SEHK:1263

Stock Analysis Report

PC Partner Group

Executive Summary

PC Partner Group Limited, an investment holding company, designs, develops, manufactures, and sells computer electronics.

Snowflake

Fundamentals

Reasonable growth potential with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1263's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.5%

1263

-0.8%

HK Tech

-0.7%

HK Market


1 Year Return

-26.8%

1263

-30.0%

HK Tech

-2.3%

HK Market

Return vs Industry: 1263 exceeded the Hong Kong Tech industry which returned -30% over the past year.

Return vs Market: 1263 underperformed the Hong Kong Market which returned -2.3% over the past year.


Shareholder returns

1263IndustryMarket
7 Day-8.5%-0.8%-0.7%
30 Day0%-0.3%0.2%
90 Day38.5%-6.9%2.8%
1 Year-26.8%-26.8%-29.3%-30.0%1.2%-2.3%
3 Year11.9%-8.5%3.5%-5.1%20.4%8.4%
5 Year158.9%98.2%-27.6%-41.4%16.9%-2.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PC Partner Group undervalued compared to its fair value and its price relative to the market?

1.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1263 (HK$2.16) is trading above our estimate of fair value (HK$0.98)

Significantly Below Fair Value: 1263 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1263 is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: 1263 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 1263's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1263 is overvalued based on its PB Ratio (1x) compared to the HK Tech industry average (1x).


Next Steps

Future Growth

How is PC Partner Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

103.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1263 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: 1263 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1263's is expected to become profitable in the next 3 years.

Revenue vs Market: 1263's revenue (16.4% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1263's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1263's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has PC Partner Group performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1263 has a high level of non-cash earnings.

Growing Profit Margin: 1263 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1263 is unprofitable, but has reduced losses over the past 5 years at a rate of 35.4% per year.

Accelerating Growth: Unable to compare 1263's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1263 is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (21.5%).


Return on Equity

High ROE: 1263 has a negative Return on Equity (-18.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PC Partner Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1263's short term assets (HK$3.0B) exceeds its short term liabilities (HK$2.6B)

Long Term Liabilities: 1263's short term assets (HK$3.0B) exceeds its long term liabilities (133.7M)


Debt to Equity History and Analysis

Debt Level: 1263's debt to equity ratio (174.8%) is considered high.

Reducing Debt: 1263's debt to equity ratio has increased from 104.5% to 174.8% over the past 5 years.

Debt Coverage: 1263's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1263's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1263 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1263's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

3.86%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%6.4%industryaverage3.5%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1263's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1263'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 1263's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1263's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1263 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 1263'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 PC Partner Group's salary, the management and board of directors tenure and is there insider trading?

22.5yrs

Average management tenure


CEO

Tony Wong (59yo)

8.8yrs

Tenure

HK$12,933,000

Compensation

Mr. Shik Ho Wong, also known as Tony, Co-Founded PC Partner Group Limited in May 1997 and serves as its Chairman. Mr. Wong has been the Chief Executive Officer and Executive Director at PC Partner Group Li ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.65M) is above average for companies of similar size in the Hong Kong market ($USD216.22K).

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


Management Age and Tenure

22.5yrs

Average Tenure

59yo

Average Age

Experienced Management: 1263's management team is seasoned and experienced (22.5 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 1263's board of directors are considered experienced (8.8 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.


Recent Insider Transactions

SellHK$397,99907 May 19
Wai Man
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares200,000
Max PriceHK$1.99
SellHK$2,519,99622 Jan 19
Fong Wong
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares1,000,000
Max PriceHK$2.52

Ownership Breakdown

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


Management Team

  • Sau Fong Leung

    Company Secretary

    • Tenure: 0yrs
  • Nai Ho (63yo)

    Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$5.03m
  • Fong Wong (69yo)

    Co-Founder

    • Tenure: 9.6yrs
    • Compensation: HK$5.96m
  • Wah Leung (60yo)

    Co-Founder

    • Tenure: 9.6yrs
    • Compensation: HK$8.43m
  • Wai Man (53yo)

    Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$4.12m
  • Tony Wong (59yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: HK$12.93m
  • Gary Lau (49yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Hsiao Chuang (40yo)

    Global Marketing Director

    • Tenure: 0yrs

Board Members

  • Shing Hing Ip (64yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$240.00k
  • Jerome Lai (70yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$240.00k
  • Mary Ho (69yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$60.00k
  • Nai Ho (63yo)

    Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$5.03m
  • Fong Wong (69yo)

    Co-Founder

    • Tenure: 9.6yrs
    • Compensation: HK$5.96m
  • Wah Leung (60yo)

    Co-Founder

    • Tenure: 9.6yrs
    • Compensation: HK$8.43m
  • Wai Man (53yo)

    Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$4.12m
  • Tony Wong (59yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: HK$12.93m
  • Wing Chiu (54yo)

    Alternate Director

    • Tenure: 7yrs
    • Compensation: HK$60.00k
  • Ying Cheung (65yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$240.00k

Company Information

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


Key Information

  • Name: PC Partner Group Limited
  • Ticker: 1263
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$800.001m
  • Shares outstanding: 372.09m
  • Website: https://www.pcpartner.com

Number of Employees


Location

  • PC Partner Group Limited
  • Shatin Galleria
  • 19th Floor
  • Shatin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1263SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2012
P2GBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 2012

Biography

PC Partner Group Limited, an investment holding company, designs, develops, manufactures, and sells computer electronics. The company offers video graphics cards for desktop PCs; and computer related produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:57
End of Day Share Price2019/11/19 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.