SEHK:1087

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InvesTech Holdings

Executive Summary

InvesTech Holdings Limited, an investment holding company, engages in the network system integration, professional network services, and mobile Internet software businesses.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1087 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

1087

5.7%

HK Communications

6.0%

HK Market


1 Year Return

-25.6%

1087

9.2%

HK Communications

-4.0%

HK Market

Return vs Industry: 1087 underperformed the Hong Kong Communications industry which returned 8.9% over the past year.

Return vs Market: 1087 underperformed the Hong Kong Market which returned -4% over the past year.


Shareholder returns

1087IndustryMarket
7 Day3.4%5.7%6.0%
30 Day18.5%-5.7%4.3%
90 Day1.3%-10.3%-2.4%
1 Year-25.6%-25.6%11.7%9.2%-0.5%-4.0%
3 Year-57.8%-57.8%-13.7%-21.0%1.4%-9.2%
5 Year-95.9%-95.9%-14.7%-25.8%-9.3%-23.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is InvesTech Holdings undervalued compared to its fair value and its price relative to the market?

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1087 (HK$0.15) is trading below our estimate of fair value (HK$0.27)

Significantly Below Fair Value: 1087 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1087 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 1087 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 1087's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1087 is good value based on its PB Ratio (0.3x) compared to the HK Communications industry average (0.8x).


Next Steps

Future Growth

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

28.2%

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 InvesTech 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 InvesTech Holdings performed over the past 5 years?

-43.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1087 is currently unprofitable.

Growing Profit Margin: 1087 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1087 is unprofitable, and losses have increased over the past 5 years at a rate of -43.8% per year.

Accelerating Growth: Unable to compare 1087's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1087 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-24.2%).


Return on Equity

High ROE: 1087 has a negative Return on Equity (-3.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is InvesTech Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1087's short term assets (CN¥399.2M) exceed its short term liabilities (CN¥301.4M).

Long Term Liabilities: 1087's short term assets (CN¥399.2M) exceed its long term liabilities (CN¥27.1M).


Debt to Equity History and Analysis

Debt Level: 1087's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: 1087's debt to equity ratio has reduced from 56.8% to 7.2% over the past 5 years.


Balance Sheet


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 1087 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1087 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.1% per year.


Next Steps

Dividend

What is InvesTech Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1087's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1087's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1087's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1087'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 1087'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?

3.8yrs

Average management tenure


CEO

Ringo Chan (60yo)

3.75yrs

Tenure

CN¥3,834,000

Compensation

Mr. Chan Sek Keung, also known as Ringo, has been Chief Executive Officer of InvesTech Holdings Limited since September 21, 2016. Mr. Chan serves as the Chairman at Woodstock Management Limited. Mr. Chan h ...


CEO Compensation Analysis

Compensation vs Market: Ringo's total compensation ($USD541.29K) is above average for companies of similar size in the Hong Kong market ($USD228.98K).

Compensation vs Earnings: Ringo's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Sek Keung Chan
Chairman & CEO3.75yrsCN¥3.83m6.71% CN¥14.5m
Chengye Lu
Executive Director7.08yrsCN¥106.00kno data
Fang Wang
Vice CEO & Executive Director4.5yrsCN¥1.24mno data
Chau Wa Ching
Executive Director1.42yrsCN¥695.00kno data
Y. Chew
Chief Technology Officerno datano datano data
Y. Chew
Head of High Speed Interconnect Cable Business and General Managerno datano datano data
Siu Kei Fung
Company Secretary0.67yrno datano data

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 1087's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sek Keung Chan
Chairman & CEO3.75yrsCN¥3.83m6.71% CN¥14.5m
Chengye Lu
Executive Director7.08yrsCN¥106.00kno data
Fang Wang
Vice CEO & Executive Director4.5yrsCN¥1.24mno data
Chau Wa Ching
Executive Director1.42yrsCN¥695.00kno data
Tsu Wai Wong
Non-Executive Director0.83yrCN¥44.00kno data
Liangkuai Huang
Independent Non Executive Director4.33yrsCN¥106.00kno data
Yong Chen Lu
Independent Non-Executive Director5yrsCN¥106.00kno data
Chun Sek Wong
Independent Non-Executive Director3yrsCN¥106.00kno data

4.3yrs

Average Tenure

50yo

Average Age

Experienced Board: 1087's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 1087 insiders have bought more shares than they have sold 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

InvesTech Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: InvesTech Holdings Limited
  • Ticker: 1087
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$216.216m
  • Shares outstanding: 1.40b
  • Website: https://www.investech-holdings.com

Number of Employees


Location

  • InvesTech Holdings Limited
  • Oriental Plaza, Tower E2
  • Room 1907-1909, 19th Floor
  • Beijing
  • Beijing Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1087SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2010
9HTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010

Biography

InvesTech Holdings Limited, an investment holding company, engages in the network system integration, professional network services, and mobile Internet software businesses. It operates through two segments, Communication System and Money Lending. The company’s network system integration services comprise enterprise Internet architecture, high-speed IP bearer network architecture, data center and storage program, optical transmission network, wireless coverage program, application delivery program, security interconnection and access monitoring program, and network management program services. Its professional network services include network system services comprising preparation, planning, design, implementation, operation, maintenance, and optimization services; network planning, design, and project management services; and network system maintenance services, such as network operation and maintenance, network management and security, network hosting, network evaluation, consultation and performance test, network design and integration services, etc. The company also offers mobile Internet software for office automation; rents network equipment; and trades in telecommunications equipment, as well as offers finance leasing and money lending services. It operates in Mainland China, Hong Kong, the United States, and internationally. The company was formerly known as HL Technology Group Limited and changed its name to InvesTech Holdings Limited in June 2016. InvesTech Holdings Limited was founded in 1997 and is headquartered in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 13:46
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.