SEHK:1639

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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, Hong Kong, and internationally.

Rewards

Earnings grew by 69.8% over the past year

Risk Analysis

No risks detected for 1639 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1639 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.0%

1639

1.9%

HK Electronic

1.4%

HK Market


1 Year Return

12.6%

1639

18.1%

HK Electronic

3.1%

HK Market

Return vs Industry: 1639 underperformed the Hong Kong Electronic industry which returned 18.9% over the past year.

Return vs Market: 1639 exceeded the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

1639IndustryMarket
7 Day16.0%1.9%1.4%
30 Day27.5%3.3%-0.8%
90 Day23.4%23.7%8.8%
1 Year13.8%12.6%22.0%18.1%7.4%3.1%
3 Year-6.9%-9.4%-16.5%-23.6%-0.2%-10.9%
5 Year5.0%-1.7%33.9%15.3%8.9%-9.3%

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?

15.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1639 (HK$1.16) is trading above our estimate of fair value (HK$0.1)

Significantly Below Fair Value: 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 (15.2x) compared to the HK Electronic industry average (11x).

PE vs Market: 1639 is poor value based on its PE Ratio (15.2x) compared to the Hong Kong market (10.3x).


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 (1.4x) compared to the HK Electronic industry average (0.8x).


Next Steps

Future Growth

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

19.6%

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.


Next Steps

Past Performance

How has AKM Industrial performed over the past 5 years?

36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1639 has high quality earnings.

Growing Profit Margin: 1639's current net profit margins (8%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 1639's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: 1639's earnings growth over the past year (69.8%) exceeds its 5-year average (36.6% per year).

Earnings vs Industry: 1639 earnings growth over the past year (69.8%) exceeded the Electronic industry -10.8%.


Return on Equity

High ROE: 1639's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is AKM Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: 1639's short term assets (HK$926.1M) exceed its short term liabilities (HK$529.7M).

Long Term Liabilities: 1639's short term assets (HK$926.1M) exceed its long term liabilities (HK$52.2M).


Debt to Equity History and Analysis

Debt Level: 1639's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 1639's debt to equity ratio has reduced from 17.7% to 3.1% over the past 5 years.

Debt Coverage: 1639's debt is well covered by operating cash flow (241.1%).

Interest Coverage: 1639 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1639's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1639's dividend (0.86%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

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

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

4.3yrs

Average board tenure


CEO

Zhi Qiang Chai (59 yo)

16.42yrs

Tenure

HK$1,023,000

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 ($USD132.00K) is below average for companies of similar size in the Hong Kong market ($USD280.14K).

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


Board Members

NamePositionTenureCompensationOwnership
Zheng Feng Xiong
Executive Chairman19.42yrsno data0.61%
HK$ 9.8m
Chi Yuen Hung
Independent Non-Executive Director8.83yrsHK$60.00kno data
Jianzhen Liu
Non-Executive Director0.17yrno datano data
Xiaoguang Gao
Non-Executive Director5.42yrsno datano data
Jinan Jia
Non-Executive Director4.75yrsno datano data
Zheng Cui
Independent Non-Executive Director4.25yrsHK$72.00kno data
Zhaoguo Yang
Independent Non-Executive Director2.25yrsHK$72.00kno data
Chunsheng Wang
Non-Executive Director2.58yrsno datano data
Xiaoming Zhang
Non-Executive Director2yrsno datano data

4.3yrs

Average Tenure

49yo

Average Age

Experienced Board: 1639's board of directors are considered experienced (4.3 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 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$1.600b
  • Shares outstanding: 1.54b
  • Website: https://www.akmcompany.com

Number of Employees


Location

  • AKM Industrial Company Limited
  • West Tower
  • 27th Floor, Rooms 2708-11
  • Central
  • Hong Kong

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 Analysis2020/08/03 12:49
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.