company background image
1639

AKM IndustrialSEHK:1639 Stock Report

Market Cap

HK$1.8b

7D

-5.9%

1Y

15.5%

Updated

26 Oct, 2021

Data

Company Financials
1639 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends1/6

1639 Overview

AKM Industrial Company Limited, an investment holding company, manufactures and sells flexible printed circuits (FPC), flexible packaging substrates, and related components in the People’s Republic of China, Hong Kong, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for AKM Industrial
Historical stock prices
Current Share PriceHK$1.12
52 Week HighHK$0.80
52 Week LowHK$1.52
Beta0.81
1 Month Change14.29%
3 Month Change20.43%
1 Year Change15.46%
3 Year Change9.80%
5 Year Change77.78%
Change since IPO187.18%

Recent News & Updates

Oct 11
I Built A List Of Growing Companies And AKM Industrial (HKG:1639) Made The Cut

I Built A List Of Growing Companies And AKM Industrial (HKG:1639) Made The Cut

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 24
The Return Trends At AKM Industrial (HKG:1639) Look Promising

The Return Trends At AKM Industrial (HKG:1639) Look Promising

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

1639HK ElectronicHK Market
7D-5.9%-1.1%0.4%
1Y15.5%28.2%6.7%

Return vs Industry: 1639 underperformed the Hong Kong Electronic industry which returned 28.2% over the past year.

Return vs Market: 1639 exceeded the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 1639's price volatile compared to industry and market?
1639 volatility
1639 Beta0.81
Industry Beta1.01
Market Beta1

Stable Share Price: 1639 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: 1639's weekly volatility has increased from 9% to 15% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19931,653Zhi Qiang Chaihttps://www.akmcompany.com

AKM Industrial Company Limited, an investment holding company, manufactures and sells flexible printed circuits (FPC), flexible packaging substrates, and related components in the People’s Republic of China, Hong Kong, and internationally. The company also sources and sells electronic components, raw materials, and equipment; trades in FPCs and related products; and develops new energy car electronics module products. It provides its products to manufacturers of wearable products, optical camera modules, and display modules.

AKM Industrial Fundamentals Summary

How do AKM Industrial's earnings and revenue compare to its market cap?
1639 fundamental statistics
Market CapHK$1.78b
Earnings (TTM)HK$125.21m
Revenue (TTM)HK$2.03b

13.8x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1639 income statement (TTM)
RevenueHK$2.03b
Cost of RevenueHK$1.77b
Gross ProfitHK$263.89m
ExpensesHK$138.68m
EarningsHK$125.21m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.081
Gross Margin13.00%
Net Profit Margin6.17%
Debt/Equity Ratio13.0%

How did 1639 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

18%

Payout Ratio

Valuation

Is AKM Industrial 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: 1639 (HK$1.12) is trading below our estimate of fair value (HK$8.25)

Significantly Below Fair Value: 1639 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1639 is poor value based on its PE Ratio (13.8x) compared to the Hong Kong Electronic industry average (8.8x).

PE vs Market: 1639 is poor value based on its PE Ratio (13.8x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1639's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1639 is overvalued based on its PB Ratio (1.2x) compared to the HK Electronic industry average (0.8x).


Future Growth

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

19.3%

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 AKM Industrial 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.


Past Performance

How has AKM Industrial performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1639 has high quality earnings.

Growing Profit Margin: 1639's current net profit margins (6.2%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 1639 has become profitable over the past 5 years, growing earnings by 28.1% per year.

Accelerating Growth: 1639's earnings growth over the past year (8.8%) is below its 5-year average (28.1% per year).

Earnings vs Industry: 1639 earnings growth over the past year (8.8%) underperformed the Electronic industry 50.5%.


Return on Equity

High ROE: 1639's Return on Equity (8.2%) is considered low.


Financial Health

How is AKM Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: 1639's short term assets (HK$1.0B) exceed its short term liabilities (HK$877.4M).

Long Term Liabilities: 1639's short term assets (HK$1.0B) exceed its long term liabilities (HK$87.2M).


Debt to Equity History and Analysis

Debt Level: 1639's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: 1639's debt to equity ratio has reduced from 30.6% to 13% over the past 5 years.

Debt Coverage: 1639's debt is well covered by operating cash flow (184.2%).

Interest Coverage: 1639's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

What is AKM Industrial current dividend yield, its reliability and sustainability?

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1639's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 1639's dividend (1.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: 1639 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1639's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.7%), 1639's dividend payments are 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?

5.4yrs

Average board tenure


CEO

Zhi Qiang Chai (60 yo)

17.58yrs

Tenure

HK$1,267,000

Compensation

Mr. Zhi Qiang Chai has been the Chief Executive Officer at Akm Industrial Co. Ltd. since March 19, 2004 and served as its and General Manager. From February 1982 to September 1992, Mr. Chai was employed by...


CEO Compensation Analysis

Compensation vs Market: Zhi Qiang's total compensation ($USD162.98K) is below average for companies of similar size in the Hong Kong market ($USD290.41K).

Compensation vs Earnings: Zhi Qiang's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 1639's board of directors are considered experienced (5.4 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

AKM Industrial Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: AKM Industrial Company Limited
  • Ticker: 1639
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: HK$1.784b
  • Shares outstanding: 1.54b
  • Website: https://www.akmcompany.com

Number of Employees


Location

  • AKM Industrial Company Limited
  • Information Technology Park
  • 63 Huan Shi Road South
  • Guangzhou
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 10:04
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.