SEHK:8635

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Novacon Technology Group

Executive Summary

Novacon Technology Group Limited, an investment holding company, engages in the development and provision of financial trading solutions. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Novacon Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8635 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 8635's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

8635

19.6%

HK Software

5.7%

HK Market


1 Year Return

-32.8%

8635

181.6%

HK Software

14.3%

HK Market

Return vs Industry: 8635 underperformed the Hong Kong Software industry which returned 181.6% over the past year.

Return vs Market: 8635 underperformed the Hong Kong Market which returned 14.3% over the past year.


Shareholder returns

8635IndustryMarket
7 Day1.1%19.6%5.7%
30 Day-3.2%37.9%13.6%
90 Day-4.3%68.6%19.6%
1 Year-31.3%-32.8%182.7%181.6%18.9%14.3%
3 Yearn/a194.6%191.9%-2.9%-13.1%
5 Yearn/a262.6%256.8%70.9%42.2%

Long-Term Price Volatility Vs. Market

How volatile is Novacon Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Novacon Technology Group 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: 8635 (HK$0.09) is trading below our estimate of fair value (HK$1.1)

Significantly Below Fair Value: 8635 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8635 is good value based on its PE Ratio (3.2x) compared to the HK Software industry average (29.9x).

PE vs Market: 8635 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8635's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8635 is good value based on its PB Ratio (0.3x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

How is Novacon Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

31.9%

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 Novacon Technology 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 Novacon Technology Group performed over the past 5 years?

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8635 has high quality earnings.

Growing Profit Margin: 8635's current net profit margins (26.6%) are higher than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: 8635's earnings have declined by 6.3% per year over the past 5 years.

Accelerating Growth: 8635's earnings growth over the past year (88.1%) exceeds its 5-year average (-6.3% per year).

Earnings vs Industry: 8635 earnings growth over the past year (88.1%) exceeded the Software industry -7.4%.


Return on Equity

High ROE: 8635's Return on Equity (10.6%) is considered low.


Next Steps

Financial Health

How is Novacon Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 8635's short term assets (HK$68.0M) exceed its short term liabilities (HK$14.8M).

Long Term Liabilities: 8635's short term assets (HK$68.0M) exceed its long term liabilities (HK$741.0K).


Debt to Equity History and Analysis

Debt Level: 8635's debt to equity ratio (10.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 8635's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 8635's debt is well covered by operating cash flow (166.9%).

Interest Coverage: 8635 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Novacon Technology Group current dividend yield, its reliability and sustainability?

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8635's dividend (2.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.04%).

High Dividend: 8635's dividend (2.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.52%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8635's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8635's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.1%), 8635's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Chau Kan Chung (44 yo)

2.67yrs

Tenure

HK$2,532,000

Compensation

Mr. Chung Chau Kan has been Director of Novacon Technology Group Limited since 7 February 2018 and designated as our executive Director and the chief executive officer since 7 May 2018 and also serves as i...


CEO Compensation Analysis

Compensation vs Market: Chau Kan's total compensation ($USD326.64K) is above average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chau Kan Chung
CEO, Compliance Officer & Executive Director2.67yrsHK$2.53m22.5%
HK$ 8.1m
Wing Hoi Wong
Executive Director2.92yrsHK$1.12mno data
Mei Po Chu
Company Secretary0.75yrno datano data

2.7yrs

Average Tenure

Experienced Management: 8635's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chau Kan Chung
CEO, Compliance Officer & Executive Director2.67yrsHK$2.53m22.5%
HK$ 8.1m
Wing Hoi Wong
Executive Director2.92yrsHK$1.12mno data
Chi Wang Lo
Independent Non-Executive Director1.83yrsHK$110.00kno data
Kin San Wu
Independent Non-Executive Director1.83yrsHK$110.00kno data
Ming Wei
Chairman of Board2.67yrsno data52.5%
HK$ 18.9m
Kai Pong Moo
Independent Non-Executive Director1.83yrsHK$110.00kno data

2.3yrs

Average Tenure

43yo

Average Age

Experienced Board: 8635's board of directors are not considered experienced ( 2.3 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

Novacon Technology Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novacon Technology Group Limited
  • Ticker: 8635
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$36.000m
  • Shares outstanding: 400.00m
  • Website: https://www.novacontechgroup.com

Number of Employees


Location

  • Novacon Technology Group Limited
  • EGL Tower
  • 17th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8635SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2019

Biography

Novacon Technology Group Limited, an investment holding company, engages in the development and provision of financial trading solutions. Its financial trading solution includes AUTON, a trading terminal; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 10:17
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.