SEHK:1613

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Synertone Communication

Executive Summary

Synertone Communication Corporation engages in the design, research and development, production, and sale of automation control and intelligent building systems in the People’s Republic of China and internationally.


Snowflake Analysis

Excellent 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

Stable Share Price: 1613's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

1613

2.2%

HK Communications

-1.2%

HK Market


1 Year Return

36.4%

1613

48.4%

HK Communications

7.1%

HK Market

Return vs Industry: 1613 underperformed the Hong Kong Communications industry which returned 52.1% over the past year.

Return vs Market: 1613 exceeded the Hong Kong Market which returned 5.5% over the past year.


Shareholder returns

1613IndustryMarket
7 Day-1.1%2.2%-1.2%
30 Day-4.3%13.2%-2.8%
90 Day-25.0%25.8%7.1%
1 Year36.4%36.4%51.7%48.4%11.5%7.1%
3 Year-29.1%-29.1%10.2%1.1%1.8%-9.1%
5 Year-87.3%-90.6%66.3%44.0%13.8%-5.2%

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?

2.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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 HK 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

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 (2.8x) compared to the HK Communications industry average (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?

14.2%

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?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1613 is currently unprofitable.

Growing Profit Margin: 1613 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1613 is unprofitable, but has reduced losses over the past 5 years at a rate of 9.2% 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 (-24.2%).


Return on Equity

High ROE: 1613 has a negative Return on Equity (-19.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Synertone Communication's financial position?


Financial Position Analysis

Short Term Liabilities: 1613's short term assets (HK$198.3M) exceed its short term liabilities (HK$121.2M).

Long Term Liabilities: 1613's short term assets (HK$198.3M) exceed its long term liabilities (HK$1.9M).


Debt to Equity History and Analysis

Debt Level: 1613's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: 1613's debt to equity ratio has increased from 8.5% to 38.2% over the past 5 years.


Balance Sheet


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 1613 has sufficient cash runway for 1.8 years if free cash flow continues to reduce at historical rates of 14.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

7.3yrs

Average board tenure


CEO

Weining Han (58 yo)

5.17yrs

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 is also a Director of Certain Su ...


CEO Compensation Analysis

Compensation vs Market: Weining's total compensation ($USD234.57K) is about average for companies of similar size in the Hong Kong market ($USD230.83K).

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


Board Members

NamePositionTenureCompensationOwnership
Weining Han
CEO & Executive Director5.17yrsHK$1.82m23.94%
HK$ 111.2m
Ying Hung Lam
Independent Non-Executive Director9.5yrsHK$100.00kno data
Mingqi Li
Independent Non-Executive Director3.83yrsHK$105.00kno data
Chen Wang
Independent Non-Executive Director5.17yrsHK$100.00kno data

7.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1613's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 1613 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20%.


Top Shareholders

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$464.563m
  • Shares outstanding: 1.03b
  • 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
S0Y2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2012

Biography

Synertone Communication Corporation engages in the design, research and development, production, and sale of automation control and intelligent building systems in the People’s Republic of China and intern ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 12:51
End of Day Share Price2020/08/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.