SEHK:1085

Stock Analysis Report

Hengxin Technology

Executive Summary

Hengxin Technology Ltd., an investment holding company, designs, develops, and manufactures telecommunications and technological products, radio frequency (RF) coaxial cables, and mobile communications systems exchange equipment.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

1085

-1.5%

HK Communications

2.9%

HK Market


1 Year Return

26.2%

1085

-10.1%

HK Communications

0.7%

HK Market

Return vs Industry: 1085 exceeded the Hong Kong Communications industry which returned -10.1% over the past year.

Return vs Market: 1085 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1085IndustryMarket
7 Day-0.9%-1.5%2.9%
30 Day-7.4%-5.1%-2.5%
90 Day-6.6%-5.6%-5.4%
1 Year29.3%26.2%-6.9%-10.1%4.4%0.7%
3 Year26.0%19.1%-0.5%-8.2%17.0%5.2%
5 Year63.5%51.4%-21.3%-17.4%20.2%0.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hengxin Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1085 (HK$2.12) is trading below our estimate of fair value (HK$44.15)

Significantly Undervalued: 1085 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1085 is good value based on its PE Ratio (6.2x) compared to the Communications industry average (13.3x).

PE vs Market: 1085 is good value based on its PE Ratio (6.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1085's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1085 is good value based on its PB Ratio (0.5x) compared to the HK Communications industry average (1.2x).


Next Steps

Future Growth

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

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1085's forecast earnings growth (14.8% per year) is above the savings rate (2%).

Earnings vs Market: 1085's earnings (14.8% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 1085's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1085's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1085's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1085's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hengxin Technology performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1085's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: 1085's earnings growth over the past year (3.4%) is below its 5-year average (4.6% per year).

Earnings vs Industry: 1085 earnings growth over the past year (3.4%) exceeded the Communications industry -14.9%.


Return on Equity

High ROE: 1085's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: 1085's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: 1085's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hengxin Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 1085's short term assets (CN¥2.0B) exceeds its short term liabilities (CN¥503.0M)

Long Term Liabilities: 1085's short term assets (2.0B) exceeds its long term liabilities (12.6M)


Debt to Equity History and Analysis

Debt Level: 1085's debt to equity ratio (19.2%) is considered satisfactory

Reducing Debt: 1085's debt to equity ratio has increased from 3.7% to 19.2% over the past 5 years.

Debt Coverage: 1085's debt is well covered by operating cash flow (54.6%).

Interest Coverage: 1085's interest payments on its debt are well covered by EBIT (97.7x coverage).


Balance Sheet

Inventory Level: 1085 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1085's debt is covered by short term assets (assets are 6.222050x debt).


Next Steps

Dividend

What is Hengxin Technology's current dividend yield, its reliability and sustainability?

2.39%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%2.2%markettop25%6.3%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1085's dividend (2.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1085's dividend (2.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

Stable Dividend: 1085 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1085's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.7%), 1085'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

What is the CEO of Hengxin Technology's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Hengxin Technology has no CEO, or we have no data on them.


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: 1085's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 1085's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Guoqiang Xu (47yo)

    Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥1.07m
  • Xiping Du (57yo)

    Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥1.06m
  • Lawrence Lau (48yo)

    Financial Controller

    • Tenure: 2.3yrs
  • Eugene Lai (49yo)

    Joint Company Secretary

    • Tenure: 0.8yrs
  • Renee Wong (28yo)

    Joint Company Secretary

    • Tenure: 1yrs

Board Members

  • Jun Li (63yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥253.00k
  • Michael Tam (55yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: CN¥338.00k
  • Zhong Zhang (64yo)

    Non-Executive Director

    • Tenure: 14.3yrs
    • Compensation: CN¥319.00k
  • Guoqiang Xu (47yo)

    Executive Director

    • Tenure: 7.8yrs
    • Compensation: CN¥1.07m
  • Wei Cui (32yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: CN¥405.00k
  • Hong Pu (54yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: CN¥253.00k
  • Xiping Du (57yo)

    Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥1.06m

Company Information

Hengxin Technology Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hengxin Technology Ltd.
  • Ticker: 1085
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$822.560m
  • Shares outstanding: 388.00m
  • Website: https://www.hengxin.com.sg

Number of Employees


Location

  • Hengxin Technology Ltd.
  • No. 138 Taodu Road
  • Dingshu Town
  • Yixing
  • Jiangsu Province
  • 214222
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1085SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2006

Biography

Hengxin Technology Ltd., an investment holding company, designs, develops, and manufactures telecommunications and technological products, radio frequency (RF) coaxial cables, and mobile communications sys ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:47
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
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.