Upcoming Dividend • May 20
Upcoming dividend of HK$0.015 per share Eligible shareholders must have bought the stock before 27 May 2022. Payment date: 17 June 2022. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Hong Kong dividend payers (7.8%). Lower than average of industry peers (5.2%). Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Non-Executive Director Guo Qi Zhang was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 15
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: HK$0.085 (up from HK$0.078 in FY 2020). Revenue: HK$2.36b (up 41% from FY 2020). Net income: HK$130.5m (up 9.4% from FY 2020). Profit margin: 5.5% (down from 7.1% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Mar 03
AKM Industrial Company Limited to Report Fiscal Year 2021 Results on Mar 14, 2022 AKM Industrial Company Limited announced that they will report fiscal year 2021 results on Mar 14, 2022 Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment deteriorated over the past week After last week's 19% share price decline to HK$1.24, the stock trades at a trailing P/E ratio of 15.2x. Average trailing P/E is 8x in the Electronic industry in Hong Kong. Total returns to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 16% share price gain to HK$1.67, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 8x in the Electronic industry in Hong Kong. Total returns to shareholders of 56% over the past three years. Recent Insider Transactions • Nov 11
Chief Executive Officer recently sold HK$7.3m worth of stock On the 10th of November, Zhi Qiang Chai sold around 4m shares on-market at roughly HK$1.63 per share. This was the largest sale by an insider in the last 3 months. This was Zhi Qiang's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment improved over the past week After last week's 20% share price gain to HK$1.34, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 8x in the Electronic industry in Hong Kong. Total returns to shareholders of 31% over the past three years. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improved over the past week After last week's 35% share price gain to HK$1.19, the stock trades at a trailing P/E ratio of 14.6x. Average trailing P/E is 10x in the Electronic industry in Hong Kong. Total returns to shareholders of 31% over the past three years. Reported Earnings • Aug 15
First half 2021 earnings released: EPS HK$0.007 (vs HK$0.003 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: HK$1.02b (up 53% from 1H 2020). Net income: HK$11.2m (up 109% from 1H 2020). Profit margin: 1.1% (up from 0.8% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 24
Upcoming dividend of HK$0.015 per share Eligible shareholders must have bought the stock before 31 May 2021. Payment date: 18 June 2021. Trailing yield: 1.5%. Lower than top quartile of Hong Kong dividend payers (6.0%). Lower than average of industry peers (4.1%). Reported Earnings • Apr 25
Full year 2020 earnings released: EPS HK$0.078 (vs HK$0.077 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: HK$1.68b (up 14% from FY 2019). Net income: HK$119.4m (up 1.4% from FY 2019). Profit margin: 7.1% (down from 8.0% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 24
Full year 2020 earnings released: EPS HK$7.79 (vs HK$0.077 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: HK$1.68b (up 14% from FY 2019). Net income: HK$119.4m (up 1.4% from FY 2019). Profit margin: 7.1% (down from 8.0% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 183% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Mar 12
AKM Industrial Company Limited to Report Fiscal Year 2020 Results on Mar 23, 2021 AKM Industrial Company Limited announced that they will report fiscal year 2020 results on Mar 23, 2021 Is New 90 Day High Low • Feb 10
New 90-day high: HK$1.10 The company is up 15% from its price of HK$0.96 on 12 November 2020. The Hong Kong market is up 14% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electronic industry, which is up 28% over the same period. Is New 90 Day High Low • Jan 18
New 90-day high: HK$1.08 The company is up 9.0% from its price of HK$0.99 on 20 October 2020. The Hong Kong market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 21% over the same period. Valuation Update With 7 Day Price Move • Dec 31
Investor sentiment improved over the past week After last week's 17% share price gain to HK$1.05, the stock is trading at a trailing P/E ratio of 14x, up from the previous P/E ratio of 12x. This compares to an average P/E of 13x in the Electronic industry in Hong Kong. Total return to shareholders over the past three years is a loss of 43%. Is New 90 Day High Low • Dec 31
New 90-day high: HK$1.05 The company is up 1.0% from its price of HK$1.04 on 30 September 2020. The Hong Kong market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 19% over the same period. Announcement • Dec 23
AKM Industrial Company Limited Announces Appointment of Zhang Guo Qi as an Independent Non-Executive Director, the Chairman of the Remuneration Committee, A Member of the Audit Committee and A Member of the Nomination Committee The board of directors of AKM Industrial Company Limited announces that Mr. Zhang Guo Qi ("Mr. Zhang") has been appointed as an independent non-executive Director, the chairman of the remuneration committee, a member of the audit committee and a member of the nomination committee of the Company with effect from 21 December 2020. Mr. Zhang, aged 61, received his doctorate degree in aerospace engineering from the Delft University of Technology and is currently chair professor of Center for Micro/Nanoelectronics System Integration and Reliability at the Delft University of Technology. Mr. Zhang is a Fellow of the Institute of Electrical and Electronics Engineers (IEEE) since 2014. He is currently the Secretary General of the International Technology Roadmap of Wide Bandgap Semiconductors (ITRW), and also a Co-Chair of the Advisory Board of International Solid State Lighting Alliance (ISA) since 2010. Mr. Zhang is also honorary professor of the Institute of Semiconductors, Chinese Academy of Sciences. Mr. Zhang received the Outstanding Sustained Technical Contribution Award from the IEEE Electronics
Packaging Society (formerly known as IEEE Components, Packaging, and Manufacturing Technology Society) in 2015, the Special Achievement Award for Electronic Packaging Technologies from the Electronic Manufacturing and Packaging Technology Society of Chinese Institute of Electronics (CIE- EMPT) in 2009, the Excellent Leadership Award in simulation and modeling of micro/nanoelectronics and systems from International Conference on Thermal, Mechanical and Multi-Physics Simulation and Experiments in Microelectronics and Microsystems (EuroSimE) in 2009, and Outstanding Contributions to Reliability Research Award from the European Center for Micro- and Nanoreliability in 2007. Mr. Zhang is appointed as an independent non-executive Director on 21 December 2020. Pursuant to his appointment confirmation dated 21 December 2020, Mr. Zhang is entitled to receive a fee of HKD 100,000 per annum which is determined with reference to his experience and estimated time to be spent, which may be reviewed upwards or downloads in January of each year. Mr. Zhang's appointment is for a term of 3 years commenced from 21 December 2020 and expiring on 20 December 2023 which term may be terminated by either Mr. Zhang or the Company serving at least three calendar months' prior notice in writing to the other party. Is New 90 Day High Low • Nov 10
New 90-day low: HK$0.95 The company is down 5.0% from its price of HK$1.00 on 12 August 2020. The Hong Kong market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 1.0% over the same period. Announcement • Sep 24
AKM Industrial Company Limited Announces Resignation of Yang Zhaoguo as Independent Non-Executive Director, Chairman of Remuneration Committee, Member of Audit Committee and Member of Nomination Committee The board of directors of AKM Industrial Company Limited announced that Mr. Yang Zhaoguo has tendered his resignation as an independent non-executive Director, the chairman of the remuneration committee, a member of the audit committee and a member of the nomination committee of the Company with effect from 23 September 2020 due to his other business commitments. Announcement • Aug 01
AKM Industrial Company Limited to Report First Half, 2020 Results on Aug 12, 2020 AKM Industrial Company Limited announced that they will report first half, 2020 results on Aug 12, 2020