SEHK:1013

Stock Analysis Report

Wai Chun Group Holdings

Executive Summary

Wai Chun Group Holdings Limited, an investment holding company, engages in the trading of mobiles and electronic components in the People’s Republic of China.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Wai Chun Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1013's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1013

-2.2%

HK Electronic

-3.3%

HK Market


1 Year Return

-8.9%

1013

-6.7%

HK Electronic

-9.6%

HK Market

Return vs Industry: 1013 matched the Hong Kong Electronic industry which returned -8% over the past year.

Return vs Market: 1013 matched the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1013IndustryMarket
7 Day0%-2.2%-3.3%
30 Day2.5%-7.7%-3.8%
90 Day-16.3%-1.8%-0.2%
1 Year-8.9%-8.9%-3.9%-6.7%-6.3%-9.6%
3 Year0%0%-2.5%-10.3%11.2%-0.05%
5 Year-16.3%-16.3%72.6%49.8%12.7%-6.0%

Price Volatility Vs. Market

How volatile is Wai Chun Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wai Chun Group Holdings undervalued compared to its fair value and its price relative to the market?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1013 (HK$0.04) is trading below our estimate of fair value (HK$0.08)

Significantly Below Fair Value: 1013 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1013 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 1013 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1013's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1013 has negative assets, so we can't compare its PB Ratio to the HK Electronic industry average.


Next Steps

Future Growth

How is Wai Chun Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.7%

Forecasted Tech 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 Wai Chun Group Holdings 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 Wai Chun Group Holdings performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1013 is currently unprofitable.

Growing Profit Margin: 1013 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1013 is unprofitable, but has reduced losses over the past 5 years at a rate of 5.1% per year.

Accelerating Growth: Unable to compare 1013's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1013 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-11.5%).


Return on Equity

High ROE: 1013's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wai Chun Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1013 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 1013 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1013 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 1013's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 1013 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1013 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 1013 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1013 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.1% per year.


Next Steps

Dividend

What is Wai Chun Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1013's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1013'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 1013's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1013'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 1013'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?

7.1yrs

Average management tenure


CEO

Ching Kui Lam (60yo)

7.1yrs

Tenure

HK$202,000

Compensation

Mr. Ching Kui Lam has been the Chief Executive Officer of Wai Chun Mining Industry Group Company Limited and Wai Chun Group Holdings Limited since January 2, 2013. Mr. Lam has also been the Chairman of Nor ...


CEO Compensation Analysis

Compensation vs Market: Ching Kui's total compensation ($USD25.93K) is below average for companies of similar size in the Hong Kong market ($USD225.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ching Kui Lam
Executive Chairman & CEO7.1yrsHK$202.00k74.8% HK$656.0m
Lai Wa Lee
Finance Manager0yrsno datano data
Jian Hu
Chief Operating Officer15.4yrsHK$15.00kno data
Kin Wing Tse
Company Secretary0.7yrsno datano data

7.1yrs

Average Tenure

Experienced Management: 1013's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ching Kui Lam
Executive Chairman & CEO7.1yrsHK$202.00k74.8% HK$656.0m
Ming Tung Ko
Independent Non-Executive Director11.5yrsHK$240.00kno data
Chun Wai Chan
Independent Non-Executive Director0.2yrsno datano data
Kin Chung Ho
Independent Non-Executive Director1.5yrsHK$158.00kno data

6.5yrs

Average Tenure

59yo

Average Age

Experienced Board: 1013's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1013 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wai Chun Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wai Chun Group Holdings Limited
  • Ticker: 1013
  • Exchange: SEHK
  • Founded:
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$877.038m
  • Shares outstanding: 21.39b
  • Website: https://www.1013.hk

Number of Employees


Location

  • Wai Chun Group Holdings Limited
  • Admiralty Centre 2
  • 13th Floor
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1013SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1997

Biography

Wai Chun Group Holdings Limited, an investment holding company, engages in the trading of mobiles and electronic components in the People’s Republic of China. The company operates through three divisions: Sales and Integration Services, Services Income, and General Trading. It is also involved in the design, consultation, and production of information system software; and provision of management training services. In addition, the company engages in the sale and service, and provision of integration services of computer and communication systems; and provision of telecommunications infrastructure solution services, as well as consultancy services. Further, it engages in the real estate investment and development business; provision of software solutions and services; and trading of chemicals. The company is headquartered in Admiralty, Hong Kong. Wai Chun Group Holdings Limited is a subsidiary of Ka Chun Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:50
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.