SEHK:1523

Stock Analysis Report

Plover Bay Technologies

Executive Summary

Plover Bay Technologies Limited, an investment holding company, designs, develops, markets, and sells software defined wide area network (SD-WAN) routers worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

How has Plover Bay Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.8%

1523

-1.7%

HK Communications

0.9%

HK Market


1 Year Return

-0.9%

1523

-13.2%

HK Communications

0.6%

HK Market

Return vs Industry: 1523 exceeded the Hong Kong Communications industry which returned -13.2% over the past year.

Return vs Market: 1523 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1523IndustryMarket
7 Day-2.8%-1.7%0.9%
30 Day-6.2%-8.3%0.4%
90 Day-7.8%-6.9%-5.5%
1 Year6.5%-0.9%-10.0%-13.2%4.2%0.6%
3 Year179.9%138.2%-5.0%-12.4%15.5%3.9%
5 Yearn/a-23.5%-20.3%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Plover Bay Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Plover Bay Technologies 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: 1523 (HK$1.06) is trading below our estimate of fair value (HK$2.52)

Significantly Undervalued: 1523 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1523 is good value based on its PE Ratio (11.9x) compared to the Communications industry average (13.1x).

PE vs Market: 1523 is poor value based on its PE Ratio (11.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1523's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1523 is overvalued based on its PB Ratio (4.5x) compared to the HK Communications industry average (1.1x).


Next Steps

Future Growth

How is Plover Bay Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

19.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1523's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if 1523's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1523's revenue (19.7% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1523's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1523's Return on Equity is forecast to be very high in 3 years time (47.6%).


Next Steps

Past Performance

How has Plover Bay Technologies performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1523's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: 1523's earnings growth over the past year (24.3%) is below its 5-year average (29.2% per year).

Earnings vs Industry: 1523 earnings growth over the past year (24.3%) exceeded the Communications industry -14.9%.


Return on Equity

High ROE: 1523's Return on Equity (37%) is considered high.


Return on Assets

ROA vs Industry: 1523 has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: 1523's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Plover Bay Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 1523's short term assets ($41.5M) exceeds its short term liabilities ($12.6M)

Long Term Liabilities: 1523's short term assets (41.5M) exceeds its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: 1523's debt to equity ratio (2.7%) is considered satisfactory

Reducing Debt: 1523's debt to equity ratio has reduced from 8.3% to 2.7% over the past 5 years.

Debt Coverage: 1523's debt is well covered by operating cash flow (1999.9%).

Interest Coverage: 1523 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1523 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1523's debt is covered by short term assets (assets are 49.025970x debt).


Next Steps

Dividend

What is Plover Bay Technologies's current dividend yield, its reliability and sustainability?

6.86%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%2.3%markettop25%6.3%industryaverage3.5%forecastin3Years9.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1523's dividend (6.86%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1523's dividend (6.86%) is in the top 25% of dividend payers in the Hong Kong market (6.25%)

Stable Dividend: Whilst dividend payments have been stable, 1523 has been paying a dividend for less than 10 years.

Growing Dividend: 1523's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.7%), 1523's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1523's dividends in 3 years are forecast to be covered by earnings (74.6% payout ratio).


Next Steps

Management

What is the CEO of Plover Bay Technologies's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average board tenure


CEO

Kit Wai Chau (44yo)

3.9yrs

Tenure

US$247,000

Compensation

Mr. Chau Kit Wai has been Chief Executive Officer and Executive Director at Plover Bay Technologies Limited since November 27, 2015 and has been its General Manager since April 2008. Mr. Chau joined Plover ...


CEO Compensation Analysis

Compensation vs. Market: Kit Wai's total compensation ($USD247.00K) is about average for companies of similar size in the Hong Kong market ($USD212.49K).

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


Board Age and Tenure

3.9yrs

Average Tenure

44.5yo

Average Age

Experienced Board: 1523's board of directors are considered experienced (3.9 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

  • Alex Chan (52yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$532.00k
  • Kit Wai Chau (44yo)

    CEO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Kenneth Yip (44yo)

    Company Secretary & Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$201.00k
  • Ming Pui Chong (42yo)

    Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Yu Yeung (43yo)

    Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Shun Ng (42yo)

    Financial Controller

    • Tenure: 0yrs
  • Joseph Yip (57yo)

    General Manager of Business Development

    • Tenure: 0yrs

Board Members

  • Wilson Wan (45yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$15.00k
  • Alex Chan (52yo)

    Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$532.00k
  • Kit Wai Chau (44yo)

    CEO & Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Kenneth Yip (44yo)

    Company Secretary & Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$201.00k
  • Ming Pui Chong (42yo)

    Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Yu Yeung (43yo)

    Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$247.00k
  • Kin Tim Yu (61yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$15.00k
  • Chi Lam Ho (60yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$15.00k

Company Information

Plover Bay Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Plover Bay Technologies Limited
  • Ticker: 1523
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$1.108b
  • Shares outstanding: 1.05b
  • Website: https://www.ploverbay.com

Number of Employees


Location

  • Plover Bay Technologies Limited
  • Dragon Industrial Building
  • Unit B, 5th Floor
  • Lai Chi Kok
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1523SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2016

Biography

Plover Bay Technologies Limited, an investment holding company, designs, develops, markets, and sells software defined wide area network (SD-WAN) routers worldwide. It also provides software licences, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:49
End of Day Share Price2019/10/18 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.