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.

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%

1639

2.4%

HK Electronic

3.1%

HK Market


1 Year Return

15.0%

1639

-2.7%

HK Electronic

0.5%

HK Market

Return vs Industry: 1639 exceeded the Hong Kong Electronic industry which returned -2.7% over the past year.

Return vs Market: 1639 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1639IndustryMarket
7 Day0%2.4%3.1%
30 Day-4.2%-2.1%-1.8%
90 Day-2.5%3.8%-4.8%
1 Year16.0%15.0%0.6%-2.7%4.1%0.5%
3 Year99.1%88.5%-2.1%-9.8%15.8%4.2%
5 Year0.4%-5.0%50.6%30.9%18.9%-0.9%

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 compared to its fair value and its price relative to the market?

38.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 1639 (HK$1.15) is trading above our estimate of fair value (HK$0.13)

Significantly Undervalued: 1639 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1639 is poor value based on its PE Ratio (38.3x) compared to the Electronic industry average (8.7x).

PE vs Market: 1639 is poor value based on its PE Ratio (38.3x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low 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 (1.5x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is AKM Industrial forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1639's forecast earnings growth (17.4% per year) is above the savings rate (2%).

Earnings vs Market: 1639's earnings (17.4% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

High Growth Earnings: 1639's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1639's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1639's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1639's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: 1639's earnings have grown significantly by 31.7% per year over the past 5 years.

Accelerating Growth: 1639's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1639 had negative earnings growth (-46.6%) over the past year, making it difficult to compare to the Electronic industry average (-12.9%).


Return on Equity

High ROE: 1639's Return on Equity (3.9%) is considered low.


Return on Assets

ROA vs Industry: 1639's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 1639's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AKM Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: 1639's short term assets (HK$738.9M) exceeds its short term liabilities (HK$429.9M)

Long Term Liabilities: 1639's short term assets (738.9M) exceeds its long term liabilities (50.9M)


Debt to Equity History and Analysis

Debt Level: 1639 is debt free.

Reducing Debt: 1639 has no debt compared to 5 years ago when its debt to equity ratio was 20%.

Debt Coverage: 1639 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1639 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1639 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1639's debt is covered by short term assets.


Next Steps

Dividend

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

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.3%markettop25%6.3%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1639's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1639's dividend (0.87%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1639 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1639 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1639 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 1639'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 AKM Industrial's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average board tenure


CEO

Zhi Qiang Chai (58yo)

15.6yrs

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

Compensation vs. Market: Zhi Qiang's total compensation ($USD155.77K) is below average for companies of similar size in the Hong Kong market ($USD287.08K).

Compensation vs Earnings: 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

3.4yrs

Average Tenure

48yo

Average Age

Experienced Board: 1639's board of directors are considered experienced (3.4 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

  • Zheng Feng Xiong (49yo)

    Executive Chairman

    • Tenure: 18.6yrs
  • Zhi Qiang Chai (58yo)

    Chief Executive Officer

    • Tenure: 15.6yrs
    • 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: 18.6yrs
  • Andrew Hung (50yo)

    Independent Non-Executive Director

    • Tenure: 8yrs
    • Compensation: HK$60.00k
  • Xiaoguang Gao (43yo)

    Non-Executive Director

    • Tenure: 4.6yrs
  • Junan Jia (48yo)

    Non-Executive Director

    • Tenure: 3.9yrs
  • Zheng Cui (64yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: HK$72.00k
  • Zhaoguo Yang (47yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: HK$45.00k
  • Chunsheng Wang (44yo)

    Non-Executive Director

    • Tenure: 1.8yrs
  • Xiaoming Zhang (40yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Daochun Yu (51yo)

    Non Executive Director

    • Tenure: 0.9yrs

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$1.769b
  • 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 Analysis2019/10/17 12:32
End of Day Share Price2019/10/17 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.