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nexion Technologies undervalued compared to its fair value and its price relative to the market?

12.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8420's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8420's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8420 is poor value based on its PE Ratio (12.1x) compared to the IT industry average (12x).

PE vs Market: 8420 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8420's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8420 is good value based on its PB Ratio (0.5x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

How is Nexion Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.5%

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 Nexion Technologies 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 Nexion Technologies performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8420 has high quality earnings.

Growing Profit Margin: 8420's current net profit margins (12.4%) are lower than last year (17.7%).


Past Earnings Growth Analysis

Earnings Trend: 8420's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: 8420's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8420 had negative earnings growth (-69.1%) over the past year, making it difficult to compare to the IT industry average (-8.6%).


Return on Equity

High ROE: 8420's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nexion Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 8420's short term assets ($11.7M) exceed its short term liabilities ($1.5M).

Long Term Liabilities: 8420's short term assets ($11.7M) exceed its long term liabilities ($150.0K).


Debt to Equity History and Analysis

Debt Level: 8420 is debt free.

Reducing Debt: 8420 has not had any debt for past 5 years.

Debt Coverage: 8420 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8420 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8420 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8420's debt is covered by short term assets.


Next Steps

Dividend

What is Nexion Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8420's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8420'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 8420's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8420'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 8420'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?

4.8yrs

Average management tenure


CEO

Moo Teng Foo (53yo)

US$124,000

Compensation

Mr. Moo Teng Foo is the Founder of Nexion Technologies Limited and serves as its Chairman, Executive Director and Chief Executive Officer. Mr. Foo serveds as Compliance Officer of Nexion Technologies Limit ...


CEO Compensation Analysis

Compensation vs Market: Moo Teng's total compensation ($USD124.00K) is below average for companies of similar size in the Hong Kong market ($USD225.70K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Moo Teng Foo
Founder0yrsUS$124.00k37.87% $26.5m
Edgardo Osillada Gonzales
Executive Officer3.7yrsUS$147.00kno data
Joo Ling Yeo
Financial Controller0yrsno datano data
Mei Leng Tang
Head of Sales & Marketing Department4.8yrsno datano data
Kok Liang Chan
Chief Development Officer7.1yrsno datano data
Baofeng Shan
Executive Director0.6yrsno datano data
Siu Man Kwok
Company Secretary1.2yrsno datano data

4.8yrs

Average Tenure

42yo

Average Age

Experienced Management: 8420's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Moo Teng Foo
Founder0yrsUS$124.00k37.87% $26.5m
Edgardo Osillada Gonzales
Executive Officer3.7yrsUS$147.00kno data
Baofeng Shan
Executive Director0.6yrsno datano data
Joo Seng Lim
Independent Non-Executive Director2.8yrsUS$21.00kno data
Jee Ho Park
Independent Non-Executive Director2.8yrsUS$21.00kno data
Ming Kit Chan
Independent Non-Executive Director2.8yrsUS$21.00kno data

2.8yrs

Average Tenure

43.5yo

Average Age

Experienced Board: 8420's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Nexion Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nexion Technologies Limited
  • Ticker: 8420
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: HK$69.840m
  • Shares outstanding: 720.00m
  • Website: https://www.nexion.com.hk

Number of Employees


Location

  • Nexion Technologies Limited
  • No. 10-03, Novelty BizCentre
  • 18 Howard Road
  • Singapore
  • 369585
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8420SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2017

Biography

Nexion Technologies Limited, an investment holding company, provides information and communications technology solutions. The company offers cyber infrastructure solutions, including maintenance and support services for telecommunications service providers and large enterprises; and cyber security solutions in the area of Internet content management for government agencies. It is also involved in the provision of consulting services and property holding business. The company operates in Indonesia, Laos, Malaysia, Myanmar, the People’s Republic of China, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Nexion Technologies Limited has a business cooperation agreement with Shanghai Qiange Information Technology Co. Ltd. The company was founded in 2002 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 13:19
End of Day Share Price2020/02/18 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.