SEHK:1213

Stock Analysis Report

Executive Summary

Mobicon Group Limited, an investment holding company, trades in and distributes electronic components, automation parts, and equipment in Hong Kong and other Asia-Pacific countries, South Africa, Europe, and internationally.

Rewards

Trading at 82.7% below its fair value

Risk Analysis

Earnings have declined by -53.04% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap (HK$230M)



Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1213 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.0%

1213

5.1%

HK Electronic

0.5%

HK Market


1 Year Return

27.8%

1213

14.0%

HK Electronic

-0.2%

HK Market

Return vs Industry: 1213 exceeded the Hong Kong Electronic industry which returned 14% over the past year.

Return vs Market: 1213 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

1213IndustryMarket
7 Day5.0%5.1%0.5%
30 Day5.5%2.5%-3.8%
90 Day-8.0%12.2%-1.3%
1 Year28.9%27.8%17.4%14.0%3.4%-0.2%
3 Year-26.8%-28.6%20.8%11.0%18.8%6.7%
5 Year-34.9%-37.2%96.3%70.9%19.5%-0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Mobicon 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: 1213 (HK$1.15) is trading below our estimate of fair value (HK$6.66)

Significantly Below Fair Value: 1213 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1213 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: 1213 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 1213's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1213 is overvalued based on its PB Ratio (1.9x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

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

24.4%

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 Mobicon 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 Mobicon Group performed over the past 5 years?

-53.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1213 is currently unprofitable.

Growing Profit Margin: 1213 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1213 is unprofitable, and losses have increased over the past 5 years at a rate of -53% per year.

Accelerating Growth: Unable to compare 1213's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1213 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-8.8%).


Return on Equity

High ROE: 1213 has a negative Return on Equity (-2.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Tech industry.

Financial Health

How is Mobicon Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1213's short term assets (HK$261.1M) exceed its short term liabilities (HK$147.6M).

Long Term Liabilities: 1213's short term assets (HK$261.1M) exceed its long term liabilities (HK$1.9M).


Debt to Equity History and Analysis

Debt Level: 1213's debt to equity ratio (61.6%) is considered high.

Reducing Debt: 1213's debt to equity ratio has increased from 45% to 61.6% over the past 5 years.


Balance Sheet

Inventory Level: 1213 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1213's debt is covered by short term assets (assets are 2.7x debt).


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 1213 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1213 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 8% per year.


Next Steps

Dividend

What is Mobicon Group's current dividend yield, its reliability and sustainability?

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%6.2%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1213's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1213's dividend (0.87%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.23%).


Stability and Growth of Payments

Stable Dividend: 1213 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1213 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1213 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1213's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

HK$62k

CEO Compensation


CEO

Beryl Yeung (57yo)

12.4yrs

Tenure

HK$62,000

Compensation

Ms. Man Yi Yeung, also known as Beryl founded Mobicon Group Ltd. and has been its Chief Executive Officer since July 18, 2007. Ms. Yeung is responsible for Mobicon Group's finance, administration and inter ...


CEO Compensation Analysis

Compensation vs Market: Beryl's total compensation ($USD7.92K) is below average for companies of similar size in the Hong Kong market ($USD226.68K).

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


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

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


Management Team

  • Roger Hung (55yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$315.00k
  • Measure Hung (58yo)

    Founder & Chairman

    • Tenure: 8.7yrs
    • Compensation: HK$26.00k
  • Allix Yeung (56yo)

    Co-Founder & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$315.00k
  • Beryl Yeung (57yo)

    Founder

    • Tenure: 12.4yrs
    • Compensation: HK$62.00k
  • Ho Yin Tsoi (35yo)

    Financial Controller & Company Secretary

    • Tenure: 2.2yrs

Board Members

  • Charles Chapman (70yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$80.00k
  • Roger Hung (55yo)

    Founder

    • Tenure: 0yrs
    • Compensation: HK$315.00k
  • Measure Hung (58yo)

    Founder & Chairman

    • Tenure: 8.7yrs
    • Compensation: HK$26.00k
  • Allix Yeung (56yo)

    Co-Founder & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$315.00k
  • Beryl Yeung (57yo)

    Founder

    • Tenure: 12.4yrs
    • Compensation: HK$62.00k
  • Gary Leung (54yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$120.00k
  • Eric Ku (63yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: HK$80.00k

Company Information

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


Key Information

  • Name: Mobicon Group Limited
  • Ticker: 1213
  • Exchange: SEHK
  • Founded: 1983
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$230.000m
  • Shares outstanding: 200.00m
  • Website: https://www.mobicon.com

Number of Employees


Location

  • Mobicon Group Limited
  • New Trend Centre
  • 7th Floor
  • San Po Kong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1213SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2001

Biography

Mobicon Group Limited, an investment holding company, trades in and distributes electronic components, automation parts, and equipment in Hong Kong and other Asia-Pacific countries, South Africa, Europe, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 12:40
End of Day Share Price2019/12/10 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.