SEHK:1523

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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 Analysis

Flawless balance sheet with solid 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

Stable Share Price: 1523 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

1523

4.4%

HK Communications

4.1%

HK Market


1 Year Return

-8.9%

1523

6.7%

HK Communications

-4.7%

HK Market

Return vs Industry: 1523 underperformed the Hong Kong Communications industry which returned 6.7% over the past year.

Return vs Market: 1523 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

1523IndustryMarket
7 Day2.0%4.4%4.1%
30 Day3.0%9.5%5.3%
90 Day2.0%14.8%13.5%
1 Year0.4%-8.9%9.1%6.7%-1.2%-4.7%
3 Year31.4%7.4%-7.6%-15.4%7.7%-3.5%
5 Yearn/a18.0%2.0%7.2%-10.1%

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

Below Fair Value: 1523 (HK$1.02) is trading below our estimate of fair value (HK$2.27)

Significantly Below Fair Value: 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 (11.3x) compared to the Communications industry average (22.1x).

PE vs Market: 1523 is poor value based on its PE Ratio (11.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

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 (4x) compared to the HK Communications industry average (1x).


Next Steps

Future Growth

How is Plover Bay Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

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 (1.6%).

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 (14% per year) is forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Revenue: 1523's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1523's Return on Equity is forecast to be very high in 3 years time (41.5%).


Next Steps

Past Performance

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

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1523 has high quality earnings.

Growing Profit Margin: 1523's current net profit margins (26.3%) are higher than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: 1523's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: 1523's earnings growth over the past year (13.8%) is below its 5-year average (26.9% per year).

Earnings vs Industry: 1523 earnings growth over the past year (13.8%) exceeded the Communications industry -24.2%.


Return on Equity

High ROE: 1523's Return on Equity (35.4%) is considered high.


Next Steps

Financial Health

How is Plover Bay Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 1523's short term assets ($44.6M) exceed its short term liabilities ($12.9M).

Long Term Liabilities: 1523's short term assets ($44.6M) exceed its long term liabilities ($3.1M).


Debt to Equity History and Analysis

Debt Level: 1523's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: 1523's debt to equity ratio has reduced from 8% to 1.2% over the past 5 years.

Debt Coverage: 1523's debt is well covered by operating cash flow (4039.9%).

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


Balance Sheet


Next Steps

Dividend

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

7.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1523's dividend (7.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 1523's dividend (7.05%) is in the top 25% of dividend payers in the Hong Kong market (6.69%)


Stability and Growth of Payments

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 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.5%), 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 (75% payout ratio).


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Kit Wai Chau (45yo)

4.67yrs

Tenure

US$233,000

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 ($USD233.00K) is about average for companies of similar size in the Hong Kong market ($USD226.42K).

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


Board Members

NamePositionTenureCompensationOwnership
Wing Hong Chan
Chairman of the Board4.67yrsUS$518.00k71.73% $769.6m
Kit Wai Chau
CEO & Executive Director4.67yrsUS$233.00k0.43% $4.6m
Ming Pui Chong
Executive Director4.67yrsUS$233.00k0.43% $4.6m
Yu Yeung
Executive Director4.67yrsUS$233.00k0.43% $4.6m
Kai Kut Yip
Company Secretary & Executive Director4.67yrsUS$187.00k0.41% $4.4m
Sze Chung Wan
Independent Non-Executive Director4.08yrsUS$15.00kno data
Kin Tim Yu
Independent Non-Executive Director4.08yrsUS$15.00kno data
Chi Lam Ho
Independent Non-Executive Director4.08yrsUS$15.00kno data

4.7yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 1523's board of directors are considered experienced (4.7 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

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$1.073b
  • 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 warranty and support services. The company markets and sells its products under the Peplink and Pepwave brands through third party distributors, and resellers. In addition, it is involved in property holding activities. The company serves maritime and ground transport, public safety, education, and retail sectors, as well as enterprises. Plover Bay Technologies Limited was founded in 2006 and is headquartered in Lai Chi Kok, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:43
End of Day Share Price2020/07/03 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.