Executive Summary
Novacon Technology Group Limited, an investment holding company, engages in the development and provision of financial trading solutions. More Details
Rewards
Risk Analysis
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
| 8635 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 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 Year | n/a | 194.6%191.9% | -2.9%-13.1% |
| 5 Year | n/a | 262.6%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
2 weeks ago | Simply Wall St
Should You Rely On Novacon Technology Group's (HKG:8635) Earnings Growth?2 months ago | Simply Wall St
Should You Be Impressed By Novacon Technology Group's (HKG:8635) Returns on Capital?5 months ago | Simply Wall St
Estimating The Fair Value Of Novacon Technology Group Limited (HKG:8635)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
- Examine whether Novacon Technology Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Novacon Technology Group competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Compliance Officer & Executive Director | 2.67yrs | HK$2.53m | 22.5% HK$ 8.1m | |
| Executive Director | 2.92yrs | HK$1.12m | no data | |
| Company Secretary | 0.75yr | no data | no data |
2.7yrs
Average Tenure
Experienced Management: 8635's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Compliance Officer & Executive Director | 2.67yrs | HK$2.53m | 22.5% HK$ 8.1m | |
| Executive Director | 2.92yrs | HK$1.12m | no data | |
| Independent Non-Executive Director | 1.83yrs | HK$110.00k | no data | |
| Independent Non-Executive Director | 1.83yrs | HK$110.00k | no data | |
| Chairman of Board | 2.67yrs | no data | 52.5% HK$ 18.9m | |
| Independent Non-Executive Director | 1.83yrs | HK$110.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 8635 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 10:17 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.