SEHK:1639

Stock Analysis Report

Executive Summary

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 and internationally.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.

Risks

  • AKM Industrial is not covered by any analysts.

Share Price & News

How has AKM Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

SEHK:1639

2.0%

HK Electronic

0.7%

HK Market


1 Year Return

10.1%

SEHK:1639

-12.8%

HK Electronic

-5.3%

HK Market

1639 outperformed the Electronic industry which returned -9.4% over the past year.

1639 outperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

1639IndustryMarket
7 Day0%2.0%0.7%
30 Day11.1%10.5%4.9%
90 Day1.7%5.6%-3.7%
1 Year11.0%10.1%-10.1%-12.8%-1.8%-5.3%
3 Year89.2%79.1%-4.2%-11.4%16.4%4.6%
5 Year7.4%1.7%38.1%20.8%18.0%-1.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AKM Industrial undervalued based on future cash flows and its price relative to the stock market?

39.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

AKM Industrial's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

AKM Industrial's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

AKM Industrial is overvalued based on earnings compared to the HK Electronic industry average.

AKM Industrial is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for AKM Industrial, we can't assess if its growth is good value.


Price Based on Value of Assets

AKM Industrial is overvalued based on assets compared to the HK Electronic industry average.


Next Steps

Future Growth

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

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if AKM Industrial is high growth as no revenue estimate data is available.

AKM Industrial's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).

Unable to compare AKM Industrial's revenue growth to the Hong Kong market average as no estimate data is available.

AKM Industrial's earnings growth is expected to exceed the Hong Kong market average.

AKM Industrial's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if AKM Industrial will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has AKM Industrial performed over the past 5 years?

31.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AKM Industrial has delivered over 20% year on year earnings growth in the past 5 years.

AKM Industrial's 1-year earnings growth is negative, it can't be compared to the 5-year average.

AKM Industrial's 1-year earnings growth is negative, it can't be compared to the HK Electronic industry average.


Return on Equity

AKM Industrial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AKM Industrial used its assets less efficiently than the HK Electronic industry average last year based on Return on Assets.


Return on Capital Employed

AKM Industrial has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is AKM Industrial's financial position?


Financial Position Analysis

AKM Industrial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AKM Industrial's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AKM Industrial has no debt.

AKM Industrial has no debt compared to 5 years ago when it was 20%.

AKM Industrial has no debt, it does not need to be covered by operating cash flow.

AKM Industrial has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

AKM Industrial has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield and Payments Analysis

AKM Industrial's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

AKM Industrial's dividend is below the markets top 25% of dividend payers in Hong Kong (6.08%).

AKM Industrial is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

AKM Industrial is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of AKM Industrial's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of AKM Industrial's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Zhi Qiang Chai (58yo)

15.5yrs

Tenure

HK$1,222,000

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

Zhi Qiang's remuneration is lower than average for companies of similar size in Hong Kong.

Zhi Qiang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

3.3yrs

Average Tenure

48yo

Average Age

The tenure for the AKM Industrial board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Zheng Feng Xiong (49yo)

    Executive Chairman

    • Tenure: 18.5yrs
  • Zhi Qiang Chai (58yo)

    Chief Executive Officer

    • Tenure: 15.5yrs
    • Compensation: HK$1.22m
  • Da Shu Li (55yo)

    Chief Engineer and Head of Research & Development

    • Tenure: 0yrs
  • Ching Yuen Hung (39yo)

    Company Secretary

    • Tenure: 8.3yrs

Board Members

  • Zheng Feng Xiong (49yo)

    Executive Chairman

    • Tenure: 18.5yrs
  • Andrew Hung (50yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: HK$60.00k
  • Xiaoguang Gao (43yo)

    Non-Executive Director

    • Tenure: 4.5yrs
  • Junan Jia (48yo)

    Non-Executive Director

    • Tenure: 3.8yrs
  • Zheng Cui (64yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$72.00k
  • Zhaoguo Yang (47yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$45.00k
  • Chunsheng Wang (44yo)

    Non-Executive Director

    • Tenure: 1.7yrs
  • Xiaoming Zhang (40yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • Daochun Yu (51yo)

    Non Executive Director

    • Tenure: 0.8yrs

Company Information

AKM Industrial Company Limited's company bio, 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$1.815b
  • Shares outstanding: 1.54b
  • Website: https://www.akmcompany.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1639SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2004

Biography

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 Chin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 12:33
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.