SEHK:1613

Stock Analysis Report

Synertone Communication

Executive Summary

Synertone Communication Corporation researches and develops, designs, manufactures, trades, and sells specialized communication systems, equipment, and systems technologies in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Synertone Communication's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

1613

-1.7%

HK Communications

0.9%

HK Market


1 Year Return

-37.7%

1613

-13.2%

HK Communications

0.6%

HK Market

Return vs Industry: 1613 underperformed the Hong Kong Communications industry which returned -13.2% over the past year.

Return vs Market: 1613 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1613IndustryMarket
7 Day2.9%-1.7%0.9%
30 Day-20.2%-8.3%0.4%
90 Day1.4%-6.9%-5.5%
1 Year-37.7%-37.7%-10.0%-13.2%4.2%0.6%
3 Year-61.4%-61.4%-5.0%-12.4%15.5%3.9%
5 Year-97.7%-98.3%-23.5%-20.3%19.9%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Synertone Communication undervalued compared to its fair value and its price relative to the market?

2.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 1613's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 1613's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1613 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 1613 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1613's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1613 is overvalued based on its PB Ratio (2.3x) compared to the HK Communications industry average (1.1x).


Next Steps

Future Growth

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

17.4%

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 Synertone Communication 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 Synertone Communication performed over the past 5 years?

-38.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1613 is unprofitable, and losses have increased over the past 5 years at a rate of -38% per year.

Accelerating Growth: Unable to compare 1613's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1613 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-14.9%).


Return on Equity

High ROE: 1613 has a negative Return on Equity (-94.62%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1613 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1613 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Synertone Communication's financial position?


Financial Position Analysis

Short Term Liabilities: 1613's short term assets (HK$183.8M) exceeds its short term liabilities (HK$162.4M)

Long Term Liabilities: 1613's short term assets (183.8M) exceeds its long term liabilities (3.8M)


Debt to Equity History and Analysis

Debt Level: 1613's debt to equity ratio (74.8%) is considered high

Reducing Debt: 1613's debt to equity ratio has increased from 5.3% to 74.8% over the past 5 years.


Balance Sheet

Inventory Level: 1613 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1613's debt is covered by short term assets (assets are 1.763870x 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: 1613 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1613 has less than a year of cash runway if free cash flow continues to grow at historical rates of 50.3% each year.


Next Steps

Dividend

What is Synertone Communication's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1613's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1613's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1613's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1613's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1613 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 1613'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 Synertone Communication's salary, the management and board of directors tenure and is there insider trading?

7.6yrs

Average board tenure


CEO

Weining Han (57yo)

4.3yrs

Tenure

HK$1,818,000

Compensation

Mr. Weining Han has been Chief Executive Officer of Synertone Communication Corporation since June 25, 2015 and has been its Executive Director since February 2011. Mr. Han worked at Citect Corporation Lim ...


CEO Compensation Analysis

Compensation vs. Market: Weining's total compensation ($USD231.82K) is about average for companies of similar size in the Hong Kong market ($USD212.49K).

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


Board Age and Tenure

7.6yrs

Average Tenure

55yo

Average Age

Experienced Board: 1613's board of directors are considered experienced (7.6 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

  • Weining Han (57yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$1.82m
  • Chit On Wong (60yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: HK$3.98m
  • Jie He

    Chief Technical Officer

    • Tenure: 0yrs
  • Zhiwen Fan (50yo)

    COO & VP of Operation

    • Tenure: 0yrs
  • Jun Xiang

    Vice-President of Marketing and Sales

    • Tenure: 0yrs
  • Jinbu Ma (47yo)

    General Manager of Administration & Human Resources Management Centre

    • Tenure: 0yrs
  • Po Yuk Kwan

    Chief Officer of Accounting for The Hong Kong Subsidiaries of The Group

    • Tenure: 0yrs
  • Lim Ching Lee

    Chief Officer of Logistics and Operation for The Hong Kong Subsidiaries of The Group

    • Tenure: 0yrs
  • He Jiafu (48yo)

    Chief Engineer

    • Tenure: 0yrs
  • Zhiyong Chen (48yo)

    Deputy General Manager of Finance and Accounts Department

    • Tenure: 0yrs

Board Members

  • Andy Lam (55yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: HK$100.00k
  • Weining Han (57yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$1.82m
  • Chit On Wong (60yo)

    Chairman

    • Tenure: 7.6yrs
    • Compensation: HK$3.98m
  • Ming Qi Li (51yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: HK$105.00k
  • Chen Wang (54yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$100.00k

Company Information

Synertone Communication Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Synertone Communication Corporation
  • Ticker: 1613
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$305.429m
  • Shares outstanding: 4.30b
  • Website: https://www.synertone.net

Number of Employees


Location

  • Synertone Communication Corporation
  • Tsim Sha Tsui Centre
  • 10th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1613SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2012
S0Y1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2012

Biography

Synertone Communication Corporation researches and develops, designs, manufactures, trades, and sells specialized communication systems, equipment, and systems technologies in the People’s Republic of Chin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:44
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
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.