SEHK:1410

Stock Analysis Report

Edvance International Holdings

Executive Summary

Edvance International Holdings Limited, an investment holding company, distributes information technology (IT) security products and services in the People’s Republic of China and Singapore.


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1410's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

1410

5.4%

HK Electronic

2.7%

HK Market


1 Year Return

-20.7%

1410

-20.4%

HK Electronic

-19.8%

HK Market

Return vs Industry: 1410 matched the Hong Kong Electronic industry which returned -21.2% over the past year.

Return vs Market: 1410 matched the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

1410IndustryMarket
7 Day4.3%5.4%2.7%
30 Day-23.2%-10.4%-7.2%
90 Day-38.1%-17.9%-12.1%
1 Year-14.6%-20.7%-18.0%-20.4%-16.9%-19.8%
3 Yearn/a-17.9%-24.7%0.9%-9.3%
5 Yearn/a20.6%4.9%-12.6%-26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1410 (HK$0.37) is trading below our estimate of fair value (HK$0.38)

Significantly Below Fair Value: 1410 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1410 is poor value based on its PE Ratio (12.6x) compared to the Electronic industry average (8.7x).

PE vs Market: 1410 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1410's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1410 is overvalued based on its PB Ratio (3.7x) compared to the HK Electronic industry average (0.8x).


Next Steps

Future Growth

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

18.5%

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 Edvance International 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 Edvance International Holdings performed over the past 5 years?

42.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1410 has a high level of non-cash earnings.

Growing Profit Margin: 1410's current net profit margins (7.2%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 1410's earnings have grown significantly by 42% per year over the past 5 years.

Accelerating Growth: 1410's earnings growth over the past year (56.6%) exceeds its 5-year average (42% per year).

Earnings vs Industry: 1410 earnings growth over the past year (56.6%) exceeded the Electronic industry -10.7%.


Return on Equity

High ROE: 1410's Return on Equity (29%) is considered high.


Next Steps

Financial Health

How is Edvance International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1410's short term assets (HK$238.7M) exceed its short term liabilities (HK$166.3M).

Long Term Liabilities: 1410's short term assets (HK$238.7M) exceed its long term liabilities (HK$69.7M).


Debt to Equity History and Analysis

Debt Level: 1410's debt to equity ratio (25%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1410's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1410's debt is well covered by operating cash flow (34.6%).

Interest Coverage: 1410's interest payments on its debt are well covered by EBIT (101.1x coverage).


Balance Sheet


Next Steps

Dividend

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

8.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1410's dividend (8.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 1410's dividend (8.22%) is in the top 25% of dividend payers in the Hong Kong market (7.21%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1410 has been paying a dividend for less than 10 years.

Growing Dividend: 1410's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.7%), 1410's dividend payments are not well 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

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Francis Lee (41yo)

3.42s

Tenure

HK$1,934,000

Compensation

Mr. Lee Sung Kei, also known as Francis has been Chief Executive Officer and Executive Director at Edvance International Holdings Limited since November 21, 2016. Mr. Lee joined Edvance International Holdi ...


CEO Compensation Analysis

Compensation vs Market: Francis's total compensation ($USD249.47K) is about average for companies of similar size in the Hong Kong market ($USD232.17K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yui Liu
Chairman3.42yrsHK$2.67mno data
Sung Kei Lee
CEO & Executive Director3.42yrsHK$1.93m2.25% HK$8.2m
John Von
Business Operations Director3.42yrsHK$1.62m5.99% HK$21.9m
Wai Lo
Technology Director & Non-executive Director3.75yrsHK$360.00kno data
Tak Ling Lam
Executive Director3.42yrsHK$1.89m2.25% HK$8.2m
Shuen Tsai
Managing Director for Hong Kong & Macauno datano datano data
Man Shan Wong
Company Secretary3.5yrsno datano data

3.7yrs

Average Tenure

48yo

Average Age

Experienced Management: 1410's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yui Liu
Chairman3.42yrsHK$2.67mno data
Sung Kei Lee
CEO & Executive Director3.42yrsHK$1.93m2.25% HK$8.2m
John Von
Business Operations Director3.42yrsHK$1.62m5.99% HK$21.9m
Wai Lo
Technology Director & Non-executive Director3.75yrsHK$360.00kno data
Tak Ling Lam
Executive Director3.42yrsHK$1.89m2.25% HK$8.2m
Sing Hing Tang
Non-Executive Director3.42yrsHK$240.00k7.49% HK$27.4m
Yuen Yee Wong Hung
Independent Non-Executive Director0.083yrno datano data
Kwok Chun Yu
Independent Non-Executive Director3.08yrsHK$180.00kno data
Tsz Fung Ng
Independent Non-Executive Director3.08yrsHK$180.00kno data
Siu Ming Chan
Independent Non-Executive Director3.08yrsHK$180.00kno data

3.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 1410's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Edvance International Holdings Limited
  • Ticker: 1410
  • Exchange: SEHK
  • Founded: 2016
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$365.528m
  • Shares outstanding: 1.00b
  • Website: https://www.edvancesecurity.com

Number of Employees


Location

  • Edvance International Holdings Limited
  • Montery Plaza
  • 39th Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1410SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2017

Biography

Edvance International Holdings Limited, an investment holding company, distributes information technology (IT) security products and services in the People’s Republic of China and Singapore. The company’s IT Security Products segment distributes network, system, and application and data security products, such as hardware, software, and auxiliary products. Its IT Security Services segment offers technical implementation, maintenance and support, and consulting services. The company primarily serves IT companies. Edvance International Holdings Limited was incorporated in 2016 and is headquartered in Kwun Tong, Hong Kong. Edvance International Holdings Limited is a subsidiary of Success Vision International Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:27
End of Day Share Price2020/04/07 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.